Today, NOVEM has reached an agreement to acquire BC Tree Fruits’ largest controlled atmosphere and cold chain storage facility in Kelowna, B.C. To mitigate the risk of losing up to 25 million pounds of apples, NOVEM will lease the facility on an emergency basis until the transaction is finalized.
The tree fruit industry faced a critical threat when BC Tree Fruits Cooperative announced its bankruptcy and decision to cease operations, putting this year’s harvest and the livelihoods of hundreds of growers and thousands of workers at risk.
“Our immediate goal is to save this year’s harvest,” said Colin Davison, CEO of NOVEM. “We also aim to help farmers modernize the Canadian fruit tree industry in British Columbia.”
Davison emphasized that achieving these goals will require collaboration with government bodies. “Strengthening Canada’s food security is a national priority and requires support from all levels of government. While private industry is contributing, government backing is essential for creating a more sustainable and stable industry.”
The completion of this transaction hinges on securing support from provincial and federal governments. Both levels of government have shown support for the project leading up to the conditional purchase agreement. The emergency lease will cover the entire fruit season or until the financial transaction is finalized.
NOVEM has already obtained committed contracts from most major packing houses in B.C.’s Interior, with the facility expected to be fully utilized by September 15, just one week after NOVEM takes possession.
With existing facilities in Kelowna and Edmonton, NOVEM plans to continue operations at the Sexsmith Road site while expanding the facility to support future growth in the Agrifood sector. This expansion will include upgrades to existing operations and increased capacity for controlled ambient storage and cold chain services, benefiting the biopharmaceutical and pharmaceutical industries as well.
These developments are expected to create new employment opportunities in the region, both at the facilities and on local farms.
For more details about this significant acquisition and its impact on B.C.
