Posts By: Tom Oliveri

When to Request a USDA Inspection

One of my first blogs written back in May of 2013 was on “Never Request a USDA Inspection.” In most circumstances that rational still holds merit, as it is the responsibility of the buyer to demonstrate a breach of contract, i.e. failing to make good arrival standards, which can only be determined by securing a ...

Arrival Inspection Check List

I have been asked on more than one occasion by WG grower/shipper members if I could provide them with a check list of questions to ask when product arrives at contract destination and there has been a USDA or CFIA inspection secured.  In other words, a document to provide a discipline to the sales staff ...

Why Should Growers Consider Investing in a PACA License?

Unfortunately, there is the rare Shipper, Freezer or Marketing Agent that goes out of business owing money to growers. Growers can avail themselves to the protections of the PACA Trust; however, in order for a grower to fully benefit under the PACA Trust, they must file a PACA Trust notice within a specific timeframe.      ...

AN OUNCE OF PREVENTION: Consider A Pre-Load and Loading Check List

In my last blog I opined about shippers needing to consider a best practice for documenting the produce you load at origin demonstrating that it has been properly pre-cooled and properly loaded. I recognize it is an investment of time and resources, but like any business decision you need to consider the ROI. This template ...

Timeliness in Responding to Emails (HOURS NOT DAYS)

Failure to respond to emails from your customers who are attempting to change terms or modify the contract could be used as undisputed evidence to prove acceptance of the modified terms as outlined in your customer’s email. This need to respond timely applies from the initial negotiated terms of sale when the contract is consummated, to any final adjustment that may be granted to your…

IT IS THE SEASON: Exclusions from Sales Contracts Must Be Disclosed and Agreed Upon

It is that time of the year when leafy greens can be exposed to field freeze conditions. USDA Market News has been reporting in Western Arizona that “Harvest delayed by ice in fields until approximately 10:00 a.m.” on green leaf crops.  I am receiving numerous calls from our members wanting to review the verbiage on ...

Buyers Do Not Have Carte Blanche When it Comes to Paying for Distressed Product

What are my options when a shipment fails to meet contract and the buyer wants to retain the load, but after negotiations is unwilling to renegotiate the original sales contract? First, consistent with the PACA Regulations, the buyer has a right to keep the product even if there is a documented breach of contract on ...

How to Avoid Issues Connected with Incorrectly Loaded Product

On occasion I receive calls from our shipper members stating that their cooler either accidentally loaded the wrong truck with product intended for a different receiver, or loaded the wrong product on the correct truck. When either scenario happens, the caller will usually ask if the company receiving the wrong product is responsible for paying the FOB price. Unfortunately, the answer is…

What Constitutes a Dump or Donation Certificate?

When produce is being handled on a consignment basis, all cartons need to be accounted for, even the produce that will be dumped or donated. The shipper, when accounting back to a grower, must document that the produce was of no commercial value if there is to be no return. Although the USDA, Agricultural Marketing ...

Truck Is Late for Pick-up at Shipping Point – Did the Buyer Breach the Contract?

What do you do as a shipper when you have a documented FOB contract and the truck fails to show up at the scheduled pick-up time? First, you must have previously documented that you and the buyer had agreed to an exact appointment time/date for loading.  Before you consider the buyer in breach of the ...

Requesting an Appeal USDA Inspection

If you believe a USDA inspection is incorrect and does not properly describe the condition of your produce at the contract destination, you have the right to request and obtain an Appeal USDA inspection to recertify the quality or condition of your product. When an Appeal inspection is secured it must be performed by a ...

Shortages at Destination: What to do?

A very frequent question I am asked is about what to do when a load arrives at contract destination and the buyer deducts from your invoice alleging that the cartons ordered, shipped and acknowledged with a signed bill of lading at shipping point were not all accounted for at time of unloading at contract destination.  ...

Produce Shippers MUST Establish a Company Credit Policy and Follow It

I am frequently requested to assist shipper members of fresh fruits and vegetables with collection of slow pay or no pay sales transactions.  It is not uncommon to hear when I inquire about the credit policy for their company, that I am told they have no official policy.  In this day and age of technology ...

Deciphering the download/printout from a Trailer Refrigeration Unit Download (TRU)

When in transit temperatures may be a factor with your shipment failing to meet contract at destination, there are several key factors to review and ascertain what may have caused, or contributed to the situation. Three major components for review are: 1) pulp temperatures of the produce at origin and at time of loading,  in comparison to the pulp temperatures reflected at destination on…

Canada: Destination (CFIA) Inspections and DRC Guidelines for Good Delivery

This is a refresher on Canadian government inspection procedures and the Fruit and Vegetable Dispute Resolution Corporation (DRC). What makes good delivery in Canada versus the U.S. on a no grade contract? While an easy rule of thumb in determining good delivery in Canada is to use the same guidelines as the PACA, there are ...

Pictures Do Not Tell the Whole Story

With everyone having the capability of digital imaging, buyers have the means of instantly emailing you images of your fruits or vegetables upon arrival ostensibly giving you the quality and condition of your product. While the photo or photos are very informative, it does not, however, take the place of a USDA or Canadian Food ...

The Importance of Taking Pulp Temperatures at Shipping Point

QUESTION: Is it important for a shipper to record or take pulp temperatures at shipping point? The answer is a resounding yes! By documenting pulp temperatures at shipping point and having those pulp temperatures acknowledged and signed-off by the carrier is an excellent best practice to document that the product at shipping point was properly ...

Going on Ad and Acts of God

It seems like whenever product becomes tight or we’re experiencing a gap in production, the question arises “Tom I’m on ad with a buyer for a number of loads to ship this week at a confirmed price

BEWARE of Non-Government (Private) Inspection and Survey Reports

For those shippers who export, you are undoubtedly familiar with receiving survey reports from foreign overseas markets shipped usually by ocean carrier.

Be Cautious of Arbitration Clauses Before Signing Buy-Sell Agreements

Recently my office was representing a shipper in a dispute where the shipper had signed a purchase agreement detailing the understanding of both parties prior to supplying product. The shipper requested that I file a PACA complaint against the buyer for a breach of contract of the agreement but embedded in the agreement was a ...