Vineyard under the gun to pay grape growers

Wednesday, February 2, 2011

by SUSAN MANN

Three grape growers are waiting to see if Ferndale Vineyards Inc. will pay the money it owes them by March 15.

That was the deadline set by the Ontario Farm Products Marketing Commission after it held a hearing in November, 2010 to consider revoking Ferndale’s license to process grapes and late harvest juice. The Jordan-area vineyard, which makes a non-alcoholic grape drink, also owes money to Grape Growers of Ontario for producer licence and brix testing fees, late payment and interest charges.

Debbie Zimmerman, Grape Growers CEO, declined to say the amount owed to the farmers and the organization. The information in both cases is proprietary, she explains. “We don’t break license fees out by grower or by processor or producer.” The money owed to the growers includes interest.

According to the commission’s written report of the hearing, the three growers owed money by Ferndale are: Frank R. Kramer, Funk Farms Ltd. and J.R. Lemick.

Zimmerman says she didn’t want to speculate on whether Ferndale will pay by the deadline. If it doesn’t pay the growers they’ll have to recover their money through the courts.

Grape Growers suspended Ferndale’s license issued under the organization’s regulations because the vineyard didn’t pay the money it owed to the growers and the organization. The farmers’ money was due to be paid Nov. 16, 2009. The suspension means Ferndale is not authorized to buy grapes in Ontario while its dealer license remains suspended.

John Shore, president of Ferndale, couldn’t be reached for comment. A call to Ferndale’s facility in Jordan resulted in a recorded message saying the number is not in service.

If Ferndale fails to pay the money it owes by March 15, its license will automatically be revoked. The vineyard won’t be able to buy any grapes and it will lose its processing license for taking grapes and making them into wine, Zimmerman explains.

In the commission report, Shore says he didn’t pay the producers because of Ferndale’s financial situation. He asked to be given 120 days to come up with the money so he could secure financing.

In the written report, Shore says he wants the growers to recoup their losses and for Grape Growers to receive the money he owes them but the possibility of losing his license was making it difficult to secure refinancing.

Grape Growers’ initial position going into the commission hearing was that Ferndale’s license should be immediately revoked. But the organization agreed with the commission to give the vineyard more time to come up with the money. The growers also agreed to give Ferndale the 120 days to pay them, Zimmerman says.

This situation sends processors a message, she says. “If processors aren’t going to pay growers we’re going to take them before the commission and they’re going to lose their license.”

She notes that Grape Growers hasn’t had to request the commission revoke a processor’s license since she joined in 2003.

It’s fairly rare for Grape Growers to request a processor’s license be revoked because the organization always tries to work out some type of agreement, she explains. BF