Orchard and Vine Year End 2021

The Year in Fruit The Year in Wine Family Farm Transition Year End 2021 $6.95

Canadian Winemaker Series: David Paterson

Display Until Jan 15, 2022 Publication Mail Agreement No. 40838008 www.orchardandvine.net

Reader's Survey Fruit & Wine Industry

Year End 2021

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CONTENTS 6 Publisher's View – Lisa Olson

Photo by Fort Berens Estate Winery

8 Events Calendar 9 News

17

Grapes growing out of the trunk at Fort Berens.

17 2021 Wine Report 18 2021 Wine Survey 22 2021 Fruit Report & Fruit Grower Survey 30 Word on Wine – Kelly Josephson 31 Money Matters – Geoff McIntyre 33 Marketing Mix – Leeann Froese

Photo by Ronda Payne

35 Seeds of Growth – Glen Lucas

22

Read our annual fruit report and reader survey.

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Year End 2021

37 Legal Libations – Anne-Marie Mizzi 38 Canadian Winemaker Series – David Paterson Cover photo by Sunnybrae Vineyards & Winery.

The Siegerrebe grape harvest in Tappen, BC.

Photo by Ronda Payne

22

Brian Dewit and his son Caleb take a moment out of harvesting cranberries with a harrow.

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Year End 2021

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 PUBLISHER’S VIEW | LISA OLSON

Cheers and Goodbye to 2021

W

Vol. 62, No 6 Year End 2021

ell, we’ve almost made it through 2021, and I’m betting many of us are hoping for a brighter New Year.

Established in 1959 Publisher Lisa Olson

Looking back over the year, it sure was a smoky and hot one! Growers were certainly challenged this past season! It was tough for workers to pick fruit in the hot, smoky weather and some fruit became scorched, disappointing farmers who worked so hard to produce a good crop.

‘Help Wanted’ signs were everywhere as local labour was hard to find. I’m sure there were some nice moments as well and lots to be grateful for.

Editor Gary Symons Graphic Design Stephanie Symons Writers

I wonder what will be in store for us in 2022? Do you ever wonder what will be the next big thing as far as new inventions? There is already so much new technology out there. It can seem overwhelming and even a bit scary as to how far these new things can track and think for us. New software and apps are being developed every day to improve our working life and assist us in our daily activities. There are ways to help us to book online reservations, provide wine management, check fruit ripeness, and social media sites that we use to notify customers when fruit is freshly picked or new wine is available or even when to drink our daily water requirements.

Photo by Kimberly Brooke Photography

Inside this issue we bring you our annual Year-in-Review, another opportunity to talk to growers, ask questions and see how everyone did and share that information back to you. I hope you enjoy reading it.

While smart phones and computers provide convenience and education they can also distract us for hours on end with social media updates and funny videos.

Who here needs a bit of an electronic detox? I remember back when the telephone ringing was sometimes thought of a nuisance. (I’m dating myself here.)

Things are sure changing.

All in all, I wish you the very best end to 2021 and lots of health happiness and success in 2022.

Enjoy the magazine! ■

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Year End 2021

Leeann Froese, Kelly Josephson, Glen Lucas, Anne-Marie Mizzi, Geoff McIntyre, Ronda Payne, Gary Symons Contact lisa@orchardandvine.net Orchard & Vine Magazine Ltd. Mailing Address 22-2475 Dobbin Road Suite #578 West Kelowna, BC V4T 2E9 www.orchardandvine.net Phone: 778-754-7078 Fax: 1-866-433-3349 Orchard & Vine Magazine is published six times a year and distributed by addressed mail to growers, suppliers and wineries in the Okanagan, Kootenays, Fraser Valley, Lower Mainland, Vancouver Island, Washington State and across Canada. Orchard & Vine is also available online.

Publications Mail Agreement No. 40838008 Undeliverable copies should be sent to: 22-2475 Dobbin Road Suite #578 West Kelowna, BC V4T 2E9

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Year End 2021

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 YEAR END | NEWS & EVENTS

Okanagan Essence's New Beverage 'Like Drinking an Apple' Okanagan Essence has developed a new beverage with all the flavour of an unpasteurized juice, but that doesn’t need to be refrigerated.

The Okanagan Essence non-alcohol line is currently the only unpasteurized juice beverage on the market that does not need to be refrigerated, making it the perfect bottle to keep on hand for those special occasions.

Their juice is micro-filtered like wine, giving these beverages their clean golden look.

Almost all commercially available juices are pasteurized, meaning they are heated to kill un-

wanted bacteria and yeasts. Unfortunately, this process also kills flavour and nutrients. Okanagan Essence, however, is cold pressed with the highest quality fruit. The line currently includes flavours like Fresh Peach, Orchard Pear, Ripe Raspberry and Wild Cherry.

Sold at Okanagan fruit stands and wineries throughout the province as well as in Alberta and Manitoba, this delicious non-alcohol alternative is ideal for Designated Drivers, parties, and kids love it!

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 YEAR END | NEWS & EVENTS

Wine of the Year: Tantalus Vineyards 2018 Old Vines Riesling This year’s wine entries faced an esteemed panel of judges from Canada and the USA. After tasting over 800 wines, the judges awarded silver, gold, and platinum medals to 90 BC wineries that were recognized during a virtual award ceremony.

Tim Pawsey was also honoured with the 2021 Harry McWatters Founder’s Award.

Photo by www.instagram.com/tantaluswine

The competition, presented by Valley First, TricorBraun, ContainerWorld, and Argus Properties, was open to all licensed BC wineries including those that produce fruit wines and mead. Silver and gold medals were awarded. The top two percent of medal winners received platinum medals, with one wine receiving the 2021 BC Lieutenant Governor's Award for Wine of the Year.

2021 Canadian Wine Industry Awards Wine Growers British Columbia (WGBC) and Wine Growers Canada (WGC) say they are proud to announce the recipients of the 2021 Canadian Wine Industry Awards, and the 2021 Wine Growers British Columbia Industry Recognition Awards, which were both presented during a virtual ceremony today.

This year’s distinguished recipients are:

Howard Soon, winner of The Karl Kaiser Canadian Winemaker Award.

• Canadian Wine Industry Award of Distinction - Steve Bolliger • Canadian Wine Industry Champion Award - Debbie Trenholm • The Karl Kaiser Canadian Winemaker Award - Howard Soon • WGBC Industry Recognition Award - Kurtis Kolt • WGBC Award of Distinction - Glenn Fawcett

Tim has been covering the BC wine & dining scene for 30 years and has been an avid supporter of the BC wineries that entire time. He was recognized for his passion for the wine industry and his devotion to increasing the awareness and appreciation of BC wines.

The 2021 British Columbia Lieutenant Governor’s Wine of the Year Award went to Tantalus Vineyards 2018 Old Vines Riesling.

The top wines that received platinum medals are listed on page 11.

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 YEAR END | NEWS & EVENTS

List of Platinum Medal Winners • Arrowleaf Cellars 2019 Riesling • Burrowing Owl Estate Winery 2019 Syrah • CedarCreek Estate Winery 2020 Platinum Home Block Rosé • Chain Reaction Winery – 2019 Tailwind Pinot Gris • Enrico Winery 2020 Shining Armour Pinot Gris • Inniskillin Okanagan Estate Winery 2018 Estate Riesling Icewine • Kismet Estate Winery

2018 Cabernet Franc Reserve • Liquidity Wines – 2020 Rosé • Maan Farms Estate Winery 2020 Raspberry Table Wine • Mission Hill Family Estate 2019 Terroir Collection Vista’s Edge Cabernet Franc • Mission Hill Family Estate 2019 Perpetua • Mt. Boucherie Estate Winery 2020 Original Vines Sémillon • Mt. Boucherie Estate Winery 2018 Reserve Syrah

• Silhouette Estate Winery N/V Boyd Classic Cuveé • Silkscarf Winery – 2017 Syrah-Viognier • SpearHead Winery 2019 Pinot Noir Saddle Block • SpearHead Winery 2019 Pinot Noir Cuveé • SpearHead Winery 2019 Pinot Noir Golden Retreat • Tantalus Vineyards – 2018 Chardonnay • Three Sisters Winery – 2019 Rebecca The full list of winners is available at: www.thewinefestivals.com

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 YEAR END | NEWS & EVENTS

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Arthur Chen, Verdi’s CEO, says the company is testing the system at a sub-block section level and is working towards creating an affordable solution to support the unique health of every single plant.

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“It’s like a brain in each of these boxes,” he explains. “They can help to decide how much inputs should go into each section.”

The small black boxes, which can be retrofittred for existing drip irrigation systems, collect some plant data while Verdi is also making use of satellite imagery for more. This information allows the fullyautomated system to determine and adjust the right flow of water and fertilizers to each section of plants through the valve. Not only does this improve yields, it also increases plant vigour, reduces disease pressure and gives more control of grape growth and growing conditiondriven flavours.

Trials are underway with Quails’ Gate and Arterra Wines’ Jackson-Triggs brand and will soon be part of the process at Tantalus and Mark Anthony Group’s Mission Hill Family Estate brand. Chen wants to see BC’s grape-growing regions continue to be recognized around the world. He says there’s a strong awareness of how good BC’s wines are and it’s something Verdi can help enhance through increased plant health.

“It’s definitely one of the top growing regions,” he says of the province. “We can help growers not only improve their yield… but to help them with quality… and produce more wines at that top quality.”

 YEAR END | NEWS & EVENTS

Raspberry Growers Reap New Replant Funding After Tough Year New Raspberry Replant Program funding will make growers in B.C. more competitive, while increasing the bounty of raspberries in the province for fruit lovers.

zen (IQF) raspberry markets.

The $300,000 program will help growers plant raspberry fields and go to strategic sector projects aimed at increasing sector competitiveness.

“By helping growers with planting costs, we’re helping them advance their businesses and giving people more chances to enjoy B.C. berries,” said Lana Popham, Minister of Agriculture, Food and Fisheries. “This program will support local families and companies, and make the meals, days and memories of British Columbians that much sweeter in the years ahead.”

Applications for the Raspberry Replant Program will be accepted from Oct. 12 to Dec. 6, 2021, to support the Spring 2022 raspberry planting season.

Agriculture and Journalism Student Bursary

Do you know a student in their second year (or higher) of a post-secondary journalism or agriculture program? If so, chances are they could use some financial assistance. Help out by telling them about the J.R. (Tim) Armstrong Memorial Bursary Fund administered through BC Farm Writers’ Association. This annual bursary provides at least one student per year with $1,000 to The goal of the Raspberry Reassist with the expenses of their studies. plant Program is to revitalize the raspberry industry with Applying is easy. Go to www.bcfwa.ca/bursary--links.html for the complete details, but don’t raspberry varieties suitable for delay as the application deadline is December 31, 2021. fresh and individually quick fro-

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Year End 2021

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Sponsored Article

Labora - The Simple Digital Payment Solution Support Your Workers with Simple, Safe and Automated Payment Transfers The Seasonal Agricultural Worker Program has solved a lot of labour woes for farmers in Canada … but inadvertently created a financial headache for the foreign workers themselves.

For participants in SAWP, the traditional remittance program is time-consuming, expensive, and complicated. Sending money back to family in Mexico or the Caribbean, or even just sending funds to the worker’s bank, could turn into a bureaucratic nightmare.

That’s where BC startup company Labora comes in.

Labora was founded in 2018 with a very simple mission: to simplify the task of paying seasonal workers, and getting their money back to their own banks in their own country.

The system is good both for the workers and the farmers, saving them time and money. Labora says it enhances the Canadian agriculture ecosystem by helping farm owners securely and easily pay their agricultural workers, while they benefit from the streamlined money transfer process from Canada back home.

Further simplifying the administrative process, Labora assists workers by filing their tax returns and provides online services to farm owners and workers to keep their information up to date at no cost.

If it seems like a small problem, consider what workers and their families have to go through just to receive the worker’s pay.

First, the farmer gives the worker a cheque, which the worker cashes at a Canadian bank. Then, the worker has to take the money to a money transfer company and pay for that transfer. With the money finally in the worker’s country, the beneficiary then has to travel to the money transfer institute for pickup, and only then can the money be deposited by going to the worker’s bank.

For worker’s without family back home, the problem is even worse.

Labora was born when Rene Blanco and Jaspal Brar looked at the problem, and realized they could streamline the 14 Year End 2021

Labora co-founder Rene Blanco (in red) outlining the program to seasonal workers at Cedar Rim Nursery in Langley.

process into a single, simple step.

“The idea was to provide payroll transfer on behalf of seasonal workers, because so far, the current process has been done the same way for 50 years,” Blanco says.

Blanco is a Mexican citizen who fully understood the issues of banking and money transfers between Canada and Mexico, so he and Brar began working on the problem while they were MBA students at SFU’s Beedie School of Business. They later partnered with fellow student Ryan Klatt in 2018, and together they founded Labora Consulting Services.

Blanco says the mission is to create an easier, safer way to handle money for foreign workers, while simplifying paperwork for the farmer.

“Sometimes workers are limited to sending $1,000, so if they want to send more of their paycheque, they have to use a third [party] to collect their money in Mexico,” Blanco explains. With their system, the partners say, the farmer simply transfers the wages to Labora, and Labora directly deposits the money into the beneficiary’s bank account.

It’s easy, safe, and less expensive, but

Labora does far more than just transfer money. In addition to letting a farmer transfer wages directly to the worker’s bank abroad, Labora also simplifies the paperwork for both parties.

Labora’s online platform offers access to T4s, tax returns, Canada Pension Plan contributions and records of employment. “Then also, we are helping them with the tax return submission,” Blanco says. “The idea is to provide full financial services to the workers.”

The issue is particularly difficult for workers under SAWP, because they are not living in Canada throughout the year, and they may work for more than one farm in a given season.

Given that temporary workers often return home each year after six or eight months, Labora helps them and their employers keep track of important information.

“All of that is stored when they log in, and it’s accessible by not only the farmers but even the actual employees,” says Brar, a BC-raised Canadian whose family previously owned and operated a farm.

“They sound pretty basic when they’re

just on their own, but when you combine them all together, there really isn’t anyone in Canada that we are aware of, or even in the U.S., that’s managing those needs,” Brar adds. “That’s where our niche is slowly developing.”

In Canada alone there are 50,000 to 60,000 seasonal farm workers in Canada, of which half are in Ontario and the rest spread out mainly through BC, Alberta and Quebec. Labora charges 1.5 per cent of the total funds being transferred back home, but that’s less than a third of the five per cent charged under the traditional remittance process in Canada.

The company currently works mainly with workers in Mexico and the Caribbean, but the business is one that could be expanded into the US and beyond.

The idea is also being warmly received by business experts. In 2019 the Labora founders were awarded the Idea Prize at the Coast Capital Savings Venture Prize competition, represented Vancouver at the Startup World Championships in Montreal, and the company was a finalist in the Telus Pitch competition. In 2020 Labora won SFU Alumini’s Founder Award, and was named in the Emerging Rocket Agri-Food List by Ready to Rocket, a a business recognition program for British Columbia's tech sector that “showcases the Revenue Growth Leaders of Tomorrow.”

Labora now has seven team members in Canada and four in Mexico, where they have launched the business, but the founders are already looking at major expansion across Canada and into the US. The company is also looking at broadening their activities beyond the farm by serving temporary foreign workers of all kinds, who number more than 600,000 in Canada alone, and many times that number in the US. For more information about Labora and how it can help your farming operation, go to labora.ca and email them at rene@labora.ca or phone (236) 8685465.

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Wine Report 2021

BC Wine 2021 Overcoming Adversity

By Gary Symons The BC wine industry is making a habit of winning out over adversity, and in 2021 it appears that despite the impact of the worst pandemic in a century, out of control wildfires, and a deadly heat wave, BC is reporting yet another stellar year for local wine.

That doesn’t mean the year was not a struggle, as wineries had to contend with COVID-19 pandemic restrictions, and a precipitous drop in tourism during the height of the wildfires in July and August.

But despite the tribulations of this strangest of years, wineries throughout the province are reporting another fine vintage, and for many, record sales.

Year End 2021

Photo by Wines of BC

Miles Prodan, the CEO of Wine Growers BC, says his group does an annual study of the wine harvest throughout the province. This year, with around 90 per cent of wineries already reporting, Prodan says he is expecting to see a smaller than average harvest, but much higher than average quality.

17

“it's looking a lot better again than we thought it was going to be,” Prodan said. “In this short period (in June) we had this Spring cold event that happened right around flower set, and then right after we had the heat dome that set temperature records, so yeah, there was a lot of concern.

Photo by Sunnybrae Vineyards & Winery

“However, generally what it’s done in the Okanagan where most of our production happens is that we had a lot of growers reporting smaller berry sizes, but that also means much more concentrated flavors,” Prodan explained. “So, at this point it looks like the quality is up, but the quantity over all is going to be down for the third year in a row.”

With the majority of wineries in the Okanagan reporting in, Prodan said overall tonnage could be down by 15 to 30 per cent in a region that produces

Harvesting Siegerrebe at Sunnybrae Vineyards and Winery in Tappen BC.

2021 Wine Survey - We Asked & You Answered Which grape varietals do you grow?

PINOT NOIR 76% MERLOT 71% PINOT GRIS 68% CAB SAUVIGNON 65% CHARDONNAY 61% CAB FRANC 52% RIESLING, SYRAH 50%

survey response: Gewurztraminer, Pinot Blanc, Muscat, Gamay Noir, Marechal Foch, Semillon, Petit Verdot,

Have you added any alternative packaging?

PINOT NOIR

Sauvignon Blanc, Viognier , Ortega, Siegerebbe, Malbec, Roussanne, Tempranillo, Vidal, Zweigelt,

MERLOT

20% KEGS

Blaufrankisch, Ehrenfelser, Gruner

33% CANS

Veltliner, Marsanne, Pinot Meunier,

PINOT GRIS CAB SAUV

Schonberger, Albariño, Bacchus, Cinsault, Dolcetto, Grenache, Leon Millot, Lucie Kulmann, Mourvedre,

What is your most popular selling wine?

40% NO

6% BOXED

CHARDONAY

Perle Of Csaba, Petite Sirah, Petite Milo, Pinotage, Sangiovese, Teroldego, Verdelet, Zinfandel.

18 Year End 2021

CAB FRANC

Photo by Nikita Rublev | Dreamstime.com

Others varietals mentioned in the

roughly 85 per cent of BC’s total crop.On the other hand, other regions like the Fraser Valley and Vancouver Island were reporting very high quality berries and also very large harvests, thanks to high temperatures and much drier than normal weather.

Even in the Okanagan, some wineries saw a marked decline in tonnage, while others did not.

“We did not find our tonnage was down, but we certainly found the quality is definitely there this year,” said Jennifer Molgat, founder and President of The View Winery in Kelowna. “I mean, we stemmed aggressively earlier in the year, and toward the end of the season we dropped even more fruit, because our yields were just crazy! If I was a bear, I would have moved into our vineyard because we had so much fruit on the ground!”

Down south along the Golden Mile in Oliver, however, Balwinder Dhaliwal of Kismet Estate Winery says his experience was very different, particularly for white varietals.

Dhaliwal agrees this year will be an exceptional vintage in terms of quality, but says the yield for white varietals is definitely lower. “Most of the white varietals we showed a drop of 25 to 30 per cent,” said Dhaliwal. “The reason is that it was too dry, especially when we didn’t have overhead irrigation in all of our vineyards.

“Normally you never see that kind of heat for a prolonged period,” he added.

“I mean, we usually get a heat wave for a week or so, but this year it stayed steady at 38, 39, even 40 degrees!”

The unprecedented heat in British Columbia may have reduced yields for

many growers, but Dhaliwal agrees that the improvement in wine quality will be worth it.

“This isn’t going to hurt us, in my opinion, because our valley is about quality, not quantity,” he said. “We are not in competition with other local wineries; we are in competition with other wine regions like Napa or Sonoma, so I think this is what we need. Mother Nature helped us this year with the quality.”

Dhaliwal grows grapes for his own winery and for other wineries as well, and says the drop in yields is compensated for by higher prices this year. “I think the growers will be doing pretty well, because when you compare the prices to the last 10 years, usually we get 2000 to 2200 dollars a ton, but now we’re up to 2600 or 2800 dollars a ton for whites, and reds it’s more like 3400 to 4000 a ton.”

What changes have you added to your business this year?

New reservation system to manage tasting bookings.

Changed tasting procedure and set up to accomodate C19 requirements.

61%

Made it easier for customers to purchase wines online.

Had a shortage of agriculture workers.

63% Added more private tasting areas Many locals that would previously work for us, have not, in the past seasons. We will start hiring TFW starting next season.

59% Increased club members 53% Increased tasting fees 53% Looked more closely at expenses 44% Decreased opening hours

Two workers from Mexico, two seasonal pickers cellar and wine shop team support as needed.

VERY hard to get any locals who will do the work.

25% Expanded or added a building 6% Increased opening hours

Year End 2021

19

Photo by Balwinder Dhaliwal

The other great challenge facing wineries this year was the resurgence of the COVID-19 pandemic due to the more virulent Delta variant, but once again, BC wineries found a way to make it work.

lenge was just having enough staff, but sales were up and visits were up. There were a lot more locals from BC and a lot of Albertans coming in, but over all a very good year.”

“Honestly, the last couple of years our sales are up,” said Dhaliwal. “Seriously, they are up by 25 to 30 per cent. We don’t get as many people visiting the winery due to COVID, but a lot more people are ordering online.”

One difference between wineries in Kelowna and farther south in Oliver and Osoyoos was the impact of wildfires.

While Kelowna was impacted by nearby wildfires in West Kelowna and along the west side of Okanagan Lake, many visitors to the southern Okanagan were evacuated due to the Nk’Mip Creek wildfire. For that reason, visitors in the south dropped off sharply through July and August. The situation was so bad, provincial officials even went on record telling

Molgat agrees with that assessment, but adds that for her winery the numbers of visitors was actually very high.

“We had an amazing year. we were definitely up,” she said. “Our biggest chalBalwinder Dhaliwal of Kismet Estate Winery.

2021 Wine Survey - We Asked & You Answered What changes did you make to accommodate the vaccine passports? Did you have to turn away any of your good, long standing customers?

45% No changes needed

32% Changed seating area

26% Added new technology

A few good customers cancelled their Wine Club membership following the announcement that we would be checking vaccine passports during a pick-up event.

We have standing only tastings.

We increased outdoor tasting space.

18% Added more staff

18% M ade individual private accomodation

Limited walk in customers, we also rely on restaurant to draw visitors.

The lack of hospitality workers to staff our restaurant was damaging to our visitor numbers.

13% Increased standing areas

3% Added more supervisory staff

For the health and safety of our staff this was a welcome health order.

20 Year End 2021

Changed to a model of tastings by appointment .

It became a staffing issue to check passports.

We do standing tasting, so didn't have to change anything, but after a few weeks and noticing we had a lot of unvaccinated visitors we implemented checking.

Nevertheless, wineries throughout the province have generally reported a very successful year thus far, which Prodan puts down to preparation and the flexibility to shift their business model as needed.

“One of the big issues we dealt with was the COVID restrictions, so it meant wineries created a much more curated tasting experience,” Prodan explained.

“It meant there was a lot fewer people there, but those that came were getting a much more in-depth experience, and they responded by buying more wine.

So, fewer visitors, but those fewer visitors bought more wine overall.”

to promote online wine sales and their Wine Clubs, both of which were incredibly successful.

So, despite the worst nature could throw at the Okanagan, it appears this fiscal year and the coming vintage will both be a runaway success, which Prodan attributes to the industry’s ability to adapt.

“You know, there’s always something going on with Mother Nature, so if it’s not too hot, it’s going to be too cold, or it’s going to be too much rain, or hey, we’ll just throw a pandemic on top, and wildfires on top of that!,” Prodan said.

“When it comes to what’s been thrown at us with COVID and with climate change, I think we can just say we’ve learned to adapt to it.” ■

As well, Prodan said wineries learned

Photo by Wines of BC

tourists to stay away from the region until the fires were back under control.

Miles Prodan, President & CEO at Wine Growers British Columbia

The Wine Festival event has been gone for 2 years. Has the lack of the Wine Festival event and individual festival events hurt your bottom line?

19% YES

27% NOT SURE

54% NO

It is time for Okanagan Wine Festival Society to re-invent itself. We are no longer the "best kept secret."

We used social media to draw people. Special offerings to wine club members. Regional (Lake Country) promotion through Scenic Sip.

We don't have enough wine to do these events so the pandemic couldn't have hit at a better time.

Were visitors down due to the heat, smoke, fires and the pandemic?

Less foot traffic because of the pandemic, sales were up though.

And the genius telling all tourists to go home.

Worse than last year due to August - smoke, and Central Okanagan being "closed".

86% Said Visitors Down

Visits were down but the ones who came spent more.

We were put under evacuation order even though the fire was not near our facility. However, this definitely affected our bookings.

Year End 2021

21

Fruit Report 2021

2021 A Chall

By Ronda Payne While it may have seemed that 2020 would take the prize for weird and unexpected issues, unfortunately, the strange new challenges just kept coming in 2021.

With an extreme weather incident and labour shortages exacerbated by COVID-19, the things growers are familiar with that can’t be controlled (like the weather) took on new meaning. Suddenly, keeping plants cool and keeping workers safe from the extreme heat became primary concerns in the early summer.

Fortunately, that’s far from the only story in this year’s fruit harvest in BC. There was plenty of good news to be had, but it didn’t quite scream from the mainstream headlines like the challenges did.

Here, in Orchard & Vine’s annual fruit recap, we bring balance with a look at the

2021 Fruit Survey - We Asked & You Answered What types of fruit do you grow?

Cherries

52%

Apples

38%

Blueberries, Strawberries

33%

Peaches

29%

Are you replanting?

Vegetables

24%

35%

Raspberries, Plums, Pears, Apricots

19%

Replanted in 2021

Grapes (table), Nectarines, Niche Berries

14%

30% Are planning to replant in 2022

22 Year End 2021

enging Year for the Fruit Industry Heat Dome 2021 The weather folks called it a heat dome, generating high temperatures never before seen in Canada. Lytton, BC recorded the country’s highest ever temperature of 49.6 Celsius on June 29, just a day before the start of the fire that spread and destroyed most of the village. Amidst this chaos, fruit growers scrambled to increase irrigation and keep crops cooler, with limited success.

Raspberries took an incredible beating.

Already a fragile fruit, the heat hit when canes were full and ready for harvest. Jason Smith, fourth generation farmer and co-owner of Pier Management and Con-

sulting says he really felt sorry for raspberry growers.

“They were ready to pick when we got that heat and honestly… they got hammered hard,” he says.

One of those growers, James Bergen with Bergen Farms says some of the later varieties weren’t impacted as much as those that dried up from being on the canes during the heat. Growers with south facing berries saw little in the way of salvaging the early season.

“I think back to those days of the heat wave and you see everything you’ve worked towards just go away in the span of 24 to 48 hours,” he says. “You just try to continue and make something out of the season.”

The BC Raspberry Industry Development

What crop produced the best for you this year?

35% Cherries

15%

10%

5%

Apples Peaches, Pears

Blueberries, Strawberries, Vegetables Apricots, Grapes, Nectarines, Plums, Raspberries, Blackberries & Currants

Early season cherries were badly damaged by the heat event, but some later season varieties in central and north Okanagan orchards were fine. Quality was reduced in general, however.

Not a great year - left 70,000lbs on the trees due to heat stress.

Council estimates there may have been a 50 per cent loss in production, down to 6.5 million pounds. This is doubly hard since growers were optimistic about the season in early June.

Some of the later berries weren’t hit as hard in terms of quality, but Bergen feels the yield suffered as a result of plants being in shock and struggling.

Fortunately, there is progress in dealing with future heat incidents through the BC Berry Breeding Program with efforts to bring new varieties to growers. While these efforts will take time, 2021 was the second year of funding for the Raspberry Replant Program through the BC Ministry of Agriculture, Food and Fisheries. Growers who are accepted will share $300,000 towards planting newer, more resilient varieties. This is similar to the BC

75% Had a shortage of agriculture workers.

We struggled finding farm labor for thinning, summer pruning and picking during apple harvest.

We were fortunate to have a core group of employees help us get most of our crop off.

Year End 2021

23

Photo by Jdmfoto | Dreamstime.com

things that made growers want to pull their hair out and, perhaps more importantly, the things that made them want to keep growing.

Photo by Ronda Payne

Tractors and workers hit the ground running, braving extreme heat during the Fraser Valley blueberry harvest.

Tree Fruit Replant Program in that growers can apply for funding to plant varieties better able to meet climate conditions and consumer demand.

Other fruits crops may not have faced quite the same level of devastation as raspberries, but there were very few win-

ners as a result of the extreme heat.

Hank Markgraf, Okanagan orchardist and horticulture specialist with Syngenta Canada in BC, says smaller fruit was the norm in all tree fruits from apples to cherries.

“We left a lot of really small fruit on the

trees,” he says of apples. “This is probably the worst I’ve seen.”

In addition to a reduction in fruit size, there were reduced yields and sunburn.

Perhaps the only farmers the heat really worked out for were grape growers in the Lower Mainland region. Singletree

2021 Fruit Survey - We Asked & You Answered 79%

How did you handle the heat, smoke, fires and the pandemic this year?

More irrigation for crops

47% Provided more water

37% Took extra measures to stay cooler Work went on as usual

Cherries and apricots were a write-off. Most ground crops were poor as the heat came on before we even finished planting out.

I questioned my sanity and pondered the meaning of life.

26% Had to shut down some days

21% Provided more distancing for workers. More breaks to cool down

24 Year End 2021

Encouraged vaccinations for employees and required all residents of our domestic camp to be vaccinated.

• Worked shorter hours • Started picking much earlier in the morning • Worked nights • Started picking at midnight

Winery winemaker, Andrew Etsell says the grapes at the Abbotsford location saw an early harvest and yield is doubled from the 2020 harvest.

Smoke Given the Heave Ho According to CBC News, nearly 8,700 square kilometers of land were burned in the 2021 wildfires in BC. Surprisingly, this wasn’t the worst year on record, but it was close – the third largest area burned.

It would have been expected for fires of this magnitude to lead to extreme smoke issues, but fortunately the pressure was lighter in many parts of BC than in previous years like 2017 and 2018.

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10% Will Build a Secondary Residence

We need to find some means of housing for temporary workers. June-October.

Etsell says the winds in Naramata, for example, kept the smoke from settling into the valley. The smoke was in and out, agreed Troy Osborne, director of viticulture with Arterra wines. “We had a bit of smoke, but it wasn’t that bad,” he says.

As we expand our farm operations, we want to be able to have full time on-farm help, and having a secondary residence can help make that possible.

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Less than half of growers who responded to the Orchard & Vine fall survey (44 per cent) noted they had no damage to crops as a result of weather issues. About the same amount, (41 per cent) reported damage due to heat and 13 per cent said they suffered damage from both heat and smoke. Only three per cent faced smoke damage alone.

Wild fires are a heartbreaking issue when growers watch fellow farmers and British Columbians suffer, but the small bright light is that smoke didn’t impact grapes or the fruit that people in the province rely on for healthy, local nutrition.

Be Gone Pest!

If there’s one thing insects love, it’s the heat and with changes to BC’s climate, more and more pests are making fruit crops their preferred buffet. Markgraf points to mites as being the number one pest of the 2021 season. The lack of rain after the extreme heat incident made matters ideal for these heat seekers.

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“They love the heat and they love the dust,” he says. “They don’t call them dust mites for nothing. There were more mite sprays going out this season than I’ve seen in a long time. That was across the board. I was even getting calls from the coast.”

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Etsell notes there was definitely more pest pressure in the vineyard as well.

“Especially leaf hopper and late flies, they tended to increase, it was a great

Year End 2021

25

2021 Fruit Survey - We Asked & You Answered What was your greatest challenge or achievement this year?

The biggest challenges reported by most readers were managing the extreme heat, lack of labour and government regulation.

We have never abandoned a block before. It did not size after the heat dome. Last year we could have picked it and sold it for a good price. This year it was not worth picking because of cherry size but we would not have been able to pick it even if we wanted to due to the picker shortage.

Our biggest challenge was trying to get some sort of automated system off the ground for growers to submit their weekly insect trapping reports as required for export programs. We're happy that communication from our association has improved the process for exporting fruit to India, which has enormous potential as a market for fresh sweet cherries.

Finding farm labour, dealing with the heat event, and racing to get apples picked in the very short picking window BC Tree Fruits gives us.

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26 Year End 2021

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season for pests with it being so warm,” he says.

The plus side however was that disease pressure in grapes was minimal with powdery mildew (for once) being a non-issue.

“Leafhopper was a bit of a challenge for some growers, just because it was a hopper year,” says Osborne. “You’ll get multiple generations.”

In strawberries, thrips were an issue for some growers. Bergen notes they were more significant in first year berry plants than in more mature fields. Unfortunately, where some insects had a field day with the heat, the spring pollinators were absent in some berry fields according to Smith.

Photo by Parm Saini

“Pollination was a pretty big issue this year,” he says. “The heat was the icing on the cake.”

Using blueberries as the example, Bergen says BC growers should have hit close to 200 million pounds or more in 2021, but instead, he sees numbers of 140 million pounds being more likely given the poor pollination followed by the heat that shriveled many early blueberries.

Sunburn damage on Okanagan apples. Sunburn is a physiological disorder of apples and other fruit caused by excess solar radiation.

Pollination and fruit set looked good in tree fruits according to Markgraf, but when one took a look under the outer branches, it was a different story.

Scorch was also a concern for blueberry growers. The disease, which is spread by aphids, can lay dormant in the plant for two years or more, waiting for the right conditions to come out.

In the last couple of years, the conditions have been right and scorch has grown as an issue.

“We had good pollination in tree fruits. It looked great, but then you pick it and it wasn’t what you thought,” he explains.

“The crop was just on the outside of the tree. It was an umbrella tree. It fools you. It looks like a great crop but it isn’t.”

Some cranberry growers saw an emergence of blackheaded fireworm, but all in all the tart red berries didn’t experience the same impacts from the heat and insects as other fruit.

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Yields and quality Given Markgraf’s comment about lower tree fruit yields, and most berry growers experiencing a decline as well, the picture is fairly clear; 2021 was not a stellar year for most fruit growers.

Vineyards had perhaps the best season out of all BC fruits, but what individual growers experienced came down to a variety of factors.

While strawberries were shut down by the heat, it primarily delayed harvest, rather than causing the reduction in yields seen by raspberry growers. Many cranberry growers experienced losses due to rot from the heat. Tree fruit growers experienced sunburn. Almost all fruit growers had reduced fruit size and yields.

“In blueberries, it depended a lot on location,” says Smith. “Abbotsford east got hit. I know a couple of growers with 30 to 40 per cent damage on some of their varieties. It was pretty devastating.”

But Smith also saw growers to the west of the Fraser Valley make out relatively okay, as did many on Vancouver Island. The story in the Interior region of BC was similar where it came down to micro climates. Apples may have been plentiful in some regions, but less so in others where the reduced size didn’t help tonnage. Cherries also saw a hit in size and in many cases, yields were down, but quality was reasonable.

As was the case with berries and heat, cherries saw the greatest impact when they were on the outer edges of an orchard. Fruit set was good overall in cherries and those that were within the canopy with some protection from the heat matured into viable fruit.

But COVID Continues…

Labour issues have plagued growers for a number of seasons, but while borders were open to foreign workers this year, there were other complexities according to David Mutz with Berry Haven Farm, and the berry rep on the Western Agriculture Labour Initiative labour committee.

“It was a better year for foreign workers. They were getting across the borders. That was more streamlined this year than last year,” he says. “But the domestic labour supply is just so tight. It’s not just agriculture.”

Many business owners within and outside of agriculture found

28 Year End 2021

Photo by Jdmfoto | Dreamstime.com

OUR ROOTS ARE IN AGRICULTURE THAT’S WHY WE UNDERSTAND WHAT YOU DO IS A WAY OF LIFE. We have a team of agribusiness experts here to support you every step of the way, helping to choose the right solutions for your unique needs. the CERB payments created a complacent work force among those that may have previously worked in fields and orchards.

“In the Fraser Valley, we were able to find employees, but the Penticton area, it was tough for us this year,” says Etsell. “I worked a whole lot more. It came down to more of the family doing a lot more of the work.”

WHAT MAKES US UNIQUE? — OUR ROOTS ARE IN FISHING, FARMING AND AGRICULTURE. Our credit union was founded by the

Everyone was making changes on the fly to protect the workers that were able to come in to the country and ensure necessary precautions were being taken. Unfortunately, there were some COVID outbreaks that impacted workers and this did nothing to improve matters.

farming community. Over the last several decades, our cooperative has grown to $14 billion in assets, and counting.

— WE ACT LOCAL. Not only is our team of experts geographically dispersed to serve you where you are; decisions are made locally across the table, not across the country.

“There were some policy changes,” says Mutz. “This caused a lot of delays in paperwork.”

— WE HELP OUR MEMBERS AND COMMUNITIES THRIVE. As a financial cooperative, a portion of our profits go back to our members and communities. Like you, we live and work here, so investing in our communities is at the cornerstone of who we are.

He also found that a reduction in yields left some workers disappointed with the amount of work available to them. Those that would start the season in berries and move on to tree fruits found their stints were much shorter than usual.

“With the crop damage, there wasn’t as much work,” he says.

“It also impacts the workers, not just the farmers.”

We can’t wait to learn more about your business.

Contact your local Agriculture Advisor today:

Continued Progress If there’s one message that is loud and clear in agriculture, it’s that moving forward and finding new solutions is the only option. Tech companies, seed companies, growers and other stakeholders are working together to find answers to questions like climate change, feeding a growing population, sustainability and affordability. ■

Amrik Gill | Agriculture Advisor Serving the Lower Mainland 604-309-6513 | amgill@envisionfinancial.ca

Toby Frisk | Director, Agribusiness Serving the Thompson, Okanagan, Enderby and Similkameen regions 778-212-3415 | tfrisk@firstwestcu.ca

Cash Reumkens | Agriculture Advisor Serving Lower Mainland and Vancouver Island 250-701-3426 | creumkens@islandsavings.ca

Divisions of First West Credit Union

Year End 2021

29

 THE WORD ON WINE | KELLY JOSEPHSON

Wines of BC Explorer App Wins GOLD

I

t was the height of harvest season in BC when Wine Growers British Columbia received the news: the Travel Weekly Magellan Awards awarded a GOLD medal to the Wines of BC Explorer App. The Magellan Awards is the premier award for the travel industry, honouring only outstanding levels of design, marketing, and services. The Wines of BC Explorer App fit the bill perfectly in the Online Travel Services category.

From plan-your-trip assistance to wine-education content and a personal taste test, the app is the best way for BC wine lovers to discover BC wine country, and in turn acts as a perfect conduit for BC wineries to connect with potential guests.

One glowing review from Mijune Pak, Iron Chef and Top Chef Canada Judge, states that the App is “a playlist for your wine cravings! With per-

sonalized suggestions, weekly top wines, ratings, promotions and more, it is an interactive space for everything BC wine.

So happy to see the Wines of BC Explorer App check all the boxes when it comes to supporting the local industry and making wine approachable for the community.”

With every BC winery listed on the App, and wineries regularly updating their new wine releases and tasting experiences, the increasing number of users can always find what they are looking for, and even discover something they did not know they would love!

Features include: Easy to use: Quickly find lists designed for you, such as wines organized by type, winery, or location.

Fun and Educational: An interactive taste test results in personalized wine recommendations, and a flavour profile for you to reference.

Wine gift shopping: Treat yourself or someone else to the gift of the perfect wine for their palate, or a special occasion.

Personalized Discoveries: Filter wines by categories and preferences such as vegan and organic, filter wineries by

services and features such as family and dog friendly tasting rooms!

The WGBC team is always looking to improve on and launch exciting new features.

This fall, they launched a new ‘geo-location’ feature designed to assist BC wine tourists (and locals) in locating the wineries, cideries and wine shops closest to their location and taste/experience preferences.

The App is “Strong enough for a Somm, but built for the consumer,” says Michael Littl-

eford, Manager and Assistant Wine Director of CinCin Ristorante, reflecting what Wine Growers British Columbia set out to achieve when they launched the platform.

Whether wine is your passion or your profession (or both!), discover what you love and download the App today by searching ‘Wines of BC Explorer’ in your mobile App Store. ■ Kelly Josephson, Communications Manager, Wine Growers British Columbia, winebc.com

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 MONEY MATTERS | GEOFF MCINTYRE

Good News for Family Farm Transition are in play, the LCGE can represent up to $250,000 in tax savings per taxpayer.

Previously, a long-standing anti-avoidance rule in the Income Tax Act (ITA) treated intergenerational transfers of a business as a dividend rather than a capital gain.

O

n June 29, 2021, the Private Member’s Bill C-208 (the Bill), regarding the intergenerational transfer of small businesses and family farm or fishing corporations, received Royal Assent.

If you are the owner of a family business like a farm, the Bill is worth your attention as it represents a significant positive change in favour of family business succession in Canada.

For example, consider a husband and wife that own the shares of a company that operates a winery, and the shares are worth $3 million.

If they sell the shares of the company to an unrelated party, they can shelter up to $1.78 million with their LCGE if certain conditions are met.

This meant that if you were planning on selling your business, you would be better off from a tax standpoint selling it to an unrelated party rather than within your family. The Bill changes that rule to allow owners access to the lifetime capital gains exemption (LCGE) when selling to family members if certain conditions are met. The result aims to support intergenerational business transitions.

However, under the old rules, if they were to sell their shares to their children instead – and the selling price was to be funded from the company’s cashflow – the entire $3 million would be taxed as a dividend. Dividends are taxed at a higher tax rate than capital gains and the parents would

Access to the LCGE When qualified farm property like orchards and vineyards

not be able to use their LCGE on the sale.

The new legislation corrects this inequity, allowing the proceeds to be treated as a capital gain and the LCGE to be used.

Status of Bill C-208 Legislation There has been significant activity surrounding the use of the Bill as currently written.

The Government announced their intention to bring forward legislative amendments to the ITA that honour the spirit of Bill C-208 while safeguarding against any unintended tax avoidance loopholes that may have been created by the Bill.

One loophole that the Bill

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Year End 2021

31

may inadvertently permit is the opportunity for “surplus stripping” in which dividends are converted to capital gains to take advantage of the lower tax rate, without any genuine transfer of the business actually taking place, thereby compromising the integrity of the tax system.

It is important to note that the Canada Revenue Agency (CRA) has the tools and ability to reassess and apply anti-avoidance provisions where a transaction does not meet the object, spirit, and purpose of the ITA. Clearly, the intent of the new legislation is to give intergenerational family business transfers the same tax treatment as arm’s length sales in situations where there is a legitimate transfer of operational and legal control of the company.

The government has indicated these forthcoming amendments to Bill C-208, which will address the following: • The requirement to transfer legal and factual control of the corporation carrying on the business from the parent

to their child or grandchild.

• The level of ownership in the corporation carrying on the business that the parent can maintain for a reasonable time after the transfer.

• The requirements and timeline for the parent to transition their involvement in the business to the next generation.

• T he level of involvement of the child or grandchild in the business after the transfer.

The draft legislative amendments will be brought forward for consultation. Final legislative proposals would be introduced in a bill and apply as of the later of either November 1, 2021, or the date of publication of the final draft legislation.

Noteworthy Items Over the past few months since the legislation was announced, we have had time to do some analysis and discuss the new legislation with many of our family business clients. Here are some points to consider:

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• Taxpayers must provide the CRA with an independent assessment of the fair market value of the shares transferred and an affidavit signed by the taxpayer and by a third party attesting to the disposal of the shares. Business owners planning to use this legislation to affect a sale of their business to a family member should be prepared to have the transaction reviewed by CRA. Comprehensive documentation will be critical.

• The company needs to be a qualified small business corporation as defined in the ITA. One of the conditions to meet this definition is substantially all the fair market value of the company’s assets are employed in an active business. Inactive assets like investments and excess cash can put the company offside.

Farming business owners often have a strong affinity for their land and a desire to transfer their businesses to the next generation. In fact, some of the oldest multi-generational businesses in the world are wineries.

In the past, the tax cost of selling within the family forced many business owners to look at a third-party sale, where the LCGE could be used. The introduction of Bill C-208 is a significant positive step towards making the intergenerational transfer of Canadian family farms a more affordable and viable option. ■ For more information contact Geoff McIntyre, Regional Leader, Agriculture Services at 250-979-2574 or geoff. mcintyre@mnp.ca

 MARKETING MIX | LEEANN FROESE

Move Your In-Person Experience Online kind. A database of fans that buy via email or online from your business when you are closed is a great way to create a recurring source of revenue.

Aside from this, consumer wine clubs are springing up everywhere, as pandemicchallenged sommeliers seek something different for employment and aim to bring a curated list of wines straight to the public.

visitors: reservation-only sitdown tastings have largely replaced the “belly up to the bar” approach, and allow for a deeper connection to customers.

W

hile many companies have finally been allowed to shift back to in-person events, visitor season is quiet with the cold weather.

As in-person visitor traffic stagnates for hospitality businesses, attention moves to how to maintain or stimulate sales in other channels. It’s important to think about taking your offline experience back online.

A transition from in-person to online can be a challenge to navigate for brick-and-mortar brands, but if done successfully and strategically the opportunity is there to reach a vast customer base.

In the last two years most businesses had to pivot, wineries for example, have adjusted the way that they welcome

Another approach was to shift from a quick pitstop to guided personalized visits.

These unrushed tasting experiences provide an opportunity to learn more about your customers and their preferences while teaching them and turning them on to your brand. Your in-person experience can be curated and deep, and now you should work to bring that curated in-person connection online.

What your membership looks like can vary, but whatever the method, online memberships offer an opportunity to make your customers feel like VIPs while creating ongoing income for your brand.

For example, hold club-only events and provide exclusive merchandise for members of your club, incentivising members to pay an annual subscription to get access. Special releases, behind-the-scenes information, and front-of-line access all make your members feel important.

Remember it is important not to neglect creating impactful online experiences, too. After all, community building happens on-screen and off. Here we share a few ways to get your customers from the wine shop to the internet.

Online Memberships Wine clubs are an article of their own, and it’s well known that most wineries, cideries and distilleries have a customer club or contact list of some

Create an At-Home Experience Creating an at-home kit for your customers to “DIY” can

be another source of revenue for your brand.

For example, creating a wine and food pairing kit with ingredients and recipes delivered to your customer’s doorstep is a great way to stay connected with those who are now back to evenings at home. With a little creativity in repackaging your products and services, you can offer the best of both worlds to a wide range of customers.

Consider creating a theme like “movie night” and add popcorn, or add a gift card for groceries and an instruction card for the perfect plantbased snack board.

Carry on the Virtual Tastings We saw how the COVID-19 pandemic prompted brands to find new, creative ways to bring their communities together and while it’s true that in-person events are a solid tool for building community, virtual events provided a new way to connect with and educate people. Many wineries and businesses held virtual guided tastings and now that the visitor season is ending

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these tastings can return.

Remember to revisit the tips we shared in a previous article including to make sure your internet connection is strong, and your light and sound are working well for the format.

Farm • Orchard • Vineyard • Berry Trellising

Go Live Going Live on social media is a way to directly connect with your followers and answer real-time questions and comments when you can’t be together in person. Also, once the Live event is finished you can save the video on Facebook, or your Instagram Live to IGTV once you’re done. This makes the Live do double duty for you: first connecting your customers and then once done, making it a valuable piece of content that can be accessed by those who could not tune in.

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Stay on Brand and Be Strategic It is important to keep in mind your online experience needs to match what is offered on site in person, and reflect your brand authentically.

Some strategies to be consistent might be to use the same branding on your website and social media channels, offer known expert advice and customer service to your wine club members via phone and through email, or use the same spokespeople for online webinars or virtual tastings that your visiting customers would meet in your tasting room.

We know that farming is more than a business — it’s a way of life. We are committed to serving Canada’s farm communities by providing flexible financial solutions that let you get on with the business of farming. We’ll take the time necessary to understand your unique needs. Together we can meet today’s challenges and anticipate tomorrow’s opportunities.

Jeremy Siddall District Vice President — Pacific Agriculture Services British Columbia 250-681-4656 jeremy.siddall@td.com

When it comes to going live, Facebook and Instagram are not the only platforms. Brands are increasingly going live on You Tube or TikTok with influencer takeovers and encouraging their followers to join in too.

Alyssa Barr Account Manager BC Interior 250-575-5047 alyssa.barr@td.com

The main goal is to focus on learning about your customers preferences and meeting them in an innovative way. A loyal client will support your business even when they can’t come through the door. ■ Leeann Froese owns Town Hall Brands – a marketing and graphic design agency that specializes in branding and promoting in the areas of beverage alcohol, food, and hospitality. See more at townhallbrands.com or on social @ townhallbrands

Raine Weiterman Analyst BC Interior 250-470-3027 raine.weiterman@td.com

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 SEEDS OF GROWTH | GLEN LUCAS

New Varieties Key to BC Fruit Industry Strategy

T

he access to and adoption of new varieties has been a cornerstone of previous five year strategic plans for the tree fruit sector, and it would be a surprise if this important topic were not part of the soon to be released (or perhaps, by the time you read this, the recently released) Tree Fruit Stabilization Initiative of the BC Ministry of Agriculture Food and Fisheries.

For tree fruit growers, access to varieties is a priority as new varieties are the best opportunity to receive higher prices for apples or cherries. New varieties attract premium pricing in the marketplace because they are either ‘new’ or are a bit older but protected from overproduction.

plant varieties.

Another requirement for premium pricing is that the new variety must have superior or unique attributes, such as unique combinations of flavour and texture, like Ambrosia, or timing of ripeness that places the variety production in a time where there is less production and less competition, like Staccato. The Summerland Research Station has had a very strong track record of releasing the top cherry varieties in the world and there are promising apple varieties in the development pipeline.

Prior to this control by the owner, a new variety was simply released to the world, with no rights of the owner to the variety. Anyone could plant as much of a pre-PBR variety as they wanted to, and they did. For varieties with promise, such as Gala, early plantings were lucrative for the grower, but as more and more Gala trees were planted, the variety moved from a premium to a commodity product. The price crashed.

Enter PBR. The variety owner can extend the life of the variety by limiting access. Growers would need to join a variety club in order to gain access to trees and in order to sell the apples produced by those trees. The effective control of variety releases was quickly realized not to be in the nursery trade (though commercial nurseries are a key component in the replication of trees and the collection of royalties), but packinghouses and marketers.

Ambrosia was early on the scene of club varieties; it was ‘clubbed’ in the rest of the world but not in Canada.

What is a variety club? Because varieties are owned by the inventor/discoverer, that allows the owner to collect royalties on whoever plants the variety, but more importantly the owner can control who can plant or sell the variety. This ownership is enabled

by Plant Breeders Rights (PBR) - a concept supported worldwide to encourage investment in and discovery of new

It is of interest that in an area which does not control access

to Ambrosia (i.e. British Columbia), market returns are lower than in areas where a club controls the marketing of the variety (i.e. Asia and Europe), although Asia is protected by trademark rather than PBR. Almost all new varieties are now released as club varieties.

Access to the club is usually through a packinghouse (or marketer) which has signed a license with the variety owner.

One issue of PBR is that the rights expire after a number of years, and this period varies by country and also can change from time to time. If PBR for a particular variety in a country expires after 20 years, that variety reverts to the ‘open access’ concept and oversupply can occur. Most new varieties are therefore now released as numbered varieties under PBR protection.

The variety name is separately trademarked without expiry.

Thus the variety protection is in two steps; one step provides PBR protection (say 20 years) early in the variety’s life when it is growing in popularity, and

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the other trademark protection (longer term) which is of use later in the life of the variety after PBR protection expires.

In theory, the risk of oversupply of the product can be controlled by the variety owner forever.

BC’s Winery Insurance Experts Contact a CapriCMW Risk Advisor for a coverage review for your winery today.

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An interesting demonstration of the difference between trademarking and PBR is the Pink Lady™ apple. The variety is actually Cripps Pink, originating in Australia in 1973 by John Cripps. In Canada, anyone can plant and sell a Cripps Pink. However, the name “Pink Lady” is trademarked and in order to use the “Pink Lady” trademark when selling the apple, a license is required and fees must be paid.

Why would someone pay to use the name “Pink Lady”, when the very same apple could be sold as a Cripps Pink with no payment for using the name? Marketing is key. The success of the Pink Lady™ apple is that the license fees collected for use of the name are invested and earn a higher price for Pink Lady™ than the unsupported Cripps Pink. The funds for use of the Pink Lady trademark are reinvested into product promotion, quality standards, and market control.

If everything goes well in the marketing plan, premium prices for the apples are the result.

In recent years, and in future, almost all apple varieties will be released as club varieties. One of the first releases in Canada as a club variety is the Snowflake™ apple, which is licensed to the regional packer Algoma Orchards by Summerland Varieties Corp. on behalf of the variety owner, Agriculture and Agri-Food Canada. It is with great anticipation that the Snowflake™ apple will hit Ontario stores in coming years after a long wait and a lot of planning and investment.

Several new AAFC apple varieties are in the pipeline and nearing release, but it is a long pipeline from start to finish, usually over 20 years. Watch this space for more on the new apple variety pipeline, and also more about AAFC new cherry variety releases. ■ Glen Lucas, General Manager, BC Fruit Growers’ Association

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 LEGAL LIBATIONS | ANNE-MARIE MIZZI

Legal Protection Against Squatter's Rights prescribed time period, such as growing fruit on an owner’s property where that property is completely unused.

M

aybe you are the owner of a vacant home or have inherited a piece of land that has been vacant for a long period of time. One day you check on the property to find that people have been squatting there, maybe even for several years, without your knowledge. You might be familiar with the term “squatter’s rights” causing you to wonder, “do these people have any rights to my property and what can be done to remedy the situation?”

Legally speaking, the notion of squatters’ rights comes from the doctrine of adverse possession. This legal doctrine allows for people to potentially gain possession of property that they legally do not own. In Canada, to make a claim of adverse possession people have to demonstrate that they have had open, notorious, continuous, adverse, exclusive and actual possession of the property for a prescribed amount of time. Essentially the person claiming adverse possession has to act like the owner of the property, making their possession known to others, and not be challenged about their use of the property. In some provinces, such as Ontario, squatters may acquire squatter’s rights if they have used the land in a manner that is contrary to the owner’s use for a

However, in British Columbia people are luckily almost completely protected against anyone squatting on their property. This is because under section 28 of the BC Limitation Act it is stated that unless a right to land through adverse possession came into effect before July 1, 1975, “no right or title to land may be acquired by adverse possession”. This means that unless people have been living continuously and exclusively on your property before 1975 for at least 20 years, they do not have a right to claim your property as their own. This piece of legislation protects against squatter’s rights.

It is also important to note that this section of the legislation extends further than just people being on your property.

For example, a fence could have been built on a property by a neighbour who knew that it was encroaching on the

neighbouring owner’s property but the owner of the neighbouring property was unaware. The legislation may be able to protect the owner’s interest in the encroached land if, once the owner comes to realize that the encroached land actually belongs to the them and challenges the neighbour, the neighbour brings a claim that the neighbour has rights to encroached land. With this legislation in British Columbia, property owners or those who have inherited property can feel more at ease if they have concerns when it comes to squatters. It may not be an easy process to have squatters removed but the law is on the owner’s side to make sure squatters do not have any rights to the property. If you are concerned about squatters on your property, contact a legal professional who can suggest what legal solutions are available to you to remedy the situation. ■ Denese Espeut-Post is an Okanaganbased lawyer and owns Avery Law Office.

This article was written by Anne-Marie Mizzi. www.averylawoffice.ca

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 CANADIAN WINEMAKERS SERIES | DAVID PATERSON

David Paterson: Winemaker at Tantalus Vineyards This month we profile David Paterson, the winemaker at Tantalus Vineyards, whose 2018 Old Vines Riesling was just named the Lieutenant Governor’s Wine of the Year for 2021.

O&V: How did you get started in the wine industry?

David Paterson: I started washing dishes when I was 17 at a restaurant and eventually worked my way up to front of house manager and was exposed to wine in that role. I first fell in love with wine though when I tried a 1997 Te Kairanga reserve Pinot Noir from Martinborough, NZ. That was a bit of turning point for me from wine as a “beverage” to wine as a bit more of a passion.

Like many Kiwis, I travelled overseas when I was young and ended up working in hospitality all throughout the UK. I knew I wanted to do something in wine, but it took a few years of travel to figure out exactly what. I eventually made my way back to NZ to dive into studying the production side of winemaking.

O&V: Where did you go to school or apprentice?

David: I studied at Lincoln University in Christchurch, NZ where I obtained a degree in Viticulture and Oenology.

O&V: Have you worked in any other countries?

David: I travelled quite a bit for a few years to try and get in two vintages each year. Straight out of university I wanted to work somewhere local, so I apprenticed at Neudorf in NZ. I was quite fortunate to work under John Kavanagh there who really cemented the winemaking bug for me. I then went on to do harvests at Archery Summit in Oregon, Domaine Dublère in Burgundy and Henschke Cellars in the Barossa Valley.

My Canadian partner and I made her hometown of Vancouver a base between travels, and there was definitely a draw to work in the Okanagan next. The winemaking job at Tantalus came up in 2009 on the heels of my vintage at Henschke and I was fortunate enough to land it. I have been here ever since.

38 Year End 2021

David Paterson: Winemaker at Tantalus Vineyards

O&V: What is your favourite varietal to work with?

David: That is a tough question for any winemaker of course, but I truly love working with Chardonnay. There are just so many expressions within the variety. I love the diversity of it.

O&V: What is the best thing about your job?

David: No day is the same, with seasonal work, and the tasks are ever changing. It is a stimulating business that way. I am also fortunate that over the growing season, when the production side of the

business is quieter, I get to spend quite a bit time in the vineyard. To me, that is where the wines are made.

O&V: Is there a particular wine or vintage that you have made that you are most proud of?

David: We released our first ever “Reserve” Chardonnay (2018) this past Spring, exclusively made from our 1985 block of Chardonnay plantings. It was a wine a longtime in the making and the first time I have been able to showcase the purity of that single block on its own.

I am quite proud of those 50 cases. ■

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