A$40-million investment by BC Tree Fruits is adding the best-in-class optical sorting, robotics, enhanced water filtration, and improved fruit transfer systems to an expanded plant in Oliver.
“The changes being made will result in better fruit handling for our growers, greater energy efficiency, reduced water usage and improved health & safety for our employees,” says Craig Ogilvie, vice president of supply chain with the cooperative.
Local politicians and the cooperative’s leadership gathered to break ground on the expansion in early July.
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“These are the types of investments that will create a sustainable future, said BC Tree Fruits CEO Warren Sarafinchan. “For a business to have the scale and magnitude we ultimately need, we need world-class equipment that will allow us to produce at the lowest cost and best possible quality.”
“The new technology that we are putting in place is second to none,” he adds. “We have traveled the world looking at equipment, talking to different organizations of our type, and we are confident that with the packaging lines and the grading lines that we’re putting in, there will be no one in this industry that will be as efficient as us.”
The first phase of upgrades was put in place for the 2023 crop, with construction and installation happening alongside the summer fruit daily operations. The expansion is also adding additional cold storage rooms and pre-grading lines.
The project is slotted for completion for the 2024 crop.
Original plans for BC Tree Fruits to build a so-called “super plant” near the Kelowna International Airport were earlier shelved in 2022 as the cooperative shifted its plans to Oliver.
The management team cites a sharp rise in construction costs and interest rates.
“When you factor in increases in construction costs, increases in interest rates, and the level of urgency to get our returns to a more sustainable level for our growers, we can start to increase grower returns and see benefits from this project as early as next year.”
However, the decision enraged many growers, particularly those with farms in the north, who launched a determined drive to replace the CEO and board of directors. At the November 2022 meeting, those growers fell short of meeting the requirement for a 66.6% majority.
At the groundbreaking ceremony, board chair Andre Scheepers said, “BC Treefruits made a courageous decision, as did the members at a meeting that made this decision, that in order to thrive in an ever-evolving economy, we recognize the need for change. We understand that failing to adapt would result in us being overshadowed by emerging competitors.”
Scheepers acknowledged that change takes work. “To undertake such a monumental decision requires trust, trust in the leadership and trust in the people that make decisions on on your behalf. We understand the importance of this privilege, and we do not take it lightly.
“Countless hours and resources have been invested in transforming the very fabric of BC Tree Fruits—reshaping our business practice and reimagining our future. Our goal is been to establish a foundation that allows our company to thrive.”
While the move to centralized operation in the south comes with some increased transportation costs, BC Tree Fruits reported that “operating with one facility with world class packing and grading equipment far outweigh the small increase in transportation costs,” as earlier reported in Orchard & Vine.
An analysis undertaken by the cooperative focused on the transportation costs, and if fruit would incur damage in transit to the Oliver packing house.
“There was a question that growers had about, ‘will our fruits be damaged more by transit from the north to the south?’ And the answer to that is ‘no,’” Sarafinchan said.
Welcoming the investment in the Southern community, Oliver Mayor Martin Johansen said, “It’s not just an investment in the town of Oliver, but it’s also an investment in the South Okanagan and the surrounding community. It is exciting news for BC Tree Fruits Cooperative and for their the grower families in the area that bring their fruit here. This investment is going to strengthen our economy and create jobs for residents.
“I think the most important thing is it’s going to serve to ensure the future viability and success of the cooperative.”
