What should I ask about an orchard’s cold storage and packing shed?
Ask who owns the cold storage and packing shed, how much fruit they handle in a normal harvest, and what condition the refrigeration and sorting equipment are in. Then see them in operation. A shed that cannot keep up with the harvest limits what the orchard can sell.
Start with ownership and use. Does the orchard own the buildings and equipment, share them with neighbours, or rent space elsewhere? Ask whether the shed also handles other growers’ fruit and whether that income comes with the business. Confirm that the land under the buildings is part of the sale.
Then check capacity and condition. Ask how full the rooms get at harvest, whether fruit is ever lost to a lack of space or a failed unit, and what the temperature records show. Have a refrigeration technician review the compressors, controls and insulation. Look at the packing line, the sorting equipment and the floors, and ask how much of it is original. Ask also about flow. How do trucks and bins move in and out at peak, and what keeps fruit moving? Think about whether the shed suits the varieties you would grow. Your accountant can compare the cost of upgrades with the income they support, and your lawyer can confirm what any shared use arrangements allow. Ask how the orchard sells its fruit. If the packing shed supports particular customers or a marketing arrangement, find out whether those relationships depend on the shed and whether they continue with a new owner. The building and the sales channel often go together.
Key takeaways
- Confirm what the orchard owns, shares or rents, and who uses the shed.
- Ask how full the rooms get at harvest and whether fruit was ever lost.
- Have a technician review refrigeration, and see the packing line running.
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Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 02Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
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