The Grocery Commissioner is launching a review of the mandatory Grocery Supply Code to address the power imbalance between suppliers and supermarkets.

The review, initiated less than a year after the Code's introduction, aims to assess its effectiveness and identify necessary amendments.

Introduced in September under the Grocery Industry Competition Act (GICA), the Code aims to increase transparency and certainty for suppliers by establishing clear rules for supermarket dealings.

Commissioner Pierre van Heerden emphasised the importance of this review in ensuring the Code operates as intended and addressing any systemic issues.

"An ongoing power imbalance and lack of trust between suppliers and grocery retailers will ultimately undermine all other initiatives intended to deliver a well-functioning and competitive grocery market," van Heerden said.

"We want to hear from suppliers, retailers, and any other industry players early in the review process to help shape its scope and direction."

The Commerce Commission's market study into the grocery sector, completed in early 2022, revealed that many suppliers are dependent on their trade with major retailers and face transferred costs, risks, and uncertainties.

The review will consider whether the Code needs amendments, revocation, or replacement.

Under GICA, the Commission is required to review the Code within two years of its implementation.

The current review is accelerated due to concerns that suppliers may not fully benefit from the Code's protections.

Van Heerden highlighted the potential for the review to identify issues beyond the Commission's current powers, which could be included in a report to the Minister.

For more information and to provide feedback, industry stakeholders are encouraged to participate in the consultation process.