The giant fruit producer and packer Prima Wawona, born from the merger of Gerawan Farming and Wawona Packing in 2019, is in the midst of a serious crisis by declaring bankruptcy and laying off more than 5,400 workers. Despite initially being considered a success, with an estimated value of $1 billion, the company made the surprising decision to file for bankruptcy protection in October 2023.
The situation is attributed to poor management, debt and a lack of understanding of the tree fruit industry. This bankruptcy filing will have a significant impact on the migrant worker community, as 70 percent of Prima Wawona employees are seasonal agricultural workers.
The Farm Workers Union expressed concern for the affected employees. Nicole Zieba, Reedley's city manager, does not expect a significant increase in unemployment since the workforce is spread across two counties and other job opportunities are available.
Prima Wawona's 6,474 hectares of prime farmland are being put up for sale, generating high interest from potential buyers. The value of these lands is estimated at US$370,000,000 and is divided into seven groups based on location, soil, water profile and price.
Uncertain future for Prime Winona farmland in California
Although farmers are the main potential buyers, They face challenges such as the low prices of some crops and the difficulties of growing tree fruits. The Prima Wawona debacle highlights the difficulties facing the tree fruit industry.
The Agricultural Workers Union expresses concern about the impact on the migrant community.
California Fresh Fruit Association
Poor management and lack of understanding of the industry can result in significant losses. Additionally, the industry is labor-intensive and relies heavily on migrant workers. The future of the industry is uncertain, but there is still demand for prime agricultural land.
Besides, There is a lawsuit filed by Dan Gerawan, former CEO of Gerawan Farming, against Paine Schwartz Partnersthe investment firm that acquired Wawona Packing in 2017. The situation highlights not only the economic difficulties, but also the legal conflicts surrounding the company in crisis.
Prima Wawona is located in Fresno County, California. The company's properties are located primarily in the east of the county, in the towns of Reedley, Cutler and Kerman. Fresno County is one of the top producers of fruits and vegetables in the United States. The region is known for its mild climate and fertile soil, which are ideal for growing fruit trees.
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