California's apple industry is losing processing capacity as fruit processors either shut down in-state operations or relocate production elsewhere. The article highlights that growers supplying S. Martinelli & Co. are now among those left without a processing home for their fruit, a situation also reflected in a related story about a new processing facility targeting displaced Watsonville growers.
California is the fifth-largest apple-producing state, generating over $105 million annually from nearly 14,000 hectares of orchards. When processing contracts disappear, growers either find fresh-market buyers, seek alternative processors, or face the prospect of pulling out trees — which reduces future supply.
This trend toward California processing consolidation is worth tracking for fresh-market apple buyers: reduced competition for raw fruit could eventually affect fresh apple supply and sourcing options from this region.