A decision not to proceed with a state-of-the-art fruit packing plant in Kelowna left BC Tree Fruits Co-operative with no choice but to sell the property acquired for the purpose, says a respected grower.
“After the decision to move to Oliver, the fate of the property was a done deal,” says Amarjit Singh Lalli, a co-op member and orchardist in Kelowna. “We have incurred so much debt that this property had to be sold.”
BC Tree Fruits paid nearly $6.5 million for the 87-acre site at 3330 Old Vernon Road in May 2019 as part of its “One Roof” plan that envisioned the consolidation of the co-op’s North Okanagan packing facilities at the site, together with office space, cider operations and a destination cidery.
But it abruptly changed tack in August 2022, announcing plans to consolidate packinghouse operations at an existing plant in Oliver, where there was room to expand.
The move took growers by surprise. Several challenged the transparency of the co-op’s decision-making processes in two special general meetings, most recently on February 5. However, both challenges failed to effect any change.
“With the meeting now behind us, the Board of Directors can focus fully on the future, working closely with management and the membership to continue with the facility improvement and consolidation plans first announced in August of 2022,” co-op chair Robert Stewart said in a press release following the February meeting.
The result was the listing of the Old Vernon Road property, which saw strong interest. It sold March 19 for $9.85 million, or $250,000 above the asking price of $9.6 million.
The buyer is a local cherry grower who intends to plant the property to hardy varieties suitable for the local soil conditions.
The property is currently home to a 15-acre cherry nursery, and was a turf farm prior to the co-op’s purchase of the site five years ago.
The nursery was part of a long-term vision the co-op’s former CEO Warren Sarafinchan held for the property, indicating in August 2022 that the site could deliver ongoing benefits to growers even if it remained undeveloped.
“The property itself had the capability to sustain itself; not sure if that was explored,” Lalli told Country Life in BC.
Sarafinchan stepped down as CEO last fall, and CFO Doug Pankiw is currently acting CEO. The co-op has not chosen a permanent successor to Sarafinchan.
With files from Tom Walker
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