Buyer of co-op facility says it'll offer emergency fruit storage

A pharmaceuticals company says it's buying one of the main cold storage facilities of the B.C. Tree Fruits Cooperative after the co-op fell into financial trouble. 

NOVEM Pharmaceuticals, which has offices in Edmonton and Kelowna, announced Friday that it's buying the co-operative's main cold atmosphere storage facility.

CEO Colin Davison says NOVEM is leasing the property, which can store up to 11 million kilograms of fruit, on an emergency basis until the deal is finalized so it can open up storage space for this year's harvest.

"So that has been our focus," Davison said. "That's the number one thing that is required really right now is to get the fruit into storage immediately."

The company's announcement came after the B.C. Supreme Court ordered the sale of the co-op's assets late last month.

The co-operative, which is made up of more than 230 farming families, previously provided storage and packing services for B.C. fruit growers for almost 90 years.

But in July, the group abruptly announced to growers that it was shutting down, blaming "extremely low estimated fruit volumes, weather effects and difficult market and financial conditions."

It subsequently filed for creditor protection.

WATCH | Kelowna farmer laments loss of B.C. Tree Fruits Coperative: 

'Devastating': Kelowna farmer laments loss of B.C. Tree Fruits co-operative

4 months ago

Duration 10:19

Jennifer Deol of There and Back Again Farms had to remove peach trees from her Okanagan farm after a cold snap all but destroyed the stone fruit harvest in the region. Now, she says the region's farmers are reeling from the shutdown of the Tree Fruits co-operative.

Following the closure, growers have expressed concerns that this will be a devastating season without a way for farmers to refrigerate their crops. 

Some have also said they want the co-op to be reopened and called for government intervention.

Amarjit Lalli, a grower and former B.C. Tree Fruits board member, reiterated the growers' demands Friday and noted that there are other important packing and storage facilities that could support a revival of the co-operative.

"It's frustrating," Lalli said. "We need a dance partner and they are not wanting to dance."

B.C. United has said that it wants the province to temporarily halt the liquidation of the co-op's assets and offer funding to get B.C. Tree Fruits through this year's harvest and audit the co-operative and its management.

LISTEN | New measures announced for B.C. farmers in August: 

On The Coast8:00New measures announced for B.C. farmers

Guest host Belle Puri checks back in with There and Back Again Farms owner Jennifer Deol about whether the supports announced by B.C. will be beneficial enough for small family farmers, and what measures she hopes to see soon. 

The Ministry of Agriculture, however, says it will not be stepping in to put a stop to the liquidation process.

In a statement to CBC, a spokesperson emphasized that the B.C. Tree Fruits Cooperative is a private entity, and its board of directors decided to seek creditor protection.

"The bankruptcy process is overseen by the courts and is meant to uphold the interests of the growers who are the owners of the co-op," the statement read.

The ministry said that it will support growers to get their produce in the market and highlighted ongoing efforts, including income support programs and a future climate resiliency program tailored to fruit growers.

Previously, Agriculture Minister Pam Alexis and Premier David Eby have acknowledged the challenges faced by tree fruit growers. Last month, Eby announced a variety of programs to assist farmers across the province.