Big U.S. Food Company Shuts Down Operations in Northern California

A major shift is coming to Northern California’s agricultural industry, as Blue Diamond Growers announced it will shut down its longtime almond processing plant in Sacramento. The closure marks the end of a facility that has operated for more than 100 years and played a key role in establishing Sacramento as a global hub for almond production.

Over the next two years, the cooperative plans to wind down operations at its Midtown campus—some of which dates back to 1914—and shift manufacturing to its more modern plants in Turlock and Salida, located in California’s Central Valley.

In a press release issued on June 6, Blue Diamond Growers’ President and CEO, Kai Bockmann, stated that maintaining the outdated Sacramento plant has become financially unfeasible.

“Optimizing our manufacturing operations is a strategic decision aimed at reinforcing our leadership in the market and delivering greater value to our grower members,” Bockmann explained.

Blue Diamond Growers represents nearly 3,000 almond farmers across the state, many of whom are based in the Central Valley. The cooperative employs roughly 1,400 people statewide, with around 600 jobs affected by the Sacramento plant closure.

The transition is set to begin later this year, with around 10% of Sacramento’s workforce expected to depart. Blue Diamond has assured employees that severance packages, job placement support, and relocation opportunities to other company facilities will be offered.

This shift aligns with a larger pattern of food processing companies leaving California’s state capital. A notable example is the closure of the Campbell Soup Company’s Sacramento plant in 2013. Blue Diamond’s departure underscores a significant change in the region’s economic dynamics, particularly within the food manufacturing industry.

Future of Historic Sacramento Campus Remains Unclear :

Although Blue Diamond Growers plans to keep its corporate headquarters in Sacramento, the future of its historic Midtown campus is uncertain. Situated close to downtown, the 53-acre site may be ripe for new development. Barry Broome, CEO of the Greater Sacramento Economic Council, shared with the Sacramento Business Journal that the property could be an ideal location for a tech company, possibly in the artificial intelligence field, or it could be redeveloped for residential purposes.

Over the years, several of Sacramento’s former food processing facilities have found new life through redevelopment. According to the Business Journal, many have been transformed into housing or commercial spaces. One notable example is The Cannery, originally a fruit and vegetable canning facility built in the early 1900s, which now features office spaces, a fitness center, and salons. Another is the historic Globe Mills building downtown, once owned by Pillsbury and constructed in 1914, which has been converted into a modern, highly regarded apartment complex.