Canadian produce advocates including the Fruit and Vegetable Growers of Canada, the Canadian Produce Marketing Association, and the Fruit and Vegetable Dispute Resolution Corp. are celebrating the approval of Canadian Bill C-280 at second reading in the House of Commons.
The latest passage of the bill, known as the “Financial Protection for Fresh Fruit and Vegetable Farmers Act,” marks a crucial step in ensuring the financial security of the fruit and vegetable sector in Canada, the organizations said in a statement.
“The significance of this legislation for the fresh produce industry cannot be overstated,” CPMA President Ron Lemaire said in a news release.
Bill C-280, championed by Member of Parliament Scot Davidson, aims to establish a deemed trust, a vital financial protection mechanism for fresh produce sellers in Canada. This mechanism will help secure payment in the event of buyer bankruptcy, providing stability and support to the industry while safeguarding Canadian food security, according to the release.
“The successful passage of Bill C-280 at Second Reading is an extraordinary milestone, and we wholeheartedly express our appreciation to MP Scot Davidson for his commitment in propelling this legislation forward,” Rebecca Lee, executive director of FVGC, said in the release.
Decades of advocacy bear fruit
For over three decades, the fresh produce sector in Canada has advocated for the implementation of a financial protection mechanism, Lee said in the release.
“Today, we find ourselves closer than ever to realizing our long-standing goal. This achievement marks a significant leap towards ensuring the security and prosperity of our industry,” she said.
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The deemed trust proposed by Bill C-280 mirrors the model employed in the U.S. It presents a financially feasible solution that imposes no additional burden on the government, according to the release. By establishing this trust, fresh produce sellers can continue to contribute to local economies across the country, while providing Canadians with safe and nutritious fruit and vegetable products, the release said.
The perishable nature of fresh produce, coupled with common industry payment terms, leave sellers unable to recover losses when faced with buyer bankruptcy, according to the release, which added that the recent case of Lakeside Produce in Leamington, Ontario, is as a reminder of the need for a financial protection tool to safeguard this essential sector and uphold food security in Canada.
“As we proceed to the Committee stage, we eagerly anticipate further deliberations on the topic of financial protection for fresh produce sellers. We are optimistic about a future where the fresh produce sector thrives through a robust financial protection mechanism, fortifying the sector and ensuring enhanced food security for all Canadians,” said CPMA’s Lemaire.
The CPMA, FVGC, and DRC called on all members of Parliament to recognize the positive effect that Bill C-280 can have on the fruit and vegetable sector and the broader Canadian economy. To learn more, visit www.protectproducesales.ca.
