Orchard and Vine Magazine Fall 2014

Fabulous Events Water Woes Kiwis Take Root Sustainable Farms Inviting Folks to the Farm Fall 2014 $6.95

Display Until Dec.15, 2014 Publication Mail Agreement No. 40838008 www.orchardandvine.net

JANUARY 29 - 31, 2015 TRADEX, ABBOTSFORD, BC

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Fall 2014

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Fall 2014

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Photo by Kirsten Wakal

The 6th Annual FarmFolk CityFolk Okanagan Feast of Fields page 10.

6

Publisher's View – Lisa Olson

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Calendar

9

News & Events

30 Word on Wine – Miles Prodan 31 MacIntosh on Money – Peter MacIntosh 33 Seeds of Growth – Fred Steele 35 World Wine Web – Mike Cooper 37 People Talk – Barbara Ashton 39 The Wild Things – Margaret Holm 41 Legal Libations – Denese Espeut-Post 4

Fall 2014

Photo courtesy of the Environmental Farm Plan by Barbara Cameron

Regulars

Greg Norton picking peaches in his Oliver orchard page 22.

Features 15 Inviting Folks to the Farm 19 The H2O Challenge 22 Serious About Sustainability – BC Ardcorp 25 Kiwis Take Root in the Fraser Valley 27 Inaugural 2014 Wine Industry Awards 42 Interprovincial Trade Barriers – When Will They Come Down

Photo by Lone Jones

Cover Photo of Natalia Glauser serving tacos at the 2014 Naramata Tailgate Party.

By Kirstin Wakal

Ambrosia apples at the Asia Fruit Logistica show page 9.

Fall 2014

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 PUBLISHER’S VIEW | LISA OLSON

Gettin ‘er done… BC Style!

Vol. 55, No 5 Fall 2014

I

Established in 1959

woke up the other morning, peeped out of my tent and saw dew on my car windshield; it had been a cool evening on one of my last camping trips of the year. It was also another sign that it was close to the end of harvest.

Looking at the wine labels sitting out on the table I noticed BC wine from various regions, a bottle of homemade and scotch and soda for the birthday girl.

This was a small gathering, but a good indication of what might be happening around the province… homemade, fresh and local.

Lisa Olson Graphic Design Stephanie Symons Contributors Barbara Ashton, Michael Botner, Mike Cooper, Kim Elsasser, Denese Espeut-Post, Margaret Holm, Peter MacIntosh, Darcy Nybo, Ronda Payne, Miles Prodan, Fred Steele, Gary Symons, Kirsten Wakal

Photo by Kim Elsasser

Camping was so much fun! It was a monumental birthday celebration for my dear friend Jackie, who ran around the evening in a princess crown and purplefeathered boa. There were twenty of us, some from Whistler, Salt Spring Island, Maple Ridge, Kelowna, Merritt and Williams Lake. One thing that was so cool was the unique homemade food dishes and local wine brought from various areas. It made me think of the usual camping foods and how our food has evolved.

The Caesar Salad was made with fresh spinach instead of romaine; the potato salad had an avocado dressing which made it bright green and no hot dogs here, local salmon was on the BBQ. To top it off was a thin chocolate-layered torte made by master baker, Jana from Salt Spring Island who beat the cream by hand and decorated the cake on the tailgate of a pick-up truck. "Gettin' 'er done", Nicola Valley style!

Publisher

Sales & Marketing Holly Thompson

Inside this issue, we bring you more fun photos of seasonal events and how growers are bringing people to their farms showing how, “BC does it up!”

Circulation info@orchardandvine.net Orchard & Vine Magazine Ltd.

Take a moment to read our new columnists; BCFGA President Fred Steele who shares his view in “Seeds of Growth” and Barbara Ashton on preparing for new hires, while longtime columnist Mike Cooper relates a giraffe and good customer service. There is more inside on water woes, kiwis, organics and sustainability.

1576 West Kelowna Road West Kelowna, B.C., V1Z 3H5 E-mail: info@orchardandvine.net www.orchardandvine.net Phone: 250-769-2123 Fax: 1-866-433-3349

Enjoy the Magazine!

Orchard & Vine Magazine is published six times a year and distributed by addressed direct mail to growers, suppliers and wineries in the Okanagan, Kootenays, Fraser Valley, Lower Mainland, Vancouver Island, Washington State and throughout Canada.

Orchard & Vine is also available online.

Publications Mail Agreement No. 40838008 Undeliverable copies should be sent to:

1576 West Kelowna Road West Kelowna, BC, V1Z 3H5

Cert no. SGS-COC-006263

6

Fall 2014

We’re working with you to ensure all workers go home safe

Find helpful safety resources for fruit and grape growers at worksafebc.com/agriculture.

Fall 2014

7

Photo by Gary Symons

 FALL | CALENDAR

Pacific Ag Show at the Tradex in Abbotsford.

104th Annual BC Fairs Conference "Successfully Combining Tradition with Change" Oct 23 - 25 Ramada Plaza Hotel, Abbotsford, BC www.bcfairs.ca Unified Wine & Grape Symposium January 27 - 29, 2015 Sacramento Convention Center Sacramento, California www.unifiedsymposium.org 13th Annual Agri-Food Industry Gala January 28, 2015 Ramada Plaza and Conference Centre Abbotsford, BC www.bcac.bc.ca 17th Annual Pacific Agriculture Show January 29 - 31 2015 Tradex Exhibition Centre Abbotsford, BC www.agricultureshow.net

To obtain a Certificate of Recognition and earn WorkSafeBC rebates call Lorne at the Farm & Ranch Safety & Health Association - 1-877-533-1789 8

Fall 2014

Islands Agriculture Show Feb 13-14, 2015 Courtenay, BC www.iashow.ca 58th International Fruit Tree Association Annual Conference & Intensive Workshop February 21 – March 5 Halifax, NS www.ifruittree.org

 FALL | NEWS & EVENTS

Naramata Tailgate Party 2014 – 50s Style It was sold out well in advance and the reasons were quite evident if you managed to get there – it was fantastic! The September 13 Naramata Tailgate Party was blessed with perfect weather and a gorgeous sunset to celebrate the vintages and great foods of the Naramata Bench.

Naramata based band Uncorked had the crowd hoppin’ and boppin’ all night long as event goers danced the night away between sipping some of the finest 2014 vintage from the Naramata Bench Wineries and indulging in some tasty treats from local restaurants.

Top Cat Tours provided shuttle busses to and from the grounds at Poplar Grove

Photo by Kirstin Wakal

The 50s theme was chosen to celebrate the 30th anniversary of the Naramata based film, My American Cousin. Event goers embraced the theme whole-heartedly with plenty of cat's-eye glasses, ponytails, poodle skirts, slicked back hair and cigarettes rolled up in white t-shirt sleeves. There were even a few odd looking fellows channeling the ghost of Elvis.

Retro 50s ladies from Howling Bluff, show off the wineries offerings for the evening.

Winery from Naramata center and from Penticton.

This event has become more and more popular, and as of late has a reputation for its great wines, food, and entertainment. It is highly recommended you put

this in your calendar now for next year.

Check out their website, naramatabench. com, for a complete listing of all events on the Bench from tailgate parties to picnics, afternoon socials, live music and movie nights.

A Taste of the Okanagan in China “This is the first time Summerland Varieties has attended as an exhibitor,” said Erin Wallich, Project Manager for Summerland Varieties. “The four groups were the only ones from Canada in the entire trade show. Summerland Varieties represents the new varieties of fruit developed in Canada and promoted those varieties primarily to retailers and wholesalers at the show.”

Summerland Varieties showed off their wares at the Asia Fruit Logistica show in Hong Kong. In September Nick Ibuki, acting GM, and Ragiv Dasanjh, a horticultural technician with Summerland Varieties joined representatives of the BC Blueberry Council, BC Tree Fruits and BC Cherry Association at the show.

“Asia is enormous,” said Wallich, “and if you can secure Asian markets, you can generate a lot of sales. We want our varieties to become popular in Asia, which gives our growers lots of security. We are targeting densely populated areas of the world.

We now have partners in Italy, the United States, Chile and New Zealand. We try to have our varieties grown in both the northern and southern hemispheres so you will always have that variety in store year round.”

Cherry ice cream, made with BC Staccato cherries, and Ambrosia apple slices paired with Canadian cheddar were served at a reception at the Canadian Consulate in Hong Kong after the trade show.

Nick Ibuki (acting General Manager), Rajiv Dasanjh (Horticultural Technician) and Nirmal Dhaliwal (President) at the Summerland Varieties Corp. tradeshow booth.

Fall 2014

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 FALL | NEWS & EVENTS

Another Great Year for the Okanagan Feast of Fields

Okanagan Lavender and Herb Farm provided a refreshing treat with a lavender and soda libation.

The sixth annual FarmFolk CityFolk Okanagan Feast of Fields has come and gone, and oh, what an event it was.

It’s not quite clear how the FarmFolk CityFolk organizers are able to get the weather to cooperate each and every year, but they do.

Feast of Fields has been around for years and is a way to bring people who create delicious things to people who love delicious things. Imagine chefs, farmers, fishers, ranchers, food artisans, vintners, brewers, and distillers all in one field.

10 Fall 2014

Photos by Kirstin Wakal

Now you might be wondering, why I’m telling you this. Well if you were there, it’s a trip down memory lane. If you missed it, it’s a wake up call to pay attention and make sure you make it to next year’s event. On August 17, over 30 restaurants and 30 wineries, distilleries and breweries were all in one place: the Okanagan Lavender & Herb Farm. The venue was stunning with beautiful rows of lavender dividing the tents and Okanagan Lake as the backdrop. Thank you to David and Andrea McFadden too for letting so many hungry and festive people traipse through your beautiful space.

Howling Moon Craft Cider was an Okanagan hit with hundreds of event goers.

Growth is Natural. Quality is Intentional.

In fields, orchards and vineyards, professional growers create a plentiful, premium crop with a discerning eye, a careful hand --- and calcium.

Now imagine yourself with a wine glass and a white napkin, wandering from tent to tent sampling their wares.

This year, as every year, I was pleasantly surprised to discover a winery I never knew existed, and a dish I loved, that I never thought I’d like. That’s what Feast of Fields is for. It’s a way to bring all that’s out there into one space for you to sample, discover, and enjoy. It really doesn’t get much better than that.

So, don’t forget – next year – Okanagan Feast of Fields – be there. http://www.farmfolkcityfolk.ca/events/ feast-of-fields/e-alert-list/)

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Fall 2014 11

 FALL | NEWS & EVENTS

Next Generation Growers Take Over at Granny's

By Darcy Nybo Granny's Fruit Stand in Summerland has been a local and tourist favourite for years. Started by Don Cameron and his late wife, Josie, in 1992, Granny’s is now leased by Derek Lutz.

The Lutz family has a long history of farming in the Okanagan Valley. “We’ve farmed in Summerland for 35 years now,” said Derek, “and starting in the 1940s, my grandparents were farming in the Oliver area.” When Derek learned Granny’s was up for lease, he saw it as a perfect fit with his marketing plan for the family farm produce.

"It's a great facility,” he said. “We’ve been here since May of 2013 and business is great. Having a background in farming, and knowing what you are growing and selling helps. When it’s your own product you aren’t paying someone else to grow it and mark it up, so a profit can be made.”

Having Granny’s gives the Lutzs another venue to market their produce. Back in 2000, as a way to make a little extra money for University, Derek bought an old refrigerated truck and went all over Alberta and Yellowknife selling his family’s produce. He developed a following at farmers’ markets, and in 2003, his brother Conrad, now an accountant, joined him. Conrad now runs Sun Best Produce out of Edmonton.

“Thinking outside the box is important when marketing your produce,” explained Derek. “Thirty-five years ago

12 Fall 2014

my dad decided to market his own fruit and that’s how we grew up and learned about selling our product. When he passed away three years ago, it was time for me to come home and take over the family farm. One important thing I learned from him is you can’t be afraid to try different ways of getting your product to market. That could be through a value-added product or a fruit stand or filling up a truck with your produce and driving out to the prairies.”

The Lutzs sell about 150,000 lbs. of cherries overseas each year, 30,000 lbs. through Alberta and another 10,000 lbs. at the fruit stand. The smaller cherries that aren’t sold overseas, in Alberta, or at the fruit stand, were a value-added product waiting to happen.

“This year we had the mobile juicer come in and we made cherry juice out of the smaller ones that we didn’t want to sell in the market. They came out to the farm

The Lutz family from left to right Conrad Lutz, Gary Lutz, Maureen Lutz, Derek Lutz.

and juiced a few thousand pounds of cherries. It’s quite sweet and strong, so we tell people to mix it with a sparkling water to make a nice non-alcohol drink, or you can mix it with alcohol if you like.”

Derek is happy to be back home in Summerland with his new family. “We al-

ready grow, market and sell fruit here.

Granny’s is a great facility and a great fruit stand and it enables us to sell here instead of having someone else do it. Plus we’ve always done our own preserves and stuff like that. We use my mom’s recipes for pie and we also make pickled beans and carrots. We have a fair bit of ground crop area where we do tomatoes and cucumber and peppers as well as lettuce and kale.”

Derek’s mother, Maureen, is in charge of three-quarters of an acre of ground crops grown specifically for Granny's.

"The vegetable garden is my mom’s domain, I stay out of her way," he laughs.

“It really is a family run, multi-generational business. My brother Conrad looks

after Alberta. My grandmother Caroline is 99 now and she still helps out by cracking and packaging our walnuts. My wife Leanne, a nurse, helps out in the store when she can, and our daughter, Coraline, who is not quite two, is in charge of quality control. Anything that looks good, she puts in her mouth!”

What isn’t grown by the family is purchased from other local growers, such as melons and apples from The Apple Barn and Ogopogo Meats and Sausages. Blueberries are brought in from the lower mainland. Even their gelato is made locally by Artisto Gelato. Everything sold at Granny’s is a product of British Columbia.

Granny’s is a very popular spot for lunch, thanks in part to Swiss-trained baker

Markus Hunziker, who subleases the bakery. “The bakery is a huge draw," explained Derek. “He creates delicious food daily including fruit pies, breads and pastries. People come in for coffee and for lunch. We offer light lunches, sausage rolls and that type of thing and of course we have dessert. We’ve been working more and more on building up the local clientele by having quality produce and good prices.”

With harvest time drawing to a close and tourist season over, Granny’s will close at the end of October. Locals and tourist alike will count the days until it opens again in the spring.

Granny's is located at 13810 Highway 97 in Summerland, BC.

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Fall 2014 13

 FALL | NEWS & EVENTS

One RV + One Ag Minister = Better Understanding of Farmers Needs Norm Letnick has rested up from his 6,500 km trip around BC and is ready to apply what he learned this past April. His first stop was 100 Mile house in the Cariboo, with his last stop being Parksville on Vancouver Island.

“This is my second time as Ag Minister,” said Letnick. "I wanted to reconnect with as many people as possible. Around the province the biggest complaint was invasive species, weeds, and wildlife damaging crops. On the tree fruit side, the top priorities are still the replant program replanting from less marketable varieties of apples to ones that are more marketable.”

Letnick estimates he met over 300 people on this trip. “I think people are more optimistic this time around. Prices are good, wineries are doing well and people have had an opportunity to build up their businesses. I had some great conversations with young farmers in many parts of the province that want to take over the family farm. They are working through succession planning with their parents, which can be a trying process.

They have the right attitude. I also had an opportunity to tour the University of the Fraser Valley Ag Centre and it’s going to help a lot in training young farmers as they get into the industry.”

Norm Letnick at Recline Ridge Winery with Graydon Ratzlaff.

BC Tree Fruits Unveils Larger Market, and Launches Hard Cider Product The BC Tree Fruits new storefront, located at 826 Vaughan Avenue, is twice the size of the old store on Clement. “We were on Clement for years and years and we really appreciated the support we got from tourists and customers,” said Chris Pollock, Marketing Manager for BC Tree Fruits. “We are excited to have a space that can accommodate growth and provide that ideal shopping experience for consumers.”

That’s not all that’s new. Starting in the spring they will have hard cider for tast-

ing and sale at the store. “The name of the cider is a secret,” said Pollock. “All I can tell you is it will be made by the BC Tree Fruit Cider Company. It’s a growing industry. We did a lot of research and had discussions and conversations with our grower base. It’s a great opportunity to branch out and to maximize returns to our growers. We are positioning it as a premium cider that’s made with 100% BC Tree Fruit apples. This way we can use the process grade fruit that doesn’t make it to retail stores etc.”

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Inviting Folks to the Farm

By Ronda Payne Welcoming people to growing, producing lands to take in the “farm to plate” experience is nothing new. Wine tasting rooms, petting zoos, field tours; it’s all there to be seen in what has been coined agri-tourism.

It’s a challenge to come up with something new and different to keep people coming back on a regular basis. For those lucky enough to score customers who return year after year for their favourite wine, this may not an issue. But for those making a living off harvest and are looking for ways to increase and extend that income, new ideas are essential. At Orchard & Vine, we’ve noticed three growing trends in agriculture: • Popular in Europe for many years, long table dinners have recently hit farms and orchards in B.C. • Farm gate shops grow in size to become destinations and sources for products from many local producers • Seasonal activities incorporate new attractions to keep things fresh and fun

Fall 2014 15

Photos by Ronda Payne

Live music was part of the celebration at “The Whole Hog” feast with one of the farm’s residents, Tallulah Winkelman, on the accordion.

It’s all about supporting other farmers…

We’re all about connecting the farmer and where food comes from to people.

Jenn Hopcott Long Table Dinners For a second year, Chef Chris Whittaker of Vancouver’s Forage restaurant saw his idea of a “whole hog” feast come to life. Not only did Whittaker serve up all parts of the hog in various dishes, he also brought attendees closer to the source of their dinner by having them pick the ingredients for a few of the dishes as they toured Glorious Organics, an Aldergrove cooperative farm.

Whittaker is no stranger to the farm or the food which is used at Forage. In ad16 Fall 2014

dition to the Whole Hog event, he has worked at the farm and become a friend to those living and working there.

One of the farm’s residents, Mark Cormier, explained that everyone wanted to see CanTina – a shipping container turned outdoor kitchen – functional in time for the feast. Funds raised from the dinner helped pay for CanTina’s arrival and set up.

“We did this Forage event last year,” Cormier said. “This year we worked really hard and sold out.”

"Whole Hog" organizer Chef Chris Whittaker.

The new outdoor kitchen facility will allow for a greater number of events on the farm from kid’s campouts to other dinners.

“I guess one of the big things we want [as a result of events] is for people to get to know our farm and see what we do,” Cormier said. “The farm is always open for visitors and at this event we get to see people eating our food. We don’t see that with restaurants.”

In 2013, Rebecca Awram was a co-organizer of an inaugural long table dinner held at Golden Ears Cheesecrafters in Maple Ridge. This was a collaborative process where the owners of Cheesecrafters worked with Awram (who has plenty of local food event experience) and the head of the local farmers’ market. Profits went to the Friends in Need Food Bank.

“It was elegant yet pastoral at the same time,” Awram said of the event. “Gourmet courses with hay barrels and farm equipment. A total juxtaposition, seemingly at odds yet blending so smoothly, so naturally. A true 'field-to-fork' experience, it just seemed so natural to dress up and sip expensive local wines while lighting our tent by candle and lantern as it got dark and gazing out over the fields, and then the stars. You just don’t get that in a restaurant.”

Farmgate Shops Bring Local to their Shelves The latest trend for farmgate shops is the introduction of shops turned markets where customers can buy a wide range of local products outside what may be expected.

Hopcott Farms began in the 1930s as a dairy operation. The family grew and diversified their product offerings and in 2006 opened their Hopcott Premium Meat shop. Despite those origins, this is far from a shop that sells only meats.

With five different kinds of berries grown and sold on site and products from about 50 different local producers, the shop is able to provide everything for breakfast to dinner. With meat, sauces, produce and breads, it has become a destination for locals.

Make Seasonal Sensational The old pumpkin patch is more than just a place to pick up a pumpkin. Also located in Maple Ridge, the Laity Pumpkin Patch makes choosing a pumpkin a full morning, afternoon or day-long activity.

This 18-acre patch has been running for 25 years and understands that, to keep people coming back, new offerings need to be added. It may seem like an awful lot of work for a business that only runs in October, but the small corn maze, concession, frontier town, gold panning,

“It’s all about supporting other farmers,” said Jenn Hopcott, the shop’s operations manager. “We’re all about connecting the farmer and where food comes from to people.”

Another successful farmgate shop turned market is Abbotsford’s Lepp Farm Market. Opened in 2009, the market was built where the family’s corn stand used to be. Certainly there is still corn, but every variety of meat and produce – all sourced locally – can be found on the shelves, in the deli and the coolers.

The 5 Best Ways to Get Them to The Farm: ■ Offer a unique experience, linked to your property and what you do ■ Involve a charity component, whether it's a donation to a non-profit or funds raised to ensure a certain amount of food is donated at harvest ■ Focus on foodies. No one loves a visit to a farm and unique food experiences more than foodie-types ■ Charge what it’s worth. If you undersell your attraction, people will dismiss it as cheap and uneventful ■ Integrate your marketing efforts to get the biggest bang for your buck.

Posters, social media, banners and affordable advertising must be targeted specifically to those you want to attract

Chef Chris Whittaker can be seen with his bright orange hat standing inside “CanTina” the shipping container turned outdoor kitchen.

Fall 2014 17

Halloween Fun on the Farm: Colleen Birnie and son Alec look for the perfect pumpkin at Laity Pumpkin Patch in Maple Ridge, BC.

tractor wagon ride and more allow the family-run business to charge an admission, along with pumpkin sales, while ensuring families and school tours keep coming back for more.

While Hopcott farms was previously mentioned as an example of taking a farmgate shop and making it a destination, it is also an example of making a seasonal attraction something even grander.

15 Things to Know About Bringing Folks onto the Farm: ■ Find sources of alternative entertainment like music or monitors with short movie clips if your offerings are limited ■ Accept as many payment options as possible. Yes, credit cards charge a fee, but do your research for the best rates and avoid losing a sale ■ Reduce any risks and get adequate insurance ■ Look at your property through the eyes of a non-farmer and if possible get advice on “flow” from a neutral associate

Since 2000, the Hopcott family has turned 17 acres of forage corn for their cattle into Meadows Maze. Three mazes – the Mega Maze, medium maze, and mini maze – are 8.7 kilometers of GPS cut paths through close to a million stalks of corn. Because the corn is used to feed the cows, closing the maze and harvest time is carefully planned to not coincide with the farm’s cranberry crop.

■ Signs are your silent employees. Use them liberally

New attractions are constantly added to the Maze site and include diverse offerings like pigs kids can colour on, a petting farm, barrel train rides and more. ■

■ Ensure wheelchair and mobility challenge accessibility wherever possible

■ Repair what’s broken, replace what’s needed, take care of basic maintenance ■ Ensure adequate parking ■ Collaborate with local growers and farmers where possible. People love to see farming and growing as a community ■ Provide plenty of shade, places to rest and water in summer ■ Convenient washroom facilities are a must ■ Widen, clear and smooth walkways and paths

■ Remove the temptations of equipment and most animals from areas children frequent ■ Always look for events and activities that are an extension of what you produce.

An apple themed dinner is great for an apple orchard, but a pig race is not ■ Ensure staff involved with events is well-aware of what’s expected

18 Fall 2014

The H2O Challenge

Can the Okanagan Avoid the Fate of California?

By Gary Symons There’s nothing like the Okanagan on a warm summer’s day. Tourists and locals enjoy swimming or boating in one of the valley’s sparkling blue lakes, or swinging a golf club on an emerald green golf course.

The sun shines on the acres of well-irrigated orchards, vineyards, and hayfields.

the world to live, and if we want to keep it that way we need to stop wasting water.”

It appears to be an environment where nature is in harmony, and a plentiful supply of water fuels both tourism and agriculture.

That may explain why farmers as a whole have been more responsive when it comes to changing their ways, says Brian Symonds, regional director of the BC government’s Water Stewardship Branch.

“The stakes are high when it comes to managing water in the Okanagan,” says Okanagan Water Board executive director Anna Warwick Sears. “We have less water available to us than almost anywhere else in Canada, but we use at least two times more than the average Canadian.”

About 675 litres per person of water is consumed in the Okanagan, while the Canadian average is only 329 litres.

“The Okanagan is one of the best places in

“Most farmers are really trying to do the right thing about water,” Symonds says.

"They’ve done a lot of work to find efficiencies and there have been very significant advances in the past few decades.

That’s a good sign that people are open to the conversation.”

Photo by © Trexec | Dreamstime.com - Irrigation Photo

Unfortunately, the opposite is true. The Okanagan is one of the driest regions in Canada, and among those most at risk of suffering severe water shortages over the next 30 years.

The future of water use in the Okanagan basin is most important to the farmers and vineyard managers who depend on it for their livelihoods. No water, no crops. No crops, no business.

But Symonds and other experts in water conservation say there is still a long way to go, and the stakes are very high.

Rising global temperatures have already caused significant water shortages in several parts of the world, and the impact in BC can primarily be seen in the shrinking glacier fields and smaller snowpacks.

Fall 2014 19

Photos by Gary Symons

The stakes are high when it comes to managing water in the Okanagan…We have less water available to us than almost anywhere else in Canada.

Anna Warwick Sears

Glaciologist Garry Clarke at the University of BC estimated in 2011 that many of the glaciers we see today will disappear by 2100, and others will shrink to less than 20 per cent of their current size. As well, Symonds says decreased snowpacks and increased evaporation of water from the surface of Okanagan Lake will have an unknown but significant impact on water supplies.

organizations really are trying to make changes, and things are improving.”

That’s the bad news, but Symonds says there’s good news too.

Symonds says the Okanagan is facing a water problem, but the US southwest is facing a water crisis.

“People remember what happened in 2003 when we had unprecedented forest fires, and the level of the lake lowered quite significantly because we were basically mining the lake,” he says. “We were taking out more than was going back in, and the levels dropped.

“Now, people and governments and 20 Fall 2014

Symonds says the alarming events in California, Nevada and Arizona are also driving change. The worst drought in 119 years is hitting farmers hard in California’s lush Central Valley, while Lake Mead, a gigantic reservoir just outside Las Vegas, has seen its levels plummeting for several years.

“In a way it may be good we’re seeing this, because when we look at the droughts in California and Arizona we can learn from that and not do the same things that led them to a situation where they are taking more water out than the watersheds can supply,” he says.

The bad news, obviously, is that the Okanagan may need to supply more people with less water, but the good news is there is time to adapt, and water experts like Symonds and Warwick Sears say that has to happen in both the urban and agricultural areas.

Farmers take up more than half of all water use in the Okanagan Water Basin … but irrigating lawns and gardens takes up one-quarter of water use, and provides few economic benefits.

Densifying the cities and towns with smaller yards or condos, combined with using landscaping techniques that require very little water could have a massive impact on water use.

On the agricultural side, farmers can continue to replant with species that are conducive to drip irrigation (such as dwarf apple trees), or choose crops that use less water. For example, one-third of the Okanagan’s agricultural land is used for forage crops like hay which need much more water than vineyards or orchards.

The major barrier, however, has nothing to do with technology, but with political will.

“We are improving, but we are far from being the best in terms of water conservation,” says Symonds. “The good news is that we have some time, and I do believe we can avoid the kinds of water crises they’ve suffered in the United States.

“But to do that we have to make choices and act on them, so we reduce our water use before it becomes a crisis.” ■

WHAT YOU CAN DO ■ Switch to drip irrigation on the farm ■ Use sensors to measure irrigation in soil before irrigating ■ Choose crops that need less water ■ Encourage cities to densify, and subdivide large properties ■ Lobby for xeriscaping regulations in municipalities ■ Use ‘xeriscaping’ practices in your yard to reduce water use ■ Let your lawn go a bit brown in summer (sorry!)

Fall 2014 21

Third-generation farmer, Greg Norton, eyes the fruits of his labour with pride knowing his orchard is sustainably sound.

No one knows the land like a farmer; after all, their livelihood depends on keeping the land economically and environmentally sustainable.

The Environmental Farm Plan (EFP) program was launched a decade ago to give farmers a keener insight into how to lessen the environmental impact their farming has on the land. The program pairs farmers with planning advisors to explore how they can reduce environmental risks on their farms.

Since the program was launched more than 4,000 BC farmers, vintners and ranchers have worked with advisors and gone through their Environmental Farm Plan workbook.

Hear it Through the Grapevine Garnet Etsell, farmer director and manager of Singletree Winery in the Fraser Valley knows all about the EFP and has

22 Fall 2014

Norton’s grandson Jesse knows about culture, the culture of sustainable farming that is.

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been involved for years. Also a director on the BC Agriculture Council, Etsell is both passionate and pragmatic about the program.

“It’s a good checklist to see if your operation is environmentally sound. When we got onto the program it helped pay for a portion of the upgrades we did to the farm. We worked with two different advisors who were both professional agrologists,” says Etsell. “They helped me through the process and it was a great way to ensure we were onside with respect to environmental legislation. If you are offside, nobody else will see it, but it is incumbent on you as a farmer to take care of those items."

The Fruits of Forward-Thinking Farms Greg Norton of Oliver is another one of those farmers. He and his wife Chris are third generation tree fruit farmers on the Norton farm established in 1923.

Taking over the family business in 1986, Norton’s passion for marketing Okanagan fruit to the world is renowned and he has served on several boards over the years. He’s also the chair of the Industry Advisory Committee for the EFP. “It’s a process of education and awareness,” says Norton. “Our hope is that if you have an Environmental Farm Plan it gives you better access to Canadian markets. (As farmers), we want people to know that we care about the environment and we are doing something about it.”

It’s a team handshake for farmer Greg Norton (right) and his Environmental Farm Plan Advisor Joe Lariviere.

"By doing one or two small things you make a difference to the impact on the environment and improve the viability of your farm."

Greg Norton Third Generation Oliver Farmer Once a farmer completes the workbook, they are eligible to apply for funding for various projects and equipment. The program was designed to mitigate environmental risks and improve farm practices.

Given the growing consumer interest in matters pertaining to food source from land and sea alike, the EFP program is also driving business for forward-thinking farms.

Years ago, he went through the EFP process and found areas he could lessen his impact on the environment, as well as save some money by using a mulcher between the rows in his orchard. “It cuts the grass and then throws the mulch onto ground under the trees,” Norton explains. “It means less spraying for weeds and it provides nutrients to the trees too.”

Exploring Process, Cost and Impact “The EFP process itself is quite simple,” says Norton. “An advisor will come to your farm and take about a half-day going through a series of questions in a workbook. This helps identify areas where there could be room for improvement. The program is completely voluntary, confidential and there is no cost to the farmer.”

Norton’s granddaughter Dee Shaw, future farmer.

“By doing one or two small things you make a difference to the impact on the environment and improve the viability of your farm,” says Norton. “It could be something little like signing up for a nutrient management plan that lessens the impact on the environment and saves on fertilizer costs. We do a lot of this in the off-season when there’s more time for the farmers. Once the changes are put in place it becomes part of the culture of farming.”

Fall 2014 23

From a Planning Advisor’s Perspective Norton’s EFP planning advisor is Joe Lariviere, an agrologist, who has been with the program from near the start. He first learned about the program when he was offering interpretive services to growers back in 2002.

“My role is to help the farmer explore the depths of their understanding and see if they are aware of the positives and negatives of their practices,” says Lariviere, who works primarily with the tree fruit and wine sectors.

Passionate about sustainable, environmentally-friendly farming, he has seen an upswing in positive reactions to the program. “The ability to facilitate a conversation on sustainable farming practices has greatly improved,” he explains.

“The topics aren’t alien anymore and farmers are more receptive. They know it is there to help them, not to tell them what to do.”

Of Environmental and Economic Viability Lariviere points out that his job is to simply to help the farmer become aware of and identify areas of improvement, as well as address the opportunities. “One of the things we discuss is economics— the financial stability of the farm,” Lariviere says. “If they employ these great practices and go broke, it’s not sustainable. So we give them examples of what other people were able to achieve.”

One of the ways Lariviere helps farmers is by guiding them through the use of non-chemical fertilizers. It may be more expensive than regular fertilizer, but there are long-term benefits.

“You use less pesticides, the fruit is of a better quality and the farmer can now get a great price for the fruit. Plus they gather a loyal customer base that recognizes the quality difference,” he says. “It

Greg Norton shows off his side mulcher to Joe Lariviere. The mulch provides organic fertilizer and helps keep weeds at bay in the orchard.

Ongoing Stewardship and Best Practices As for Singletree Winery’s Etsell, he remains staunch in his support of the EFP process and the materials he has given over the years—including the new signage available for display.

Garnet Etsell will someday pass along the knowledge he’s accumulated through working with the Environmental Farm Plan to his grandson.

may initially be more expensive, but it does becomes beneficial both environmentally and financially.”

“It lays out what the best practices are.

To me, that alone is worth participating in the program. Farmers are stewards of the land. As a farmer you want to make money, but by the same token you want to be environmentally stable.”

The Environmental Farm Plan program is confidential, voluntary and no-charge for farmers. For more details, visit the website at bcefp.ca or call toll-free at 1-866-522-3447 to get involved today.

Want to know more about the Environmental Farm Plan program? Call 1-866-522-3447, or visit www.bcefp.ca

Funding for the above program is provided by Growing Forward 2, a federal-provincial-territorial initiative.

24 Fall 2014

Photo by © Johny87 | Dreamstime.com

Kiwis

Take Root in the Fraser Valley

By Ronda Payne The mosquitoes are wicked at George Petkov’s leased farm in Abbotsford. As much as the blood-suckers are annoying, they’re no fools. This is a beautiful place to be on a hot summer day.

Beneath the eight acres of pergolas supporting planted kiwis, the mosquitoes enjoy the same mix of heat and moisture the plants thrive on.

“Here [in the Fraser Valley], July and August is excellent,” Petkov said. “It’s high humidity in the air. Kiwi like that.”

While the strategy of growing kiwis outside their usual production regions of New Zealand, Greece, Italy and Chile may seem flawed, Petkov started his paradise of Mediterranean fruit growth in 2008 and is seeing constant increases.

“I’m expecting 25 per cent more [volume] this year,” he said.

In 2013 he harvested 48 metric tonnes of fruit and is still not yet in full production.

It’s a far cry from one of the kiwi growers on Vancouver Island who, according

to Petkov, deemed the fruit not commercially viable and ripped up 10 acres of plantings around 2007 or 2008. The Kiwifruit Growers Association of BC still exists on the southern tip of the island, the only place believed capable of growing the fruit in B.C., until Petkov came along.

Don’t go racing out to rip up the grapes or raspberries in favour of kiwifruit however. Petkov is the first one to tell you it’s not an easy crop despite the fact there are no substantial pests he’s come up against. It’s simply really hard work.

He approaches his business with a master’s degree in viticulture after prior years of schooling in the same subject matter from his homeland of the Republic of Macedonia, formerly Yugoslavia.

Petkov feels his education is much more practical than what is available in North America.

Petkov was also the assistant viticulture manager with Domaine de Chaberton, worked with what is now Backyard Vineyards and still provides vineyard consulting to growers. The consulting however,

is becoming a rare activity as Petkov no longer has the time.

He knows his vines.

“They grow like crazy,” Petkov said of the male vines. “I have to do lots of canopy management and pruning is very important.”

At one point in his viticulture employment, he saw a kiwifruit ripening on a plant and the idea took hold.

“I saw the opportunity,” noted Petkov.

“I got the idea because I grew up with viticulture.”

While he doesn’t regret his choice of planting and establishing the kiwifruit, it came at a cost.

At first, he tried to find land in Langley, but couldn’t find enough suitable acreage. Then he came upon the lot in Abbotsford with its clean well water for irrigation and bare, subtly sloping fields.

“The first few years we were putting money, money, money [into the production],” he said.

Fall 2014 25

Now, the biggest cost is his time.

“When you work for [your] self, I am more flexible,” Petkov says. “Sometimes, I can stay 12 hours [on the land], sometimes I don’t come.”

Petkov, his wife, daughter Sara and son Teodor live in Vancouver, so in the summer, when the kids are out of school, they join their dad at his business, Petkov Kiwi Production.

The work is demanding, but Petkov said finding educated labourers to help out is hard.

Photo by Ronda Payne

“If I expand more, I will have to find someone who knows about [kiwis], so if I expand I will do something else, other Mediterranean fruits, it’s [kiwis are] too much work,” he said.

Petkov feels the lack of local knowledge about a wide range of vine fruits comes from the focus on berries in the Lower Mainland.

“Education is in blueberries, raspberries, cranberries, that’s it, because that’s what grows here,” he said. “The rest [of the fruit varieties] are in the Okanagan.”

Kiwis can also be hard to pollinate, even with the eight to one ratio of female plants to male plants on Petkov’s operation. He also has six bee hives on the land.

“Harvest is the beginning of November, end of October, depending on the weather,” he noted. “Usually I leave them [on the vine] the maximum amount possible.”

George Petkov under his Kiwi canopy in Abbotsford.

Similar to bananas, kiwis ripen in storage and can stay in cold storage up to six months.

“The first year it was a little hard to find buyers,” he said. “They didn’t believe kiwi could be grown here.”

Approximately 75 per cent of Petkov’s prior harvests went to “the Healthy Schools program,” he noted, with the remaining quarter being sold wholesale to restaurants and IGA. This year Petkov is taking his Food Safe certification to allow him to expand his business.

Petkov has planted over 25 different kinds of fruits on the land including recently planted olives. For those unable to get to the Mediterranean, Petkov’s operation is one way to experience it, surprisingly, in the Fraser Valley. ■

KIWI FACTS ■ High in both soluble and insoluble fiber, both of which are essential for promoting heart health, regulating digestion, and lowering cholesterol levels.

■ Along with vitamin C, kiwifruit are rich in many bioactive compounds that have antioxidant capacity to help protect against free radicals, harmful by-products produced in the body.

■ Kiwifruit’s fiber content (as high as many whole grain cereals!) contributes to its moderate to low glycemic index of 52, great for individuals suffering from diabetes.

■ Kiwifruit is a great source of folic acid, magnesium, lutein and potassium.

■ Rutgers University researchers found that kiwifruit has the best nutrient density of 21 commonly consumed fruits.

26 Fall 2014

■ Kiwifruit has been growing in New Zealand for over 100 years. Once the fruit gained in popularity, other countries started to grow them including Italy, France, Chile, Japan, South Korea, Spain and now Canada.

Photo by CedarCreek Estate Winery, cedarcreek.bc.ca

Canadian Wine Industry Awards Held in Kelowna

The Canadian Wine Industry Dinner & Awards Presentation was held at CedarCreek Estate Winery in Kelowna.

By Michael Botner

CVA and BC Wine Institute Awards Touted as the “highest form of peer recognition and appreciation”, the CVA`s Award of Distinction went to George

Photos by Michael Botner

O

n a blistering hot July evening, 150 industry and political guests turned out for the inaugural Canadian Wine Industry Dinner & Awards Presentation under a tent at CedarCreek Estate Winery. A collaborative effort by the British Columbia Wine Institute (BCWI) and Canadian Vintners Association (CVA), the wine industry’s eyes and ears in Ottawa, the evening’s agenda encompassed three major industry awards, an illuminating keynote speech by the Federal Minister of Western Diversification, news on Mission Hill’s plans for CedarCreek, and what the Fitzpatrick clan has in store for its Greata Ranch property in Peachland. CedarCreek’s chef, Jeremy Tucker, orchestrated a summer-friendly menu of Wise Earth Farm mixed baby lettuce, grilled roast pork roast and carrot cake to accompany a selection of local wines, for the guest’s dining pleasure.

Here are some of the highlights of the evening:

Rick Bonitati, president, Mission Hill Family Estate Winery.

and Trudy Heiss of Gray Monk Estates Winery, 'British Columbia’s oldest family-owned and -operated winery'. “The Heiss’s are trailblazers” said Tony Stewart, CVA Chair and president of Quails’ Gate Winery. “They can be credited with bringing many high quality vinifera vines

to Canada, as well as helping to establish the Vintners Quality Alliance (VQA).”

As George and Trudy were unable to attend, son Bob Heiss accepted the award on their behalf.

Stewart presented the Wine Industry Champion Award to Dean Allison, the Fall 2014 27

federal Member of Parliament for Niagara West-Glanbrook, for his contributions to the overall strength and long–term viability of the industry. “As the champion of the excise duty exemption on 100% Canadian wine (and other agricultural products) in 2006, Allison has strengthened every single Canadian winery,” Stewart said.

The BC Wine Institute honoured Senator Ross Fitzpatrick, founder of CedarCreek Estate Winery, for a welldeserved 2014 Wine Industry Recognition Award. The 81-year-old Kelowna native “exemplifies the intent of the award, which was created to recognize those who have helped to develop the wine industry in our province,” said BC Wine Institute chair, Josie Tyabji, who presented the award to Fitzpatrick at the Canadian Wine Industry dinner at CedarCreek winery.

The grandson of a pioneering Okanagan agricultural family, Fitzpatrick left the Valley to pursue a highly successful career in politics and business before returning to his roots in the mid-1980s. He took over the struggling Uniacke Winery in 1986 and set it on a

Tony Stewart, CVA chair; Robert Heiss, Gray Monk operations manager accepting the 2014 Canadian Wine Industry Award of Distinction on behalf of his parents George and Trudy Heiss; Dan Paszkowski, CVA president & CEO.

path to become one of Canada’s top wineries.

Both Dan Albas and Ron Canaan, local MPs who won the Wine Industry Recognition Award in 2013 for their efforts to modernize the Canadian wine laws through Bill C-311, were on hand for the evening.

CedarCreek Purchased by VMF Estates News of the sale of CedarCreek to von Mandl Family (VMF) Estates, the holding company of Anthony von

Mandl, owner of Mission Hill Family Estate, early in 2014 sent shockwaves through the BC wine industry. In his acceptance speech, Fitzpatrick commented on the sale: “CedarCreek was not up for sale; however, when approached

by Anthony von Mandl, we saw another family with a shared vision for the Okanagan Valley. I am confident that CedarCreek will continue as an award-winning estate winery under the new owner and the winemaking guidance of Darryl Brooker.

Keynote speaker - The Honourable Michelle Rempel, Minister of State for Western Economic Diversification.

Josie Tyabji, Chair, British Columbia Wine Institute.

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To make the investment required for the future of CedarCreek, deep pockets are required,” Fitzpatrick said.

New focus for Greata Ranch While CedarCreek Estate Winery and its vineyards in East Kelowna and Osoyoos have been sold, Greata Ranch Estate Winery between Peachland and Summerland remains firmly in the hands of the Fitzpatrick family. The focus will be on high quality sparkling and reserve single varietal Pinot Noir and Chardonnay grapes from vines grown on the cool climate, 40 acre Greata Ranch vineyard.

Although limited quantities have been produced since 2012, the winery will remain closed during construction of a sleek, new 6,000 case winery, which is slated for completion in 2015.

New home for Martin’s Lane Next up, Rick Bonitati, president of Mission Hill Winery, explained the intense construction activity on a block of land just behind CedarCreek.

After the purchase of CedarCreek winery in early February, VMF and Mission Hill owner Anthony von Mandl decided to build a winery in honour of his father. Previously housed at Mission Hill in West Kelowna, Martin’s Lane Winery has staked out a reputation as a world class producer of Pinot Noir and Riesling “representing the purest and most natural expression of vineyard, varietal and vintage“. Martin’s Lane Winery’s new facility pushes the boundaries with five level gravity flow engineering and the very best equipment. “To have it up and running for the 2014 harvest, we have only 152 days to get everything done,” said CedarCreek’s winemaker in an interview.

Minister of Wine

Rossworn Henderson LLP

It was unexpected and refreshing to hear a politician - not just any politician but a federal cabinet minister no less - speak knowledgeably and enthusiastically about her appreciation of wine.

Only 34, the Minister of State for Western Diversification in Ottawa, Michelle Rempel is the youngest female cabinet minister in Canadian history. She has impressive credentials in the health and education sectors promoting and administering innovative academic and business research partnerships and applying her knowledge in intellectual property management. As a wine “geek” and graduate of WSET with an advanced diploma, she knows her wines inside out. Rempel has toured Canada’s wine regions and is blown away by the “luxury coolness” of Canada’s best wines. “A rising tide of top producers has set the bar high,” she said. She likes to visit the Okanagan and Similkameen Valleys for occasional wine getaways.

As wine technocrats “make progress figuring out the terroir, BC wines are coming into their own,” she added. “To take advantage of more opportunities within free trade agreements, wineries and associations need to work harder on marketing Canadian wines to the growing pool of ‘pluralistic consumers’.”

But governments also have to assist by removing interprovincial trade barriers, a priority of Industry Minister James Moore, according to Rempel.

“If there is one area of our economy that need bolstering, it is such fast-growing secondary industries as the capital intensive wine sector, which utilize clean energy technology,” she said. ■

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Fall 2014 29

 THE WORD ON WINE | MILES PRODAN

2014 a Record Year for Tourism at BC Wineries

T

he summer’s preliminary numbers are in and it's looking like a record year for tourism in BC wine country. With five stunningly distinct wine regions to choose from, including Vancouver Island, Gulf Islands, Fraser Valley, Okanagan Valley and Similkameen Valley, as well as several emerging wine regions, visitors clearly took the opportunity to explore new wineries or rediscover their favourites. Wine tourists are indicating support of BC VQA wine through their wallets.

In the month of June alone, winery direct sales (tasting room sales at a winery location, including direct-to-consumer shipment) represented the single largest channel

30 Fall 2014

for BC VQA dollar wine sales in British Columbia at 27 per cent - a 20 per cent increase over the same period the previous year. The next largest channel was BC LDB liquor stores at 23 per cent of market share.

the BC Wine Institute and Destination BC, providing visitors with more reasons to discover BC's wine country.

The success in provincial wine and culinary tourism hasn’t been happenstance, and is due in large part to the BC Wine Institute’s long-term growth objective to ensure visitation to BC wineries is a key element of the health and vibrancy of the industry – with the most successful programs being those undertaken in cooperation with government and private sector partners, including the BC wine country trip-planning companion, the British Columbia Winery Touring Guide.

The British Columbia Wine Institute also partnered for a third consecutive year with Visa Infinite® to offer oneof-a-kind winery experiences, special discounts and complimentary tastings at more than 30 participating BC wineries.

It features a nation-wide consumer awareness campaign, with ongoing social media support, providing yet another compelling reason to visit BC wine country, explore the wineries, meet the people and enjoy BC VQA wines.

Created in partnership with Destination BC, the BC Winery Touring Guide provides a complete list of the more than 250 wineries in BC, including grape and other fruit wineries and cideries. It is an excellent example of a successful collaboration between

The Guide is available at visitor information centres, BC Liquor Stores and BC VQA Wine Stores across the province.

In addition to giving access to special and unique participating winery offerings, cardholders also had the opportunity to dine in unforgettable winery settings where portfolio BC VQA wines are expertly paired with seasonally inspired cuisine prepared

by preeminent chefs like Top Chef Canada Winners Dale MacKay and Matthew Stowe.

The numbers speak for themselves: The BC wine industry’s $2 billion economic impact includes BC wineries welcoming over 800,000 visitors every year (more than the province drew for the Vancouver 2010 Winter Olympics), and generating $476 million in tourism and tourism employment related economic impact.

In the end, each bottle of BC VQA wine a visitor enjoys delivers a sensory experience that is as extraordinary and distinct as the province itself - the perfect excuse to come back again and again. ■ Miles Prodan, President & CEO The BC Wine Institute represents 119 winery members and 17 grape growing partners that represent 95% of the province’s total wine production and produce 88% of wine production made from 100% B.C. grapes. www.winebc.com

 MACINTOSH ON MONEY | PETER MACINTOSH

Building a winery building on your own property?

Make sure you avoid this tax disaster!

H

ere is the situation. You have made the decision to build a nice, new winery building on your property. Your winery business is doing well and can support the capital cost of the building. You own your property personally and have incorporated a company to run the winery business. You want to use your corporate profits

above, a winery corporation has constructed a building on property owned personally by one of its shareholders. In effect, the company has provided a benefit to its shareholder in the form of land improvements. Canada Revenue Agency could review this situation and increase the shareholder’s personal income for the total value of the winery building. The resulting tax and related interest charges on this amount would be significant.

earned inside your company to help pay for the cost and/ or repay the loan associated with the building. As a result, you have the company construct and own the new building. Sounds okay so far? Unfortunately not. If you don’t structure this type of arrangement correctly you can walk right into a tax nightmare.

There are various provisions in the Income Tax Act that reinforce the concept that if a shareholder of a company receives any kind of benefit from the company then the value of the benefit needs to be included in his or her personal income, and is taxed.

In the situation described

Furthermore, in most situations, shareholders of winery corporations have lent their companies significant amounts of money. They may

• Cabernet Franc • Cabernet Sauvignon • Chardonnay • Gamay • Gewürztraminer • Malbec • Merlot • Muscat Ottonel

have even loaned money to the company to construct the building. Canada Revenue Agency does not have to recognize these shareholder loans to offset the net benefit that the shareholder has “received” in the form of land improvements. The tax authorities just look at the full value of the building as an improvement, regardless of how much money the company may owe the shareholder, and that is the taxable benefit. This approach doesn’t seem reasonable but quite often the Income Tax Act is not fair.

We had some winery owners come to us for assistance

• Orange Muscat • Pinot Blanc • Pinot Gris • Pinot Noir • Riesling • Sauvignon Blanc • Sovereign Coronation • Seyval Blanc

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NOTE: Many different clones are available. Rootstocks available are SO4 and 3309

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Fall 2014 31

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when they were in the middle of an audit for this very issue. Canada Revenue Agency was proposing to reassess the individuals for approximately $500,000, which was the value of the building their company had built on their land. The resulting tax bill would have rendered them insolvent and most likely bankrupt.

Thankfully, we were able to argue that the individuals paid for the building with receipts in their own name, as opposed to utilizing corporate funds, and the reassessment was reversed. If these facts had not lined up in their favour, I suggest that Canada Revenue Agency would have been successful with their reassessment.

What can you do to guard against this issue? Make sure you understand the tax issues related to constructing a building on personally owned land. If a company constructs a building on personally owned land then the individual needs to report and pay tax on rental income received from the company. The rental income should be similar to fair market value rent that would be received in an arm’s length situation. It is vital that this arrangement is legally documented. Alternatively, it may make sense to have the individual construct the building and then lease it to the company. In this case, the shareholder owns the building, the company has not made an improvement to the individual’s land and a benefit to the shareholder does not exist. In addition, there may be GST issues to consider as well.

We regularly work with our clients to analyze the best approach for dealing with winery building construction. As demonstrated above, tax issues will impact the decision of who owns the building just as much as financing related issues.

The important point to note is that you must work through the decision in a methodical manner with your professional advisors in order to avoid a serious tax problem. In this case, an ounce of proactive tax planning will prevent a pound of very expensive tax headaches later on. ■ Peter MacIntosh, CPA, CA is a partner with White Kennedy LLP. White Kennedy has offices in West Kelowna, Penticton and Osoyoos. Peter can be reached at 250-492-9984 or atpmacintosh@whitekennedy.com.

 SEEDS OF GROWTH | FRED STEELE

A New Chapter for the Tree Fruit Industry ing. The BC Tree Fruits Co-op has already embarked on a number of positive projects.

Modernization has introduced new quality and food safety standards. More tree fruit that we harvest is reaching the fresh market. Independent farm operations are finding new value-added revenue streams. The time has come to develop a strategy that accommodates the various industry stakeholders.

industry made some strides in the direction of change but much more is needed. If we are going to satisfy the voices of doubt, we must nourish the voices of hope.

O

ver the past couple of decades several sectors of the economy had to reinvent themselves to be relevant in the marketplace. Sectors such as fisheries, forestry, beef, and grains and oilseeds witnessed serious upheaval and disruption to producers and communities.

Restructuring brought new opportunities and new vision for the future. The tree fruit

The BCFGA is embarking on a new industry strategy to develop a common roadmap for the future. This strategy will be made up from the input generated from industry stakeholders so we can focus our momentum of progress.

We have engaged senior levels of government with some partnering ideas, and the fundamental common reply is, ‘do you have a written strategy?’

The old method of simply trying to get a few more cents a pound is no longer good enough. We must look at the whole industry, and the opportunities it presents. The prospects are endless.

The tree fruit industry is on the verge of a new awaken-

• We can develop a cider industry, and a host of other onfarm products.

• We can find the niche export markets, where the emerging economies have a growing middle class interested in purchasing quality.

• We need to reach out to local ethnic markets in Vancouver, where BC-grown products are not well known.

• New free trade agreements negotiated by the Federal Government will soon provide marketing without high tariffs to export customers wanting Canadian products.

• Other ideas include partnering with a commonwealth country in the southern hemi-

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sphere to provide year round fresh product. We need to know how this will work with the ‘buy local’ movement, but it seems to be an opportunity to explore. This would provide year round employment and lower dependency on expensive long-term storage.

To meet the demand of changing markets we need to increase the volume of products produced. In addition we need to service our local and national customer base, as they are the backbone of our current and future marketing plan.

We must continue our partnerships with the Federal Government's research facility in Summerland. Summerland Varieties Corporation in partnership with the Federal Government has been introducing successful cherry and apple varieties to the world for over two decades. In addition we need to encourage the federal government to invest more in Horticulture . A recent edition of National Geographic magazine, focusing on agriculture, noted that government investment in horticulture lags behind the other commodities (e.g. grain and livestock).

Canadians are focused on healthy eating and yet they are deficient in their intake of fruits and vegetables. Such investment in horticulture will eventually see dividends as it could lower healthcare costs' a major consumer of federal revenues.

One of the most important partnerships we’ve developed is with the Mennell family, and twenty years of investment has produced the world-class Ambrosia Apple. The Mennells and industry have both benefitted immensely.

If we are to reinvent ourselves we must define how we fit into the global marketplace. We must be able to strike a balance between growth and managing costs. Most importantly we must explore the opportunities presented to us in a spirit of cooperation. The role of the BCFGA is to be a catalyst in preparing the strategy. Once the plan is developed the BCFGA will strive to secure the funding for innovation and implementation of the long term strategy.

We can truly make the future the present providing we are bold enough to act. If we have the courage to explore new initiatives, and create new opportunities in the areas of value added and embrace the concept of developing selective export markets we can reinvent our industry. By reinventing the tree fruit industry, we will be leaders in the marketplace. ■

Business Advice That’s Rooted In Success Whether you’re a grower, manufacturer, distributor, retailer or investor in the food and wine industry, MNP offers tailored business services that go beyond traditional accounting. From vine to table and everything in between, our strategies help you control costs, streamline operations and cultivate opportunities for growth and expansion.

Contact Geoff McIntyre, CPA, CA, Business Advisor, B.C. Wine Industry at 250.979.2574 or geoff.mcintyre@mnp.ca

34 Fall 2014

Fred Steele, Kelowna orchardist and President of the BCFGA

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For more information contact: info@orchardandvine.net www.orchardandvine.net

 WORLD WINE WEB | MIKE COOPER

Danger: How Expectations Effect Your Business when interacting with the consumer. Having a posted guarantee on your website or in your store sets the expectation. You are promising a specific level of service in your guarantee.

with customers. The biggest difference is the first question is asked after a business transaction while the second one is asked before the transaction.

Set the expectation.

What did you expect from me?

Can you tell me what is wrong with this question? Take a minute to think about it before you read further.

The one main problem with this question is that it is past tense. Reading it clearly indicates that one person is upset that something was expected from them that may not have been reasonable. For a business this is the worst possible position it can be in with a customer. Let’s change one word in that question.

What do you expect from me?

Did you catch the small change? That small change can now put your business in the best possible position

Setting the expectation before a customer purchases from your business is highly important to ensure they are happy with your business or their purchase from your business. This is why it is very important to make sure you are providing a clear message to consumers about your business before they arrive.

Having a contract is also a great way to set an expectation. While this is not suitable for all businesses there are far too many small businesses that do not have contracts that should. As a result, these businesses suffer because the customer had an expectation that was not delivered or the business thinks the customer is expecting more than they should for the price of the product or service being provided.

Let’s use Disneyland as an example. Their slogan is “The happiest place on earth”. This is the most important message they put out there as they are setting the expectation of the visitor! When you go there, you are expecting to have lots of fun and be happy. Personally, I have never left there unhappy!

A contract between you and your customer does not need to be a big legal document to protect your company from a lawsuit. A contract can simply be a document that clearly outlines the product and service you are providing to the consumer. By simply having your customer sign it, you have a document that both

Setting the expectation is not limited to your slogan. You need to set the expectation in as many ways as possible

parties can look back on to make sure the expectation was met.

Exceed the Expectation!

I am a firm believer in the strategy to under promise and over deliver. When setting any kind of expectation in your business you should make sure it is easily achievable by you or your staff. If you cannot meet your end of the expectation you need to reconsider and change it to something more realistic. You must also never set the bar too high, because you should always exceed the expectations! Let me repeat that: Always exceed the expectations!

When you deliver what is expected customers appreciate it, but it is rarely talked about.

When you exceed the expectation, people talk. Here is a quick example of that.

The Hums Family stayed at the Ritz Carlton hotel and upon checkout they had left their son's stuffed giraffe 'Joshie' in the room by mis-

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take. Instead of Mr. Hums letting his son know the truth, he told him that Joshie was on an extended vacation. He called the hotel and explained to them what he had told his son and they located Joshie for him.

The Ritz mailed Joshie back free of charge! Ok, for most of us that would have been cool enough as they send back our child’s favourite toy at no charge and saved us a world of misery of having to explain to our child that it is gone forever. But that was not enough for the Ritz!

Along with Johsie they sent pictures of Joshie sunbathing by the pool, meeting new friends at the bar, playing a round of golf and working in loss prevention to pay for his bills. Let’s just say the boy was excited to see all the fun his buddy had for his extended vacation. x span of the Filtro roughput and life th e th th wi y pp “I'm very ha ighbourhood.” r•tek is in my ne lla ce at th e lov I . ines.

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To wrap this up, the Ritz Carlton Hotel never sets the expectation that they will mail you back your forgotten goods at no charge. They do however set the expectation that your stay there will be memorable. In this case it was creating a memory for the Hums family that they will never forget and will talk about how the Ritz Carlton exceeds expectations for many years to come! ■ Mike Cooper is the owner of Black Mountain Media. See what Black Mountain does at: www.blackmountainmedia.ca or send Mike a note at: mike@blackmountainmedia.ca You can also call: 778-214-0519

Change of Address To update your mailing address send us an email info@orchardandvine.net

36 Fall 2014

 PEOPLE TALK | BARBARA ASHTON

Succession Planning - 6 Steps To Securing Your Future

CFO: What happens if we invest in developing our people and then they leave us?

CEO: What happens if we don’t, and they stay?

I have no idea where this quote originated. What I do know is that I posted it to my LinkedIn profile and almost instantly received over a thousand likes and shares.

i squ t a

Failure to hire and build the right talent is the number one reason businesses fail.

These same orchard and winery owners often feel overwhelmed. They’re looking for a way out, usually for very good reasons.

Not having an active succession plan in place exposes your company to enormous risk.

Even if your people are fully engaged and you boast about having very low turnover, you still need to prepare. People will leave, and that’s a fact.

Spouses who have to relocate for career moves, competitors who woo them away, sudden illness, or worse, death; these are all very real possibilities. A succession plan that you can put into action is one of the best forms of business insurance you can have.

In 2006 the CFIB published an article which stated that fully 1/3 of independent business owners, mostly baby boomers, planned to exit their businesses within the next five years. That was of course before the real boom fell. Many of these owners’ exit plans are now pushed out by another ten or more years.

Add to that, less than half of these boomers have any sort of succession plan in place.

And add to that the fact that less than one-third of familyowned businesses survive to the next generation. This clearly shows that the kids have either no interest, or more likely, they haven’t been properly groomed. Do you see where this road is leading?

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Where to begin?

This first exercise may be as much of a learning experience for you as it is for your people. It is important to be delicate and not over commit.

Launching a succession plan isn’t like launching a new brand. This is one example of how to test the water while moving forward at the same time.

Your organization, your people, their talents, your collective future; all softly rolled into one.

1. Start with your org chart and mark each of the key positions that have real impact on your company. Under each position, without thinking about who is in the role now, list the top three qualities that are on your wish list of most desirable skills for that role.

2. On a separate piece of paper write down the name of each of your high potential employees across the top of the page. Under each list that employee’s unique values and qualities which make them valuable, regardless of the role they are in.

3. Pick one behaviour, value, skill or quality that most stands out about that particular person. Think in terms of where they most add value to your company.

4. Now go back to your org chart and see what other roles

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They’re in pain, you see, because of not having a succession plan in place.

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your high potential employees might also be suited to. Then list the areas that they need development in and notes about how this might be accomplished.

5. Meet with each of these key hires and review your ideas and analyze their response. You can set up appointments to discuss your next five-year plan, what you are considering to put down on offer, and what you are looking for in return with those who have already demonstrated to you they are worth giving a shot. The process will take some time to put together properly. Holding regular meetings on a timeline is a proactive way to demonstrate your honesty to your people.

6. Mark the ones that are not ready and start taking steps to replace them with talented people who have the ambition and loyalty to work through what it takes to develop themselves and build your company. At this point you may need to look outside your company, and perhaps even your industry.

Slow is Good

Is Your Marketing Message Being Delivered?

Don’t make the mistake of listing one or two people as successors for too many positions. Remember they are going to have to handle their own jobs while simultaneously being groomed for a potential next role. So take it one person, one role at a time but always keep two people in mind.

Providing opportunities to experience one or two key aspects of the job at a time will prepare them for real game experience and let you see how keenly they step up to the challenge, or not. Shorter stints that grow into longer periods combined with debriefing and discussion can only help ambitious employees improve.

There is no magic bullet. But when you have a workable plan and break up your succession plan into bite-size, manageable pieces, then each small win adds up to one great victory. ■

PRINT • ONLINE To Advertise or Feature your Business or Products Contact: 250-769-2123 or info@orchardandvine.net www.orchardandvine.net 38 Fall 2014

Barbara Ashton CEO and Executive Search Specialist, Ashton & Associates Recruiting. Offices in Kelowna and Kamloops, Serving Employers of Choice throughout British Columbia.

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 THE WILD THINGS | MARGARET HOLM

Ven D'Amour Organic – Wildlife Habitat Stewards like our Dry White Peach and Plum Noir which have no histamines to bring on headaches or that flushed feeling.” The winery makes table wine, sparkling wine, and dessert wines.

O

n the banks of the Similkameen River near Cawston, Forbidden Fruit Winery has been welcoming guests to its tasting room for ten years. The winery gets its fruit from the family-owned Ven'Amour Organic Farms, which encompasses 142 acres of orchards, vineyards and natural habitat. The farm is bounded to the east by pine and sagebrush slopes, and to the west by a cottonwood riparian forest nestled into a bend in the river.

The tasting room is in a modest bungalow. Open the door, and the character and passion of the owners Steve Venables and Kim Brind’Amour are immediately evident. Kim’s bril-

Steve Venables and Kim Brind’Amour owners of Ven'Amour Organic Farms and Forbidden Fruit Winery.

for its stellar fruit wines with cheeky titles such as 'Crushed Innocence', 'Adam’s Apple', and 'Pearsuasion'. 'Caught', an apricot mistelle, recently won a Gold Medal at the 2014 WineAlign National Wine Awards.

liant-hued paintings, mosaics and jewellery glow from walls and shelves; reflections of the fruits, flowers and natural landscapes of the farm.

Steve purchased the property in 1977 and by 1984 it was a certified organic farm.

On most summer days, Steve is behind the tasting-counter so visitors can hear first-hand how the wines are made and how the winery developed.

Forbidden Fruit is best known

When visitors express surprise that a variety of grape wines are also produced, Steve replies, “We’ve heard that grapes are fruit too! People do appreciate the fruit wine,

Their commitment to being stewards of their land for thirty-five years, along with continued work on soil sustainability, farm sanitation and supporting natural insect predators, has helped Kim

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Recognising the natural beauty of their property, Steve and Kim set aside a large area of old growth cottonwood forest along the river, as well as some rocky outcroppings, and dry sagebrush grassland habitat on the slopes above their orchards. “Things feel perfectly balanced on the property. We’ve noticed fewer pressures, and less predators and fruit disease. There is mutual benefit, we protect wildlife habitat and they are protecting us. We like to let it go and not interfere too much,” Steve says.

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Fall 2014 39

and Steve produce high quality fruit and award-winning wines.

As Wildlife Habitat Stewards with Okanagan Similkameen Stewardship (OSS), Kim and Steve have signed a voluntary stewardship agreement to protect sections of their farm. OSS helps them with interpretive signage, drawing attention to the importance and fragility of the natural areas they steward. This year Forbidden Fruit is donating tasting fees to the stewardship organization, which follows their interest in supporting initiatives such as the Organic Farming Institute and the Suzuki Foundation.

OSS Executive Director Alyson Skinner explained why Ven’Amour Organic Farms is such a special property. Streamside cottonwood forest is an endangered ecosystem in the Okanagan and Similkameen region and the Ven D’Amour property contains a spectacular example of this habitat. Their beautiful section of cottonwoods and shrubs provides a home for numerous threatened species including the Western Screech-Owl and Western Rattlesnake. The river valley and protected grassland above the farm provide passages for wildlife travelling between South Okanagan Grasslands Protected Area and the Similkameen River.

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“Steve and Kim’s generous donation of tasting fees helps Okanagan Similkameen Stewardship support land stewards and communities carry out important habitat conservation and improvement projects throughout the Okanagan and Similkameen valleys," says Alyson. "Their commitment to stewardship on their property goes to show their conservation ethic on the ground and is a wonderful example of how agriculture and conservation can coexist in our region.“ Guests visiting Forbidden Fruit Winery can relax on the patio or outdoor picnic tables and can stroll down to the cottonwoods, while wine tasting and Kim’s Piece D’Amour Designs are the main attractions inside. ■ To learn more about Forbidden Fruit Winery visit http://forbiddenfruitwines. com and to learn more about Okanagan Similkameen Stewardship visit www. okanagansimilkameenstewardship.ca.

Margaret Holm works for the Okanagan Similkameen Conservation Alliance.

Contact her at outreach@osca.org.

 LEGAL LIBATIONS | DENESE ESPEUT-POST & NICOLE CLARKE

Legal Considerations for Business Growth risk of liability and, frankly, do not want to deal with the complexity of incorporation.

Perhaps you and your spouse currently sell the fruit grown on your farm at local markets and operate as a general partnership because you are engaged in a lower risk venture and want to benefit from deducting a portion of your business losses from other sources of income.

is important to look for ways to improve and grow your business, to see what can be enhanced and what new projects can be implemented in the upcoming year.

A

s the summer season winds down it is important to look back on the season in terms of positives and areas for improvements. For those of you in the orchard and vine industry, it is a chance to look for ways to grow your business in the off season in the hopes of increased returns next year. For some this means an actual growth in the production level or providing new services; for others this means expanding clientele or decreasing expenses.

In order for any business to be successful, the money coming in must be more than the money going out. This seems simple enough in theory, but businesses and entrepreneurs throughout time can attest to it being a bit more complicated in practice. As the time for harvest comes to an end and business begins to slow, it

Perhaps, as an orchardist, you intend to sell your produce at a new farmer’s market or add some value-added products to your farm gate such as dried fruit or canned jam. Maybe you are considering planting some additional trees or vines to expand your crop. Perhaps, as a winery, you are thinking about expanding your reach with the creation of a wine club. Or, you are going to try to reduce your marketing expenses by focusing on social media. All of these avenues can lead down the road of success.

While your current structure may be working well for your business, the growth of your business may demand a new type of structure. For example, if you are planning on expanding your tasting room or building a small roadside marketplace of your property, you will want to consider the options of a limited partnership which would allow for financial investments by “passive” partners or equity financing which means that you would incorporate your business and obtain financing by issuing shares. If you believe undertaking a business venture with another person for a specific project is a positive step for business growth and development, you should consider a joint venture,

As you are considering new options for growth, it is important to analyze the current legal structure of your business as well as identify potential risks stemming from your growth opportunity and, if necessary, how to minimize those risks with insurance. Maybe you are a viticulture consultant who operates as a sole proprietorship which you feel has little or no

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Some growth strategies result in increased business risks which may lead to legal claims and liability. While incorporation minimizes the risk of liability, insurance remains an important protection for any business. When expanding your business, you need to ensure that your insurance coverage continues to cover your new growth strategies. When determining your business’ insurance needs, it is essential to speak to a licenced broker and select the policy right for you and your needs. ■ Denese Espeut-Post is an Okanagan-based lawyer and owns Avery Law Office. Her primary areas of practice include wine and business law. She also teaches the wine law courses at Okanagan College.

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Interprovincial Trade Barriers

WHEN WILL THEY COME DOWN?

By Darcy Nybo The federal government eased interprovincial rules surrounding the movement of wines and craft spirits a couple of years ago, but it is still illegal for Ontarians to buy their favourite wines from a BC winery and have them shipped to their homes. The jury is still out on why the Ontario government is sticking to their guns when it comes to this particular interprovincial trade barrier.

Ask any Ontario wine maker and they’ll tell you they welcome the competition.

They know their wines are as unique as the area where the grapes are grown.

Besides, they already compete on a world stage with Europe and American wines.

In a recent interview Allan Schmidt, chair of the Ontario Wine Council and president of Vineland Estates Winery said he wasn’t afraid of competition with anybody. Bill George, chair of the Grape Growers of Ontario said he would love to see looser rules when it comes to cross border sales.

Consumers in BC can now get Dill Pickle vodka from Saskatchewan and BC producers can sell the people in Saskatchewan wine and craft spirits, but not so in Ontario. Premier Kathleen Wynne 42 Fall 2014

made an announcement in August that she was looking into the issue, but as of yet, nothing has changed. As it stands, the only way to get BC wine in Ontario is to order it through the Liquor Control Board of Ontario (LCBO).

There’s very little in place to stop BC wine from being shipped to buyers in Ontario. There are no customs officers at the border, there are no tarrifs on interprovincial trade and Canadian money from BC is taken at par in Ontario. However, recent wine shipments sent via FedEx to Ontario were returned to a BC winery after FedEx was fined for sending BC wine to Newfoundland and Labrador.

At one point it was the 1928 Importation of Intoxicating Liquors Act that stopped the flow of wine from province to province. Yes, you read that right; 1928. The law stated "no person shall import, send, take or transport, or cause to be imported, sent, taken or transported, into any province from or out of any place within or outside Canada any intoxicating liquor." The law dates back to prohibition and the temperance movement, both of which failed miserably.

According to the BC Wine Law website, “On June 28, 2012 that law was amend-

ed by Bill C-311. While the general prohibition remains in place, the Bill created a national personal use exemption for wine subject to applicable provincial laws. In June 2014, the federal government also amended the law to extend the personal use exemption to include the interprovincial shipment of beer and spirits. That amendment was effective June 19, 2014. However, the various provinces have not embraced the spirit of these changes and have created various barriers to interprovincial ‘direct to consumer’ shipments.”

So why didn’t Ontario jump on board with Saskatchewan in August and establish an interprovincial trade agreement on wine and craft spirits? Some stipulate it all comes down to money. When someone in Ontario purchases BC wines, they do so through the LCBO. The LCBO and the provincial treasury get their cut of the taxes. If laws were changed, and BC wine lovers in Ontario ordered direct, the taxes would be collected in BC. We may never know the real reasons this trade barrier has not been demolished.

Until it is, we all must wait while Premier Wynne “looks into the issue.” ■

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M8540 Cab

M8540NPK M7040

Narrow enough to work between the vines and low enough to get you under the tree branches. These narrow and compact tractors offer exceptional maneuverability and power.

Available with 60, 70 or 85 Hp Kubota diesel engines; in either ROPS or Cab platforms. Do more with Kubota.

Kubota.ca Like us on Facebook.com/KubotaCanada *Limited time offer.

See your nearest KUBOTA dealer or visit www.kubota.ca ABBOTSFORD

Avenue Machinery Corp.

1521 Sumas Way

604-864-2665

COURTENAY

North Island Tractor

3663 S. Island Hwy.

250-334-0801

CRESTON

Kemlee Equipment Ltd.

N.W. Boulevard

250-428-2254

DUNCAN

Island Tractor & Supply

4650 Trans Canada Hwy

250-746-1755

KELOWNA

Avenue Machinery Corp.

1090 Stevens Road

250-769-8700

OLIVER

Gerard’s Equipment Ltd.

Hwy 97 South

250-498-2524

VERNON

Avenue Machinery Corp.

7155 Meadowlark Rd.

250-545-3355