Peach Growers Left in Limbo After Del Monte Bankruptcy

Del Monte Foods is shaking up California’s cling peach industry after filing for bankruptcy and tossing out long-term contracts worth more than half a billion dollars. According to a recent Ag Alert from the California Farm Bureau, the company walked away from agreements with members of the California Canning Peach Association. Some of those contracts were just signed this year and were supposed to last until 2044.

That decision has left several dozen growers suddenly without a buyer. Sutter County farmer and association chair Ranjit Davit put it plainly: “A lot of growers are affected.” And third-generation grower Richard Lial told Ag Alert the loss “could turn out to be devastating.” He even pulled out a productive almond orchard to plant peaches for Del Monte.

The association has filed a 555 million dollar claim in bankruptcy court, but experts say growers will probably see little or none of that money. For now, everyone is watching the December 4 auction of Del Monte’sModesto cannery, hoping a new buyer steps in and keeps the market alive.