For almost 90 years, the B.C. Tree Fruits Cooperative has been a vital part of the British Columbia fruit growing industry, providing storage and packing services to local growers. However, the cooperative recently made headlines when it filed for creditor protection after receiving a bank repayment notice. This decision was driven by a “liquidity crisis,” exacerbated by damaged stone fruit crops due to adverse weather conditions, which the group identified as the final tipping point in a series of challenges.
The co-operative had previously announced its closure due to “extremely low” estimated fruit volumes and challenging market and financial conditions. The situation escalated when the Canadian Imperial Bank of Commerce demanded repayment of debt, prompting the cooperative to seek creditor protection in B.C. Supreme Court to maximize recovery for all stakeholders. A hearing was scheduled in Vancouver to address the situation, with the group seeking a stay of all proceedings, the appointment of a monitor, approval of interim financing, and the scheduling of a subsequent hearing.
The impact of a severe cold spell in January wiped out a significant portion of B.C.’s peaches, apricots, and nectarines for the year, while cherry orchards suffered severe damage. Fruit-growing regions in the southern Interior experienced frigid temperatures that killed off active buds in trees, following the challenges of the 2021 heat dome and a harsh winter in 2022.
A former board member of the cooperative alleged that the decision to close the business was made amid a power struggle for control and member discontent over management. Some apple growers expressed dissatisfaction with the board’s handling of the cooperative, leading them to withhold crop estimates and switch to private fruit packers. The closure of the cooperative has left growers scrambling to sell their apples in September and October, potentially driving down prices.
In response to the crisis, the provincial government announced various programs to assist farmers affected by natural disasters and challenging circumstances. Premier David Eby highlighted the need for subsidy frameworks similar to those in Washington state, where farmers receive substantial support. The province plans to enhance the AgriStability fund, increase compensation levels, and introduce a tree fruit climate resiliency program to prevent crop loss due to climate events.
Despite these measures, some farmers, like Jennifer Deol of There and Back Again Farms, expressed concerns about the support falling short for smaller farmers impacted by the closure of the cooperative. Deol emphasized the challenges of accessing storage, food safety, and other essential services without the cooperative’s assistance. The province’s efforts to work with private packers and stakeholders aim to ensure a smooth transition for tree fruit growers during this challenging time.
Overall, the situation facing the B.C. Tree Fruits Cooperative underscores the complexities and challenges of the agricultural industry, particularly in the face of unpredictable weather patterns and market conditions. The cooperative’s filing for creditor protection serves as a reminder of the importance of resilience and support mechanisms for farmers facing adversity.