Industry estimates show more than 200 peach‑growing families in Sutter County alone are now without contracts. Designed by Freepik

OROVILLE, CA (MPG) – The Butte County Board of Supervisors is urging state and federal action as Northern California cling peach growers face a market collapse tied to the closure of Del Monte’s Modesto cannery.

In a letter last month to California Canning Peach Association President and CEO Rich Hudgins, supervisors warned of widespread economic fallout after the loss of processing agreements that have long sustained the region’s peach industry.

“The sudden loss of contracts has created immediate and profound challenges for growers,” Board Chair Bill Connelly wrote, noting the effects reach beyond farms to agricultural jobs and the broader regional economy.

Del Monte’s Modesto facility, scheduled to close April 7, was the company’s last California plant and historically processed about 35 percent of the state’s cling peaches. The shutdown eliminates 1,800 jobs and voids many 20‑year grower agreements, leaving producers without a guaranteed buyer for the 2026 crop.

Oroville’s Pacific Coast Producers, the last remaining cannery, has offered one‑year cash contracts covering about 24,000 tons of fruit but more than 50,000 tons remain without a buyer, and the company cannot absorb the full statewide volume.

Cling peaches are grown specifically for canning and have no viable fresh market, making processing capacity essential, officials said. Industry estimates show more than 200 peach‑growing families in Sutter County alone are now without contracts, while statewide losses could exceed $550 million. Many growers planted orchards under long‑term agreements with Del Monte and now face maturing trees with no market.

The California Canning Peach Association has filed a $550 million bankruptcy claim on behalf of growers, though recoveries are expected to be limited because secured creditors take priority. The group is also advocating for emergency relief and additional processing capacity.

Growers are now weighing difficult decisions. Some have stopped pruning, spraying and fertilizing because the fruit has no destination, officials said. Others are considering removing orchards, a costly step given the years required to establish new trees.

Agricultural officials in Butte, Sutter and Yuba counties have all raised concerns about ripple effects on jobs, suppliers and rural communities tied to the industry. Connelly’s letter emphasized that the challenges extend across county lines and require coordinated support.

“We respectfully urge state and federal partners to consider immediate and meaningful assistance,” Connelly wrote, pointing to options such as financial relief, debt restructuring and potential federal programs to help growers manage the loss of processing capacity.

Following Del Monte’s July 11, 2025 bankruptcy, the company’s assets were divided among three buyers. Fresh Del Monte Produce acquired the Del Monte brand along with the vegetable, tomato, and refrigerated fruit businesses; B&G Foods, purchased the broth and stock division, including the College Inn and Kitchen Basics brands; and Pacific Coast Producers secured rights to the shelf‑stable fruit business in the United States and Mexico. No buyer has emerged for the Modesto facility, and new ownership of the Del Monte brand does not include plans to reopen the plant. 

Growers now face a narrowing window before harvest with limited options in place, officials said.