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
A new study from the University of California shows E-15 provides more emissions reductions compared to other blends of gasoline on the market.
RFD-TV’s own Tammi Arender was down on Broadway covering all the action at CMA Fest when she stumbled upon some apple farmers from North-Central Washington selling a new, must-try apple variety.
Posterity Cider Works is focusing on quality with their ciders. In this clip, Brendan Barnard and Trevor chat about developing flavors with different apples and how older varieties of apples change over time.
Chaley Harney, Executive Director of the Montana Beef Council, and Jonna Jones, Director of Marketing for Wentana, LLC, say it’s a great time for both cattle producers and beef consumers to celebrate one of America’s favorite proteins.
Idaho Farm Bureau is taking it one step further and creating a competition for students to grow the largest and best strawberry based on the children’s book.

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:

CoBank Knowledge Exchange’s Jeff Johnston shares the group’s positive perspective on expanding data centers into rural areas and weighs the risks and rewards for those communities.
Farm CPA Paul Neiffer discusses how January’s WASDE report could impact ARC and PLC payments and updates on disaster relief programs as farmers navigate a challenging market environment.
Texas Commissioner of Agriculture Sid Miller joined us to discuss data center expansion, farmland preservation, rural economic impacts, and imminent cattle biosecurity concerns affecting agriculture today.
The Pennsylvania Farm Show continues through Saturday, wrapping up another successful year of celebrating agriculture in the Commonwealth.
Shaun Haney joined us to discuss Canada’s new trade agreement with China, the potential impact on farmers and exporters, and what it could mean for U.S.–Canada trade relations going forward.
National Corn Growers Association Chief Economist Krista Swanson discusses corn supply pressures, market fundamentals, policy considerations, and producer outlook for the year ahead.