Property sales playing a key role in co-op overhaul


Proceeds expected to exceed costs of facility improvements as consolidation continues.


By Judie Steeves A


lthough none of themoney has yet flowed into the coffers of the B.C. Tree Fruits Co-operative,


there are severalmulti-million-dollar deals in theworks for sale of properties owned by the co-op—more than enough to pay for themulti-million- dollar facility upgrades completed this summer, says Alan Tyabji. And, onOct. 1, the co-operativewill


implement a reorganization thatwill put in place all the changes the new chief executive officer has beenworking on since hewas appointed to the position last fall by a newly-elected board of directors. “Therewill bemore internal changes


before that time,” Tyabji said. A newstrategic plan for the co-opwill


focus on consolidation of the tree fruit packing and storage operations in the north and the south of the valley,with marketing continuing to operate from offices in themiddle, he said. Consolidation is occurring in other


ways aswell,withGrowers’ Supply now operated directly by the co-op aswell, in a bid to achieve some efficiencies, he said. For instance, the PentictonGrowers’


Supply property has been listed for sale and instead it operates out of space leased fromthe co-op at the old packinghouse,where that incomewill staywithin the industry-owned co-op, he explained. The end of thismonth is the closing


date for sale of the co-op’s Clement Avenue property inKelowna—seven acreswhere the direct retail sales storefront is located, aswell as storage. Tyabjiwould not reveal the sale price,


but said it’s a “very large amount of money. Itwould pay for 90 percent of the capital improvements completed


Alan Tyabji


this year.” Since it’s a private sale, real estate


feeswould be saved, he said. The funds fromthat deal are


scheduled to be paid to the co-op at the end ofOctober. Instead of the $40million future


upgrading discussed two years ago by the co-op, Tyabji says he has achieved the samewith less than $10million, by renovating instead of building from scratch. Renovationworkwas done on both


theWinfield plant and inOliver,where the cherry packing linewas updated. In Winfield, $7.5million, including a $2.7 million grant fromthe


JUDIE STEEVES


Unused waterfront facility is one of several Naramata-area parcels placed on the block by the B.C. Tree Fruits Co-operative.


8 British Columbia FRUIT GROWER • Fall 2013


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