What led to closure of food plant in Fresno County? It has to do with parsley
Officials at Olam, a global food and agriculture company, said Tuesday that its decision to exit the dried parsley market in the U.S. triggered the move to shut down their Firebaugh plant and lay off 275 workers.
The dehydration plant produced dried onions and dried parsley to be sold as ingredients to food manufacturers worldwide.
The Singapore-based Olam Group in 2020 reorganized its operations, creating two new subsidiaries. One of the companies, Olam Food and Ingredients, operated the Firebaugh plant. It continues to operate dehydrating factories in Gilroy and Hanford in California and also in Fernley, Nevada, and Boardman, Oregon.
The other new spin-off business is Olam Agri, whose focus is products in the food, feed and fiber category.
Olam Food Ingredients, or ofi, is a major supplier of cocoa, coffee, dairy, nuts and spices.
Julie Ketay, director of communications for ofi in North America, said the decision to close the plant in Firebaugh was not made in haste.
“Macroeconomic and market conditions led to the difficult decision to close Firebaugh and exit the U.S. parsley market,” she said. “Everyone is looking for the best ways to meet the needs of our customers.”
The plant will be shut down in phases with the first wave of layoffs coming Aug. 30 and the last wave in December.
Next year, onions will be dehydrated at one of ofi’s other plants.
Firebaugh City Manager Ben Gallegos said Monday that he was told by management at the plant that the closure was not permanent.
But that is not the case, Ketay clarified. The plant is being shut permanently.
Gallegos said the loss of several hundred jobs is a concerning for residents who work there and for the community’s economy, including businesses that provide supplies and restaurants or stores where workers eat and shop.
He added that the ripples also affect truck drivers who deliver products to and from the plant, and workers on the farms that supply garlic and onions to be dehydrated.
Gallegos said the city is working with the state Employment Development Department to organize job fairs and provide information and resources to affected employees.
Property records show that Firebaugh LLC., a subsidiary of Olam, owns more than 290 acres across eight parcels, including the plant and surrounding farmland. Buildings comprise more than 510,000 square feet on the site.
Ketay said she did not know the status of the property.
This story was originally published July 10, 2024 at 8:13 AM.
