By Roy Wood, Special to the Times Chronicle
The shuttered fruit packing plant in Oliver will be up and running again very soon, according to the new owners of the assets formerly owned by BC Tree Fruits, which ceased operations last July.
The Wildstone Group, in partnership with Ontario-based Algoma Orchards, has received BC Supreme Court approval to purchase the assets of BC Tree Fruits, including branding, for $22.75 million.
Speaking to the Times Chronicle this week, Wildstone president Mark Melissen said the transaction will be completed by the end of May. Then there will be considerable clean-up and commissioning to do. “What we are targeting is about Canada Day to start accepting fruit.”
He said the plant may miss the early part of the cherry season. “But we’ll catch it right in the middle. Peaches will come after cherries and apples in the fall.”
Sorting and grading is a highly automated process.
Don Urquhart photo
There has been a skeleton crew of refrigeration operators at the site, which is a safety requirement. Once things get rolling, Melissen said, “My thought is we’ll probably need at least 20 people initially, and then it will scale up once we actually start packing.”
He added the new owners have lists of former workers at the plant and have already started contacting some of the key employees. “If we can hire back people who know the plant and have worked there in the past, that’s a win for everybody.”
As for the orchardists who supply the fruit, Melissen said meetings are being held next week with growers.
In addition to restarting the Oliver plant, the partners will operate the receiving facilities in Summerland and Keremeos. “This marks a significant milestone for growers and the agricultural community across the Okanagan Valley and the province at large.”
Don Urquhart photo
Wildstone is a diverse, family-owned company based in Penticton with interests in construction, engineering and real estate.
Melissen said one of the attractions of the BC Tree Fruits acquisition was to work with another family-owned company, Algoma Orchards, owned by the Kemp family in Ontario.
“The Kemps are fourth-generation farmers. They’re growers themselves, and they operate a very similar plant with the same automated equipment in Newcastle. They know the gear, he said.
Algoma Orchards president Kirk Kemp is on vacation and unavailable for an interview. In a press release, he said: “This is an incredibly exciting chapter for our business and for BC growers.
“I’ve been growing apples for 50 years, and it’s an honour to help restore strength and stability for farming families in the Okanagan, many of whom faced uncertainty when BC Tree Fruits announced it would be winding down.”
Cutting edge technology in the Oliver facility places it as one of the most modern in the world.
Don Urquhart photo
Noting BC Tree Fruits’ storied legacy in BC – which had provided storage and packing services for almost 90 years, working with nearly 230 farming families at its peak – Kemp said it will use the same successful formula as it does at its Ontario orchards.
This includes “an unwavering focus on grower partnerships,” quality, taste and constant innovation, he said.
The surprise closure announcement came late last July when BC Tree Fruits sent a letter to member orchardists informing them they would have to find an alternative place to market their fruit as the co-operative was ceasing operations.
The letter said that on July 25 the board of directors determined that due to “extremely low estimated fruit volumes and difficult market conditions, the cooperative would not be able to effectively operate the business and provide pool returns to growers.”
At the time, Oliver Mayor Martin Johansen expressed amazement at the sudden closure of such a major player in the local agriculture industry as the recently upgraded Oliver packing house.
Johansen said he had recently been to groundbreaking ceremonies and tours of the co-op’s primary facility in Oliver. “Then I read the article (about the closure) and I’m thinking, ‘Are they talking about the Oliver facility where they are investing 80 million dollars?”’
In his interview with the Times Chronicle this week, Wildstone’s Melissen said BC Tree Fruits had installed automated cherry and apple lines in the packing house, which the new owners will put into operation. “(They) should make the plant quite efficient and cost efficient.”
As part of the purchase, the new owners acquired the name BC Tree Fruits, which remains in place. Melissen said the brand retains considerable value for consumers and retailers.
Don Urquhart photo
Meanwhile, Novem Pharmaceuticals, last year in September, was quick to acquire BC Tree Fruits’ largest controlled atmosphere and cold chain storage facility located in Kelowna.
The Kelowna company, with operations in Alberta, offers cold chain warehouse and distribution services for the agrifood, pharmaceutical and biopharmaceutical industries.
At the time, Novem committed to leasing the facility on an emergency basis to assist the tree fruit industry in avoiding the loss of as much as 11 million kilograms of apples.
The company also said at the time it plans to upgrade facilities as part of a larger plan to boost food security and accommodate future growth plans across a broader range of the agrifood industry.
