CHAPTER
#3
Challenges
to the Single-Desk
Marketing System
1949-1959
This
trend to smaller and smaller farms must be reversed if a
healthy tree-fruit industry is to survive.1
E.D.
MacPhee
Royal Commission on the Tree-Fruit Industry of British
Columbia
1958
We
are trying to get the whole group to go into larger holdings,
otherwise they cannot succeed. When the farm keeps the farmer,
that is as it should be; but when the farmer starts keeping
the farm, that is a ridiculous situation.2
Newton
P. Steacy,
Minister of Agriculture, British Columbia
1959
For
all the turmoil of the late 1920s and 1930s, the restrictions
of the war and the post-war economy had done much to fulfill the
promise of the single desk marketing system. The 1940s proved
to be the golden era of the fruit industry as an absence of competition
created a false economy for all fruit in Canada. As one grower
later recalled: rarely in the history of farming had there been
such a combination of circumstances, all favouring an organization
and its structure.3 The
return of a box of apples increased by 114 percent in the period
1939 to 1945, even though annual apple production for the decade
was roughly 40 percent higher than it had been throughout the
1930s.4 Central selling
and orderly marketing appeared to have allowed growers to master
the limitations of the natural environment, providing economic
stability while accommodating the fragmented nature of the orchard
landscape. The optimism of these years was so great that a renaissance
in land prices occurred, fuelled by an influx of German immigration
and retiring farmers from the Prairies. Given this new era of
high returns, a sizeable number of established growers were lulled
into the belief that they could subdivide their property and profit
from the new demand for land, while still retaining a decent income
from their remaining orchard land.5
Taken together, these individual decisions came to comprise an
ominous trend, as almost two decades of unregulated subdivision
subtly altered the face of the orchard landscape.
In
1930, a combines investigation made the rather mundane point that
holdings in the north Okanagan generally tended to be larger acreages
than those orchards to the south. By 1958, another Commission
appointed to investigate the tree-fruit industry felt compelled
to comment on this point and the popular assumptions that had
arisen around it.
The
Commissioner had understood prior to his examination of
these records that orchards in the north generally tended
to be larger than farms in the south, and this is a common
tradition in the Okanagan. Excluding Kelowna, the statement
does not appear to be true.6
Although
it would take years for the drama to unfold, growers were unwittingly
pushing their industry toward a great reckoning as the 1950s proved
to be a period of considerable upheaval and environmental distress.
Smaller holdings proved to be slight security in a deteriorating
economic climate for agricultural producers. Growers who had bought
during the peak of the post-war real estate market, or had subdivided
to accommodate the demand, now faced the prospect of having to abandon
orcharding as a profession. As the physical boundaries of the orchard
landscape began to erode towards the end of the decade due to the
increasingly fragmented nature of orchard units, BCFGA policies
remained conspicuously silent on the subject. The Natural Products
Marketing Act had invested the single-desk with the responsibility
of ensuring the viability of the small, family-owned orchard, but
in so doing, the legislation had institutionalized a marketing system
within the BCFGA. For the Association to have actively entered the
debate on what constituted an "economical unit" would
have been to throw open to debate the whole composition of the BCFGA
and its continued role in growers' affairs. The province had, after
all, entrusted the Association with broad powers to regulate the
sale of Okanagan fruit with the understanding that such a measure
would bring stability to the individual orchard unit. The BCFGA
could not, therefore, be seen advocating a rationalization of orchard
sizes when over half of its membership might be adversely affected
economically by such a process.7
As a result, the Association, through its silence, condoned the
continued sale and subdivision of orchard land as a necessary trade-off
needed to sustain the single-desk.
If the fruit
industry ever experienced a watershed year, 1949 was to be it. Growers
were presented with a series of challenges in production and marketing
that had not been seen since the "cent-a-pound" strike
of the early 1930s.8 When
the federal government removed restrictions on imports that year,
it occurred as currency restrictions prevented sales to offshore
markets, as freight rates to Eastern Canada nearly doubled, and
as production increased by more than a million boxes over 1948.9
This left BC Tree Fruits with a surplus of over a million and a
half boxes of apples, which eventually required shipment to the
United Kingdom, free of charge, to avoid depressing the local market.10
Unfortunately, despite these efforts, domestic prices were down
considerably as some growers saw their returns reduced by as much
as fifty percent. These lower returns were due, in part, to increased
tree-fruit production in Washington State. Reclamation projects
south of the border, similar in intent to British Columbia's soldier-settlement
schemes, had made over a million acres available for irrigation
in the Columbia Basin project. The Grand Coulee Dam, a federally
financed and constructed hydro-project, provided the cheap electricity
needed to pump the water from the dam's reservoir to the arid lands
of the Columbia Basin.11
With an earlier harvesting season and subsidized operating costs,
Washington growers could bring fresh fruit to market three weeks
sooner and at lower costs than Okanagan growers. The removal of
Canadian import restrictions in 1949 opened markets that had been
the exclusive domain of BC Tree Fruits during the war years to competition
from Washington apples.
The
opening of the Hope-Princeton Highway in 1949 |
A
subtler influence was the completion of the Hope-Princeton highway
in 1949. The construction of this single route through the Cascade
mountain range introduced a broad, new range of dynamics to the
production and marketing of Okanagan fruit in the 1950s. Prior to
the Hope-Princeton, access had been confined to a single, major
artery that ran north-south to Kamloops, through the upper Fraser
Valley and down into Vancouver. In the darkest days of the growers'
strike this simple transportation network had allowed the vigilante
Okanagan Stabilization Board to monitor the CPR line easily for
any movement of "unauthorized" fruit out of the valley.12
It later aided the enforcement of the single-desk as the movement
of small lots of fruit to the coast was prohibitively expensive,
and inspectors employed by the Fruit Board could easily locate larger
shipments. The Hope-Princeton highway altered this by creating a
direct link from the core region of fruit production, the Oliver-Osoyoos
area, with the urban center of Vancouver. Instead of looking at
the broader implications of the Hope-Princeton upon the Okanagan,
and how the fruit industry might fit into the new order, the Fruit
Board attempted to clamp down with increased regulation over the
sale of apples and other soft fruits. With growers' conventions
dominated by discussions surrounding the highway's reordering of
established marketing patterns, the industry leadership had failed
to realize that the Hope-Princeton was facilitating a change in
land-use patterns. The highway was abetting an urbanizing trend
as the very attributes of the natural environment that had made
fruit growing such a challenge - an arid climate and a rugged terrain
- transformed the Okanagan into a desirable tourist destination.
For
the industry, the most noticeable change was the proliferation of
roadside stands along the valley's highways as vehicle traffic increased.
These stands presented a multitude of problems in the regulation
of the product as they allowed growers to regain a measure of independent
control over their fruit, and to play a more direct role in its
marketing. The single desk had operated, successfully, on the notion
that BC Tree Fruits - via growers, the BCFGA and the Fruit Board
- was the only authorized agent to sell the fruit of the interior.
A roadside stand was a direct refutation of this one central premise,
and also threatened the central co-operative principles of the Association
itself. Aaron Sapiro had warned growers in the 1920s that for a
marketing venture to be successful, no member in the co-operative
body could have a privilege that would not be enjoyed by all members.
The simple reality of the "road"-side stand was that a
grower had to have an orchard fronting one the valley's primary
routes for such a stand to be financially viable. Based strictly
on location, not all growers would have the ability to establish
these types of operations and would, therefore, not be able to enjoy
a privilege that had been afforded to a lucky minority. Operators
of the stands also benefited in that they enjoyed lower overhead
costs than the local packinghouses. This became a point of contention
as the customer base to which the stands catered was generally tourists
from the Lower Mainland seeking savings on the price of fruit. Had
it not been for the presence of the orderly marketing system, and
the active regulation of supply by BC Tree Fruits in the Vancouver
market, it was unlikely that the stands would have been as profitable
as they were. Yet, they did not contribute in any way to the costs
of the marketing system from which they were benefiting, and in
some cases they undermined it, as quality control at the stands
became a major issue.13
Structure
of the Fruit Industry in 1949
CLICK IMAGE FOR
HIGHER RESOLUTION
|
The
final event to cement 1949 as the most challenging and destabilizing
year the fruit industry had ever seen occurred late that fall. The
north-south orientation of the valley facilitated the movement of
a large, polar air mass into the Okanagan trough and over the orchard
landscape. Lasting for several weeks, the air mass brought with
it record low temperatures, clear skies - causing additional cooling
- and strong, drying winds that kept the cold air mass moving, negating
the effectiveness of any countermeasures that could have been employed
(i.e. smudgepots). In aggregate numbers, 366,110 trees were lost
in the valley, equaling about 20 percent of total plantings, while
many more survived in a severely damaged state.14
What aggravated matters for the industry was that the effects of
the freeze had not been uniform. The Upper Fraser-Thompson area,
which comprised the Salmon Arm and Kamloops growing districts, had
a staggering 54 percent of its trees killed,15
while the Oliver-Osoyoos area suffered the highest casualties in
the Okanagan at 28 percent, and in the Kootenays the Creston area
suffered only 4 percent.16
Production in peaches and apricots was affected the most drastically
as both crop totals were down over 85 percent the following year.17
Apple production also dropped dramatically going from 8,783,005
boxes in 1950 to only 5,100,373 boxes in 1951.18
The north end of the valley was especially hard hit as total tree
plantings in the Salmon Arm area fell from 5,526 trees to 4,049,
and Vernon went from 186,680 to 159,329 in the span of one year.19
Kamloops, in particular, had developed as a fruit growing region
of some consequence prior to the freeze, contributing a large percentage
of the over 200,000 boxes of apples the region produced annually.20
A decade later, however, it was essentially lost as a fruit-growing
region, comprising a mere 309 acres of commercial orchards by 1961.21
The loss of Kamloops can be seen as more than simply the after-effects
of a major freeze; it was representative of the new land-use dynamics
re-shaping the valley. It also highlighted the inability of the
growers' own organization to safeguard the orchard unit from an
expanding rural-urban fringe.
Growers'
discontent over their deteriorating economic position eventually
led to calls for reform within the fruit industry, and a Planning
Committee was struck in 1951 to make recommendations on the relationship
between the BCFGA and BC Tree Fruits. The new president of the Association,
Arthur Garrish, was determined to put the BCFGA back in charge of
growers' affairs by having all elections put under the Association's
authority. It had become the accepted method to have the nominated
delegates from the locals meet in May to choose members for the
Fruit Board, the BCFGA, and BC Tree Fruits. This became an easily
manipulatable process for, in the case of the Fruit Board, if no
more than three people were nominated for the three seats, there
would be no need for a grower-wide election to decide the issue.22
Occurring away from the scrutiny of most growers, the process inherently
lent itself to backroom politicking, a fact the Planning Committee
sought to rectify by recommending that all elections take place
in front of the annual BCFGA Convention. Ultimately seeking to increase
the transparency of the association, the re-organization had the
unintended consequence of centralizing power within the hands of
the BCFGA executive.23 It
also ensured that the agenda of the Association would become dominated
by issues of marketing due to its direct oversight of BC Tree Fruits.24
The democratic processes that guided the BCFGA offered slight protection,
through checks or balances, to prevent the association from fully
embracing an agenda dominated by marketing. Regardless of acreage,
a registered grower operating a minimum of one acre was entitled
to one vote at the local level. For every one hundred members, a
local was awarded one delegate to the annual convention, and for
each one thousand acres covered by a local, another delegate was
afforded.25 The fragmented
nature of the orchard landscape entrenched the dominance of growers
operating smaller acreages in the delegate selection process. Since
the single-desk was intended to protect these smaller producers,
there appeared to be an inherent benefit to having the Association
take a front and centre role in marketing issues. The long-term
consequences, however, were less than ideal as the BCFGA would become
virtually marginalized on issues that did not directly deal with
the administration of the single-desk and orderly marketing.
1953
BCFGA Convention - Vernon |
Returns
continued to diminish after the re-organization, even as the cost
to consumers for a box of apples increased; in the face of these
trends, growers began to re-assess the structure of their industry,
again believing their problems to be internal. Agitation and unofficial
calls for some sort of impartial investigation had been voiced as
early as 1952. With the continuing economic malaise, various locals
tabled official resolutions at both the 1954 and 1955 conventions
specifically calling for a Royal Commission to investigate all facets
of the industry; finally in 1956, a majority favoured such an investigation.
What had served to change the opinion of a majority of growers was
the onset of another cold snap in November of 1955. All crops had
been retarded by an unusually cool and cloudy spring, so that by
late fall the trees had not had a sufficient period in which to
enter a dormant stage and harden off. Heading into the January convention
many growers, not knowing the full extent of the frost damage, were
aware that the industry was facing a potential catastrophe. The
Horticultural Branch of the BC Department of Agriculture later estimated
that of the 1,298,042 trees in the Valley between the ages of 1-10
years, over 400,000 had been lost to the freeze.26
Even more devastating was that the vast majority of trees killed
were the ones that had been planted in 1950 to replace the losses
from the previous cold snap. At that time, the province had supplied
a one-time grant of $250,000 after the previous freeze to aid in
replanting, but the effects of the 1955 freeze negated the benefits
of the transfer as many growers had yet to realize any returns from
the replanting. As apple production fell from 6,017,015 boxes in
1955 to 3,794,166 boxes in 1956,27
the seemingly perpetual problem of BC Tree Fruits' inability to
communicate its actions effectively become a flashpoint amongst
growers facing potential red ink at the packinghouse level.28
Many felt that the sales agency had actively refrained from releasing
important information, information that could be used to evaluate
the performance of BC Tree Fruits,29
and to a degree they were right. Industry leaders were selectively
withholding information from the grower body for a number of reasons.
For one, there was a slight contempt regarding the membership's
willingness and ability to understand the role of their association.
There was also a fear that decisions made for the good of the industry,
regarding pooling, could be used by malcontents and dissidents to
attack the executive.30
A case in point was the experimentation by BC Tree Fruits with the
production of apricot jam in the late 1950s. The selling agency
paid fifty dollars a ton for the fruit, but for a number of reasons,
the prices returned by the local packinghouses to growers were not
uniform. The industry leadership feared the consequences of reporting
the actual costs of acquiring the apricots, believing their good
intentions in seeking a new outlet for the membership's fruit would
be lost in the uproar over packinghouse charges.31
To the average grower, this attitude merely fed suspicions that
BC Tree Fruits had simply become too complacent and arrogant under
the existing system and was not doing enough to ensure maximum grower
returns. As a result, and much to the disapproval of the BCFGA executive,
a resolution was adopted calling for the appointment of a federal
Royal Commission to investigate the industry to see if it was achieving
what it had been established to.
A little
noticed resolution from this same 1956 convention, lost in the din
of activity surrounding debate about a Royal Commission, was one
put forward by the Creston local requesting that Kootenay growers
be allowed to establish an independent form of central selling.
The proposal was defeated, as returning any autonomy to growers
in the Creston area, regardless of their circumstances, would jeopardize
both the existing marketing apparatus as well as the prices received
by growers elsewhere in the Tree Fruit Marketing Scheme area. The
Creston resolution was telling, however, in other ways as it demonstrated
a willingness on the part of the fruit industry to allow a struggling,
peripheral district to be lost, not only as a fruit producing region,
but as an agricultural one. The Kootenays had been developed for
fruit growing in the same era as the Okanagan, but due to an even
more limited land-base had never been able to develop to the same
extent. Kootenay growers managed to survive through their ability
to build up their own independent brands, which they could sell
rather reliably in local and Prairie markets. In many instances,
to maintain their viability, Kootenay orchards were self-contained,
small, family-run enterprises dependent on the frugality of the
owner-operated, on-site packing facilities.32
With the institution of the single-desk in 1939, many of these orchards
had to change their existing patterns of marketing. Where they had
once been able to buy boxes from a local box factory for eight cents
and pack on site with family labour, the cost of packing at the
Nelson pool jumped to two dollars per box.33
The new marketing system was dominated by Okanagan growers, and
the pooling returns were to be based on the lower Okanagan costs
of production. In the end many Kootenay growers found they could
not exist under such a regime.34
By 1956 the district had come to account for only 300,000 of the
6.5 million boxes of apples produced within the scheme area. It
would be in the Kootenays that the sale of orchard land for non-agricultural
purposes would first assume the role of a safety valve, deflecting
any sustained criticism about the BCFGA's evolution after the implementation
of the single-desk. Orchards in the district tended to be smaller
than in the Okanagan, as many of the original holdings had been
subdivided from their original forty and fifty acres down to two-
and three- acre plots.35
This resulted in only 39 of the 353 registered growers in the Creston
area operating on ten acres or more, while 223 had five acres or
less.36 While the land may
not have been competitive in the cultivation of fruit, as bench
lands it commanded $1,000 to $1,500 an acre, while reclaimed land
in the same area, used for mixed farming, was selling at only $100
to $150 an acre.37 The prospect
of fighting the Fruit Board held slight appeal when one could sell
out to "retired bankers and businessmen who do not know a peach
tree from an apricot tree,"38
but wanted to live the idyllic lifestyle of a hobby orchardist.
Representatives
of the Penticton "Ginger Group" at the 1959 BCFGA
Convention |
As
the 1956 growing season progressed, the impact of the freeze began
to become apparent at the local level as trees failed to set and
others damaged by the cold produced fruit of a noticeably lower
grade. The anxiety levels amongst growers over the expectation of
poor returns started to manifest itself in dissatisfaction with
the executive of the BCFGA. Many of the individuals holding high
office within the Association, BC Tree Fruits and the BC Fruit Board
at this time were growers who had been active within the industry
since the 1920s and 1930s. They could well remember the days of
the growers' strike, and the political challenges that had surrounded
the implementation of the single-desk between 1927 and 1939. The
executive had consistently opposed the idea of a Royal Commission
on the grounds that it would remove the agenda from growers' and
place it in the hands of politicians. This had been the case in
the 1930s, and there was a fear that the legitimacy of the Natural
Products Marketing Act could be brought into question through
any inquiry.39 For growers,
however, the prior disdain of the executive combined with the absence
of a progress report on efforts to attain an investigation triggered
a minor revolt in October of 1956. Sparked by a fifteen-member "Ginger
Group," the Penticton local called an extraordinary meeting
at which a thinly veiled resolution of non-confidence in the ability
of the BCFGA was discussed. The Ginger Group sought the immediate
appointment of a provincial Royal Commission that would emphasize
marketing and distribution problems. As these were issues that affected
all growers, support for the resolution spread rapidly throughout
the other twenty-nine locals as they met to prepare for the January
convention. While there were concerns that the attempt to by-pass
the convention in order to get approval for a motion should not
have been tolerated, by November the executive was forced to concede
that;
In
view of the attitude already displayed by a majority of
Locals, such a request from our Annual Convention is, in
the opinion of the Executive, a foregone conclusion.40
With
that, the province appointed Earle D. MacPhee, Dean of the Faculty
of Commerce at the University of British Columbia, to lead a Royal
Commission investigating the tree-fruit industry on the 21st of
December, 1956.41
Dean
MacPhee would be charged with investigating the economics of marketing
and distributing fruit, as growers had desired, but his primary
objective would be to determine what constituted an "economic
unit" of production.42
It became an often-repeated statement in the final report that,
should a grower deliberately operate an acreage that could not provide
an acceptable standard of living, then they should not expect society
to feel responsible for their plight.43
The Royal Commission's focus on land-use issues was reflective of
a broader concern amongst agricultural policy makers in Canada's
post-war provincial economies. The British Columbia Ministry of
Agriculture, in particular, was concerned with developments in its
farm sector that had come to see 55 percent of operations in 1956
producing only 8 percent of total farm revenues.44
The average return for these operators amounted to $653 annually;
a total that required family owned farms to look for off-farm sources
of income in order to survive.45
Until this trend was reversed, and the average size of farms increased,
agriculture would remain a volatile sector of the economy, lurching
from one crisis to another and leaning heavily on the provincial
treasury for support. Since the Okanagan accounted for 25 percent
of the province's farms46
and the subdivision of holdings had been commonplace, determining
what constituted an economic unit in the valley was key to changing
these existing patterns of agricultural dependency.47
As the
Royal Commission commenced hearings throughout the valley, it became
apparent that there was a wide-range of problems regarding the long-term
viability of the orchard landscape. The 1949-50 and 1955 freezes
had exposed the systemic, environmental disadvantages that an agricultural
community, centered upon the small, individual producer, endured
trying to grow fruit in the Okanagan. The larger orchards, those
being over twenty acres, could better absorb the effects of frost
damage by buttressing a grower's income through the continued production
from healthy trees, thereby seeing the orchard through a replant.
The grower on a smaller orchard, ten acres or less, was not as well
placed to remove large, seven to eight acre tracts of damaged trees,
as doing so would have a disproportionate impact on their income.48
While the single desk was designed to ensure the viability of these
small growers, any orchard operating on the output of damaged trees
was an invitation for deteriorating returns - something a marketing
system or the capability of the individual grower could not overcome.
In the Salmon Arm area, the single-desk even served to push many
of the growers working smaller acreages out of tree fruit production
altogether, as the economics of the business no longer warranted
their continuance. With the damage that had occurred after the 1955
freeze, many of the orchards produced drastically reduced tonnage
and lower-quality grades, which in turn pushed costs at the local
packinghouse to as high as $1.95 when a box of apples was selling
for around $2.00.49 By 1958,
the Salmon Arm Local of the BCFGA had folded, storage plants in
the area had been shut, and the Ministry of Agriculture was encouraging
growers to move into mixed farming.50
What had preceded in the Kootenays was now occurring to growers
within the Okanagan, as the interplay between markets and the natural
environment further eroded the boundaries of the orchard landscape,
and the BCFGA seemed incapable of stemming the loss of orchard land.
The
other burden that had befallen the small-scale grower was mechanization.
Beginning with the labour scarcities of the war years, and then
the outflow of individuals to non-agricultural employment in the
post-war era, growers had been forced to rely increasingly on machinery
in order to operate. As a result, between 1934 and 1959, the number
of farm tractors, province-wide, increased from 1,402 to 15,282,
while farm trucks saw a similar increase from 3,947 to 11,758.51
For Okanagan growers, the complete outfit of a tractor, sprayer,
cultivator and mower could cost between $2,500 to $6,000.52
This degree of mechanization was capable of tending an orchard in
the fifty- to sixty-acre range, but for the operator of ten acres
it was another added expense that could not be supported by the
revenues from the land.53
One obvious solution would have been to increase the size of the
average orchard, but the advent of the Hope-Princeton highway had
altered the dynamics of land valuation. When orchards had increased
in value through the 1940s, it had been because fruit growing was
seen to be a paying investment. With the economic turmoil of the
1950s, real-estate prices for orchard land should have reflected
the uncertainty of the industry; but instead, land prices remained
high as demand from non-agricultural interests sustained valuations
in some areas. Growers on the smaller acreages could ill-afford
to assume the risk of buying orchard land at inflated prices when
there was slight possibility that they would receive the returns
needed to repay any incurred debts and mortgages. Briefing notes
kept by Dean MacPhee, concerning witnesses appearing before the
Royal Commission offer a glimpse into the situation many growers
found themselves in;
G.
Ricker, Winfield (6 acres) - "lack of capital
chief reason for failing to better his position."
K. Pozniak, Eriksson (15 acres) - "purchased additional
5 acres of orchard in 1957."
E. Craigie, Eriksson (13 acres) - "sold 10 acres of
orchard in 1957."
A. Gorak, Creston (4 acres) - "orchard subdivided for
building lots in fall of 1957."54
Where
the sale of orchard land in the 1940s had been a profitable exercise
in its own right, by the late 1950s subdivision had become a way
to cover losses incurred on the orchard. For smaller growers,
limited in their options by a marketing system that could not
restore any degree of marketing autonomy to the individual, the
unregulated subdivision and sale of land prevented the whole industry
from being thrown into crisis.
Dean
E.D. MacPhee (left), and A.R. Garrish, BCFGA President
(right), at the 1958 B.C. Federation of Agriculture Convention,
Victoria. |
Despite
the seemingly integral role that the orchard unit bore in relation
to the operation of the single-desk, growers did not fully engage
the issue during the investigation. Instead, they opted to use
the occasion of the Royal Commission as a referendum on the record
of the BCFGA and orderly marketing; had it achieved what it had
been set-up to accomplish?55
The Association, for its part, came to play an important role
in the proceedings of the Royal Commission, although it, too,
tended to avoid the question of what constituted an economic unit.
Official transcripts of the commission show that the majority
of the BCFGA's participation was confined to the area of marketing
and distribution. Granted, this was inescapable due to the Association's
direct control over BC Tree Fruits and the Fruit Board, and also
as a response to growers who appeared before the commission and
invariably raised questions surrounding marketing. MacPhee was
to eventually find that 51 percent of orchards in the Valley consisted
of 7.5 acres or less, and over 70 percent of growers were operating
on 10 acres or less;56
at the same time he concluded that an orchard of ten acres or
less could not be considered an economic unit.57
Debate amongst growers on these findings varied. Some disagreed,
claiming that five acres could be an economical unit. Others even
tried to argue that large acreages, over twenty acres, constituted
a "nightmare" in terms of management for an individual
grower.58 For most, however,
important issues remained marketing-based, such as the creation
of a dissident organization, the Canadian Fruit Growers' Association;59
or the intricacies of pooling practices at the different packinghouses.
This detachment from the less obvious, but fundamental questions
pertaining to orchard size could be attributed to the policy consequences
of the single-desk. Central selling, orderly marketing, and direct
control over the Fruit Board and BC Tree Fruits had encouraged
the creation of social and economic networks within the BCFGA
and the orchard landscape that were invested in a specific farming
model, regardless of its viability. The BCFGA's mandate under
the Tree-Fruit Marketing Scheme had been to promote and protect,
through marketing structures, the interest of the average grower
at a time when thirty thousand people depended on the fruit industry
for a livelihood.60 This
assumption of an identity between marketing structures and the
preservation of a landscape dominated by small-scale orchard units
obscured subsequent changes and pressures affecting the industry.
It is not surprising, therefore, that growers felt compelled to
blame any slide in their fortunes upon the marketing system when
the greater challenge could be found in changing land-use patterns.
These same growers operated their orchards, and determined what
constituted an "economic unit," based upon their own
experience and with the knowledge that the single-desk held a
dominant position in the marketplace. For the BCFGA to tackle
actively the issue of the uneconomical unit, the entire marketing
structure would have had to been re-thought. BC Tree Fruits had
been created to bring stability to the Okanagan's fragmented orchard
landscape. Throughout the 1940s and 1950s, the ability of growers
to unite their economic power within the institutional and corporate
structures offered by the single-desk influenced many an individual
to continue working, or freely subdivide their holdings. A change
to either the status of BC Tree Fruits as the sole selling agency,
or an official determination of what constituted a viable orchard
size, by its very nature jeopardized the other. The upheaval that
would have occurred within existing institutional structures,
had the association engaged the issue of the uneconomical unit
more strenuously, was a disincentive to action. All told, the
BCFGA was essentially locked-in to existing structures that saw
issues of marketing dominate the agenda of the Association.61
Twenty
years after the implementation of the single-desk, the orchard
landscape had experienced the best and worst of times. While the
1940s were to be the most prosperous decade the industry would
ever know, events after 1949 would begin to expose some of the
systemic problems of erecting a fruit industry within the natural
environment of the Okanagan. The most obvious of these events
were the two freezes that descended upon the valley in the short
span of five years. Together, the 1949-50 and 1955 freezes killed
or damaged upwards of one million trees in the Valley, bringing
many growers to the brink of financial collapse. The freezes were
also significant in that they exposed the folly of subdividing
orchards during the profitable years of the 1940s. Many growers
who had thought they could live on reduced acreages, now discovered
that these smaller holdings were a liability in an era of reduced
returns and expensive orchard replants. As the valley conceded
some of its isolation with the building of the Hope-Princeton
highway, the arid climate of the Okanagan that had been so detrimental
to the production of tree-fruits began to attract new forms of
land-use. As growers discovered that they could not always afford
to pay prevailing real estate prices to re-build their holdings,
it would become an accepted practice to subdivide or completely
sell out - and not always to agricultural interests. For the BCFGA,
which had become so welded to the philosophy or orderly marketing
over the prior two decades, the erosion of the orchard landscape
was implicitly accepted. The growers' own marketing system had
been shaped, in many ways, by the local environment of the Okanagan;
founded as it was on centralization, it was incapable of offering
autonomy to its members, or of making special exceptions for specific
districts. The ability of growers to exit the industry easily,
if not make a living at it, was integral to the continued maintenance
of the single-desk. As with ranching before it, exit would become
the fruit industry's act of accommodation with the natural environment.
Entering the 1960s, however, increased urbanization within the
valley would jeopardize the merits of continued subdivision and
the unregulated sale of farmland.
___________________________________________________________________________
Footnotes:
1.
British Columbia, Department of Agriculture, Report of the
Royal Commission on the Tree-Fruit Industry of British Columbia,
Dean E.D. MacPhee (commissioner), Victoria: Queen's Printer, 1958,
p. 778.
2. Newton Steacy, quoted in Canada, The
Senate of Canada, Proceeding of the Special Committee of the
Senate on Land Use in Canada, Arthur Pearson and Henri Bois
(chairmen), Ottawa: Queen's Printer, May 27, 1959, p. 372.
3. Arthur Garrish, quoted in David Dendy
and Kathleen Kyle, A Fruitful Century: The British Columbia
Fruit Growers' Association 1889-1989, Joan McIntyre (editor),
Kelowna: BCFGA, 1989, p. 83.
4. The return on a box of apples in 1939
was $0.83, while in 1945 it was $1.78. For more information, see
MacPhee, pp. 104, 225. Dendy, p. 85.
5. Ralph Krueger, "The Geography
of the Orchard Industry of Canada," Geographical Bulletin,
Volume 7, No. 1, 1965, p. 61. See also, MacPhee, p. 777.
6. MacPhee, p. 79.
7. As an independent agent, Commissioner
MacPhee was free to follow his finding that over fifty percent
of growers operated such orchards with the caveat that: "If
I am charged with destroying the property values of growers, then
the charge will stand on the record of the last seven or eight
years" (p. 779). MacPhee further pointed out that "there
is no warrant for believing that orchard land in British Columbia,
at $2,000 to $2,500 per acre, is an economic proposition"
(p. 778). The BCFGA, however, was a part of the process that had
seen growers subdivide their holdings throughout the 1940s when
war time restrictions and an immigration boom had fueled an artificial
rise in orchard values. It could not destroy property values,
no matter how beneficial consolidation would be to the long-term
health of the industry, without damaging its own position in the
process.
8. For information on this period in the
history of the fruit industry, see David Dendy, "Cent a Pound
or on the Ground: Okanagan Fruit Growers and Marketing, 1920-1935,"
Unpublished MA Thesis, University of British Columbia, 1981.
9. Dendy and Kyle, p. 96.
10. Ibid.
11. Steacy, quoted in the Proceeding
of the Special Committee of the Senate on Land Use in Canada,
p. 398.
12. Dendy and Kyle, p. 73.
13. The operators of roadside stands were
routinely accused at BCFGA conventions of peddling cull, over-ripe,
or substandard fruit to their customers. This was a practice that
many other growers felt undermined the goodwill the industry had
striven to achieve with consumers. See, Kelowna Courier, January
22, 1964, p. 1.
14. Jeannette Boyer, Human Response
to Frost Hazards in the Orchard Industry, Okanagan Valley, British
Columbia, Waterloo: Department of Geography, University of
Waterloo, 1977, p. 39.
15. Dendy and Kyle, p. 96.
16. Ibid.
17. Boyer, p. 39.
18. MacPhee, p. 226.
19. Ibid., p. 215
20. Krueger, p. 63.
21. Ibid.
22. MacPhee, p. 188.
23. During the 1940s the industry had
created three posts within BC Tree Fruits: President, General
Manager, and Chairman of the Board of Governors. These had all
been awarded to a single individual, A.K. Loyd, in appreciation
of his "gigantic efforts during the war years when salaries
where frozen and his compensation had not been adequately set
up in the first place" (Ramsey, p. 188). From this position
Loyd was to exert a considerable degree of influence over association
affairs, contradicting at times the stated objectives of the democratically
elected BCFGA executive. Electoral reform held the promise of
preventing any one individual from ever perpetuating such an accumulation
of power in the way Loyd had. However, by requiring that the composition
of all industry boards be determined at the annual convention
of the BCFGA, the association, and by extension its leadership,
now found themselves in a position of authority within industry
structures.
24. A case in point, Garrish himself would
come under considerable criticism in 1957 for attempting to dominate
the Association and for purportedly circumventing the Fruit Board
in engineering the appointment of a close supporter, Gordie Wight,
to the Presidency of BC Tree Fruits.
25. MacPhee, p. 738.
26. Kelowna Courier, November 8,
1956, p. 5.
27. MacPhee, p. 226.
28. Unable to understand how returns had
diminished to the degree they did, many growers looked to the
BCFGA executive believing it to be withholding information showing
corruption and graft throughout the selling agency. The belief
that "secret" and "damaging" information was
being kept from growers was what fueled the surge of support for
the Penticton Ginger Group in late 1956. In his final report,
however, Dean MacPhee was to state that while there was no information
being withheld "for fear of the consequences," there
was a preponderance amongst the executive to not deal with rumours
as soon as they arose (MacPhee, p.788).
29. Penticton Herald, October 10,
1956, p. 1.
30. Gordon DesBrisay to Dean MacPhee,
Proceedings of the Royal Commission on the Tree-Fruit Industry
of British Columbia, March 13, 1958, Box #5, File #17, pp.
6-8, Provincial Archives of British Columbia (PABC).
31. When asked by Commissioner MacPhee
about keeping the membership better informed about industry activities,
such as the jam production experiment, A.G. DesBrisay, a Fruit
Board Director, expressed reservations. He was quoted as saying:
"I almost question whether the publishing of the details
of the operation to the extent that they (BC Tree Fruits) are
- whether that's good business or not? I don't think they (growers)
understand it." Proceedings of the Royal Commission on
the Tree-Fruit Industry of British Columbia, March 13, 1958,
Box #5, File #17, pp. 6-8, PABC.
32. Joan Lang, "A History of the
Fruit Growing Industry in the West Kootenay District of British
Columbia 1905-1950," Unpublished MA Thesis, University of
Victoria, September 1996, p. 117.
33. R Noakes, quoted in Lang, p. 117.
34. Ibid., p. 119.
35. Steacy, quoted in the Proceeding
of the Special Committee of the Senate on Land Use in Canada,
p. 368.
36. MacPhee, p. 782.
37. Steacy, quoted in the Proceeding
of the Special Committee of the Senate on Land Use in Canada,
p. 386.
38. Ibid., p. 375.
39. Penticton Herald, October 10,
1956, p. 1.
40. Kelowna Courier, November 15,
1956, p. 1.
41. The federal Agriculture Minister,
James Gardiner, turned down the request for a federal Royal Commission,
as the marketing problems Okanagan growers wanted explored were
unique to British Columbia. A national investigation would be
required to look at the issues confronting the production and
marketing of tree-fruits in Ontario, Quebec and Nova Scotia. As
none of these regions supported the call for a Royal Commission,
it was deemed to be more appropriate, and cost-effective, to have
the province take up the matter. Kelowna Courier, October
15, 1956, p. 1.
42. MacPhee, p. 9.
43. Ibid., pp. 76-80, 776-778.
44. Steacy, quoted in the Proceeding of
the Special Committee of the Senate on Land Use in Canada,
p. 399.
45. Ibid., p. 399.
46. Ibid., p. 396.
47. At the time of the Royal Commission,
government policy was still very much directed to supporting the
family farm. The purpose in defining an economic unit was simply
to determine which orchards were commercially viable against those
that fell into a category of "hobby farm." Once the
size of an economic unit had been determined, the economics of
marketing and distributing fruit could be addressed and policies
formulated to ensure that marketing and distribution practices
supported and encouraged full-time commercial operators.
48. Mr. Coe to Dean MacPhee, Proceedings
of the Royal Commission on the Tree-Fruit Industry of British
Columbia, February 17, 1957, Box #7, File #17, pp. 67-69,
PABC.
49. Gordon DesBrisay to Dean MacPhee,
Proceedings of the Royal Commission on the Tree-Fruit Industry
of British Columbia, March 13, 1958, Box #5, File #17, p.
3, PABC.
50. Ibid., p. 3. See also, Steacy,
quoted in the Proceeding of the Special Committee of the Senate
on Land Use in Canada, p. 369.
51. British Columbia, Ministry of Agriculture,
Brief presented to the Proceeding of the Special Committee
of the Senate on Land Use in Canada, 1959, p. 399.
52. Mr. Miller to Dean MacPhee, Proceedings
of the Royal Commission on the Tree-Fruit Industry of British
Columbia, March 13, 1958, Box #7, File #1, p. 4, PABC.
53. Some of the local co-operative packinghouses
attempted to set up an equipment pool of mowers, tree hole diggers,
and cultivators that members could rent at reasonable rates. These
pools, however, were limited to renting machinery that was not
time-sensitive, or critical to the operation of an orchard. Each
grower was, therefore, required to maintain their own tractors,
sprayers, and other expensive machinery critical to the operation
of an orchard.
54. Proceedings of the Royal Commission
on the Tree-Fruit Industry of British Columbia, Box #18, File
#7 - Box #19, File #8 - Box #19, File #11 - Box #19, File #12,
PABC.
55. Minutes of the Meeting of the Executive
of the British Columbia Fruit Growers' Association, Dec. 12, 1956,
PABC, (microfilm).
56. A more precise breakdown of orchard
size is as follows. In the Okanagan and Similkameen, of the fifty-one
percent of operations under 7.5 acres, 658 orchards were under
2.5 acres, 741 orchards were in the 2.5-5 acre range, and 369
orchards were 5-7.5 acres. In the Kootenays, the figures were
even worse as thirty-seven percent of growers were operating 3
acres or less, and only 11 percent were on 10 acres or more. MacPhee,
p. 78.
57. Ibid., p. 78.
58. Don Corbishley to Dean MacPhee, Proceedings
of the Royal Commission on the Tree-Fruit Industry of British
Columbia. February 16, 1957, Box 7, File #4, p. 194, PABC.
59. For more information on the Canadian
Fruit Growers' Association, see; Christopher Garrish, "We
can't dispose of our crop in a democracy! Okanagan Fruit Growers
and Challenges to the Single-Desk Marketing System," http://www.BCpl8s.ca/thesis/colloquium.html
(January 17, 2002).
60. Margaret Ormsby, "A Study of
the Okanagan Valley of British Columbia," Unpublished MA
Thesis, University of British Columbia, April 1931, p. 101.
61. Paul Pierson, "When Effect Becomes
Cause: Policy Feedback and Political Change," World Politics,
Volume 45, July 1993, p. 610.
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Copyright Christopher John Garrish. All rights reserved.
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