The BC Tree Fruits Cooperative (BCTFC) has recently filed for creditor protection, citing a current liquidity crisis. This decision was prompted by a demand for repayment issued by CIBC on Aug. 26, under the Bankruptcy and Insolvency Act, for debts owed by BCTFC, Growers Supply Company Limited, and BC Tree Fruits Industries Limited. As a result, the company has sought a stay of all proceedings and remedies against BCTFC for 10 days.
The BCTFC’s initial hearing is scheduled for Aug. 13, where they will request the appointment of a court-appointed officer (monitor), approval of interim financing, and scheduling of another hearing on Aug. 23. At the second hearing, the company will seek approval for the sale of assets to address the current financial challenges.
The liquidity crisis faced by BCTFC is attributed to various factors, including decreasing tree fruit volumes, increased competition from local packing houses, aging facilities and equipment, market pricing pressures from Washington State, a reduction in contracted growers/members, and impacts from a changing climate. Additionally, a 2022 consolidation plan aimed at modernizing equipment and divesting aging properties to increase efficiencies and reduce overhead costs was hindered by disruptions such as attempts to block property sales and make board changes.
The impact of severe weather in 2024 further exacerbated the situation, with a significant reduction in cherry and stone fruit volumes, as well as lower-than-expected apple crop numbers. Grower discord also played a role in the decreased apple volumes, highlighting internal challenges within the cooperative.
In response to the shutdown announcement on July 26, the City of Kelowna entered into an agreement with Sandher Fruit Packers to assist growers in marketing their produce. However, concerns have been raised by residents near Sandher’s facility regarding the wastewater containing chemicals used to wash fruit, which is being temporarily accepted by the city. Sandher has faced fines from the province and is working on a permanent solution to address the wastewater issue.
Overall, the challenges faced by BCTFC underscore the complexities of the agricultural industry and the need for strategic planning and collaboration to navigate financial hardships. The upcoming hearings and potential asset sales will be crucial in determining the future of the cooperative and its ability to support its growers in the long term.