Blue Diamond Growers to Permanently Close Sacramento Plant, Resulting in 600 Job Losses

Monday, Jun 23, 2025 2:04 pm ET1min read

Blue Diamond Growers is permanently closing its flagship Sacramento processing plant, resulting in the loss of approximately 600 jobs. The company blames maintenance costs and persistent inefficiencies for the shutdown. Manufacturing work will be consolidated into existing facilities in Turlock and Salida, California. The closure has sparked concerns about Sacramento's ability to support major businesses due to its high cost of living, regulatory environment, and business-unfriendly conditions.

Blue Diamond Growers has announced the permanent closure of its flagship Sacramento processing plant, resulting in the loss of approximately 600 jobs. The company cited high maintenance costs and persistent inefficiencies as the primary reasons for the shutdown. Manufacturing operations will be consolidated into existing facilities in Turlock and Salida, California.

The closure of the Sacramento plant has raised concerns about the city's ability to support major businesses. High cost of living, regulatory environment, and business-unfriendly conditions have been cited as contributing factors. The decision to consolidate operations comes amidst a broader trend of companies reassessing their operational strategies in response to rising costs and regulatory pressures.

The impact on the local economy is significant. Blue Diamond Growers was one of the largest employers in the Sacramento area, and the loss of 600 jobs will have a ripple effect on the local job market and economy. The city's efforts to attract and retain businesses may face further challenges as a result of this closure.

The move to consolidate operations is part of a broader trend in the agricultural industry, where companies are seeking to streamline operations and reduce costs. The consolidation of manufacturing work into existing facilities in Turlock and Salida is a strategic move aimed at enhancing efficiency and reducing operational expenses.

The closure of the Sacramento plant is a reminder of the ongoing challenges faced by businesses in the region. High costs and regulatory burdens can make it difficult for companies to maintain profitability, leading to job losses and economic disruption.

References:
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[2] Desliver D. As obesity rates rise in the U.S. and worldwide, new weight-loss drugs surge in popularity. Pew Research Center. March 21, 2024. June 18, 2025. https://www.pewresearch.org/short-reads/2024/03/21/as-obesity-rates-rise-in-the-us-and-worldwide-new-weight-loss-drugs-surge-in-popularity/
[3] Montero A, Sparks G, Persiado M, Hamel L. KFF Health Tracking Poll May 2024: The Public’s Use and Views of GLP-1 Drugs. KFF. May 10, 2024. June 18, 2025. https://www.kff.org/health-costs/poll-finding/kff-health-tracking-poll-may-2024-the-publics-use-and-views-of-glp-1-drugs/

Blue Diamond Growers to Permanently Close Sacramento Plant, Resulting in 600 Job Losses

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