Canadian pharmaceutical business Novem has agreed to terms to purchase BC Tree Fruits Cooperative’s largest controlled atmosphere and cold chain storage facility in Kelowna, B.C.
The co-op announced in August it would be closing down after 88 years of trading. More than 2,800 people have signed an online petition calling on the federal and provincial governments to rescue the co-op, which comprises over 330 local farmers.
The co-op told its members on 26 July that it would no longer receive fruit, effective immediately, advising them to search for another alternative to market their fruit for the balance of the 2024 season. It said the co-operative would not be able to effectively operate the business moving forward due to extremely low estimated fruit volumes, weather effects, and difficult market and financial conditions.
Related: Canadian BC Tree Fruits Cooperative to wind up after 88 years
The petition called on the government to halt the decision to liquidate assets arguing that members had not been given an opportunity to vote on the matter. “Under the Cooperative Association Act, a meeting of all members is required for such a move to be legal, and growers were not consulted or given an opportunity to vote,” it said.
Extreme weather in the region led to catastrophic crop losses for three years in a row for Okanagan fruit farmers. With BC Tree Fruits closing down, farmers have no one to market, store and sell table grapes, apples and pear fruit.
The co-op filed for creditor protection 12 August.
As part of the deal, Novem has also agreed to lease the facility on an emergency basis to allow the tree-fruit industry to avoid the loss of 25 million pounds of apples.
“Saving this year’s harvest is our immediate goal,” said Novem CEO Colin Davison. “But we believe Novem can also play a role in helping farmers create a modernised version of the Canadian fruit tree industry here in British Columbia.”
“However, we can’t do it alone. Strengthening Canada’s food security should be of national interest and a priority for all levels of government over the long term. Private industry is doing its part, but it will take government support to cultivate an industry that is more sustainable and stable.”
Related: Petition launched to save Canadian fruit growers co-op from bankruptcy
The sale is pending approval by BC Tree Fruits Cooperative’s members. According to Novem, government officials at both levels have expressed support for the project leading up to the signed conditional purchase agreement for the facility.
Novem adds that it has already secured committed contracts from most of the major packing houses in B.C.’s Interior and the space is expected to be 100% committed before 15 September, a week after possession.
The pharmaceutical business, which has facilities in Kelowna and Edmonton, plans further expansions and upgrades to existing operations.
BC’s tree fruit industry includes 400 commercial growers who farm approximately 15,000 acres of apples, apricots, cherries, nectarines, peaches, pears, and plums, according to data from BC’s government.
Provincial support
On 12 September, the Investment Agriculture Foundation of BC (IAF) announced it would temporarily redirect CA$4m in provincial funding “to be used as bridge financing to ensure co-op members receive the money owed to them for past harvests without having to wait until the court process plays out”.
“These are very challenging times for B.C.’s tree-fruit growers and we are continuing to support them in getting their fruit to market as well as with cash in their pockets now,” said Pam Alexis, minister of agriculture and food. “Our priority from the beginning has been working with growers to ensure they are receiving as many of the services the co-op provided as possible, including food-safety certification, access to storage and bins, and connecting with packing houses.
“This is why we set up an emergency table with the sector to work together on solutions. We are monitoring the court process closely and will continue to support growers in finding alternative arrangements for their harvest.”
The IAF says it will assume the co-op members’ position as creditor and pay growers in the coming weeks before recouping funds at the end of the court process.
The province has also provided $100,000 to the BC Fruit Growers Association to support food-safety certification previously done by the co-op. Growers looking for support, in both English and Punjabi, can contact the AgriService BC line at 1 888 221-7141 or visit the tree-fruit support website set up by the ministry.
The BC Fruit Growers’ Association welcomed the announcement.
“We extend our heartfelt gratitude to the BC government and minister Alexis for their recent announcement of increased support for our province’s fruit growers,” it said in a statement. “This initiative is a significant milestone for our industry and a testament to the government’s commitment to our agricultural community.
“The BCFGA has been working with the government to explore every possible avenue to assist growers. Our steadfast efforts will ensure the government’s commitment to finding solutions and continuing support for our industry.
“We appreciate the government’s recognition of our contributions and their continued support. Together, we will ensure the prosperity and sustainability of BC’s fruit-growing sector. Thank you for your ongoing partnership and support.”
BC Tree Fruits Cooperative and BC Fruit Growers’ Association were contacted for comments.
