OTTAWA – Today in the House of Commons, MP Scot Davidson’s Private Member’s Bill, C-280 the Financial Protection for Fresh Fruit and Vegetable Farmers Act, was tabled for second reading debate.
The Canadian Produce Marketing Association (CPMA), the Fruit and Vegetable Growers of Canada (FVGC), and the Fruit and Vegetable Dispute Resolution Corporation (DRC) call on all MPs to carefully consider the positive impact Bill C-280 would have on the fruit and vegetable sector and vote in favour of this important legislation. This is a critical opportunity for the government to support the fresh produce sector and safeguard Canadian food security.
“We are very grateful to MP Scot Davidson for his hard work in bringing this important piece of legislation to the House of Commons” said CPMA President Ron Lemaire. “We know this is a busy time of year on Parliament Hill, so we call on MPs to ensure its swift passage through the House. Consumers are very concerned about rising food costs right now, and Bill C-280 would contribute to more stable fruit and vegetable prices because it helps give produce sellers a financial backstop”.
Bill C-280 would establish a critical financial protection mechanism, a deemed trust, for fresh produce sellers in Canada to help secure payment in the case of a buyer bankruptcy. The deemed trust would operate similarly to the U.S. model. Creating a deemed trust would not impose any additional cost to the government, but would help to ensure that fresh produce sellers can continue to support local economies across the country and provide Canadians with safe, nutritious fruit and vegetable products.
The perishability of fresh produce, as well as the common industry payment terms, make it impossible for sellers to recoup money lost when a buyer goes bankrupt. The recent example of Lakeside Produce in Leamington, Ontario, demonstrates why a financial protection tool is needed to protect our essential sector and food security in Canada.
“Our members across the country are strong supporters of Bill C-280 and look forward to this bill being passed at second reading and moved on to committee stage for further discussions, debate and analysis,” said Rebecca Lee, FVGC’s Executive Director.
For more information, please contact:
Robyn McKeeManager, Policy Research and Development
Producteurs de fruits et légumes du Canada
Telephone: 613-297-6512
Email: Micken Kokonya
Manager, Communications and Market Research
Association canadienne de la distribution de fruits et légumes
Telephone: 613-226-4187 x225 | Cell: 613-878-3312
Email: Luc Mougeot
President and CEO
Corporation de règlement des différends dans les fruits et légumes (DRC)
Email: About Fruit and Vegetable Growers of Canada (FVGC):
Fruit and Vegetable Growers of Canada is an Ottawa-based voluntary, not-for-profit, national association that represents fruit and vegetable growers across Canada involved in the production of over 120 different types of crops on over 14,237 farms, with farm cash receipts of $5.9 billion in 2021. Since 1922, FVGC has advocated on important issues that impact Canada’s horticultural sector, promoting healthy, safe and sustainable food, and ensuring the continued success and growth of our industry. About the Canadian Produce Marketing Association (CPMA):
Based in Ottawa, Ontario, CPMA is a not-for-profit organization that represents a diverse membership made up of every segment of the produce industry supply chain who are responsible for 90% of the fresh fruit and vegetable sales in Canada. CPMA is fortunate to represent a sector that is both a significant economic driver for communities and that also improves the health and productivity of Canadians. About the Fruit and Vegetable Dispute Resolution Corporation (DRC):
The Fruit and Vegetable Dispute Resolution Corporation (DRC) is a non-profit, membership-based organization serving the produce trade. DRC provides harmonized standards, procedures and services to help members avoid commercial disputes, as well as consultation, mediation and arbitration services when disputes arise. The DRC can help with disputes that arise between members domestically or internationally and deals with all types of disputes, including condition, contract and payment issues. We work closely with industry associations and governments on behalf of our members to reform legislation, make federal inspections more accessible, develop best practices, and level the playing field for participants.