The federal budget could have done more for the fruit and vegetable sector

  • National Newswatch

Financial protection for produce sellers still needed. Ottawa--The federal budget should have done more to prioritize food and food production in Canada, say Fruit and Vegetable Growers of Canada (FVGC) and the Canadian Produce Marketing Association. However, they both welcomed support for a National Supply Chain Strategy including the establishment of a Supply Chain Office that will receive $27.2 million over five years. It will work with industry and other orders of government to respond to disruptions and better coordinate action to increase the capacity, efficiency, and reliability of Canada's transportation supply chain infrastructure. FVGC was encouraged by measures that will positively impact fruit and vegetable growers across Canada and. “we will continue to work with the government to ensure that they are analyzing all of their policy through a lens of food security,” said Executive Director Rebecca Lee. “Canada's policymakers must ensure that there is support for our Canadian growers so that they can continue to provide food security for all Canadians.” FVGC also welcomed the $34.1 million allocation to Agriculture Canada's On-Farm Climate Action Fund, intended to support the adoption of nitrogen management practices by Eastern Canadian farmers, thus optimizing the use and reducing the need for fertilizer. Another initiative is significant funding allocated to the CFIA Market Access and Food Safety programming, as well as the allocation of $13 million to increase the interest-free limit for loans under the Advance Payments Program. CPMA President Ron Lemaire said budget measures to improve government oversight of Canadian ports and marine shipping to reduce congestion and increase supply chain efficiency along with investments in rural infrastructure and establishing the Canada Water Agency as a standalone entity will benefit the produce sector. “The fresh fruit and vegetable supply chain is a major contributor to Canada's GDP, and to job creation in rural and urban communities from coast to coast to coast,” he said. “We also provide Canadian families with safe and nutritious food that is crucial to supporting their health and well-being. “With the rising cost of food top of mind for Canadians, we hope the federal government will leverage Budget 2023 to make food production and access to food a whole-of-government priority, and support the continued resiliency and future growth of the sector.” However, CPMA was disappointed that the implementation of a financial protection mechanism for produce sellers was again not included in the federal budget. CPMA has consistently reiterated the importance of this tool as an opportunity to address gaps in market stability, financial protection, trade and food security, with no cost to the government. The establishment of a financial protection tool was also among the Commons finance committee budget recommendations. “The impacts of the pandemic, supply chain disruptions and geopolitical and economic volatility have put the produce sector in a more vulnerable position without a financial protection mechanism in place,” he said. The sector hopes that Parliament will approve a bill from Conservative MP Scot Davison of York Simcoe that would establish the financial protection tool for growers when dealing with bankrupt buyers.