Member Matters

Food and Grocery Code of Conduct to be remade mandatory

8 July 2024

In late June, Treasury released its final report from the Food and Grocery Code of Conduct (the Code) review led by The Hon Dr Craig Emerson. Eleven recommendations were outlined in the report, with all accepted by the Government on the same day as the report was released.  

Most of the recommendations focus on the administration and governance of the Code. Of significance, it will become mandatory for supermarkets with a turnover of greater than $5 billion and it will contain strong penalties of up to 10 per cent of retail turnover for major breaches. The AFGC is disappointed to report no improvements have been considered for the specific and targeted provisions used by industry with their trading partners e.g., range reviews, delisting or price increases. More work needs to be done to ensure real improvements to these clauses that could strengthen their use and make a tangible difference to supplier protections. The detailed drafting process will commence shortly and will be critical to ensure the Code remains fit for purpose.

For more information, please contact the AFGC.