Would a grocery code of conduct really rein in food prices? Ontario's Green Party thinks so

With food prices continuing to soar, the Green Party of Ontario is pitching a grocery code of conduct as a way of making everyday items more affordable. 

A grocery code of conduct tends to include language around how grocery chains interact with suppliers and what costs they can pass back to those suppliers. 

Details on the Green Party's plan are slim, but the idea isn't new; both the United Kingdom and Australia have voluntary codes of conduct, adopted in 2009 and 2015, respectively.

In a press release, the party said a code of conduct would "protect farmers, local food producers and consumers." CBC News asked the party for more details on what its code of conduct would look like but a response has not yet provided.

If it's similar to codes of conducts elsewhere, University of Guelph food economist Mike von Massow says it's possible the idea could have merit in Canada, but it's unlikely to provide the relief many are hoping to see.

"It is not a silver bullet to food price inflation," he said.

That's because thee rising cost of food, von Massow said, has many roots. They include: drought in western North America, ongoing supply chain headaches, reduced capacity to make and move food due to the pandemic and the war in Ukraine which affects everything from fuel prices — tied to production, transportation, distribution and processing of food — to the wheat trade. 

WATCH | Canada's inflation rate jumps to new 31-year high of 6.7%.

But a code of conduct could change the relationship between suppliers and large grocery stores, which could benefit consumers. 

"Will this grocery code of conduct magically make food inflation go away? No. Does it have the potential to level the playing field for all retailers, and then therefore moderate — to some degree — food price inflation? I think, definitely," von Massow said.

When Australia's Food and Grocery Code of Conduct began in 2015, it addressed a market largely controlled by two grocery chains: Coles and Woolworths. They had nearly 80 per cent of the market, said Laura Hartley, a partner with Addison's Lawyers in Sydney, Australia who works on behalf of suppliers. 

That made supplier-grocery relations very tense and left suppliers feeling like they had very little power, Hartley said. The code changed that — even though it was voluntary.

"[Suppliers] do believe this code has been effective in changing the behaviour of the supermarkets towards them in being fairer," Hartley said. 

Previously, she said, written contracts weren't standard. The code of conduct changed that leading to a more "equal balance of power," Hartley said. "It has been hailed as a success in terms of changing behaviour."