Do farm markets require a DRC membership?

Today, many farm markets are open for business 12 months of the year but there is little question as we head into early summer and fall that these are the peak months for farm market operators and consumers alike.

As part of DRC’s outreach initiative and preparedness for the Safe Food for Canadians Regulations (SFCR), a series of self-assessments  was developed to assist persons in determining their need for a DRC membership to ensure compliance with the SFCR regulatory requirement. The SFCR requires that persons who buy, sell, import or export fresh fruit or vegetables be a member in good standing of the DRC, unless excepted by the regulation.

One of the business categories in the series is Farm Market Vendors & Other Direct to Consumers. When considering this category, it is important to begin with an established definition:

Farm Market Vendor: a grower or other person who conducts sales at a farm market, market stall or roadside stand directly to consumers.

In some instances, a farm or production unit may have a separate legal entity for marketing purposes. Depending on the nature of the transactions and the product’s final destination, a DRC membership may be required for the marketing entity, which could be a farm market.

The self-assessment includes a number of Q&A scenarios, including:

  • I supplement my production and/or vendor sales with produce purchased from other producers located in a province other than my place of business or farm market/stall location. (DRC membership required)
  • I supplement my production and/or vendor sales with produce purchased from other producers located within my province for sales in a province other than that of my place of business or farm market/stall location. (DRC membership required)
  • I pack, ship and sell only fresh fruits or vegetables that I have grown myself as a single business entity at a farm market or roadside stand, as well as to another province and/or internationally. (DRC membership not required)

There are numerous business and marketing frameworks for farm markets or marketing entities. To access the self-assessment to determine if your farm market or marketing entity requires a DRC membership, visit https://t8t979.p3cdn2.secureserver.net/wp-content/uploads/2017/11/4_SFCR-DRC-Farm-Market-Direct-to-Consumers-Self-Assessment.pdf

DRC Trading Standards Section 12. Commission Merchant Duties

If you want to know about the rights and responsibilities of product handled on consignment, this section of DRC’s Trading Standards can be used as your guide. These are the most important elements to take into consideration when members accept produce for sale on consignment:

  • Reasonable care, diligence in disposing of the produce, and prompt sales of the product in a fair and reasonable manner are required
  • The consignee may not employ other persons or companies to dispose of all or part of the product without authorization from the consignor
  • A consignee is not authorized to sell product on consignment without the consignor’s consent
  • Averaging or pooling of sales is not permissible unless written consent from the consignor is given
  • An itemized account of sale must be submitted by the consignee. An accurate report of sales and expenses must be provided
  • Expenses or charges must be supported by proper receipts or invoices
  • A consignee is entitled to a commission which the percentage should have been previously discussed
  • A consignee is not allowed to sell all or part of the product to a person or firm over which they have either direct or indirect control

Another important issue to consider is that, unless otherwise agreed to by the parties, the consignee is not required to request an inspection to demonstrate the condition of the product upon arrival. The only time the consignee is required to request an inspection is when disposing of more than 5% of a load in order to demonstrate that the product has no commercial value.

Board of Directors and Annual General Meeting

DRC Board of Directors and Annual General Meeting (AGM) was held May 23-24, 2019 in Québec City, Canada. DRC reported to members and the Board on key DRC priorities including DRC’s role under the Safe Food for Canadians Act, Membership, Marketing, and Trading Assistance. The Board also received updates from the Canadian Food Inspection Agency on Destination Inspection services and implementation of the new Safe Food for Canadians Regulations. During the AGM, the members elected Frank Pagliaro (Canada), Mike Stuart (USA), Bret Erikson (USA) and Gonzalo Aguilar (Mexico) as Directors.

The Board and Staff were also hosted by Patates Dolbec Inc. to a tour of their ultra-modern facilities. Patates Dolbec Inc. is a family business that, over the last 50 years, has earned itself an enviable reputation in the agri-food sector through hard work, a tireless passion for agriculture, and a dynamic team that brings experience and innovation to potato farming. The board was especially impressed by their Factory 4.0 which includes a robotic train and other cutting edge technology. On behalf of the Board a big thank you to Stéphan and Josée for an amazing tour.

Load damaged by transit temperatures

Q: We received a load of mixed vegetables from one shipper and only a portion of the load was showing freezing damage. The rest of the product pulped adequate temperatures and had no indication of freezing damage.  How is it possible that the pulp temperatures can vary so much within the trailer?

A: To understand how this could have happened, we begin by reminding you that trailers are responsible for maintaining temperatures during transit. They are not meant to cool down or warm up the product. Three main reasons come to our mind that could cause freezing damage to only a portion of a load: a) Product loaded warmer than the reefer unit set temperature; b) bad loading pattern blocking the airflow or blocking the air chute; or, c) poor trailer insulation or extreme weather conditions.

a) Product loaded warmer than the set temperature

The BOL indicates temperatures are to be maintained at 33oF. The product at loading is pulping 38oF; the freezing point is 30.5oF. The reefer is set at 34oF degrees on continues mode. When this occurs, the return air sensor is going to start picking up the temperature of the product (38oF) and the message to the reefer unit would be that it needs to lower the discharged temperature immediately to lower the temperature in the trailer. Therefore, the product exposed directly to the discharge air from the chute may exhibit freeze damage because the discharged air temperature could be lower than the freezing point of the product.

b) Bad loading pattern blocking the airflow or blocking the air chute

A loading pattern that does not allow the air to circulate properly may result in the return air sensor reading temperatures above the reefer unit set point, therefore sending the message that cooler air needs to be discharged. Normally a blocked air chute will result in warmer pulp temperatures at the front of the truck and cooler pulped temperatures at the back of the truck.  This is because as the front of the truck begins to warm up, the reefer unit believes it needs to expel colder air, and thus the product nearest to the end of the chute gets chilled.

c) Poor trailer insulation or Extreme Weather conditions

Product loaded too close to the walls on a trailer with poor insulation may create freezing damage to pallets nearest to the sides of the trailer. This could be the result of harsh temperatures during the winter or hot outside temperatures during the summer. Similar to the previous example, to compensate the reefer unit will usually discharge cooler temperatures or warmer temperatures than the set point in order to correct the problem.  For instance, if a truck travels through the northern US or Canada during the winter and it is not properly insulated, there is a strong likelihood that the pallets closest to the exterior walls could experience some freezing damage. Conversely, despite proper trailer insulation, sometimes extreme weather conditions such as severe cold or intense heat may influence the temperatures inside the trailer.

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