The B.C. Supreme Court has mandated the sale of Okanagan fruit-growing facilities, a move that has stirred concerns among local producers. Justice Miriam Gropper approved the sale after hearings, targeting properties in Summerland, Keremeos, and Oliver, including a critical packing plant. The sale arises as BC Tree Fruits Cooperative (BCTFC) faces a substantial debt to secured creditors, amounting to over $53 million, with the Canadian Imperial Banking Corporation being a major creditor. Additionally, unsecured creditors, comprising farmers, are owed over $12 million.
The court learned of potential buyers for some assets but not all, with a preference expressed for selling the properties as units to benefit the industry. This development has disappointed industry stakeholders, including Amarjit Lalli, a former cooperative director and Kelowna apple grower, who criticized the provincial government's lack of intervention. Despite the challenges, Lalli remains optimistic about rebuilding and streamlining operations.
The sale process, set to conclude by Nov. 30, has sparked concerns over a possible glut of low-priced fruit this fall and subsequent reliance on imported produce. Lawyer Mary Buttery, representing a group of growers, highlighted the financial toll on cooperative members and potential food security issues. Additionally, the court was informed that 198 cooperative employees are still awaiting severance pay.
Amidst these developments, BCTFC's interim CEO and CFO, Douglas Pankiw, stated in an affidavit the impracticality of resuming operations for the 2024 apple harvest, citing financial constraints. The cooperative has been operating at a loss, with restarting costs estimated at $1.5 million, plus monthly expenses of $1.2 million during the apple harvest season.
Source: VIA