Stronger protections for suppliers a positive step in Code report

24 June 2024

The peak body for food and grocery manufacturers welcomes the Food and Grocery Code of Conduct Review’s recognition of the fear of retribution and measures to address this is a positive step forward for suppliers.  

The Australian Food and Grocery Council (AFGC) supports a Code that can resolve disputes between suppliers and retailers in a fast, flexible, low-cost and confidential manner.  

It is a positive step that fear of retribution from suppliers, which can become a major hurdle to reporting and following through with complaints of bad behaviour, was addressed by the review. AFGC will continue to engage government and other stakeholders as the renewed Code is finalised to ensure the changes protect suppliers. 

“Fear of retribution is a real among suppliers. Suppliers take an enormous risk in raising complaints and the significance of the relationship between retailers and suppliers calls for a Code with teeth,” AFGC CEO Tanya Barden said.  

“We are hopeful a revitalised Code will achieve the aim of trust, transparency and certainty in the trading relationship between suppliers and retailers.” 

The Code seeks to ensure that value and risks are shared across the value chain. Specific clauses that address details of the complex relationship between retailers and suppliers have not yet been finalised by this review and the AFGC will continue to engage on these vital components.   

AFGC is encouraged that supermarkets have agreed in-principle to compensation for small suppliers up to $5 million, and the support the retailers have given the review process.  

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