California peach growers forced to remove 420,000 trees after bankruptcy of Del Monte Foods canneries

Central California farmers will receive up to $9 million in federal support to remove about 420,000 clingstone peach trees, following the bankruptcy and closure of Del Monte Foods canneries earlier this year. The shutdown of facilities in Modesto and Hughson in April, following a Chapter 11 filing in July 2025, disrupted long-standing supply chains and left growers without processing capacity.

The closures canceled decades-old contracts, with growers facing an estimated $550 million in lost revenue, according to regional reports. In response, a bipartisan group of lawmakers, including Adam Schiff, Mike Thompson, and David Valadao, urged the U.S. Department of Agriculture to intervene. The agency approved funding to clear about 3,000 acres of orchards before harvest. This move is expected to remove approximately 50,000 tons of peaches from the market and help growers avoid an estimated $30 million in additional losses.

Industry adjustments remain limited. Pacific Coast Producers acquired Del Monte’s canned fruit business and has offered contracts for about 24,000 tons of peaches, leaving a significant surplus unaccounted for. Lawmakers warned that without intervention, the sudden loss of processing capacity for tens of thousands of acres of fruit could inflict lasting structural damage on the region’s agricultural base, particularly for multigenerational family farms heavily invested in perennial orchards.