B.C. offers $4M support to tree-fruit growers after co-op closure

The B.C. government has announced it is taking steps to ensure tree fruit growers are compensated for past harvests after the closure of their long-standing co-operative, but some say more help is needed.

The province said Thursday that the Investment Agriculture Foundation of B.C. is "redirecting" about $4 million that will be used to ensure co-op members receive money they are owed.

It also says the foundation will pay growers in the coming weeks and then recoup the funds at the end of the court process involving the B.C. Tree Fruits Cooperative, which filed for creditor protection last month.

For almost 90 years, the co-operative processed, stored, packagedand sold fruit for more than 230 member farms. But it abruptly announced in July that it was shutting down, blaming "extremely low estimated fruit volumes, weather effects and difficult market and financial conditions."

The co-operative also says it has more than $58 million in liabilities.

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

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

3 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.

"These are very challenging times for B.C.'s tree fruit growers and we are continuing to support them in getting their fruit to market as well as with cash in their pockets now," said Minister of Agriculture and Food Pam Alexis in a press release.

"We are monitoring the court process closely and will continue to support growers in finding alternative arrangements for their harvest."

In addition, the province says it has provided $100,000 to the B.C. Fruit Growers' Association that will go toward the food-safety certification that was previously done by the co-op.

Avi Gill, a board member of the B.C. Fruit Growers' Association, called the province's announcement a step in the right direction.

"Farmers here are desperate, especially with the closure of an organization that does so much for our industry here," he said. "It's refreshing to see that we're being heard, but I'm sure that we need a lot of help in this industry to keep it alive here."

WATCH |Growers call for government intervention amid B.C. Tree Fruits closure:

Growers call for government intervention amid B.C. Tree Fruits closure

2 months ago

Duration 1:24

In the Okanagan, dozens of people held a rally to protest the closure of the B.C. Tree Fruits co-operative. Last month the co-op's board shuttered the 88-year-old corporation. As Brady Strachan reports, farmers want the government to step in and save it.

Meanwhile, fruit grower Kelly Wander considers the funds a short-term solution. Instead, she wants the government to revive and fund the co-operative, which she says would help reduce uncertainties for farmers.

She added that fruit growers are planning to hold a rally in Kelowna on Sept. 16to reiterate their demands.

"It is a relief to one point, but it wasn't just the funding we were asking for," Wander said. "We want a home for our co-op here, which has been here for nine decades, which is very significant."