Despite the protests of farmers, a BC Tree Fruits executive says its "impractical, if not impossible" to restart operations for the 2024 crop season.
Douglas Pankiw, the co-op's interim chief executive officer and chief financial officer, made the statements this week in an affidavit filed in BC Supreme Court bankruptcy proceedings for BC Tree Fruits.
"I understand that some of the growers, through the media or otherwise, are inquiring as to whether BCTFC could reopen its operations for the 2024 apple harvest. Such an operation is impractical, if not impossible," the affidavit said.
The fate of the BC Tree Fruits Cooperative is now in the courts' hands. A brief hearing took place Friday with a second, full-day session set for Monday.
Pankiw's affidavit says BC Tree Fruits simply does not have the money to restart, something that would cost $1.5 million, and continue to cost $1.2 million each month of the apple harvest. The company has been operating at a loss for years and it is expected those losses would grow given the estimated harvest.
The co-op is also now unable to secure stable distribution and commitments from customers and many of their staff have now moved on and found other work.
Aside from the financial and logistical challenges Pankiw says there are also technical challenges.
Refrigeration and controlled atmosphere (CA) locations for fruit storage use either ammonia or brine refrigeration systems which need to be closely regulated. These rooms are sealed environments where oxygen is taken down to as low as one per cent while other gasses such as carbon dioxide or nitrogen are added, depending on the variety of the apple.
"It requires days to achieve the CA room atmosphere and additional days to bring the CA rooms back to a regular atmosphere that allows the rooms to be accessed without breathing apparatuses," Pankiw says.
Protests continue
Despite the gloomy outlook, apple farmers say they are not giving up.
Jennifer Deol and her husband operate There and Back Again Farms.
"We can't get a hold of anyone from (BCTF) management and their legal team is not really communicating with us, but we are fighting back through different legal channels to get transparency around how this decision was made."
"We're fighting back, we're talking to media, we're getting the story out there, and we're protesting weekly."
Deol says she believes the recent demonstrations along Harvey Avenue are helping, "the public is aware of what's happening and is joining and supporting our cause."
Deol says there are still about 200 farmers who do not have any place to store or sell their apples and other farmers say if BC Tree Fruits can't be saved then they should be allowed to take their land out of the Agriculture Land Reserve and develop it.
Court documents state that BC Tree Fruits owes $53,236,756.41 to secured creditors, including $50,825,051.81 to the Canadian Imperial Banking Corporation.
The list of total unsecured creditors includes farmers and totals $12,117,315.02.
Castanet has learned there are a number of parties interested in purchasing parts of BCTF but it remains unclear if there are any suitors willing to purchase the entire operation.
A sale process will be put before a judge Monday for approval that would see the bids for the entire block of BCTF assets be accepted until Sept. 27, with a final bid deadline date for individual assets set for Oct. 18. The entire sale process is proposed to close on Nov. 30.
