The Okanagan Tree Fruit Cooperative’s packinghouse in Summerland will end its packing operations by next summer, although the cooperative may use the facility to receive and store fruit for one more crop.

“We need to make sure this industry remains viable,” said  Gary Schieck, chief executive operator of the Okanagan Tree Fruit Cooperative. “To do that, we have to run leaner.”

The packinghouse will transfer its packing operations to some of its other facilities, although the specific details are still being finalized and negotiated.

“We have some logistical issues,” he said.

Schieck said management at the packinghouse is still in discussions with the union.

The Summerland plant employs a total of 81 people and it is possible that they will be relocated to other facilities.

“We still need workers, we just need them at different locations,” he said. “We have too many facilities that are under-utilized.”

The shutdown of packing operations at a particular facility is not the first such move for the cooperative.

In December 2008, packing operations were closed in Naramata and in April 2009, the plant there was closed entirely. In 2007, the Westbank packinghouse was closed down.

Declining fruit crops were a factor behind the closure of the Naramata facility, but Schieck said Summerland’s production has been more stable.

Over the years, fruit production throughout the Okanagan has declined, although it has levelled off in recent years.

Last year, the region produced 3.1 million boxes of apples. This year, 3.5 million boxes are expected.

These figures pale in comparison with Washington state, where last year’s apple production was 107 million boxes and this year’s crop is forecast at 110 million boxes.

Schieck said the large Washington apple industry is part of the reason for the changes to packing operations in the Okanagan.

“Our costs are higher than our competition’s,” he said. “We really can’t set prices that are much higher than the competition.”

The strong Canadian dollar is also taking a toll since it becomes more difficult for Canadian fruit to compete against American fruit, he said.

Once the Summerland packing operations end, Schieck said the facility may be used for receiving and fruit storage in the short-term, but longer-term the property is too valuable to use simply as a storage centre and receiving site.

Fruit packinghouses have been part of the community since at least 1923 and in previous years, several packinghouses served Summerland fruit growers.

In 2005, four packinghouse cooperatives around the Okanagan started the process of integration and amalgamation.

In June 2008, the amalgamation took place and since that time, efforts have been made to streamline operations at the various Okanagan facilities.