Struggling B.C. apple growers mull marketing commission
B.C. apple growers are looking for ways to stop the decay of their Okanagan industry amid a downturn that’s cut profits.
Some see the creation of a marketing commission — similar to the commissions that provide stability for B.C. vegetable, cranberry and hog producers — as the best chance to stop the downward spiral that threatens to damage B.C.’S reputation as a leading exporter of tree fruit. But the plan could be controversial among others who have profited from increased competition.
“We can’t just do what we’ve always done,” said Sukhdeep Brar, who grows apples and cherries on a farm in Summerland. “We know that does not work.”
Apple returns have been low for most of the past decade, with some farmers choosing to uproot their orchards to plant cherries or wine grapes instead. B.C. apple acreage declined by eight per cent between 2015 and 2020, according to a Ministry of Agriculture report, with further declines likely in recent years. Brar admitted he sometimes wonders if the return on his 25 acres (10 hectares) of apples is worth it.
“When growers aren’t making money, they spend less money on their orchards,” including inputs like fertilizer and pest control, he said. “That puts us into a spiral, because it impacts tree health and fruit quality, as well as the ability to buy new equipment.”
Signs of the rot that has caused the decline of B.C.’S apple industry have been visible for some time. Before labour shortages hindered harvest during the pandemic and the heat dome damaged two years of crops, Okanagan apple farmers were already facing poor returns.
Farmer-owned packing co-ops had steadily been losing market share to independent packers, leading to increased competition and price undercutting. At the same time, retail consolidation gave grocery giants more power to set prices, while Washington state orchards were steadily growing larger.
Brar said B.C. has a “leftover system,” with farmers receiving the profit that’s left after retailers and packers take their cut.
In 2021, the B.C. government created a stabilization plan for the $201-million tree-fruit industry, recognizing the “considerable challenges” which were most apparent in apples.
“Competing views and groups posturing for influential industry positions has resulted in fragmentation of the apple industry with reduced collaboration and considerable infighting,” said a summary of the issues identified during consultations with growers and packers.
Glen Lucas, general manager of the B.C. Fruit Growers’ Association, said “harmful internal competition,” as well as external factors like increased imports from Washington state, have hampered the industry’s ability to promote B.C. apples.
He fondly remembered the days when the B.C. Tree Fruits sticker, with red lettering on a small green leaf, signalled “Okanagan apples” to many Canadians. The grower-owned co-operative has become less recognizable in recent years, and efforts to “shore up” the B.C. market as a whole with generic apple marketing campaigns have not been as successful.
The fruit growers’ association is leading a committee to explore the idea of an apple marketing commission.
Lucas said consultations with growers will begin next week, with a report expected after several weeks. The committee must decide if there is enough support to hold a farmer vote on the proposal to form a commission. If so, that could happen in the spring.
“After that, it’s up to government,” he said.
The establishment of an apple marketing commission would require the creation of a provincial regulation.
“Prior to any regulation being pursued, there would need to be evidence ... that the apple sector was engaged, consulted and that the majority of the industry supported the creation of a commission,” according to background information provided by the Ministry of Agriculture.
Lucas said it’s far from a done deal.
He could imagine a scenario where support was strong, but the agriculture minister decided it wasn’t the right time. Alternatively, industry support might not be unanimous, but the minister could feel it is a necessary step to “save the industry.”
He said the commission as proposed would likely have three powers: to collect data on apple prices, volume, storage and movement, which has been notoriously difficult to obtain in the past; the ability to impose quality standards; and the creation of a promotion scheme, in which everyone must pay “their fair share.”
As part of its stabilization plan, the government is also pushing ahead with a marketing plan. In December, a request for proposals was issued to support the development of a domestic marketing plan.
In a statement, Agriculture Minister Pam Alexis said that while the apple marketing plan is distinct from the fruit growers’ association’s interest in a potential marketing commission, “we are open to all ideas, and we will continue to support B.C. fruit growers as we work together to strengthen the tree fruit sector.”