### Blue Diamond Announces Closure of Historic Midtown Plant in Sacramento

Blue Diamond Growers is set to close its historic midtown Sacramento plant over the next two years, leading to the loss of 600 jobs and leaving a 50-acre site vacant. This decision, as explained by Alicia Rockwell, Blue Diamond’s chief public affairs officer, is necessary to protect the financial interests of California almond farmers. The cooperative, owned by its growers, faces financial instability which could otherwise reduce payments to its farmers.

Though the company has been operational at its midtown location since 1914, operating within the old buildings has become increasingly inefficient. The plant’s closure, while sudden, has long been a concern for city leaders who have been preparing for this possibility since the 1990s due to the cooperative's cost-cutting measures.

Blue Diamond is the largest almond producer in California, which supplies 80% of the world’s almonds. Despite significant growth in almond farming over the past two decades, the industry has faced a series of challenges since 2020, including pandemic-related supply chain issues, increased water costs due to droughts, and rising prices for fertilizers and other chemicals.

In recent years, almond prices have dropped significantly from $4 per pound in 2014 to around $1.40 per pound in 2022, highlighting the economic pressures faced by growers. Following several tough years, weather conditions improved and supply chain issues eased, leading to a more optimistic outlook for future profitability.

As part of its consolidation efforts, Blue Diamond will move its operations to facilities in Turlock and Salida, which are closer to many of its almond farmers. The company is searching for buyers for its historic midtown property, hoping for a developer with the financial capability and vision to repurpose the architecturally significant site for new uses.

Local officials, including Barry Broome of the Greater Sacramento Economic Council and former Mayor Darrell Steinberg, see this transition as part of Sacramento’s broader economic evolution. With a focus on life sciences, technology, and the creative economy, they believe the city is well-positioned for future growth.

Mayor Kevin McCarty and the City Council are expected to play a crucial role in planning the strategic redevelopment of the Blue Diamond site, ensuring it aligns with the city’s long-term economic goals. The city’s emphasis on economic development and infrastructure investment is seen as vital in attracting new industries and maintaining economic momentum.