### Blue Diamond Growers to Relocate Manufacturing, Leaving Historic Midtown Plant

Blue Diamond Growers, a prominent almond cooperative based in Sacramento, has announced plans to cease operations at its longstanding midtown facility within the next two years. Manufacturing will be relocated predominantly to Turlock and Salida, moving production closer to many of its farmers and members. The cooperative, which has been a significant player in the almond industry and California's agricultural economy, cites rising inefficiencies and mounting operational costs at the historic C Street plant as driving forces behind the decision.

President and CEO Kai Bockmann expressed appreciation for the contributions of the Sacramento team, acknowledging their role in shaping the company's success. However, he emphasized that continuing operations at the century-old facility was no longer viable. "Streamlining our manufacturing plants is the right business move to further strengthen our market-leading position and bring increased value to our grower members," Bockmann stated.

The move will affect approximately 600 workers, with layoffs occurring in phases over the next 18 to 24 months. Initially, the company plans to reduce the workforce by about 10% later this year. Bockmann ensured transparency with employees by informing them promptly and promised incentives for those who remain during the transition, alongside severance packages for those whose roles are eliminated. Some employees will be offered positions at other Blue Diamond sites. Despite these changes, the company's corporate office will remain in Sacramento.

Sacramento Mayor Kevin McCarty acknowledged the impact of the move but also viewed it as an opportunity for the city. Praising Blue Diamond for its 115 years of partnership, McCarty expressed optimism about the future of the 53-acre midtown site, located near the Railyards development. He stated, "The Blue Diamond factory is primed for new life and new opportunity for our city."

Councilmember Roger Dickinson voiced a desire to keep Blue Diamond in midtown. He is willing to negotiate financial incentives to encourage the cooperative to stay, highlighting their historical significance and economic contribution to the region. However, if an agreement cannot be reached, he stressed the importance of finding a productive new use for the property.

Steve Cohn, a former City Council member, suggested preserving the property's historical value while recognizing that maintaining it as a major industrial facility is impractical. The cooperative's decision follows two difficult financial years, with revenues flat at $1.3 billion for the fiscal year ending in August 2024, down 17% from 2022. Despite this, a slight increase in income to $711 million, up from $640 million, was noted due to cost-cutting measures.

While the almond industry worldwide faces economic pressures and supply chain disruptions, Blue Diamond has continued its international expansion, securing new distribution channels in the Middle East and increasing its market share in Canada. The cooperative's board chair, Steve Van Duyn, highlighted the company's resilience and commitment to supporting its members through these challenging times.