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A step closer to a food and grocery code of conduct

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THE HON DR SHARMAN STONE MP Federal Member for Murray

Tuesday 19th November 2013

A Step Closer to a Food and Grocery Code of Conduct

“The Coalition Government has taken a step closer to securing a voluntary supermarket industry code of conduct, with Coles, Woolworths and the Food and Grocery Council.”

“A new level of collaboration between grocery retailers and suppliers is a sure move to get the best outcome for all involved in the food and grocery industry. The release of the draft Food and Grocery Code of Conduct will build stronger relationships between retailers and suppliers,” the Federal Member for Murray Dr Sharman Stone said.

“There are many large food and grocery suppliers around the electorate of Murray, the proposed draft plan will ensure suppliers will get fair prices for their produce, and competitiveness in the grocery sector will be improved by boosting productivity, innovation and investments.”

“Coles and Woolworths own a vast majority of the market share in the grocery sector; this can sometimes lead to exploitation of suppliers prices. With the proposed code of conduct all businesses in the grocery sector will become regulated, which will be good for the economy, good for the supplier and good for the consumer,” Sharman Stone said.

“The code will give suppliers a fair go when it comes to shrinkage and wastage payments. Shrinkage is where supplies are lost, stolen or unaccounted for when they are in possession of the retailer. Wastage is where supplies become damaged and unable to be sold when they are in the possession of the retailer. The code will ensure that suppliers will no longer have to make shrinkage or wastage payments to a retailer when the retailer is at fault.”

“The code will be fantastic for the region giving more power back to suppliers and not let them be bullied by the big supermarket chains. It gives a better chance for small grocery businesses to be more competitive in the grocery market and it will give a fair go to all involved in the food and grocery industry,” Sharman Stone said.

Media Contact: Callum Whitehead 0437 096 982