Golden State Today

California Attorney General Rob Bonta announced 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. Under the terms of the settlement, Western Valley Meat must keep the Fresno plant operational for at least 12 months and retain a minimum of 700 workers during that 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."

U.S. Congressman Jim Costa added, “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. 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." The two facilities purchase culled cattle from dairy farmers. In spring 2024, Western Valley Meat agreed to purchase Cargill’s facility, raising competition concerns due to potential suppression of prices offered to dairy farmers or possible closure of the plant altogether.

Anticompetitive mergers can also lead to reduced labor market competition, potentially lowering wages or worsening working conditions for employees at the Fresno plant. There was concern that shutting down the Fresno plant would leave local dairy farmers with fewer selling options for their cattle and result in over 700 job losses.

The settlement allows Western Valley Meat's acquisition of Cargill's Fresno facility to proceed under specific conditions: continuing operations for at least 12 months while retaining at least 700 employees with wages and benefits equal to or better than those offered prior to the merger.