Groups Push For Perishable Agriculture Commodities Act
The Windsor-Essex Regional Chamber of Commerce along with Essex MP Tracey Ramsey and the Canadian Produce Marketing Association are calling on the Liberal government to follow through with an election promise.
They want the Liberal Government to implement the Perishable Agriculture Commodities Act, better known as PACA.
The act is currently in the United States and assists produce growers dealing with companies in arrears.
Jim DiMenna is CEO of Red Sun Farms in Kingsville.
He says about 90 days ago, he company was selling to a US retailer, when the retailer went insolvent and owed Red Sun Farms more than $100,000 US.
DiMenna says with PACA's assistance, his company managed to get its funds.
He says PACA is needed in Canada.
"Think about on another side as a Canadian producer, selling to another Canadian customer that goes insolvent, wouldn't it be a great luxury for us to have that security as well as Canadian producers or Canadian sellers."
He says Canadian growers need protection.
"If I was owed $100,000 here in Canada by somebody and I wasn't able to access it, we don't have PACA in Canada so we would be on the unsecured creditors list behind the secured creditors obviously."
He says PACA would assist Canadian producers and Canadian marketers.
"We need that protection because our margins are thin, our companies are growing but the exposure is severe."
The Canadian Chamber Network supported the Windsor-Essex Regional Chamber's resolution calling for PACA in 2015.
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