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Originally published:

SEPTEMBER 2024
Vol. 110 Issue 9

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Stories In This Edition

Bottom of the bin

BC Tree Fruits for sale

Creditors a cross-section of industry

Ambrosia council winds down

Editorial: Core decisions

Back 40: It’s about time things were simple again

Viewpoint: When co-ops fail, don’t blame the concept

Co-op closure leaves growers in the lurch

Dairy industry revamps WMP initiative

Ag Briefs: Site C reservoir begins flooding farmland

Ag Briefs: Dairy NEP picks announced

Ag Briefs: Former MP Chuck Strahl dies

Ag Briefs: Pender Island FI honoured

Letters: BC Tree Fruits is a loss for all of us

In passing: Orchardists death marks the end of an era

Ag advisory committee in jeopardy

Fairs group holds the line against cash flow crunch

The low-down on phosphorus management

Sidebar: AEM Code phases in nutrient plans

Grower optimism encouraged at annual field day

Richard Cleave receives top honour

Variety a reward that works for large animal vets

Ranchers to benefit from handheld water testers

Feed available but stocks low as drought continues

Tsqescen First Nations aim to grow food security

Efficiency is king as drought levels rise across BC

Farm Story: Farm succession begins with the harvester

Courses delivery affordable ag education

Gulf Island entrepreneurs eye food security

Creston Valley crop losses hit local food hard

PNE is a family affair for 4-H members

Woodshed: Delta prepares to take Kenneth for a ride

Okanagan berry venture is a family affair

Jude’s Kitchen: Feeding fall’s new beginnings

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1 day ago

Channels of communication remain open between the provincial and federal governments with respect to financial relief for extraordinary costs stemming from this summer's ongoing drought and wildfires, but the BC Cattlemen's Association is urging producers to register for AgriStability to position themselves for any AgriRecovery package. "Hardworking families in the ranching and agriculture sectors, who provide food for the province, need the AgriRecovery program in place as soon as possible," says BC Cattlemen's president Alex Kuchar. But the provincial election creates an unfortunate delay. "It's not fair, in any form of the word, to see all those people who have lost so much in the fires to have to wait in limbo," says BC Cattlemen's general manager Kevin Boon.

Photo | Barb Edmonson / Firefly Ranch, Clinton

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Channels of communication remain open between the provincial and federal governments with respect to financial relief for extraordinary costs stemming from this summers ongoing drought and wildfires, but the BC Cattlemens Association is urging producers to register for AgriStability to position themselves for any AgriRecovery package. Hardworking families in the ranching and agriculture sectors, who provide food for the province, need the AgriRecovery program in place as soon as possible, says BC Cattlemens president Alex Kuchar. But the provincial election creates an unfortunate delay. Its not fair, in any form of the word, to see all those people who have lost so much in the fires to have to wait in limbo, says BC Cattlemens general manager Kevin Boon. 

Photo | Barb Edmonson / Firefly Ranch, Clinton

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2 days ago

Feedback on changes to rules governing food processing in the Agricultural Land Reserve has drawn about 250 submissions. But the proposal now hangs in the balance with Premier David Eby's decision to call a snap election, which also delays discussions of assistance for farmers hit hard by this year's wildfires and historic #BCAght.

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Feedback on changes to rules governing food processing in the Agricultural Land Reserve has drawn about 250 submissions. But the proposal now hangs in the balance with Premier David Ebys decision to call a snap election, which also delays discussions of assistance for farmers hit hard by this years wildfires and historic drought.

#BCAg
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What would you expect from the NDP, when they still had a 2 year mandate?

Ridiculous timing. We have people needing answers and have to plan for winter supplies. Fires are long past, months have gone by knowing there was going to be the need for support. Drought was written on the wall even before summer began with no snow pack. This is not new to government and they are calling for another year just as bad for 2027. I throw my hands up and wonder what else needs to be more challenging than what we've experienced over the last 6 years in BC?

250 submissions.... I'm pretty sure there are more than 250 farmers in BC

3 days ago

With a provincial election called for October 24, BC agriculture is set to enter a new era. Veteran agriculture minister Lana Popham is not seeking re-election in Saanich South after 17 years as an MLA. BC's longest-serving agriculture minister, she fought for a stronger Agricultural Land Reserve and celebrated the diversity of BC's agriculture sector, but also took flak for shutting down mink farming and not securing more funding for the Agricultural Land Commission. She was also on the front lines of responses to multiple disasters, including the 2021 floods on Sumas Prairie. In a statement announcing her departure from political life, she said, "I look forward to contributing in other ways and ensuring that food security, protection of the Agricultural Land Reserve, and the people who feed us remain in the spotlight for years to come."

#BCAg
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With a provincial election called for October 24, BC agriculture is set to enter a new era. Veteran agriculture minister Lana Popham is not seeking re-election in Saanich South after 17 years as an MLA. BCs longest-serving agriculture minister, she fought for a stronger Agricultural Land Reserve and celebrated the diversity of BCs agriculture sector, but also took flak for shutting down mink farming and not securing more funding for the Agricultural Land Commission. She was also on the front lines of responses to multiple disasters, including the 2021 floods on Sumas Prairie. In a statement announcing her departure from political life, she said, I look forward to contributing in other ways and ensuring that food security, protection of the Agricultural Land Reserve, and the people who feed us remain in the spotlight for years to come.

#BCAg
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Lana is/was an amazing Minister of Ag. I may not support her party but I think the world of her for her knowledge of, and connection to, our industry! Amazing!

What a loss it will be not to have you as a hardworking cabinet member! Thank you for your dedication to agriculture!

Thank you so much for your public service. Wishing you well in this next phase of your work.

I remember that day Lana! Wishing you all the best!

I had really hoped to see Lana Popham as our Premiere at some point but I am also happy for her, moving onto her next chapter. 😊

That is an amazing run, thank you for your service!💐

Lana is an awesome supporter of agriculture in BC, she was amazing to work with as a minister and always there to listen and try to find solutions. 🌽🐓🚜🌾🐮🍎

Thank you, Ms. Popham, for your service. With you in your portfolio many of us felt that we had truly 'responsible government.'

This is great loss to agriculture in BC .No matter your politics you have to appreciate the energy and empathy she brought to the industry.She will be difficult to replace.

You will be missed but wishing you all the best - thank you.

Lana is the Best Minister of Agriculture and we are going to miss her! Hardworking for the people and leads with heart. I wish more politicians were like her. Thank you Minister Popham for your service! 🐝💕

Great picture!

I love this picture of you Lana.

What a super pic! We are going to miss you Lana.

Vote conservative! Save bc!

Too bad Eby ignored her and is pushing for the 95% out of province, and out of country, food processing facilities on the ALR. Probably why she stepped down.

Thank god. Time for new blood that gives a shit and not just show up for photo ops…

End Eby! Save BC!

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2 weeks ago

With the Surrey-Langley SkyTrain line turbocharging development of the Fraser Hwy corridor and surrounding agricultural lands, the BC NDP today announced it is naming the new line after former Premier Dave Barrett, whose government created the Agricultural Land Reserve to protect farmland. The announcment comes in advance of this Friday’s deadline for submitting feedback on a proposal to open the ALR to processors using as little as 5% local ingredients.

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With the Surrey-Langley SkyTrain line turbocharging development of the Fraser Hwy corridor and surrounding agricultural lands, the BC NDP today announced it is naming the new line after former Premier Dave Barrett, whose government created the Agricultural Land Reserve to protect farmland. The announcment comes in advance of this Friday’s deadline for submitting feedback on a proposal to open the ALR to processors using as little as 5% local ingredients.

#BCAg
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Thousands of big round bales of hay got shipped, and are getting shipped from the lower mainland to the interior due to dry weather and low water supply up country. Those ranchers are sure glad that we still have a few acres down here that can produce when other parts of the province dry up.

No disrespect meant but perhaps they should have named it the "ALR Line" to help educate those who don't know what the ALR is and what it does and doesn't allow.

This NDP government has done more to destroy the ALR than any government since the legislation was enacted in 1973. The Skytrain will bring more people. Processing plants that process only 5% of local produce will require more people to work there and housing for them to live in. And the processing plants will take large acreages of farmland to process 95% non-local ingredients that may even compete with local producers.

The A.L.R is a pain in the A.S.S

I do not agree with this proposed change to the ALR. It is a trojan horse designed to open up the ALR for development. Gary Runka must be turning in his grave. :(

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2 weeks ago

More than two years after the BC Tree Fruits Co-op shut down, a payout of $11.5 million is heading to former members this week. The payout follows a share purchase agreement approved this spring allowing the new privately owned BC Tree Fruits partnership to acquire the co-op’s shares in addition to the assets previously acquired. A further, final payout to growers is expected in December, once other outstanding claims have been resolved.

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More than two years after the BC Tree Fruits Co-op shut down, a payout of $11.5 million is heading to former members this week. The payout follows a share purchase agreement approved this spring allowing the new privately owned BC Tree Fruits partnership to acquire the co-op’s shares in addition to the assets previously acquired. A further, final payout to growers is expected in December, once other outstanding claims have been resolved.

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Co-op closure leaves growers in the lurch

Business failure had many causes over many years

Top quality fruit can command top prices but pooling diluted grower returns. | MYRNA STARK LEADER

September 11, 2024 byTom Walker

OLIVER – On July 3, Osoyoos cherry grower Ranjit Dhillon delivered the last of his cherries to the BC Tree Fruits Co-op in Oliver.

“We were really optimistic; it was our best year yet,” Dhillon says. “We did not suffer any winter damage; we had a full crop. We shipped 108,800 lbs of cherries total.”

Three weeks later, on July 26, the co-op told Dhillon and other growers it was shutting down, leaving the fate of his fruit as well as compensation in doubt.

Cherries are perishable and although Dhillon knows that his fruit was processed, packed and sold, he doesn’t know if he’ll get paid the $220,119 court documents indicate is owing to him.

Costs to manage the crop, including fuel, sprays, pruning and picking have cost him around $50,000.

“I have a packout slip from the co-op, but I have not been paid and I really don’t know if I will ever be paid,” he says, noting he feels “hopeless.”

The co-op has told growers that CIBC, the largest of the co-op’s 11 secured creditors, will be paid first, then other creditors and finally the

co-op’s member growers.

Court filings indicate growers were owed

$4.8 million as of August 13.

“That doesn’t seem right,” says Dhillon. “The growers who grew the fruit, they should be paid first. The banks are already rich.”

Dhillon’s story is just one of many that are the result of the closure of the largest tree fruit packinghouse in the province.

The shuttering didn’t surprise anyone involved in the industry, but it is a story of many parts and no one solution.

It’s hard to say which came first — lower prices and returns for members leading to a lower quality of fruit, or lower quality fruit leading to poor returns. The average pool return for growers has been dropping steadily since 2018, with figures between 2019 to 2023 ranging from a high of 20.97 cents a pound to a low of 13.23 cents a pound. With an average cost of production across the industry of around 35 cents a pound, those returns are hardly enough to sustain growers.

With less money coming in and the cost of inputs going up, some growers cut back on sprays and thinning routines and that in turn led to a cycle of poorer quality fruit.

While co-op rules allow for poor quality fruit to be turned away, it seldom happened. The co-op effectively became the buyer of last resort for growers.

Heat events over the last several years have also impacted apple quality.

Apple trees do not thrive at temperatures above 35° C. Sunburn damage to fruit increases, apples fail to colour up and the fruit is more susceptible to decay in long-term storage.

Heat stress causes photosynthesis to shut down, leading to reduced yields of smaller, poor quality fruit. While apples do better than other tree fruits in the severe cold, they were also impacted by the extreme cold events in December 2022 and January 2024.

Even the best growers can’t escape Mother Nature. Blocks that used to produce 60 bins an acre are now only yielding 40, adding to the hard math growers are facing.

Ambrosia apples have been a success story for the BC industry, and acreage has grown rapidly in the last 10 years, helped by successful replant programs and the expiry in 2017 of the 20-year patent that limited production.

A marketing plan to increase domestic consumption and expand foreign markets for the variety was recommended by the province’s three-year-old tree fruit stabilization initiative, but none has materialized.

Poor returns led a number of the co-op’s top growers to transfer their business to the dozens of independent packinghouses that were cropping up. The past four years have seen co-op membership drop from 400 growers representing about 55% of the industry and 40% of the volume to just 176 voting members.

The departure of those growers eroded the average return to all members, as less top-quality fruit was being sold at a higher price and less fruit overall to cover operating costs.

Some member growers have also practiced high-grading, taking high-quality fruit, either from their first pick or bins from a more productive part of their orchard, and selling it directly to markets in the Lower Mainland. While limited independent sales were allowed in growers’ contracts, the

co-op wasn’t strict about enforcement.

Poor quality is a losing proposition for any business, and particularly one dealing in perishable products.

A small apple with a blemish must still be run through the line, scanned by the optical sorter and graded, but the system will handle a larger volume to fill a three-pound bag than if top-quality fruit was being processed.

While growers were charged a penalty for cull fruit, it fell short of the overhead costs incurred by less productive equipment, not to mention the cost of disposing of poor-quality fruit.

The cash flow issues were set to intensify this year, as poor weather eliminated the peaches and nectarines that generate early-season revenue. A significant drop in the cherry crop put a further damper on cash flows.

But the final nail in the co-op’s coffin came when a number of growers withheld estimates for the volume of apples they expected to deliver. Without reliable estimates of what the co-op could expect to market, it made the only reasonable decision based on the information it had and opted to shut down.

Ironically, the co-op’s failure came down to a lack of co-operation.

A north-south split, highlighted by opposition to the co-op’s decision to consolidate packing operations in Oliver, is the most obvious.

Many growers in the North Okanagan, where the majority of apple acreage lies, objected to the move despite the business case that exists for it.

Cultural and religious divisions among Indo-Canadian growers have also eroded the co-operative spirit, animating discussions at board meetings. A provincially funded governance study in 2020 concluded, “The board and membership is factionalized, often driven by personal agendas rather than business decisions.”

The divisions played out openly in two special general meetings members forced in November 2022 and February 2024. While the meetings failed to unseat the elected board, they eroded confidence in a business that has seen its revenues drop from $165 million in 2008 to less than $56 million today.

The path forward for growers is unclear.

The province says a majority of co-op members have found alternative packing houses for this fall’s harvest. But finding enough storage space – particularly controlled atmosphere storage – to replace the large facilities the co-op operated will be difficult. Packers are currently contracting with packinghouses across the border in Washington for the space they need.

While the province has pledged to protect critical infrastructure, it has stopped short of saying it will buy assets on behalf of growers. Much depends on how the court-ordered restructuring process plays out.

The co-op’s demise is a major blow to the industry, but corporate bail-outs are a thing of the past. The replant program the government launched as part of a historic investment in food security last year is of little use if growers have nowhere to sell their crop.

But if there’s any good news in the co-op’s demise, it’s that the industry as a whole is far from dead.

Many growers continue to operate successful businesses and grow top-quality fruit. Just like a fruitful tree, the co-op’s demise may be the pruning the industry needs.

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