With the fall of Del Monte Foods’ Modesto cannery earlier this year, also comes the fall of the clingstone peach crop tonnage this harvest.
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The amount of canning peaches processed this year is expected to drop 29%, or roughly 61,000 tons, compared to last year, according to Pacific Coast Producers, the only major buyer and processor of California cling peaches left in the state. The company said in a statement that the total harvest is expected to come in around 150,000 tons.
This is a significant, yet anticipated, reduction after Del Monte’s bankruptcy led to 50,000 tons of peaches without buyers in the Central Valley. Between 2024 and 2025, canning peaches saw a roughly 7% reduction in tonnage processed.
The canning peach industry faces challenges as consumer demand wanes with the greater availability of fresh fruit. The cling peach variety is typically not sold fresh.
The peach association, which is a membership group run by growers, has 300 members, 70 of whom lost contracts with Del Monte. Those growers produce around 85% of cling peaches grown in the state. Many orchards are located in the Yuba-Sutter area.
Pacific Coast Producers, which has facilities in Lodi and Oroville, can process a maximum of 10,400 acres of cling peaches, according to the U.S. Department of Agriculture.
The company offered one-year contracts for about 24,000 tons of Del Monte peaches, leaving dozens of growers without a home for thousands of acres of peaches. Growers supplied roughly 80,000 tons to Del Monte, according to Pacific Coast Producers.
A cling peach orchard producing 20 tons per acre brought in about $12,500 per acre based on the 2024 price.
A tree pulling program seeded with $9 million from the USDA and $1.5 million from the California Canning Peach Association began accepting applications this week. It is expected to save farmers millions of dollars in losses.
Rich Hudgins, president of the peach association, said the money should cover nearly all growers who lost their contracts. The money is first come, first served and is also available to non-Del-Monte growers who want to get out of the business — as long as they did not deliver fruit to a processor in 2026. The eligibility requirements are inclusive of non-Del-Monte growers because peach association dollars, which are made up of all members’ dues, are accessible for tree pulling in addition to USDA funds.
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The tree pulling program is expected to reduce orchard acreage by about 3,000, roughly a quarter of the total cling peach acreage in the state, according to the USDA. This translates to roughly 50,000 tons of canning peaches a year and is expected to realign the market based on slowed demand.
In the 1980s, there were 11 processors in the state, with many shutting their doors beginning in 2000.
The souring market conditions have brought cling peach acreage down from 19,900 acres in 2014 to 13,300 acres in 2025, according to USDA estimates. Even with the decline, Del Monte was offering 20-year contracts not long before its bankruptcy, leading growers to plant more than 4,300 new acres of canning peaches between 2023 and 2025, USDA data shows.
On top of the hit from the Del Monte contract losses, California Farm Bureau reports that cling peach growers saw lighter harvests this year due to a sped up ripening process from a spring heat wave that led to smaller fruit — an issue not unique to peaches. Rising temperatures as a result of climate change are creating more challenges for the agricultural community.
Pacific Coast Producers estimates a 7-10% shortfall in its peach crop this year, with about 10 days of harvest left. The peach association said this shortfall estimate is in line with previous seasons.
Peach growers have expressed frustration and disappointment to The Sacramento Bee following the Del Monte bankruptcy, sharing that their businesses have taken significant hits after the abrupt cannery closure. Some growers have dug into savings to pull out trees before receiving federal dollars, while others have let their orchards stand as they wait for funds.
The peach association estimated that the lost Del Monte contracts were valued at $550 million.
For next season, the future remains uncertain for growers. A Pacific Coast Producers spokesperson said the company is “rapidly learning about Del Monte’s business and their former partners, evaluating and improving an expanded retail sales program.”
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The company said it does not know what its contract needs are beyond this year.
This story was originally published August 8, 2026 at 10:27 AM.
