Monette Farms’ rapidly expanding produce business was a key factor in its decision to seek protection from creditors last week, according to court documents.
Saskatchewan-based Monette Farms was granted to restructure its operations by the Alberta Court of King’s Bench on April 21 under the Companies Creditors Arrangement Act (CCAA), the same legislation BC Tree Fruits Cooperative invoked when it abruptly shut its doors in July 2024.
An affidavit by president and CEO Darrel Monette notes that as of April 17, Monette Farms had nearly $1.1 billion in liabilities, including $830 million through a senior facilities agreement that matured April 15.
Maturation of the facilities agreement prompted the CCAA bid, but Monette’s affidavit notes that “substantial debt-driven expansion” drove revenues to $347 million from 440,000 acres in 2024.
But “despite higher revenue, the group’s profits have been substantially burdened by expansion into produce and cattle herding segments.”
Group earnings before interest, taxes, depreciation and amortization fell to $37 million (or $83 per acre) in 2024, then dropped again in 2025 to $31 million – well below a projection of $72 million.
Monette’s assets of $1.24 billion exceed its liabilities, but efforts to sell properties and recoup value have been difficult.
Ritchie Bros. Auctioneers brought a “once in a lifetime” portfolio of assets comprising 12 ranches totalling 44,966 acres to market last fall, but none of the properties found buyers. The goal was to sell the properties by early March, and the listing has since been taken down.
The “buy now” pricing for the portfolio – the largest on behalf of a single owner Ritchie Bros. ever conducted – was set at $199.4 million.
Monette also owns Goat’s Peak Winery, a venture planned for West Kelowna that aimed to produce 8,000 cases last year. A vineyard totaling 60 acres is located in Cache Creek.
Creditor protection currently extends until May 1, but it’s likely to be extended. Monette notes that its BC cattle breeding operation would be significantly disrupted if forced to shut down.
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