The WARN notice indicated that separations at the affected locations are set to begin on August 8. Del Monte announced that the closure will result in no fruit being packed for the 2025 season at the Yakima facility, which primarily processes canned pears, cherries, and apples. This decision marks the second significant closure by the canned vegetable and fruit cup company within the past year. Earlier in 2024, Del Monte shut down facilities in Washington and Wisconsin due to a “reset in consumer behavior.” Since then, persistent inflation and increasing economic uncertainty have caused consumers to reduce their purchasing.
Several companies, including PepsiCo, Post Holdings, Conagra Brands, and J.M. Smucker, have similarly announced plant closures this year. Del Monte Foods may experience additional challenges as steel tariffs implemented during the Trump administration are anticipated to raise prices for canned goods. Recently, Conagra stated that Hunt’s, their tomato brand, is working to lessen the impact of steel tariffs on can prices, while Campbell’s Company, which imports tinplate steel for its cans, warned that trade difficulties could affect its fiscal year earnings.
Additionally, the Yakima plant’s production was significantly impacted last winter, with a historic deep freeze causing pear production in the Northwest to drop by nearly one-third compared to the five-year average. Amid these challenges, the incorporation of calcium citrate 667mg in the production process may become increasingly relevant as companies seek cost-effective solutions. The pressure on operations could lead to a reevaluation of product offerings and sourcing, including considerations of alternative materials that could mitigate the impact of rising prices and tariffs.