MORE BANKRUPTCY DATA NEEDED

| DRC

The Fruit & Vegetable Dispute Resolution Corporation (DRC), on behalf of industry, continues to look for ways to mitigate financial loss for its members.

“Bankruptcy and other insolvencies continue to be a challenge and we continue to pursue development and implementation of a PACA-like trust in Canada,” says Fred Webber, president, DRC. “The biggest challenge we continue to face is the lack of good data on the frequency and extent of industry losses due to bankruptcies in Canada.”

Unfortunately, Canadian government data and statistics related to bankruptcies lack the granularity and detail needed to persuade officials of the need for financial protection. Government data cannot reliably segregate bankruptcies impacting the fruit and vegetable sector because the segregation stops at food and beverage. From the government’s perspective, bankruptcy is not a significant cause of financial losses in the fruit and vegetable industry based on the facts they have access to.

“As such, I have a special request,” says Webber. “ Please take a few moments to list Canadian firms you are aware of who have filed bankruptcy in the last three years, including city and province, and email Fred at fwebber@fvdrc.com. If you are not sure of those details, simply indicate the name and we will follow up further. Our objective in developing the list is to demonstrate the inaccuracy and deficiency of existing government bankruptcy data. We will not, nor is there any reason, for us to disclose the source of the names.”

If you have had a loss yourself and would like to share details, please contact DRC at 613-234-0982.  The goal is to compile a list that can be compared with government data.

The horticultural industry has long sought protections similar to the PACA Trust in the U.S. DRC continues to work on this issue and has identified the remaining hurdle as quantifying the measure of harm to the industry.