California farmers must destroy 420,000 peach trees after Del Monte closes its canneries and cancels more than $550 million in long-term contracts | Fortune

"With the shuttering of the Modesto Del Monte plant, which processed between 30% and 35% of the state's cling peaches, the peach farmers are now left with a glut of fruit-and no one to sell it to. Now farmers are left with little choice but to uproot these trees and pivot to different crops to recoup losses."

"To make ends meet, these farmers are now weighing whether to destroy about 3,000 acres, or about 420,000 clingstone peach trees, following the closure of Del Monte Foods canneries earlier this year. With the shuttering of the Modesto Del Monte plant, which processed between 30% and 35% of the state's cling peaches, the peach farmers are now left with a glut of fruit-and no one to sell it to."

"As a result, the U.S. Department of Agriculture (USDA) approved $9 million in federal aid to help farmers remove the trees to transition to more valuable crops, according to a recent press release from Calif.Sen. Adam Schiff. The funds come after more than 40 California lawmakers wrote to Agriculture Secretary Brooke Rollins in March requesting financial aid for the farmers, arguing USDA intervention was necessary to stabilize the wellbeing of multi-generational food growers in the region."

"Schiff, citing a USDA analysis, noted that removing 50,000 tons of peaches from production could save farmers about $30 million in projected losses that would have otherwise gone to waste with the shuttering of the farmers' biggest buyer. This funding "offers a glimmer of hope after a devastating period, ensuring California farmers can transition to new crops and stay on their land," California Farm Bureau President Shannon Douglass said in a statement."

Central California cling peach farmers face severe losses after Del Monte Foods closed its canneries in Modesto and Hughson. The Modesto plant processed 30% to 35% of the state’s cling peaches, leaving growers with excess fruit and no major buyer. Farmers are considering destroying about 3,000 acres, or roughly 420,000 clingstone peach trees, and pivoting to different crops to recover costs. The USDA approved $9 million in federal aid to help remove trees and transition to more valuable crops. The funding follows requests from California lawmakers and is intended to reduce projected losses by removing 50,000 tons of peaches from production. Del Monte’s bankruptcy and shift in consumer preferences away from canned goods contributed to the closures.

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