Members of the Fresh Produce Alliance — composed of the Canadian Produce Marketing Association, the Fruit and Vegetable Growers of Canada, and the Fruit and Vegetable Dispute Resolution Corp. — are lauding the passage of a Canadian bill intended to protect produce sellers in the country.
Bill C-280, the Financial Protection for Fresh Fruit and Vegetable Farmers Act, establishes a deemed trust financial protection mechanism for fresh produce sellers in Canada, the groups said in a news release. This deemed trust will help secure payment in the event of buyer bankruptcy, providing stability and support to the industry while safeguarding Canadian food security, the release said.
The bill was introduced in the House of Commons by Member of Parliament Scot Davidson and sponsored in the Senate by Michael MacDonald.
“The passage of Bill C-280 has been the result of decades of advocacy by organizations and industry members across the fresh produce supply chain and in the broader agriculture sector,” CPMA President Ron Lemaire said in the release. “We are grateful to all who have supported this work over the years and greatly appreciative of the efforts of Bill C-280’s sponsors and Parliamentary champions in moving this important legislation forward.”
In addition to its impact on domestic produce sales, the lack of a financial protection mechanism for fresh produce sellers in Canada has meant that Canadian sellers have been unable to use the preferential treatment they previously enjoyed under the U.S. Perishable Agricultural Commodities Act, the release said.
Instead, Canadians selling fresh produce to its biggest trading partner must currently pay double the bond on the shipment to access the PACA dispute resolution mechanism — a cost that is untenable for many Canadian businesses, according to the release. The establishment of financial protection under Bill C-280 now paves the way for the USDA to restore Canadian produce sellers’ preferential access under PACA.
“The positive impact of Bill C-280 on the highly integrated fresh produce industry cannot be overstated,” said FVDRC President and CEO Luc Mougeot. “The lack of a financial protection mechanism in Canada has been a pain point in our trading relationship with the United States for many years. We look forward to working with our U.S. counterparts to put in place reciprocal protection and provide stability for produce sellers on both sides of the border.”
CPMA, FVGC and FVDRC thanked all Senators for their work in considering this important legislation and expressed appreciation to both chambers of Parliament for their recognition of the positive impact that Bill C-280 will have on the fruit and vegetable supply chain in Canada, the release said.
“From the farm to the dinner plate, fresh produce sellers make significant contributions to local economies across the country, and provide Canadians with safe, nutritious fruit and vegetable products,” said FVGC Executive Director Massimo Bergamini. “The establishment of a deemed trust for all fresh produce sellers will strengthen food security in Canada and help ensure that our sector can continue to fulfill its important roles.”
