MARCH 2020 • COUNTRY LIFE IN BC Fruit growers grapple with third year of losses
Annual convention passes resolutions seeking relief
by TOM WALKER KELOWNA – Poor apple
prices were the focus of the 131st annual BC Fruit Growers Association convention in Kelowna, February 11-12. “This is the third consecutive year of declining grower returns,” says BCFGA president Pinder Dhaliwal. “Returns are now below the cash cost of production.” Payouts as low as nine and 10 cents a pound for Gala apples were reported by top growers on their first pool advance from BC Tree Fruits Co-op. These figures are being called the lowest ever in real terms and compare with the 30 cents a pound it costs to produce apples in BC. “BCFGA is hearing that
apple growers do not have resources to pay for the upcoming season’s agriculture activities such as pruning, thinning, fertilizer and harvesting,” says Dhaliwal. “The provincial government needs to recognize the complex economics of our industry.”
BCFGA general manager
Glen Lucas said growing conditions during the 2019 season were not ideal, declining soon after fruit set. “Though pollination and fruit set were satisfactory, things went downhill from there,” he says, with near- weekly rain events and extreme heat in August creating problems. “The rains split cherries and
increased culls and the rains and heat caused poor colour, weakened fruit and storage issues for apples,” he explains. Grower costs continue to
rise, with BC’s minimum wage rising to $13.85 an hour last summer and increasing to $14.60 an hour on June 1, 2020. Crop protection,
fertilizer, fuel and equipment are also more expensive. Delegates shared their frustration with increasing food safety and environmental demands. “There are too many
regulations we have to pay for,” says Denise MacDonald, an apple grower from Summerland. “It’s too costly for young growers, especially with land over $100,000 an acre, to get 20 cents a pound for top Ambrosia apples.” Many of the convention’s
resolutions called for the association to approach government to seek relief from costs and improve farm income, including funding food safety equipment, exemption from the provincial sales tax and allowing value- added enterprises within the Agricultural Land Reserve. A late resolution directed the association’s board to seek a special provincial per-pound payment to apple growers in respect of market losses in 2019. The resolution suggested a cash payment and/or other proposals such as an increase in AgriStability coverage, a PST exemption, a rebate on irrigation fees, provincial guarantees and interest-free grower operating loans, and a duty against US apples being dumped into Canada at prices below the cost of production. “This industry is in dire need of help right now,” says Amarjit Lalli, a Kelowna grower who supported the late resolution. “We just need short-term help and we will turn the ship around.” Talk between members on
the convention floor focused on the role of the BC Tree Fruits Co-op in the current financial difficulties. The co-op is the largest sorting, storage, packing and marketing group
7
Grape and tree fruit specialist Carl Withler, centre, was given the BC Fruit Growers Association’s Award of Merit by general manager Glen Lucas, left, and BCFGA president Pinder Dhaliwal. TOM WALKER PHOTO
in BC. “We are at a pivotal time,”
acknowledges BCTF board chair Steve Brown. “These low returns are not sustainable.” Conceding that there have been similar promises before, Brown outlined four areas for change: marketing and sales, governance, infrastructure planning and government support. “The difference now is qualified leadership,” he says. “But we have to act fast or we are in trouble.” Brown promised
information on new strategies in the near future and urged BCFGA members to attend the co-op’s upcoming meetings, as they’ll be the proper place to discuss
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