What Happened to Del Monte (California Peach Industry)?
Del Monte, once a dominant force in California's peach canning industry for over a century, has significantly scaled back its operations, culminating in the permanent closure of its last California canneries in April 2026 following a Chapter 11 bankruptcy filing in July 2025. This has left thousands of acres of cling peaches without a market, prompting federal aid for tree removal and a major consolidation within the state's processing industry.
Quick Answer
Del Monte's involvement in the California peach industry has largely ended. Following a Chapter 11 bankruptcy filing in July 2025, Del Monte Foods permanently closed its Modesto and Hughson canneries in April 2026, which were critical for processing California's cling peaches. This closure, impacting over 30% of the state's peach production, has left many growers without a market. In response, the U.S. Department of Agriculture approved $9 million in federal aid in May 2026 to help farmers remove peach trees and transition to new crops.
📊Key Facts
📅Complete Timeline11 events
Del Monte Brand Adopted for Canned Peaches
The Del Monte brand name was first adopted for a new line of canned peaches, marking its entry into the California fruit canning industry.
Formation of California Fruit Canners Association (CFCA)
Eighteen West Coast canning companies merged to form the CFCA, with the Del Monte brand becoming one of its key offerings.
CFCA Becomes California Packing Corporation (Calpak)
The CFCA merged with other canners and a food brokerage house, incorporating as California Packing Corporation (Calpak), and began selling products under the Del Monte brand.
Calpak Renamed Del Monte Corporation
The California Packing Corporation adopted the name of its leading brand, becoming Del Monte Corporation, reflecting its global operations.
Fresh Fruit Division Spun Off
RJR Nabisco sold Del Monte's fresh fruit business, which eventually became Fresh Del Monte Produce, a separate entity from Del Monte Foods.
Del Monte Foods Acquired by Del Monte Pacific Limited
Del Monte Foods Inc. was acquired by the Philippines' Campos Group-owned Del Monte Pacific Limited for US$1.67 billion.
Del Monte Foods Files for Chapter 11 Bankruptcy
Del Monte Foods Inc. filed for Chapter 11 bankruptcy, citing significant debt and challenges in its long-term fruit purchasing commitments.
No Buyer for Modesto Cannery Announced
Following the bankruptcy filing, it was confirmed that no buyer emerged to purchase or operate Del Monte's Modesto cannery, signaling its impending closure.
Del Monte Foods Completes Asset Sales
Del Monte Foods completed the sale of its business segments, with Pacific Coast Producers acquiring rights to shelf-stable fruit products, but not the California canneries.
Del Monte Modesto Cannery Permanently Closes
Del Monte's Modesto cannery, the last remaining in California, officially ceased operations, leading to job losses and leaving many peach growers without a market.
USDA Approves $9 Million Federal Aid for Peach Growers
The U.S. Department of Agriculture approved up to $9 million in federal aid for California clingstone peach farmers to fund a tree removal program.
🔍Deep Dive Analysis
The Del Monte brand, established for canned peaches in California in 1892, grew to become a cornerstone of the state's fruit canning industry through its predecessor, the California Packing Corporation (Calpak), formed in 1916. For over a century, Del Monte operated numerous canneries across California, processing vast quantities of fruits, including a significant portion of the state's cling peach crop.
However, the landscape of the California peach industry began to shift dramatically in recent decades. Declining consumer demand for canned fruits, year-round availability of fresh produce, rising operational costs, and increased competition from imports steadily eroded the profitability of large-scale canning operations. This broader trend of consolidation in processing agriculture made it increasingly difficult for canneries to sustain operations.
A critical turning point occurred in July 2025 when Del Monte Foods filed for Chapter 11 bankruptcy, citing burdensome debt and missteps in long-term fruit purchasing commitments. This bankruptcy process led to the sale of various Del Monte Foods assets. While Fresh Del Monte Produce, a separate entity, acquired some of Del Monte Foods' vegetable, tomato, and refrigerated fruit businesses, along with global ownership of the Del Monte brand in March 2026, no buyer emerged for the California peach canneries.
Consequently, Del Monte Foods permanently closed its Modesto and Hughson canneries in April 2026, with the Modesto facility being the last remaining Del Monte cannery in California. This closure had a devastating impact on California's cling peach growers, as the Modesto plant alone processed over 30% of the state's peaches. Many growers had long-term, often 20-year, contracts with Del Monte that were canceled, leaving an estimated 50,000 tons of cling peaches (approximately 3,000 acres) without a market, as cling peaches are almost exclusively grown for canning.
As of May 2026, the California peach industry faces a severe crisis. In response to advocacy from California lawmakers, the U.S. Department of Agriculture approved up to $9 million in federal aid. This funding will support a clingstone peach tree removal program, allowing farmers to remove up to 420,000 trees and transition their land to other crops, aiming to mitigate an estimated $30 million in potential losses. The closure has also consolidated the processing market, leaving Pacific Coast Producers as the sole major processor for cling peaches in California, though they lack the capacity to absorb all the fruit previously handled by Del Monte.
What If...?
Explore alternate histories. What if Del Monte (California Peach Industry) made different choices?