Currently, more than 70 peach growers in California are eliminating hundreds of orchards after the U.S. food producer and distributor Del Monte Foods declared bankruptcy in July of last year appealing to chapter 11 after a large debt that prevented it from continuing with its operations.

The bankruptcy of Del Monte Foods has led to the cancellation of several contracts with local farmers and these without a main buyer for their production, they are choosing to eliminate their orchards in the end of avoiding continuing losing money and reconverting the land for other crops.

It is estimated that the exit of Del Monte Foods will generate losses of up to $550 million for the sector. Following the $285 million acquisition by Fresh Del Monte Produce, the farmers expected that they would take charge of the contracts; however, the agreement does not provide for the reactivation of the processing plants in California.

In this regard, Carissa Sauer, spokesperson for Del Monte Foods, expressed that the company opted to make an orderly closure of its operations, recognizing the great impact it will have. This decision for both the company and the community at large. “Our priority is to provide support to our team and our customers during this transition,” he said.

Faced with the situation, the United States Department of Agriculture (USDA) recently reported that it will carry out a federal emergency plan with funding of $9 million. s of dollars for California peach growers who did not renew contracts with Del Monte Foods, and with whom plans to help eliminate 420,000 peach trees.

In this regard, the executive director of the California Peach Growers Association, Rich Hudgins, stated that with The USDA will not replace orchards. “No new trees will be purchased, the farmer is simply allowed to prepare the land for planting new trees,” he said.