An agreement between California Attorney General Rob Bonta and Western Valley Meat — an affiliate of Central Valley Meat — clears the way for the Hanford company to purchase meat giant Cargill Inc.’s Fresno slaughter and processing plant.

Part of the deal requires Western Valley to keep the plant open for a year, according to a news release. At least 700 workers of the 900 must be retained during that time. Bonta said keeping the plant open will benefit ranchers.

After announcing the sale, Cargill announced 178 workers of the 900 total employed there would be laid off.

“For dairy farmers, the loss of the Fresno Cargill plant could have meant lower cattle prices and fewer options when selling their cattle,” Bonta said in a news release. “The Central Valley has fed California and the U.S. for decades, and today I am proud to have secured the continued operation of an important processing plant and protection of 700 jobs for at least 12 months.”

Cargill Purchase Threatens Beef Market Stability: Bonta

Western Valley agreed to purchase Cargill’s facility in the spring.

Western Valley’s parent company and Cargill make up the two biggest processors

The acquisition caught the eye of the attorney general’s office with concerns that the loss of competition could lead to higher processing costs for ranchers and dairymen. Bonta also feared fewer processors could mean lower wages for workers. The release stated there was also a risk the plant could be shut down.

“With less market pressure, processors could suppress prices offered to dairy farmers, or the plant capacity could have disappeared altogether,” the release stated.

Rep. Jim Costa (D-Fresno) said the deal preserves jobs and options for ranchers.

“Food is a national security issue,” said Costa. “By combining resources and expertise, this acquisition will not only support local dairy farmers but also meet market demand and keep our supply chain intact.”