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BC Tree Fruits Cooperative ceasing operations, will seek 'court direction'

Growers left scrambling to find new markets
okanagan-farmers-castanet
Protesters outside BC Tree Fruits office on Sexsmith Road in Kelowna May 29, 2024.

The BC Tree Fruits Cooperative is ceasing operations.

In a letter to members, BC Tree Fruits announced Friday it is no longer accepting fruit as of July 26.

"We recommend that you immediately search for another alternative to market your fruit for the balance of the 2024 season," said the email.

BC Tree Fruits says it made the decision Thursday to obtain court direction and assistance to wind down the co-operative and maximize recovery for all stakeholders.

BC Tree Fruits was established in 1936 as a grower-owned sales agency responsible for marketing fruit produced by members to customers throughout Canada and around the world.

The letter indicates that the BC Tree Fruits board determined that due to "extremely low estimated fruit volumes and difficult market conditions, the cooperative would not be able to effectively operate the business and provide pool returns to growers."

Co-op executives were not immediately reachable for comment.

Independent fruit farmer Alan Gatzke says he's not surprised the organization is going under, but he is surprised by the timing.

"It's probably not a big surprise to a lot of them, but from my perspective, I'm surprised that the way things have been going that it has taken this long. So the growers in the co-op are now creditors, and they'll be low on the list.

"I've heard two numbers, either $60 million or $80 million in debt," Gatzke said.

Castanet spoke with several other farmers who indicated that they are not surprised by the move but they have few details as to what happens next.

The letter from BC Tree Fruits advises its members they are committed to sharing more information as they obtain it and they encourage farmers to reach out by email to [email protected] and, "we will do our best to answer your questions as quickly as possible," states the letter.

BC Tree Fruits says it is navigating the logistics of winding down its operations and they are asking for patience as they navigate through the court-led process.

"BC Tree Fruits Cooperative operates within the BC Cooperative Association Act, and we are therefore required to ensure that the Act is followed. To aid in this process, both legal and accounting advisors will be engaged to provide assistance."

"Though there is limited information included in this initial letter, we wanted to provide you with as much time as possible to find a home for your crop," concluded the letter.