Consumers gain from grocery code: Billson

Consumers will be the winners from a more open food retailing market as a result of a new grocery industry code of conduct.

Small Business Minister Bruce Billson says the new code that comes into operation on Tuesday will improve commercial relationships throughout the entire supply chain of Australia's grocery sector.

"This is about transparency. This is about openness and predictability for suppliers in dealing with the supermarket chains," Mr Billson told reporters on Monday.

The opt-in code will be binding and supervised by the Australian Competition and Consumer Commission.

Australian Food and Grocery Council boss Gary Dawson described it as an historic agreement.

"It's essentially ensuring suppliers get a fair go and consumers get the benefit of a vibrant, dynamic and competitive market," he said.