Central California peach farmers are preparing to destroy approximately 420,000 clingstone peach trees after Del Monte Foods closed its canneries earlier this year. The move follows Del Monte's Chapter 11 bankruptcy filing, which led to the permanent closure of its Modesto and Hughson canneries.
Financial Impact on Farmers
Farmers who had 20-year contracts with Del Monte are now facing an estimated $550 million in lost revenue, according to the Sacramento Bee. The sudden termination of these contracts has left growers with no market for their clingstone peaches, forcing them to consider drastic measures to mitigate further losses.
Federal Aid Announced
In response to the crisis, Senator Adam Schiff and Representatives Mike Thompson and David Valadao announced up to $9 million in federal aid for affected growers. The emergency assistance will help farmers remove about 3,000 acres of clingstone peach orchards before the upcoming harvest season.
Officials stated that removing around 50,000 tonnes of peaches from production could prevent an estimated £30 million in additional losses for farmers by reducing oversupply. The destruction of trees is seen as a necessary step to stabilize the market and prevent further financial hardship.
