After the receivership of the BC Tree Fruits Cooperative in the latter part of July, its Kelowna location has resumed apple storage under a new administration. Private company known as NOVEM began operation at Sexsmith Road facility, marking its first move following the financial crisis of the cooperative. NOVEM’s CEO Colin Davison, reported the beginning of the apple harvest and attributed it to an emergency lease that was secured at the beginning of September. The firm, which is specialized in storage for biopharmaceutical, pharmaceutical and agricultural-food items, is planning to hold approximately 25 million pounds apple and has a capacity utilization being 60 percent.
Despite the improvement in operations, the shift from private ownership to a cooperative is causing mixed reactions for former co-op members. Amarjit Singh Lalli, a co-op veteran who has expressed his frustration about the absence of government intervention to save the 88-year-old institution. However, Lalli is optimistic about the future of the cooperative insisting on the need for action in the near future as the deadline of November 30 to sell assets is approaching. The efforts are in progress to develop a plan to restructure and improving the efficiency of operations at the cooperative.
The difficulties facing the cooperative’s finances that culminated in a debt of more than $60 million has prompted demands for an investigation into the governance of the company and its financial management. Lalli calls for government oversight in order to better understand the fallout of the institution’s history.
In the meantime, NOVEM is not only focused on expanding the storage capacity of its facilities, but has an interest in buying its BC Tree Fruits brand, known worldwide for its high-quality. Davison spoke about the value of the brand and stated his intention to submit a bid on its purchase, stressing the need to protect the legacy of the brand. The assets owned by the cooperative, such as an updated sorting facility worth $50 million and a packaging facility located in Oliver remains a vital part of the area’s infrastructure for agriculture.
Source: Global News