The BC Tree Fruits Cooperative, which announced it would cease operations on July 25 due to low estimated fruit volumes, weather effects on crops and difficult market and financial conditions, said it has filed for creditor protection in the British Columbia Supreme Court.
This is in response to the Canadian Imperial Bank of Commerce demanding repayment of the debt from the cooperative and its subsidiaries including Growers Supply Company Ltd. and BC Tree Fruits Industries Ltd. The cooperative, which served more than 300 growers of apples, cherries, pears, peaches, nectarines, apricots, prunes, plums and table grapes, is based in Kelowna, British Columbia.
BC Tree Fruits’ petition cites several factors for seeking protection. These include decreasing fruit volumes, an increase in local packinghouse competition, aging facilities, aging equipment, market pricing pressures locally and internationally, a reduction of contracted grower-members and impacts from a changing climate.
The petition also states the cooperative saw an 85% to 90% reduction in cherry fruit and no stone fruit crops this year due to weather events. The cooperative also said received apple volumes continued to drop in the last few years and numbers showed a 50% reduction in projected apple volumes for this year from 2023 figures.
The Vancouver Sun reports BC Tree Fruits debts totals more than $58 million.
Amarjit Lalli, an apple grower in the Okanagan, told The Sun that the cooperative’s woes stem from member discontent over its management. He told The Sun BC Tree Fruits’ board “didn’t want to give up control of the organization” at a general meeting, so the board decided to shut down the organization instead.
“It’s been mismanaged and the overhead is way too high,” Lalli told The Sun. “So the margin that we have is quite small, whereas with the private packers, what happens is they’re getting relatively the same price as we are and in some cases more, but their overhead is quite low, so their margins are quite a bit higher and that’s why they’re thriving.”
BC Tree Fruits plans a comeback hearing on or around Aug. 23 where the cooperative will seek approval of a sale and investment solicitation process for its assets.
