The Agriculture Ministry announced that approximately $4 million in bridge financing will be allocated to co-op members in British Columbia, aimed at ensuring they receive payments for previous harvests amidst the co-operative's ongoing credit protection process. This initiative will be facilitated through the Investment Agriculture Foundation of B.C., a non-profit organization dedicated to industry advancement, which will temporarily take on the role of creditor to expedite payments to growers. The foundation anticipates reclaiming these funds following the conclusion of the court proceedings.
In response to the co-op's closure, Agriculture Minister Pam Alexis highlighted the government's commitment to assisting B.C.'s tree-fruit growers during this period of adversity. Efforts include aiding in the transition to alternative services for storage, packing, and obtaining food-safety certification previously offered by the co-op. Alexis noted, "We are monitoring the court process closely and will continue to support growers in finding alternative arrangements for their harvest."
The co-op, with a history spanning nearly a century, cited challenging market conditions and a particularly poor harvest this year as reasons for its shutdown, revealing over $58 million in liabilities. This development poses potential disruptions for apple growers in B.C., with the province facilitating connections between 120 of the 179 apple-growing co-op members and alternative packing houses. Additionally, the B.C. Fruit Growers Association has received $100,000 to support food-safety certification, alongside further financial assistance through the provincial AgriStability program and a climate resiliency initiative.
Source: Vancouver Sun