California farmers to destroy 420k peach trees following Del Monte bankruptcy

I realize we can't really go backward in time, but I would prefer if the farmers that lived close to where I am sold to people who live local to me. That can happen to some degree (open yard stands), and I like to do that for some of the smaller farms, but it's really a kind of "nice to have" rather than a "The market stocks stuff that was grown a town or two over" type thing. I feel like something probably got lost when that kind of arrangement went away.

There's still one or two local businesses that manage to make it into the local market for me which is neat to see, but that's more so because they are for frozen pastries and stuff, and can prepare a metric ton in advance, and the market can mark it up for being a "local specialty" type thing. I like to buy them when I can afford it. It just sucks that essentially every other thing on a shelf probably wasn't even made in the same time zone or hemisphere.

That's exactly what I'm thinking. There are few crops where someone might want to lock in a 20 year contract. It's a major gamble for all involved. It's a gamble for the distributor because tastes might shift in 20 years (almost certainly a big part of why Del Monte went bankrupt) and it's a risk for the farmer because it's not clear that another distributor will look at these farms and think "You know what, I can pick up where that company went bankrupt".

> Where will they get their peaches?

Will they get peaches? That's really the question. They might just decide it's too unpopular and the price would have to be too high to support selling peaches.

Del Monte was a big reason why peaches are available. Similar to how Dole is a big reason we have bananas year round. If Dole goes bankrupt, we likely won't see bananas on the shelves. And we know this because there's more than just 1 variety of banana in the world. We have access to only 1 because there's only one distributor of bananas in the US.

We are moving into an era of private equity doing fast turn around profits on everything. The old way of business thinking that you can have a 20 year contract is likely dying. 1 year contracts are going to be much more likely because that's where a lot of the investment is going. And Del Monte is the poster child for why a business would shy away from doing a 20 year contract.

Some of the wild species taste better than the commercial species but those also tend to be too delicate to be commercially viable. It is a common problem for berries generally.

As I said, trees take a long time to bear fruit. It's not typical that a farmer will cut down a tree in their orchard in response to market pressure as that tree represents a huge investment.

If that were the case, then why are there so many peach trees currently? Why hasn't the entire orchard been replaced with olive trees?

Do you actually have farming experience?

"Consumer preferences have shifted away from preservative-laden canned food in favor of healthier alternatives," said Sarah Foss, global head of legal and restructuring at Debtwire, a financial consultancy.

Grocery inflation also caused consumers to seek out cheaper store brands. And President Donald Trump's 50% tariff on imported steel, which went into effect in June, will also push up the prices Del Monte and others must pay for cans.

Del Monte Foods, which is owned by Singapore's Del Monte Pacific, was also hit with a lawsuit last year by a group of lenders that objected to the company's debt restructuring plan. The case was settled in May with a loan that increased Del Monte's interest expenses by $4 million annually, according to a company statement.

https://www.pbs.org/newshour/nation/del-monte-files-for-bank...

During the coronavirus pandemic, when more people were eating at home, demand rose to record highs, Del Monte said in the filing, and the company committed to higher production levels. Once demand began to ease, Del Monte was left with too much inventory that it was forced to store, write off and “sell at substantial losses.”

The company also said it had carried a large amount of debt since it was acquired in 2014 by Del Monte Pacific Limited, which borrowed to finance the acquisition. Interest rates continued to increase, and the company’s annual cash interest expense has nearly doubled since 2020.

https://www.nytimes.com/2025/07/02/business/del-monte-bankru...

If you're up for a 12 minute video, besides re-iterating the points above (particularly underscoring the debt issue), it also points out that the company has changed hands many times in its history.

https://www.youtube.com/watch?v=879CJsz8X6A