The special crops industry is attempting to minimize confusion and disputes surrounding grower contracts.
Instead of myriad documents with different clauses, the industry wants to move to a generic contract that is used by all members of the Canadian Special Crops Association.
CSCA executive director Francois Catellier said the idea stems from a strategic planning session last fall.
“We’re a long ways from offering it, but we’re working on developing it as we speak,” he said.
Saskatchewan Pulse Growers executive director Garth Patterson applauds the move and said grower groups will be full participants in the process of developing such a blueprint contract.
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“We think it’s a great way to collaborate and grow the industry.”
Earlier this year Patterson wrote a column in Pulsepoint magazine urging growers and buyers to live up to the terms of the contracts they sign.
He said there are too many incidents where one party fails to honour the terms set forth in a set of documents, which has damaged the pulse industry’s reputation.
What is needed
Patterson believes a generic contract with a good dispute settlement mechanism could return integrity to the pulse trade.
Catellier said under the proposed new system the CSCA could act as an intermediary if a quarrel erupts between signatories.
“We would probably lean towards offering mediation as a dispute settling mechanism prior to even considering arbitration.”
The association would put the two parties in contact with somebody who has mediation training, such as a producer or retired crop trader.
Catellier said it’s unlikely one standard contract can be written for the entire industry because there are big differences in marketing crops as diverse as sunflowers, buckwheat and lentils. However, the goal will be to homogenize agreements as much as possible.
“Of course individual companies are going to want to massage those contracts and put in their own special clauses,” he added.
Patterson said key elements that grower groups will look for in the new contracts include timing of delivery, pricing options by grade, quantity options and dispute resolution rules.
A committee has been struck that includes industry and grower representatives. It will devise draft generic contracts by picking and choosing the best elements from existing agreements.
The draft documents will be presented to the CSCA’s board of directors in September at the association’s fall planning session. Implementation of the new generic contract will depend on what happens at that meeting.
