It
is many years since anyone has asked me to speak on anything
to do with the fruit industry. The story of the Three Wise
Men, Haskins, Barrett, and Hembling, and the tremendous
contribution of A.K. Loyd was the stock routine of any previous
speeches or talks, and nothing much had changed in the fruit
industry and nothing much looked like it would change. The
orderly marketing system which had been the product of so
much blood, sweat, toil and tears in the thirties seemed
to be so firmly established as to be irreplaceable. But
changes have taken place
1
Arthur
Garrish
Speech to the Okanagan Historical Society
November 4, 1984.
To
those of us who still maintain a keen interest in the fortunes of
the Okanagan fruit growers, word in 2000 that efforts were afoot
to remove the last vestiges of the Tree-Fruit Marketing Scheme served
as a poignant reminder of the events that took place over a quarter
of a century ago: events that forever changed the course of the
industry. Back in the late 1960s and early 1970s, the landscape
of the valley was still dominated by family-owned orchards, just
as it had been since the turn of the century. The presence of a
service sector geared to an increasing tourist trade and the emergence
of large-scale vineyards - that would eventually co-opt the orchard
landscape in later decades - were still only in their embryonic
stage. The fruit growers stood at the apex of their commercial and
social influence within the Okanagan, as apples powered the region's
economy. So great was their importance that the decisions made at
the annual Convention of the British Columbia Fruit Growers Association
(BCFGA) garnered more attention in the local press than did most
initiatives emanating from the Provincial Legislature in Victoria.
By some accounts, being one of the over 2,750 registered fruit growers
in this era meant enjoying a relative level of prosperity.2
This affluence, however, had not been accomplished by default: it
had been slowly constructed by an industry that operated through
the depths of financial turmoil, survived crises of production and
ultimately prospered within a rigidly structured hierarchy that
shored up the viability of the individual orchard units.3
Fundamental to all these efforts was the Tree-Fruit Marketing Scheme,
a state sanctioned organization that embodied and legitimized grower
aspirations for stability and prosperity.
The
Marketing Scheme created a three-person British Columbia Fruit Board,
appointed by the growers through the BCFGA. The board, in turn,
routinely designated BC Tree Fruits as the sole selling agency for
the growers' produce. In practical terms, the scheme effectively
limited the debilitating competition that had wrought havoc on the
industry in the past, but it did so on rather illiberal terms. All
growers were compelled by provincial law to sell their produce through
the central desk of BC Tree Fruits, thereby ensuring a better return
for the whole grower body through collective marketing. By controlling
the sale of all fruit through one agency, growers co-operated "for
the benefit of all by pooling their products, consolidating their
selling, avoiding glutted markets, planning and regulating distribution,
and building expensive cold-storage plants."4
During the flurry of events that would strike the industry in the
seventeen months between August 1972 and January 1974, however,
it was this seemingly innocuous characteristic, once regarded as
absolutely necessary for the greater good, that precipitated the
abandonment of the scheme. Twenty-six years later, the total number
of growers registered with the BCFGA has declined to hardly more
than 600, and the Okanagan is now more commonly associated with
viticulture and a blossoming high tech sector, giving rise to the
moniker "Silicon Vineyard." The fruit industry, moreover,
has resorted to seeking grants from the Ministry of Tourism on the
premise that it is a major facet in the marketing of the region.
By no longer even seeing itself as an entirely viable, stand-alone
industry, the fruit growers ultimately raise concerns about whether
they are in the sunset of their existence, and what prospects the
future holds for them.
This
study will endeavour to delineate the historical circumstances that
led to the ultimate abandonment of the orderly marketing system
in the early 1970s. At its core, the reader will find within this
thesis a strong emphasis on the role of the natural landscape, and
of individual attempts first to modify the land and then eventually
to accommodate it. In this vein, the writing will follow the example
of the American environmental school of history, and writers such
as William Cronon, William Robbins and Richard White who explore
the relationship between people and the land.5
The research will attempt to establish that the land-use decisions
made during the early development of the orchard landscape bore
little relation to the physical restrictions of the natural environment.
In placing the fruit industry upon such a fragile foundation, boosters,
land speculators, and even the provincial government condemned growers
to seek stability through local institutions and organizations extraneous
to the orchard unit. Of particular note in this process is that,
consciously or not, the growers' chosen vehicle, the co-operatively
based BCFGA, was molded as much by the dictates of the natural environment
as it was by the growers. The history of the fruit growers, therefore,
is one in which the landscape and the region become important factors
in the reordering of human actions to achieve an accommodation to
site and location. It was this environment that helped create a
need for market co-operation and led to the emergence of the BCFGA
as "one monolithic authoritative organization
controlling
BC Tree Fruits, Sun-Rype Products Limited, and also having control
over the BC Fruit Board," after 1951.6
A key
challenge in understanding twentieth century agriculture is to understand
the reasons why producers owning small and average sized farms have
banded together - or been banded together by government - to form
collective marketing associations. One explanation is the economic
dynamic of producers, numbering in the tens, and even hundreds of
thousands competing in the same market with the same product.7
Reaching any form of independent consensus with such a vast number
of producers on issues of price agreements, restrictions on output,
or orderly marketing becomes virtually impossible. As farmers' income
is wholly dependent on the price they receive for their product,
the consequence of uncoordinated and independent action in the marketplace
results is diminished average returns and a possible role for some
form of collective marketing. Through pooling their product and
creating economies of scale in a marketing association, producers
can improve their economic position through price discrimination,
the extension of traditional markets, and the elimination of middlemen
- ensuring that profits earned from the sale of the commodity revert
back to the producer. Further implementing these measures on a co-operative
basis allows an equalization of market power between the many small
producers who may comprise a co-operative, and the more concentrated,
corporate markets in which they operate. California fruit growers
embarked upon this very path in the 1890s, using market co-operation
to participate in the economy as equals alongside big corporations,
collectively overcoming their geographic isolation from the largest
urban of markets in the United States (such as New York and Chicago).8
On the Canadian Prairies, market co-operation was employed to help
stabilize the position of an industry saddled with thousands of
farmers who had indiscriminately expanded into a dry belt following
the re-introduction of the pre-emption principle to land grant policy
in 1908.9 In effect, farmers
throughout Canada, the United States, and abroad had turned to co-operative
marketing by the 1920s to address the economic challenges that confronted
them.
While
all commodity producers have faced similar pressures, marketing
issues alone do not always explain why farmers opt for collective
solutions. The case of the BCFGA highlights an additional factor:
environmental pressures from the landscape itself, and the effects
of these in terms of insecurity and instability. The arid, desert-like
climate made the construction of irrigation systems, an undertaking
far beyond the financial means of any individual grower, essential
to the success of fruit growing in the region. The geological history
of the Okanagan further bestowed upon the fruit industry an inconsistency
in soil types that left many orchards on land of only marginal capacity.
The north-south orientation of the valley also jeopardized a grower's
livelihood by subjecting orchards to inclement winter weather capable
of killing an entire fruit tree in only a matter of days. A final
challenge posed by the environment was the sheer remoteness of a
fruit-growing district within an isolated mountain valley, and all
subsequent dislocations from any major market. Thus Okanagan fruit
growers, in being based on an environmentally insecure foundation
(like Prairie grain farmers) and selling to distant markets (like
California fruit growers) formed strong collective organizations
like these other groups. This differed from, for example, coastal
growers in British Columbia, who by virtue of their location faced
milder and more tolerant conditions as well as shorter routes to
market. In the face of environmental insecurity, marginal lands,
and fragmented small-scale ownership, the BCFGA assumed the role
of a coping mechanism. Central selling and orderly marketing provided
the tools needed to protect and further the interests of growers
in all matters directly connected with the production and marketing
of their fruit in a less than hospitable natural landscape. To the
extent that the Association was called upon to perform this role,
it proved surprisingly successful from the 1940s to the 1960s in
fulfilling the needs of growers. Unfortunately, it is clear in hindsight
that there were detrimental aspects to the growers allowing the
BCFGA to become so welded to the philosophy of orderly marketing.
As the
1960s progressed, the association found itself ill-equipped to assess
the significance of an increasing rural-urban competition for use
of the limited land base in the valley. Moreover, the steady growth
of centres such as Kamloops, Kelowna, Vernon and Penticton put orchards
in the direct line of an expanding urban-rural fringe. As land prices
soared and growers struggled under the hardship of successive frosts,
it became an accepted practice to sell out completely, or to sub-divide
one's holdings where possible -thereby recovering losses incurred
on the orchard. The sale of orchard land in this way became a safety
valve for the industry, deflecting criticism from a marketing system
incapable, at times, of delivering a satisfactory return to growers.
When the broader implications of urbanization were ultimately realized
in 1972, the provincial government began the process of instituting
far-reaching restrictions on the conversion of farmland, effectively
closing the one avenue available for profitably exiting the industry.
The legislation introduced to regulate the use of farmland led to
widespread unrest within the fruit industry, and the re-emergence
of a small band of dissidents pushing for a relaxation of the rules
surrounding the single-desk. Due to poor crop returns, and the farmland
freeze, the BCFGA found itself poorly positioned to mount a convincing
counter-campaign to the dissidents. The provincial government further
abandoned the Fruit Board in its enforcement of mandatory single-desk
selling, denying the industry the structures upon which it had operated
for over thirty years. The result of these events was what the official
removal of the Tree Fruit Marketing Scheme would acknowledge all
these years later: The Abandonment of the Orderly Marketing System.
___________________________________________________________________________
Footnotes:
1.
Arthur Garrish was my grandfather. Arthur Garrish, "The Orderly
Marketing System," Okanagan Historical Society, 50th
Report, 1986, pp. 60-61.
2. A plebiscite on the future of central
selling was held in late 1973. The Vancouver Sun reported
on December 17, 1973, p. 14 and December 20, 1973, p. 15, that there
were approximately 2,750 individuals registered to vote - of which
2,018 turned out on December 19, 1973.
3. Colin Malcolm Reeves, "The Establishment
of the Kelowna Orcharding Area: A Study of Accommodation to Site
and Situation," Unpublished MA Thesis, University of British
Columbia, 1973, p. 5.
4. Arthur Garrish, quoted in 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. 45.
5. Some of the more notable works from this
school of history are: William Cronon's Changes in the Land
(1983), and Nature's Metropolis (1991), Richard White; Land
Use, Environment and Social Change (1980), William Robbins;
Landscapes of Promise (1997), Steven Stoll; The Fruits
of Natural Advantage (1998), Mark Fiege; Irrigated Eden
(1999), and Donald Worster; Rivers of Empire (1985), and
Under Western Skies (1992).
6. Garrish, 1986, p. 61.
7. For an early example of these factors
at work in a Canadian context, please refer to Vernon Fowke's The
National Policy and the Wheat Economy, Toronto: University of
Toronto Press, 1959. On the more recent history of collective marketing,
as embodied in the Canadian Wheat Board, see also Andrew Schmitz
and Hartley Furtan, The Canadian Wheat Board: Marketing in the
New Millennium, Regina: Canadian Plains Research Centre, 2000.
8. Steven Stoll, The Fruits of Natural
Advantage: Making the Industrial Countryside in California,
Berkeley: University of California Press, 1998, pp. 63-75.
9. Fowke, pp. 76-77.
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©
Copyright Christopher John Garrish. All rights reserved.
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