The reason for this drastic measure was the closure of Del Monte Foods canneries in Modesto and Hughson. The 139-year-old company declared bankruptcy, leaving hundreds of people out of work and farmers without contracts that lasted for decades, the Independent reported.
According to reports, farmers could lose up to $550 million in revenue. To alleviate the situation, the country’s authorities have allocated funds to uproot the orchards. According to officials, the withdrawal of tens of thousands of tons of products from the market will help to avoid its oversupply and save producers from additional losses of about $30 million.
Although some of Del Monte’s assets have been bought out by Pacific Coast Producers, it will only be able to take in half of the crop. According to the report, the remaining fruit simply doesn’t have a buyer. They will have to switch to other crops.
