Del Monte Cannery Closure in California Could Trigger Losses Up to $550 Million for Fruit Growers

The plant is expected to officially close by April 7, 2026, marking the end of more than a century of food processing in the region.

peaches in a basket_COPYRIGHT ALL RIGHTS RESERVED_FarmHER Inc_CASSIE_ALLIE_19_05_06_US_ALABAMA_BACKYARD_ORCHARDS_0001.jpg

Cassie + Allie, Backyard Orchards (FarmHER Season 4, Episode 20)

FarmHER, Inc.

MODESTO, CALIF. (RFD NEWS) — The planned closure of a major Del Monte Foods processing facility in California is sending ripples through both the state and regional agricultural sectors, affecting workers, growers, and rural communities.

The company is shutting down its Modesto cannery as part of a broader restructuring following its Chapter 11 bankruptcy filing in 2025 and subsequent asset sales. No buyer emerged for the facility, leading to a decision to wind down operations entirely.

The plant is expected to officially close by April 7, 2026, marking the end of more than a century of food processing in the region.

Job Losses and Economic Impact

The closure is expected to eliminate roughly 600 full-time jobs and up to 1,200 seasonal positions tied to harvest cycles.

But the economic fallout extends far beyond the facility itself. Local trucking companies, farm labor crews, and suppliers that supported the cannery are also facing significant losses as the region adjusts to the shutdown.

Farmers Left Without a Buyer

For fruit growers in the region — especially those producing cling peaches and pears — the closure presents a major challenge. Washington State Tree Fruit Association president Jon DeVaney said many growers were blindsided by the move.

“Growers had to then struggle to find alternate customers,” DeVaney told the Wenatchee World. “If you were a pear grower growing for the canning market, it’s created a lot of dislocation.”

Del Monte had been a key buyer, contracting for a significant share of the state’s fruit processing. Without the cannery, many farmers are now left without a market for their crops, which are not typically sold fresh.

Industry estimates suggest growers could face losses of up to $550 million, with tens of thousands of tons of fruit potentially going unsold.

Some farmers are now considering removing orchards entirely, as long-term contracts tied to the plant have been canceled and alternative buyers remain limited.

A Broader Shift in the Industry

The closure highlights ongoing changes in the food processing sector, including shifting consumer demand and rising operational costs.

Del Monte’s restructuring and sale of assets—including its canned fruit business—reflect broader consolidation in the industry. However, the deal does not include reopening the Modesto facility, leaving a significant gap in processing capacity.

For many in California’s Central Valley, the loss is more than economic—it marks the end of a historic agricultural institution that supported generations of farm families.

Officials and industry groups are now exploring potential relief options and long-term solutions as farmers and workers navigate the uncertainty ahead.

Related Stories
Lower costs improve competitiveness, but demand remains uncertain.
Policy clarity will determine the trajectory of soybean crush demand, but producers in Kansas have shown that expanding local crush capacity strengthens basis and marketing options.
Tony Adkins with Specialty Risk Insurance addresses current market challenges for farmers and ranchers and offers strategies to help producers navigate risk.
The Mosaic Company’s Keith Byerly shares smart input investment strategies, fertilizer considerations, and ways growers can manage risk heading into the 2026 growing season.
Ag Secretary Brooke Rollins surveys Nebraska wildfire damage as cattle losses, tight supplies, rising imports, and beef industry investigations impact U.S. markets. Roger McEowen outlines legal and tax considerations for ranchers recovering from wildfire damage.
Agricultural groups warn that the deal could limit competition and raise transportation costs for farmers

Marion is a digital content manager for RFD News and FarmHER + RanchHER. She started working for Rural Media Group in May 2022, bringing a decade of digital experience in broadcast media and some cooking experience to the team.

LATEST STORIES BY THIS AUTHOR:

Citrus production depends heavily on reliable irrigation, making water shortages a critical issue for South Texas growers moving forward.
EPA Administrator Lee Zeldin, in consultation with the U.S. Department of Energy and under the Clean Air Act, approved the temporary measure to help stabilize fuel supplies and reduce costs for consumers.
As farmers and ranchers navigate rising input costs, lawmakers are considering a roughly $15 billion aid package to help, which would be tied to the spending bill for the war with Iran.
After devastating wildfires swept through Nebraska, Sen. Deb Fischer is championing a bill to expedite the relief process for farmers and ranchers. She joins us with updates on recovery efforts, conditions on the ground, and how the ag community has stepped up to help.
AFBF Women’s Leadership Committee Chair Isabella Chism joined us to discuss Ag Day planning, community involvement, and supporting the future of agriculture.
EPA Administrator Scott Mason shares updates on farm equipment regulations, regional accomplishments, and federal efforts supporting agriculture in honor of National Ag Day.