Blue Diamond Growers will begin closing its Sacramento processing facility later this year. (GV Wire Composite/Paul Marshall)
- The world's largest almond cooperative will begin closing its Sacramento processing plant later this year.
- The action will impact about 600 employees as operations get transferred to Turlock and Salida.
- Almond prices have stabilized somewhat recently, but the recovery comes after years of collapsed pricing.
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The world’s largest almond processor, Blue Diamond Growers, says it will close its Sacramento processing plant this year
The almond cooperative of 3,000 growers called the move an effort to “streamline” operations as the 50-acre facility had become “inefficient,” according to a news release from the organization.
The cooperative said it would transfer manufacturing equipment to plants in Turlock and Salida.
“The challenges of running a plant from these historical buildings has become too costly and inefficient,” said Kai Bockmann, president and CEO of Blue Diamond Growers. “Streamlining our manufacturing plants is the right business move to further strengthen our market-leading position and bring increased value to our grower members.”
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600 Employees Affected By Closure
Blue Diamond said about 10% of employees would be laid off after the move. Over the next 18 to 24 months, the number of affected employees is expected to total about 600.
The cooperative said it will provide incentives to employees who stay during the transition. Severance and outplacement services will also be available.
“Even though most employees will not leave this year, we want to be transparent and tell our people as soon as possible,” Bockmann said. “We are committed to putting in the energy, time, and resources to help our impacted team members.”
By focusing on Salida and Turlock, the cooperative will move processing closer to its Central Valley members, the release stated. The Sacramento corporate office will remain.
Almond Prices Have Stabilized, but Challenges Remain
The almond industry has faced years of turmoil after years of high prices. When almond prices collapsed, farmers pulled up orchards across the state.
More recently, almond prices have stabilized, according to previous GV Wire reporting.
Strong international demand reduced the amount of almonds held from carryover, according to the Almond Board of California’s report. Domestic shipments have fallen about 5% year-over-year, while international exports have largely remained the same.
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