Bonta brokers deal between Cargill, Central Valley Meat over plant acquisition

Western Valley Meat Company, an affiliate of Central Valley Meat, reached an agreement with California Attorney General Rob Bonta to settle concerns about its planned purchase of Cargill, Inc.’s culled cattle slaughter and processing plant in Fresno. 

The settlement gives Western Valley Meat Company the green light to purchase the plant, as long as it operates it for at least 12 months and retains at least 700 workers. 

The backstory: In May, Central Valley Meat announced that it was acquiring Cargill’s beef processing facility. 

• But Bonta filed a lawsuit in Los Angeles County Superior Court on Wednesday arguing that the purchase would hurt market competition. 

Driving the news: Cargill and Central Valley Meat are two of the largest facilities in the Central Valley that slaughter and process non-milk producing cows. 

• But, according to Bonta’s office, the acquisition sparked competition concerns, fearing that less market pressure would allow processors to suppress prices offered to dairy farmers, or that the plant capacity could have disappeared altogether. 
• Court documents state that Central Valley Meat issued layoff notices to 178 employees in early June, helping lead to the lawsuit from Bonta. 

What they’re saying: “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. “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.”

• Rep. Jim Costa (D–Fresno) thanked Bonta for working to secure the jobs for at least the next year. 
• “Food is a national security issue. 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,” Costa said. “I am grateful to our local and state partners like Attorney General Rob Bonta who worked to sustain good paying jobs in the San Joaquin Valley and find paths forward.”