California farmers to destroy 420,000 peach trees after Del Monte collapses
The Independent • • business
Key Points:
- Central California peach farmers plan to destroy approximately 420,000 clingstone peach trees after Del Monte Foods permanently closed its Modesto and Hughson canneries following a Chapter 11 bankruptcy filing.
- The closures have left hundreds of workers jobless and growers facing potential losses of up to $550 million, as many lost long-term contracts and have limited alternative buyers for their crops.
- Federal aid of up to $9 million has been approved to help growers remove about 3,000 acres of peach orchards, reducing an oversupply of roughly 50,000 tons of peaches and potentially saving farmers $30 million in additional losses.
- Lawmakers emphasized the importance of this assistance to preserve multigenerational family farms in the Central Valley, warning that without support, the agricultural system could suffer lasting damage.
- Pacific Coast Producers acquired Del Monte's canned fruit business and agreed to purchase 24,000 tons of peaches, but approximately 50,000 tons remain without a buyer, exacerbating the crisis for local farmers.
