Calif. farmers raze apple trees after Martinelli's ends contracts

Key Points:

• S. Martinelli & Company, a 158-year-old cider company, abruptly canceled apple contracts with multiple farmers in Pajaro Valley, forcing some to bulldoze orchards and lease land to berry farmers to survive.
• The cancellation has caused significant distress among local farmers, who have relied on Martinelli’s as a key buyer, with concerns about job losses for apple pruners and revenue declines for cold storage facilities.
• Martinelli’s CEO declined to comment on the contract cancellations but reaffirmed the company’s commitment to sourcing apples from Pajaro Valley, despite reports the company may be seeking cheaper out-of-state apples.
• The move mirrors recent disruptions in Central California agriculture, where farmers suffered contract cancellations and revenue losses following Del Monte’s closure of processing plants.
• Some farms, like Luz del Valle Farm, had already diversified by shifting to U-pick models and direct sales, anticipating changes in Martinelli’s sourcing strategy, but smaller farms heavily dependent on Martinelli’s face uncertain futures.