Rising loonie bruises B.C. fruit growers

Fruit growers in B.C. say the rising loonie is making a tough situation worse, and without a $10-million cash injection from the provincial government, many of them might be forced to shut down their operations.

Sam Di Maria, a pear and apple grower in Kelowna, told CBC News revenues have been devastatingly low for orchardists in recent years and with the Canadian dollartrading at close to parity with the U.S. greenback, the current support program isn't enough to keep their businesses alive.

"When the dollar was around 80, 85 cents, that gave us a little bit of an advantage in that most of the apples in North America are sold in U.S. dollars. It always gave us a few more cents a pound return to the growers. With the Canadian dollar being virtually at par now, we've lost that advantage," he said.

'Returns are similar to returns I received back in the early '80s.' Orchardist Sam Di Maria

The economic downturn, combined with the rising dollar and pressure from retailers for better produce at lower prices, meant 2009 was a terrible year for his orchard, said Di Maria.

"Returns are way below cost of production levels. Returns are similar to returns I received back in the early '80s. At the moment, it's just not sustainable at these levels. It remains to be seen how many growers will be able to sustain another year like this, he said.

Cash injection needed now

What growers need is a quick infusion of cash, Di Maria said, and that's why Okanagan fruit growers are making a desperate plea to the province government for $10 millionto help offset major financial losses over the past two years.

Joe Sardinha, the president of theB.C. Fruit Growers' Association recently met with B.C. Agriculture Minister Steve Thomson to tell him that withoutnew help, some growers could be forced to shut down.

"We outlined to the minister that we don't think the AgriStability program is going to provide adequate compensation and timely money for growers," said Sardinha.

"We need that short-term help in the form of $10 million to give the industry and growers that boost they need to stay alive," he said.

The joint federal-provincial AgriStability program paysagricultural producers when their revenues fall below 85 per cent of their average for the past three to five years.

There are about 1,200 tree fruit growers in B.C. with most located in the Okanagan Valley in the province's southern Interior. The industry has been facing increasing competition from U.S., New Zealand and Asian producers in recent years.