Agriculture and Agri-Food

The House of Commons Standing Committee on Agriculture and Agri-Food met on November 20, 2025, to continue its study on the implementation of the grocery code of conduct. Witnesses included Pietro Nenci from Costco Wholesale Canada Ltd., Rob Allsop from Empire Company Limited, Rhonda Maines-Corrado from Wal-Mart Canada Corp., and Karen Proud, President and Adjudicator of the Office of the Grocery Sector Code of Conduct.

Pietro Nenci stated that Costco supports the principles of the code—transparency, certainty, and fair dealing—and plans to sign once governance details are finalized and approved by its board. He emphasized that the code was not designed to lower food prices, as pricing is driven by factors like commodity costs, currency, labour, and transportation, not by the code itself.

Rob Allsop highlighted that Empire was the first major retailer to sign the code in July 2025, having championed it from the start. He noted that Sobeys has reviewed policies, created a master framework agreement, and developed a supplier resource centre to enhance transparency, but agreed with other witnesses that the code will not directly reduce consumer prices, though it may reduce frictional costs over time.

Rhonda Maines-Corrado confirmed that Walmart intends to sign the code once all outstanding documents are finalized, likely by January 1, 2026. She stated that the code will not impact pricing, as it focuses on fairness and transparency in retailer-supplier relationships, and that Walmart has not changed its annual negotiation timing or practices in anticipation of the code.

Karen Proud reported that the dispute resolution management process is in final draft form and on track for implementation on January 1, 2026. She emphasized that the office offers confidential and systemic pathways for raising concerns, distinct from formal arbitration, and that associations can bring issues to the office on behalf of members. She disagreed with the suggestion that associations should be members of the code, noting the code applies only to retailers and suppliers, and clarified that an email sent to producers was misconstrued, as it was a request for consultation, not a breach of impartiality.

During questioning, members raised concerns about government claims that the code would lower food prices, with witnesses consistently stating it was not intended for that purpose. Dave Epp asked about allegations of retailers changing negotiation timing ahead of the code; Maines-Corrado said she was unaware of such changes at Walmart, while Proud noted she had heard anecdotal concerns and would address them through education and engagement. Yves Perron proposed a separate price monitoring body, but Allsop warned it could slow industry decision-making, and Maines-Corrado said the voluntary code should be given a chance first. Marianne Dandurand questioned Proud on whether associations can be members under the code’s bylaws, leading to a brief debate; Proud maintained associations cannot be members, though the bylaw text was cited as ambiguous, and she offered to provide a written explanation. No procedural motions or votes occurred during the meeting.