More than 300 growers across the Okanagan were left scrambling to find a home for their fruit after the longstanding packing and storage cooperative known as BC Tree Fruits announced its sudden closure.
On Sept. 9, after some reorganization and a new waste water management deal with the City of Kelowna, the Sandher Fruit Packers will be able to accommodate an additional 12 million pounds of fruit from 11 farms that were impacted by the closure of BC Tree Fruits.
In the wake of the surprise announcement of closure from BC Tree Fruits on July 25, member growers were forced to find hasty storage solutions. After fruit ripens and is harvested, farmers have only a narrow window of time to get it onto store shelves or into storage before it rots.
On August 26, the 88 year-old cooperative was court-ordered to sell its assets and liquidate all resources in order to pay off more than $50million in debts, cementing the urgent need for former co-op members to find private storage. BC Tree Fruit was in possession of what is estimated as more than $100 million of assets including land, specialized storage facilities and equipment. Until it is sold or leased, the storage facilities will sit empty.
While the province has worked to connect many of the orphaned growers with private storage facilities, limitations in physical storage space and financial constraints, meant that some farmers – particularly those who are considered to be "small scale," – have been behind, leaving millions of pounds of fruit to rot.
In a response to questions from Black Press, the Ministry of Agriculture said that as of Aug. 27, 120 out of 179 coop members had been matched with with private packers.
On Sept. 6, an agricultural products and pharmaceutical storage company called Novem secured an emergency lease and took possession of a former BC Tree Fruit processing facility. Novem, in partnership with local company Farming Karma, will provide access to specialized storage for nearly 25 million pounds of fruit that previously did not have a home.
Days after the Novem lease and Farming Karma partnership announcement, Sandher Fruit Packers broke the news that it will be able to accept fruit from 11 more local growers.
“Our industry and region have faced and overcome adversities with collective hard effort. By working together, we can sustain our local fruit industry through this difficult period," said Bill Sandher, founder of Sandher Fruit Packers.
Lance McGinn, the spokesperson for Sandher Fruit Packers said that there are still farmers looking for a place to store their fruit, despite efforts from other private packers across the Okanagan.
"We have done what we can within our limitations to help as many as we could," said McGinn.
"I know every packer in the valley is doing all they can."
To fit the additional 12 million pounds of fruit, Sandher Fruit Packers had to clear out storage space, ensure the climate control settings were in proper working order, and sort out an agreement with the City of Kelowna for managing the excess waste water.
Sandher Fruit Packing has fallen under criticism for environmental regulation non-compliance regarding wastewater in the past.
Since 2017, the packing house has accumulated more than $100,000 in fines from the government after failing to properly dispose of the wastewater that was used to clean fruit.
The effluent is a byproduct of the fruit cleaning process and is not sewage. The water that was being improperly disposed of contained fungicide, solvents and detergents.
"Our engineer at the time made mistakes," said McGinn. "We were wrong."
The packing house subsequently lost its effluent disposal permit and has had to enter into a paid arrangement with the city, involving trucks that are used to cart wastewater to a treatment facility, in order remain in operation.
Until its effluent permit is approved, the packing house will collect all wastewater in a storage tank. Then, a truck will haul the water to a City of Kelowna wastewater management facility, all paid for by Sandher Fruit Packing.
McGinn said that the new deal with the City of Kelowna, which involves constant assessments and testing, allows them to stay in operation – but noted the arrangement is costly.
The Ministry of Environment and the city have confirmed that the temporary solution of storing and hauling the water is in compliance with provincial regulations.
Sandher Fruit Packers applied for a new effluent disposal permit in February but it is yet to be granted. The packing facility and did, however, pass the most recent government-conducted environmental inspection on June 6.
"We are now fully compliant," said McGinn.
Members of the public have expressed concern with the possibility of a new permit.
McGinn said that the packing house has brought on a new team of engineers and is committed to full environmental compliance while taking ownership of its past mistakes.
He said the Sandher team will continue to work diligently and with transparency to ensure environmental protection while continuing to support the agricultural industry and community.
"We just want to help the growers and help the industry."
