August 22, 2024 - OAKLAND — California Attorney General Rob Bonta today entered into a settlement with Western Valley Meat Company, an affiliate of Central Valley Meat, to resolve concerns raised by its planned purchase of Cargill, Inc.’s (Cargill) culled cattle slaughter and processing plant in Fresno. Under the settlement, upon acquisition of Cargill, Western Valley Meat must keep the Fresno plant operating for at least 12 months and retain at least 700 plant workers during that time.

“For dairy farmers, the loss of the Fresno Cargill plant could have meant lower cattle prices and fewer options when selling their cattle,” said Attorney General Rob Bonta. “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."

“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," said U.S. Congressman Jim Costa. " 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.”

Cargill and Central Valley Meat are two of the largest facilities in the San Joaquin Valley that slaughter and process non-milk producing or “cull cows.” The two facilities purchase culled cattle from dairy farmers. In spring 2024, Western Valley Meat agreed to purchase Cargill’s facility. The acquisition sparked competition concerns because with less market pressure processors could suppress prices offered to dairy farmers, or the plant capacity could have disappeared altogether. Anticompetitive mergers can create other harms, including a reduction in labor market competition, which could lower wages or worsen working conditions for the employees at the Fresno plant. 

There was also a risk that the Fresno plant could be shut down altogether. If the plant were to close, then local dairy farmers would have fewer options to sell their cattle, and over 700 local jobs associated with the plant would be lost. 

Today's settlement allows for Western Valley Meat’s purchase of the Cargill facility in Fresno to be finalized. Under the settlement, Western Valley Meat agrees to continue operating the Fresno plant for 12 months and agrees to retain at least 700 existing employees for 12 months, during which they will be offered wages and benefits equal to or better than those offered before the merger.

A copy of the complaint can be found here. A copy of the stipulated judgment is available here.
Source: CA. DOJ