A Price after Sale is not a consignment or nor is there an agency relationship. It is a buy-sale relationship with everything already agreed to accept the price.  Although no detailed account of sales is required, the buyer must pay the “fair market” value or a price mutual agree to between the parties.  The buyer cannot just arbitrarily remit what he or she thinks is appropriate, there must be evidence that the remittance is fair market value for the produce.

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 some exceptions on certain commodities with the maximum allowable on any one defect not to exceed 10 percent.  If you keep in mind the 10 percent limitation on any one condition factor, you will not have to memorize two sets of “Good Arrival Guidelines”. 

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 and information, not having an established credit policy is no longer an acceptable business practice.

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.  Who is responsible and how do you handle with your buyer?

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 contract, please use a reasonable person formula.


Produce Price Index

Think farmers are making most of the money from your grocery bill? Think again. Use the Produce Price Index (PPI) to find out the difference between how much you spend on fruits and vegetables and how much actually goes back to the farmer.

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