On Tuesday, the Fruit and Vegetable Growers of Canada (PFLC), the Canadian Produce Marketing Association (CFMA) and the Produce Dispute Resolution Corporation (DRC) were pleased that Bill C-280, the Financial Protection for Fresh Fruit and Vegetable Growers Act, was adopted by members of the Senate of Canada on third reading.

Bill C-280, introduced in the House of Commons by MP Scot Davidson and sponsored in the Senate by the Honourable Michael MacDonald, establishes a fiduciary financial protection mechanism for sellers of fresh fruits and vegetables in Canada. This trust will guarantee payment in the event that a buyer goes bankrupt, providing stability and support to the sector, while protecting Canadian food security.

“The passage of Bill C-280 is the result of decades of advocacy by organizations and industry members across the fresh produce supply chain and the broader agricultural sector,” said Ron Lemaire, President of the ACDFL. We are grateful to everyone who has supported these efforts over the years and thank the MPs and sponsors of Bill C-280 for moving this essential legislation forward.”

“From farm to table, fresh produce vendors make important contributions to the local economy across the country and provide Canadians with safe and nutritious fruits and vegetables,” said Massimo Bergamini, CEO of PFLC. Establishing an accredited trust for all fresh produce vendors will strengthen food security in Canada and allow our sector to continue to play an important role.”

In addition to impacting domestic fruit and vegetable sales, the absence of a financial protection mechanism for fresh fruit and vegetable sellers in Canada also results in depriving them of the preferential treatment they previously received under the U.S. Perishable Agricultural Commodities Act (PACA). Canadians selling fresh fruit and vegetables to our largest trading partner are currently required to pay double the shipping deposit to access the PACA dispute resolution mechanism – an unsustainable cost for many Canadian businesses. The establishment of financial protection under Bill C-280 now paves the way for the United States Department of Agriculture to reinstate preferential access for Canadian produce sellers under the PACA, the U.S. Perishable Agricultural Commodities Act, which protects businesses trading in fresh and frozen fruits and vegetables by establishing and enforcing a code of fair trade practices in interstate and foreign trade. A major goal of the PACA program is to ensure that traders of fresh and frozen fruits and vegetables get what they paid for and are paid for what they sold, even when their customers close their doors, declare bankruptcy, or simply refuse to pay for the fruits and vegetables they received.

"We cannot overemphasize the positive impact of Bill C-280 on the highly integrated fresh fruit and vegetable sector," said President and CEO of the Democratic Republic of the Congo, Luc Mougeot. The absence of a financial protection mechanism in Canada has been an issue in our trade relations with the United States for many years. We look forward to working with our American counterparts to establish reciprocal protection and provide stability for fruit and vegetable sellers on both sides of the border. »

PFLC, ACDFL and DRC thank all Senators for their work on this essential legislation and both Houses of Parliament for recognizing the positive impact Bill C-280 will have on Canada's fruit and vegetable supply chain.