The ripple effects of Del Monte Foods’ bankruptcy continue to reshape California agriculture, with thousands of acres of peach orchards now slated for removal after growers were left without a buyer for their fruit. The unprecedented move highlights how the collapse of a single major food processor can devastate an entire agricultural supply chain.
Hundreds of thousands of peach trees face removal
California clingstone peach growers are preparing to destroy approximately 420,000 peach trees, or about 3,000 acres of orchards, following the closure of Del Monte’s canneries in Modesto and Hughson. The closures eliminated one of the state’s largest buyers of peaches grown specifically for canning, leaving farmers with no viable market for much of this year’s crop.
The closures stem from Del Monte Foods’ Chapter 11 bankruptcy filing in 2025 and the subsequent shutdown of its California processing facilities. Growers who had relied on long-term contracts with the company are now facing an estimated $550 million in lost revenue, according to industry estimates.
Federal aid aims to soften the blow
To help farmers transition, the U.S. Department of Agriculture has approved up to $9 million in funding to remove unwanted peach trees before the next growing season. Officials say removing orchards now could prevent an additional $30 million in losses from fruit that would otherwise have no buyer.
Pacific Coast Producers, which acquired Del Monte’s canned fruit business, has agreed to purchase about 24,000 tons of peaches. However, roughly 50,000 tons remain without a processing destination, leaving many growers with little choice but to uproot orchards that took years to establish.
A long road to recovery
For many family farms, replacing peach orchards won’t provide immediate relief. New crops can take years to become profitable, meaning the financial impact of Del Monte’s collapse could linger well beyond this harvest season. While federal assistance offers some support, growers say rebuilding their operations—and replacing decades-long business relationships—will take considerably longer.
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