Del Monte bankruptcy leaves two Calif. plants shuttered and $550M in farm losses

"Two-thirds of the growers are going to be, basically, just left out to dry. Like many farmers, Johl signed a 20-year contract with Del Monte to grow peaches at his Yuba County farm. According to the outlet, Johl still had 10 years left on his contract but plans to remove his 9-year-old peach trees instead."

"Del Monte-owned plants in Modesto and Hughson will permanently close and leave hundreds of workers unemployed by April 7, according to a Worker Adjustment and Retraining Notification that was filed earlier and obtained by SFGATE. Farmers in the Central Valley, as well as Yuba and Sutter counties, face a $550 million revenue loss from 20-year contracts to grow peaches with Del Monte."

"Growing fruit trees is a timely and costly task for farmers who need to pay the upfront cost of buying and planting fruit trees but don't see an immediate return on investment, since it takes years before a tree starts yielding sellable fruit."

Del Monte Foods is permanently closing its processing plants in Modesto and Hughson, California by April 7, eliminating hundreds of jobs including 571 general laborers at the Modesto facility. Central Valley, Yuba, and Sutter County farmers face severe financial consequences, losing $550 million in revenue from 20-year peach supply contracts. Approximately 75,000 tons of peaches will go to waste. Many farmers, who invested significantly in planting peach orchards years ago based on Del Monte contracts, now face removal of their trees despite having years remaining on agreements. The situation is particularly devastating because fruit tree farming requires substantial upfront costs with delayed returns on investment.

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