Canadian bill to protect produce sellers passes committee

Canadian produce groups are praising the committee approval of Bill C-280, the Financial Protection for Fresh Fruit and Vegetable Farmers Act.

The bill, sponsored by Member of Parliament Scot Davidson, aims to establish a deemed trust, a vital financial protection mechanism for fresh produce sellers in Canada, according to a news release. This mechanism 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 Canadian Produce Marketing Association (CPMA), the Fruit and Vegetable Growers of Canada (FVGC) and the Fruit and Vegetable Dispute Resolution Corporation (DRC) praised the passing of the legislation out of the House of Commons Standing Committee on Agriculture and Agri-food without amendment and with the support of all political parties.

The U.S. has financial protection for produce suppliers under the Perishable Agricultural Commodities Act, and Canadian produce industry leaders have been working for decades in support of a similar regulation in Canada.

"The passage of Bill C-280 at Committee Stage marks another crucial step forward in ensuring the stability and financial security of the fruit and vegetable sector," CPMA President Ron Lemaire said in the release. "It has been a long road for our industry in working towards an effective financial protection mechanism. We are greatly appreciative of the efforts of MP Davidson and the support of all committee members in helping to move this critical legislation forward."

The perishable nature of fresh produce, coupled with the industry’s typically longer payment terms, leaves sellers unable to recover losses when faced with buyer bankruptcy. The recent case of Lakeside Produce in Leamington, Ontario, serves as a reminder of the urgent need for a financial protection tool to safeguard this essential sector and uphold food security in Canada, the release said.

 "The significance of Bill C-280 for the fresh produce industry cannot be overstated,” FVGC Executive Director Rebecca Lee said in the release. “Our organizations were grateful for the opportunity to speak to the Committee about the importance of financial protection for all fresh produce sellers. Looking ahead to the final rounds of debate and voting in the House of Commons, we are optimistic that all parties will continue to lend their support and work to advance the Bill as quickly as possible."

The release said Bill C-280 will be referred back to the House of Commons this fall for Report Stage and Third Reading Debate and votes. The CPMA, FVGC and DRC are calling 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, the release said.

The Fresh Produce Alliance has a website with more information about Bill C-280.