California Attorney General Rob Bonta has entered into a settlement with Western Valley Meat Company, an affiliate of Central Valley Meat, to address concerns regarding its planned acquisition of Cargill, Inc.'s culled cattle slaughter and processing plant in Fresno. The agreement mandates that Western Valley Meat must keep the Fresno plant operational for at least 12 months and retain a minimum of 700 employees during this period.
“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 among the largest facilities in the San Joaquin Valley that process non-milk producing or “cull cows.” These facilities purchase culled cattle from dairy farmers. In spring 2024, Western Valley Meat agreed to acquire Cargill’s facility, raising competition concerns as reduced market pressure could lead processors to suppress prices offered to dairy farmers or result in diminished plant capacity. Anticompetitive mergers can also reduce labor market competition, potentially lowering wages or worsening working conditions for employees at the Fresno plant.
There was also a risk that the Fresno plant could be shut down entirely. Such a closure would leave local dairy farmers with fewer options for selling their cattle and result in over 700 job losses.
The settlement allows Western Valley Meat’s purchase of the Cargill facility in Fresno to proceed under specific conditions: continuing operations for at least 12 months and retaining at least 700 existing employees with 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.