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Australia: New grocery code of conduct takes force

By  |  March 2, 2015

After years of tension between farmers and supermarkets over produce supply contracts, the federal government has announced a voluntary code to govern the relationship.

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    The code, which formalises interactions between supermarkets, wholesalers and suppliers, will come into effect on Tuesday.

    Farmers and other suppliers have long complained about being squeezed by supermarket contracts, particularly by the imposition of marketing fees or levies.

    The food and grocery code of conduct will ensure that supply agreements are made in writing, and that minimum standards of behaviour are adhered to. It will include a new reasonableness test for proposals to vary supply chain agreements, and formalise a process for resolving disputes.

    Agreements that have broken down will be taken to the Australian Competition and Consumer Commission.

     

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