Cold chain and consumer packaged goods storage and distribution company Novem says it purchased a controlled atmosphere and cold chain facility in Kelowna, British Columbia, from the former BC Tree Fruits Cooperative.
“Saving this year’s harvest is our immediate goal, but we believe Novem can play a critical role in helping farmers create a sustainable and modern version of the Canadian fruit tree industry here in British Columbia,” Novem CEO Colin Davison said in a news release.
The company said it will lease the facility on an emergency basis to tree fruit growers in the Okanagan Valley to prevent the loss of as much as 25 million pounds of apples. Novem said it secured contracts from major packinghouses in the British Columbia interior and that it will be 100% committed before Sept. 15, one week after possession.
BC Tree Fruits Cooperative announced it would cease operations on July 25. The British Columbia Supreme Court ordered the cooperative to sell its assets to settle its debts.
“Strengthening Canada’s food security is in everyone’s national interest and it’s something that needs to be a priority for all levels of government over the long term,” Davison said. “Private industry is doing its part, but it will take government support of the overall transition of this sector to achieve a more advanced sustainable industry.”
The company said finalizing and funding the transaction will need the support of the provincial and federal governments and that the emergency lease will run through the entire fruit season or upon the financial close of the transaction.
