by MARY BAXTER
On Wednesday, Len Troup confirmed that he was aware there had been several offers on the plant. But they have all hinged on obtaining provincial support and so far such support hasn’t been forthcoming, he said.
In January, CanGro Foods Inc., announced it would close its plant in St. Davids near Niagara Falls at the end of March if a buyer can’t be found. The plant cans peaches and pears. Also on the block is the company’s plant in Exeter, which cans peas, sweet corn and other vegetables. The closures are related to the company’s decision to outsource its canned fruit and vegetable requirements, the company stated in January. The company’s tomato canning plant in Dresden is unaffected.
Troup said the St. Davids plant remains open but operations have slowed significantly and are likely geared to bridging the gap until the company’s first offshore shipments arrive in June or July.
While the company offered some compensation to growers who held production contracts with the plant, there was no negotiation on the amount and it wasn’t based on the value of the orchards. Nevertheless, it was picked up “almost by everyone,” he said, “because what are you going to do? You may as well take it.”
Troup has grown some peaches for the cannery over the years but has mostly geared towards the fresh market, said if growers want to sell their product in the fresh market. He says replacing existing trees with more appropriate varieties is necessary. That can be costly, he said; the Ontario Ministry of Agriculture, Food and Rural Affairs estimates costs of $14,000-$15,000 to replace and bring into production an acre of pear and peach orchard. Troup noted that the federal government had recently put $1,619 an acre towards the cost of removing orchards and vineyards.
The sudden involvement of 1,750 new acres in fresh markets could generate another serious problem: “It doesn’t take too much extra to overload a market,” he pointed out.
Troup said that he had been approached with the idea of starting a cooperative to buy the plant, but wasn’t convinced it made good business sense. He estimated $75 million would likely be needed to run the plant, annually. Growers would also have to compete with CanGro, which is holding on to its Del Monte, Aylmer and Ideal brands, to market their imported product.
“It’s not viable,” he said.
The situation has struck a chord with the broader public, he said. Troup said he has fielded 15 to 20 calls from people who expressed outrage at the situation. “All of these people are not talking about money here; they’re talking about part of our heritage, something that they think somehow we’re entitled to keep is being let go,” he said. “There is an emotional side that has really touched a nerve and I have never seen it before.”
A CanGro representative did not respond to Better Farming’s request for an interview. BF
Comments
I have a deep feeling that the closure of this plant will have a huge consequence on our Ontario/Canadian food security. If this factory goes, there is a strong possibility that our Niagara fruit orchards will slowly disappear with it.
There is a large growing sector of Ontario urban residents that are starting to understand that local food is important, and they are eager to purchase local food.....especially the fabulous tender fruits of the Niagara region.
In the article, Mr. Troup's commented that there is a possibility that 'new acres in fresh markets could generate another serious problem: “It doesn’t take too much extra to overload a market”. I think that a lot of residents would like to see the market and their groceries stores become flooded with Ontario produce. Right now we are still seeing US produce being sold in grocery chains during the peak season of Ontario produce (ex. strawberries, peaches and pears etc.) When I've asked produce managers why there isn't more Ontario produce on their shelves, their response is because they can't get a hold of enough Ontario produce.
I say wake up MPPs in the Ontario government! Help support this canning factory, because your citizens would like to have local food and not canned fruits that have been shipped from half the world away!
-Heather Howell
Burlington, Ontario
I am starting a business as a local food broker in Waterloo, ON. I see a huge increase in the interest in local foods. People are finally realizing the importance of buying local food. Customers are even prioritizing buying local over organic. We've gone through a dry spell of cheap global food but now the tides are turning back to a balance that prioritizes local again.
I am writing to encourage the entrepreneurs of the Niagara region to start their own cannery for peaches and pears. It does not have to be gigantic to be successful. I am ready to sell your canned peaches and pears to stores here in KW and surrounding cities. I know people that will sell them in Toronto too. Email me if/when you have canned peaches and pears to sell.
I'd like to see the ON government support the transition to one or two smaller canneries.
- Nina Bailey-Dick
Waterloo, Ontario
ninabd@gto.net
Having worked for Nabisco in the 90’s and dealing with the people at the St. Davids, Exeter and Dresden plants I am saddened at the thought of the closures of these two plants. For many years these people took pride in their work and delivered quality products to Canadians.
And like a lot of people these days, I too want to buy locally and certainly won’t be buying canned fruit and vegetables from elsewhere. If the plants stayed open and competed with the Del Monte, Aylmer and Ideal brands they only have to label their cans with “Grown in Canada” and I think most consumers these days would make the right choice.
Also, with the growing cost of transportation, offshore fruit prices are surely going to rise. I believe our oil prices will continue to increase, as resources are limited. Has CanGro factored this into their long-term plans? When it does happen, it may be too late to get back what we currently have. I think as a country/province we need to be self-sufficient and take care of our farmland. Who knows what the future holds.
Jacquie,
Schomberg, Ontario
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