WHEN Michael Davey joined the Balhannah co-op four years ago as general manager, the situation was not looking good.
Storage demand had slowly withered away as local producers, growers and traditional businesses left the area.
Chapman's at Nairne closed, National Foods sold its facilities in Murray Bridge and consolidated cheese production in Tas, and Huon did the same.
Apple and pear grower numbers also dropped off considerably.
The co-op's storage facilities were underutilised and expensive to maintain, and larger Adelaide-based facilities were difficult to compete with, given shrinking local demand.
The choice facing Balhannah was to change or die, so the remaining apple growers and management chose to adapt.
In 2012, the co-op became a company: Balcos Pty Ltd.
Mr Davey said they made the change to allow the site to diversify.
"We were changing from growers of fruit to broader retail, so it made sense to turn into a company - we kept the same grower-owners, the difference was the co-op framework and rules didn't apply anymore," he said.
The change paved the way for an ambitious revamp of the co-op site, a multi-million dollar project that will be completed in February next year.
The old co-op buildings were renovated to cater for incoming retailers, such as Living By Design, Balhannah Kitchens, the Balhannah Post office and a cafe.
The on-site Mitre 10 store, formerly owned by the co-op, was sold to Simon and Jodie Henderson, Hahndorf, to help fund the revamp, and the sale of eight premium residential developments will also finance the project.
The centrepiece of the Balhannah Village project is a large building being constructed from scratch, with council approval being sought for a medium-sized supermarket of 1350 square metres.
In addition, there will be parking for more than 150 vehicles.
The incoming wave of retail will not completely take space away from the site's original function, with modern upgraded cold storage available on a smaller scale, more appropriate for the needs of local apple growers.
Balcos deputy chairman John Vickers said the old facility was blighted with problems such as asbestos roofing and white ants but added that much of its structures would be retained.
"Some of the old cold storage rooms will be used as shopfloors, and one of the shops will have an old-style interior to match, using the existing cold storage walls," he said.
Ensuring the site continues as a storage facility is a priority not just for the practical needs of local growers, Mr Vickers said, but is a matter of historical preservation as well.
It is home to Australia's first privately owned cold store for apples and pears, with Wicks and Filsell starting operations in 1914.
In 1946, the Balhannah Co-operative Society Limited was formed with 31 members from the local area.
For 30 years, it thrived as a storage and packing facility, employing 50 people at its peak.
The number of rooms increased over time from four to 26, and many other products were stored for local producers.
