Promises of provincial aid for British Columbia fruit growers may not be enough to prevent a major cash shortage this summer in the Okanagan Valley.
“The fruit growers will get a significant amount of money,” said premier Ujjal Dosanjh during a news conference April 12.
The money will come from the Canadian Farm Income Program but the premier did not say how much could be available. The fruit growers have heard rumors of $6-$8 million.
The province is eligible for $25 million in federal money from the aid program and B.C. government officials say the province may not have to contribute $16 million for its 40 percent share.
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“The federal government agrees that we are spending over and above certain amounts on agriculture, therefore we don’t need to give 40 percent,” Dosanjh said.
That money would be divided among all eligible B.C. farmers.
When the Saskatchewan government suggested a similar proposal a few weeks ago, Ottawa told it that the federal 60 percent would not be available unless the province contributed its 40 percent share.
Dosanjh’s promise falls short of the fruit growers’ request for $18 million to cover shortfalls experienced in the 2000 growing year when the apple market collapsed.
A large surplus of high quality apples across North America is the main problem. In addition, consolidation among major retailers enabled buyers to band together and drive down fresh fruit prices.
“We have found this a very big crisis because it has hit all varieties across the board,” said Penny Gambell, president of the B.C. Fruit Growers Association.
Red Delicious apples are returning three to four cents a pound to growers, yet the cost of average production for apples is 20 cents.
Newer varieties like Royal Gala fell sharply. They were paying an average 38 cents a lb. in 1999 and fell to 18 to 20 cents in 2000.
