Good evening.
As Rebecca said, my name is Quinton Woods. I am Fruit and Vegetable Growers of Canada's trade and marketing working group chair, and the sales manager of a root vegetable operation at Gwillimdale Farms. Gwillimdale is a premier grower, packer and shipper of root vegetables, located on the northern tip of the Holland Marsh.
Bill C-280 is a topic about which I am highly passionate. I want to point out that this proposed legislation could pave the way for reinstating the Perishable Agricultural Commodities Act protection for Canadian growers by the United States. PACA had been a crucial protection for Canadian growers, ensuring prompt payment and offering a dispute resolution mechanism. The loss of this privilege in 2014, because of the lack of reciprocity in Canada, dealt a significant blow to our industry, exposing our growers to increased financial risk.
Gwillimdale’s operation was directly affected in 2014. Coming out of the recession of 2009, a U.S. customer, with whom we had done business with for many years, stopped paying us. We were left with no choice but to launch a formal complaint against this company through the PACA in the United States. Unfortunately, the day on which we filed the formal complaint, the United States pulled reciprocity for Canadian sellers. That meant we were required to post a bond for twice the value of our claim. At that time, our claim was worth $100,000 U.S, and we were required to post a bond for $200,000 U.S. We were not in a position to post the bond at that time and were forced to walk away from our claim. If Canada had implemented a system prior to revocation of reciprocity, we would have been able to continue our formal complaint without posting a bond.
The proposed legislation would be of no cost to the government, as it would not be required to carry financial liability or backstop any losses. However, it will provide significant benefits to growers, and one could argue, it is a form of business risk management, but one that requires no government funding. This legislation offers a framework that bolsters the stability of our industry and promotes fairness in business practices, ensuring the viability and growth of our sector for years to come.
FVGC sees this bill as a game-changer, providing our members with much-needed protections and possibly leading to greater market opportunities. We urge you to consider these benefits as you deliberate on this legislation. Our members depend on it, and the bill will bolster the strength and sustainability of the Canadian produce sector at a time when it is sorely needed.
We cannot forget that the benefits are not restricted to our growers. A more robust and secure Canadian produce industry, backed by these protective measures, would help to address the growing concerns of Canadian food security and food sovereignty.
Thank you for your your time and consideration.