Sale of company changes name to FirstFruit Farms

The quiet sale of one of the state’s largest apple companies means Broetje Orchards has a new name: FirstFruit Farms. 

The sale closed at the end of 2018 and the business now operates under three entities: FirstFruits Farms LLC, FirstFruits Marketing LLC and FirstFruits Community LLC. Financial terms of the sale were not disclosed. 

A real estate excise tax affidavit filed with the state Department of Revenue lists the gross selling price of the real estate portion of the sale at $288 million. Formerly one of Washington’s largest family-owned and operated apple companies, the Prescott-based operation, about 30 miles northeast of the Tri-Cities in Walla Walla County, is now owned by the Ontario Teachers’ Pension Plan, based in Toronto, Ontario. Broetje Orchards was originally founded by Ralph and Cheryl Broetje more than 35 years ago. The philanthropic couple still are involved in the nonprofit Center for Sharing. Cheryl said it was too soon after the sale to comment publicly on the topic. Ontario Teachers’ also declined to comment on details about the offer and whether it was solicited by Broetje Orchards.

A release from FirstFruits said the new owners are “committed to making the transaction as seamless as possible to avoid any disruption for employees and customers, and will continue the operations of several of the employee-support programs established by Broetje Orchards.” Over the years, Broetje added seasonal housing, a day care and permanent housing for employees. “Our acquisition of Broetje Orchards is a strong strategic fit for our natural resources portfolio, providing a large-scale asset with direct exposure to a staple component of the food basket. Broetje has a strong operational track record and fits our strategy of investing in permanent crops that deliver stable cash flows, strong risk-adjusted returns and inflation protection for the members of our pension plan,” said Dale Burgess, managing director and head of Ontario Teachers’ infrastructure and natural resources department. Ontario Teachers’ manages the pensions for about 323,000 active and retired elementary and high school teachers in Ontario, Canada. It is the nation’s largest single-profession plan with net assets totaling $193.9 billion in mid-2018. The organization already has agriculture investments in the United States and elsewhere in the world, covering crops like almonds, avocados and dates. The transaction did not include any staff reductions or change in leadership staff as Broetje Orchards transitioned to FirstFruits Farms LLC. “We are very pleased with the current employee base and management team led by Jim Hazen, the former Broetje Orchards business manager and newly-appointed president and CEO of the company,” Burgess said. “We look forward to being a member of this community and working with the company and its employees to build on its many successes in the years ahead.”

Hazen declined to comment beyond the news release announcing the company’s sale. “We are looking forward to maintaining the legacy established by the Broetjes to focus on growing quality apples and investing in our people,” he said in a written statement. FirstFruits Farms said it grows, packs and ships nearly seven million boxes of apples a year, totaling about 500 million apples. These include its proprietary Opal variety, marketed as a “lunchbox hero” for being naturally non-browning. The company remains headquartered at 1111 Fishhook Park Road in Prescott, where it holds 1.1 million square feet of warehouse and packing facilities.  FirstFruits Farms said it has one of the largest contiguous orchards in the United States, with more than 4,300 acres covering almost 10 miles along the Snake River. It also has orchards in Benton City and Wallula where, together, more than 15 varieties of apples and cherries are grown. FirstFruits Farms employs 2,800 people at harvest, making it the largest employer in Walla Walla County.