In California, farmers are destroying 420,000 peach trees
Kyiv • UNN
Due to the bankruptcy of Del Monte, 420,000 trees will be destroyed in California. The government has allocated $9 million for crop liquidation to stabilize the market.
A large-scale crisis in American horticulture has forced the government to allocate emergency millions for the disposal of a harvest that has suddenly become unwanted. This is reported by the Independent, according to UNN.
Details
The reason for such a radical measure was the closure of Del Monte Foods' canneries in Modesto and Hughson. The company, with its 139-year history, declared bankruptcy, leaving hundreds of people jobless and farmers without contracts that had lasted for decades.
According to available data, farmers could lose up to $550 million in income. Approximately 420,000 peach trees will be cut down.
To save the situation, authorities have allocated $9 million in aid for uprooting the trees. According to officials, removing 50,000 tons of peaches from the market will help avoid a product surplus and save producers from an additional $30 million in losses.
Despite the fact that some of Del Monte's assets were purchased by Pacific Coast Producers, the company will only be able to accept half of the harvest. As stated in the report, the rest of the fruit simply has no buyer, so farmers will have to switch to other crops.