With more than $50 million in liabilities, B.C. Tree Fruits Cooperative, an organization that has served farmers for nearly a century with storage and packing, amongst other supports, has filed for creditor protection due to a liquidity crisis caused by a series of hard years.
The move comes after the co-operative announced that it would be shuttering last month in response to “extremely low” estimated fruit volumes due to a winter deep freeze that decimated blossoms paired with “difficult market and financial conditions,” though there were also said to be issues with the management of the co-operative.
Some members have opted to switch to private fruit packers amid high costs and increased competition, which was also exacerbated by ongoing squabbles amongst members and leadership.
This is only a partial solution as many others do not trust private packers, and private packers overall will not have the capacity to replace the co-operative in this regard. Farmers need access to bins and storage facilities that are usually offered by the co-operative.
The same day that the co-op filed for bankruptcy protection, Premier David Eby and B.C. Agriculture Minister Pam Alexis announced millions in additional funding for the province’s fruit growers via tweaks to the AgriStability program. Farmers can access an additional $15 million in claims for crop losses, and another $5 million for a tree fruit climate resiliency program, while Eby is calling on the federal government to freeze loan payments for farmers in the interim.
While the fate of the organization is in the judge’s hands, the province will be keeping a close watch on the creditor protection process to ensure that key assets are protected and to offer support, especially as many peach, apricot, and cherry producers will not have any crops at all this year.
