Month: February 2017

Under the current regulatory landscape in Canada, companies that are importing fresh produce from another country or buying from another province (with a few exemptions) must be a DRC member in good standing or have a CFIA license. While impending changes to the Safe Food for Canadians Regulations have been outlined in a previous Solutions Article, one thing remains the same – consequences of loss of good standing:

Once a DRC membership is terminated, there is no protection on future sales or potential claims.

Termination of DRC membership often has other business consequences as well. Many buyers, chains, wholesalers, distributors and large shippers will only do business with DRC members. Don’t let your membership lapse and risk severing business relationships if your firm is no longer an active DRC member.  You must be a member in advance of a dispute in order to take advantage of the assistance we offer including the DRC dispute resolution model. The model is designed to reduce risk and facilitate fair and ethical trade between members.

We encourage our members to ask their buying partners to become DRC members if they are not already. Given the complexity and perishability of produce, we help DRC members resolve disputes in a fast and fair manner. While some firms will be required to be members under the impending new legislation, anyone buying or selling produce can be a member with the same rights and responsibilities.

DRC Membership is an excellent risk management tool that allows members to focus on their business while we help them resolve their disputes. For less than the cost of most loads, you have year round peace of mind. Anyone who grows, buys, sells, brokers or provides transportation services for produce should be a DRC member in order to protect their business. DRC members are obligated to follow DRC Rules and participate in the dispute resolution process. Any member who fails to comply will be disciplined which can include termination, and in some cases loss of the ability to import products.

To find out more about becoming a DRC member or ensuring your membership is up to date and in good standing, please visit FVDRC.com or contact the DRC.

Remember, you must be a member in advance of a dispute in order to take advantage of the assistance we offer.

For more information please call or email the DRC Help Desk at:

DRC Help Desk | 613-234-0982 | [email protected]

A friendly reminder that a few of you have DRC membership fees that are past due. Failure to pay your annual membership dues may result in termination of your membership in accordance with the By-laws of the Corporation.

In order to stay in good standing, if you have yet to pay your yearly membership fees, please contact us asap at: DRC Help Desk | 613-234-0982 | [email protected]

This March, the Ontario Produce Marketing Association (OPMA) will be offering a three-day seminar to help participants become familiar with the most efficient way to receive and check a load of produce on arrival to determine quality. OPMA’s Director of Inspection Services, Jeff Honey, will be covering topics including determining if an inspection is warranted, reviewing requirements of inspection programs, how to interpret Canadian and U.S. grade standards, and more. An up-to-date receiver who has been properly trained will save time and money for their organization. Coming out of this seminar, participants will know when and how to request inspections that will be of maximum use when negotiating a claim with a shipper.

OPMA have provided custom seminars on single commodities as well as custom sessions specific to what the attendees grow and pack or what they may store for others. OPMA is happy to work with companies to provide a session suitable to your specific needs. Over twenty fruits and vegetables are covered over the three-day course and either Canadian or US grade standards and inspection instructions are distributed and discussed. Participants are asked to bring in samples for discussion and grading. Jeff also has hundreds of photos of defective produce that he has taken over the years, or that have been sent to him for defect identification.

Receivers must act quickly when loads arrive with suspected quality issues. In the event of a dispute, inspections of damaged or deteriorated produce are a vital part of settling produce claims.

Jeff Honey grew up in Quebec and is fluently bilingual, provided seminars in English or French. Previous to joining OPMA in 1995, Jeff was with the Canadian Food Inspection Agency (CFIA). The senior inspector at the Ontario Food Terminal for over five years, Jeff supervised an inspection staff of up to sixteen people. Since 1996, OPMA have trained more than 900 people from across Canada including growers, packers, shippers, wholesalers, retailers, logistics specialists, buyers and sales staff.

OPMA Seminar Session 1

March 22, 2017 8:00 am – 4:00 pm

OPMA Seminar Session 2

March 23, 2017 8:00 am – 4:00 pm

OPMA Seminar Session 3

March 24, 2017 8:00 am – 4:00 pm

Seminars will be held at the OPMA offices: 165 The Queensway, Suite 225, Toronto, Ontario, M8Y1H8, Canada

For more information please contact Jeff Honey at 416-519-9390 ext. 232. To register, please fill out the form at:

http://www.theopma.ca/wp-content/uploads/OPMAtemplatetrainingregist.form_.pdf

Q. We recently delivered overseas product to our Toronto customer. Upon arrival, the receiver relayed concerns about condition including bruising and discoloration. Five days after the load’s arrival, our customer advised us that the product had been sold but they were seeking a significant adjustment. To date we have not received any documentation regarding the claim. If we make an offer to settle are we accepting that they do not need to prove damages and provide the proper documentation? What options are available to us?

A. (Answer provided by Jaime Bustamante, Trading Assistance Manager)
Consistent with industry and DRC Rules a valid claim has three parts:

1. The receiver must provide prompt notice of a problem. In this case, your customer appears to have complied.
2. The supplier must acknowledge a breach of contract or the customer must provide a federal inspection demonstrating a breach.
3. Should the inspection show product failed to meet contract terms or DRC Good Arrival Guidelines, the customer still needs to provide the method used to arrive at the offer. In our industry, the most common method is an account of sales quantifying monetary damages. In this example, neither appears to have been made available.

Therefore, to answer your question, you can accept or propose a settlement offer without documentation however you lose your ability to request proof in future.  Essentially, you are taking the customers word as fact, acknowledging and accepting the stated condition of the product and the return. If you would like a higher return, you can provide an offer/counter-offer clearly listing the amount you’d settle for and a response deadline with the clause that, should the offer not be accepted, you will be seeking payment in full. If the offer/counter-offer is rejected, the customer will be bound to pay the original invoice price less provable damages (most popular method is with a federal inspection and a prompt and proper account of sales). Lacking this documentation, an arbitrator (should it go to arbitration) would likely award payment in full.