As of January 1, 2026, the Canada Grocery Code of Conduct (Code) is now fully operational. The membership is open to retailers and suppliers, including primary producers, wholesalers, distributors and manufacturers, who are directly engaged in the grocery supply chain in Canada.
If you are a member of the Fruit and Vegetable Dispute Resolution Corporation (DRC), you may be questioning: What are the differences between the Code and the DRC? And if you belong to both frameworks, which one should you use for dispute resolution purposes?
Let’s begin with the reminder that Canadian companies that buy and sell interprovincially or import fresh fruits and vegetables are governed by the Safe Food for Canadian Regulations (SFCR), which, by law, requires a DRC membership. The DRC membership is voluntary for companies in the fresh produce industry outside of Canada. The Code is a voluntary framework designed to promote fairness and transparency in retailer-supplier relationships. It covers all grocery categories such as produce, dairy, meat, packaged goods, beverages, household items, etc.
Both systems offer dispute resolution mechanisms. However, the Code recognizes that DRC rules take precedence in cases of a conflict in fresh fruits and vegetables transactions. In other words, where the DRC has jurisdiction over a dispute, the dispute must be resolved through the DRC’s Dispute Resolution Rules unless otherwise agreed.
DRC has jurisdiction over any conflict between two members when the dispute concerns a breach of contract, short payment or non-payment, unfounded price adjustments, unjustified liquidations or returns, and quality or condition problems connected to the trade of fresh fruits and vegetables. The Code was designed to deal more with retailer-supplier practices related to delisting, forecasting, good faith negotiations, and other contractual obligations in which damages are not linked or deducted from a particular transaction.
One important distinction between these two mechanisms is that DRC’s arbitration decisions and awards are mandatory and court enforceable. Furthermore, failing to comply with an arbitration decision or failing to maintain membership requirements can result in termination or expulsion from membership, respectively.
The Office of the Grocery Sector Code of Conduct (OGSCC) and the DRC are working closely to ensure smooth alignment between these frameworks. Code Members can contact the OGSCC for guidance on Code matters, and the DRC Help Desk for questions about DRC jurisdiction.
