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
Removing the 40% duty sharply lowers U.S. beef import costs on beef, coffee, fertilizer and fruit, and restores Brazil’s competitiveness during a period of tight domestic supply.
Dr. Deb Vnoverbeke, UNL’s Head of Animal Science, joins us with more about the university’s experiential learning programs designed to prepare veterinary students for the future of agriculture.
Tyson expects another year of beef-segment losses due to tight cattle supplies, even as chicken, pork, and prepared foods strengthen overall margins.
The DOJ’s new antitrust probe could reshape beef-packer behavior, with potential impacts on fed-cattle prices, processor margins, and long-term competition across the supply chain.
Congressman Blake Moore of Utah discusses the bill’s potential to promote both economic growth and healthier forests on this week’s Champions of Rural America.

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:

From projected drops in input costs to biofuel expansion and the USDA’s new “One Farmer, One File” initiative, Ag Secretary Brooke Rollins shared key policy priorities at Commodity Classic that put farm issues back in the spotlight.
NCBA Chief Counsel Mary-Thomas Hart discussed the legal process behind delisting the prairie chicken, the challenges ranchers faced under the bird’s previous protections, and the benefits of cooperative habitat management for both livestock and wildlife.
U.S.-Mexico agricultural trade faces uncertainty in 2026 as tariffs and cartel violence threaten farmers and ranchers. Congressman Henry Cuellar and Texas leaders weigh in on impacts and risks.
At Commodity Classic in San Antonio, growers explore new herbicide options, John Deere’s latest 8 Series tractors, and cutting-edge ag technology shaping the 2026 planting season. Here are some of RFD NEWS’ highlights from the event so far.
Farm CPA Paul Neiffer provided insight on updated PLC rate estimates, the role of base acres, and the upcoming enrollment window for ARC and PLC programs.
Farm Bureau economist Danny Munch explains the importance of timely enrollment, and how the program helps dairy producers safeguard their operations against volatile milk markets.