Last week, California Attorney General Rob Bonta filed a lawsuit against Cargill and Western Valley, a subsidiary of Central Valley Meat Holding Company, over concerns that the sale of Cargill's Fresno beef processing facility could adversely affect dairy farmers in the San Joaquin Valley and result in mass layoffs.
Cargill and Western Valley agreed to settle the complaint outside of the Superior Court of California, denying the allegations without admission to any wrongdoing. As part of a state settlement agreement, Western Valley agreed to continue operating the Fresno, California, facility for 12 months and to retain at least 700 existing workers during the period, according to court records.
"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" according to a press release by Bonta.
Cargill and Western Valley both have two of the largest beef facilities in the San Joaquin Valley, each capable of processing more than 300,000 head of cattle per year, according to data from the USDA.
