GILROY, CA - One of the produce industry’s own announced it will permanently shut its doors at the end of its current season. Gilroy, California-based Uesugi Farms—a grower of more than 20 fresh produce categories including peppers, strawberries, and pumpkins—has cited poor market conditions and other outside factors as the reason for exiting the business.
“Due to market conditions and factors outside of its control, Uesugi Farms has made the difficult decision to wind down its operations at the conclusion of the 2018 Fall harvest season,” wrote the company in a recent posting. “Uesugi’s priority is to maximize the value of its assets and implement plans to work with customers, vendors, lenders, employees, and others to obtain the best outcome possible for all its stakeholders.”
The Gilroy Dispatch reported that Uesugi Farms has begun selling its assets and farm equipment with the help of Heritage Bank of Commerce. The sources estimate the equipment—which includes trucks, harvesters, plows, bin trailers, and more—equals a value of several millions of dollars.
“The company is in the process of reaching out to its customers and vendors to help them understand what this will mean for them and the proposed next steps,” Uesugi shared in its post.
Uesugi Farms came under ownership by the Aiello family in 1979, The Gilroy Dispatch shared in its report, when Joe Aiello bought the company from its original owners. Pete Aiello is the current General Manager. Uesugi is said to currently have more than 5,000 acres in production, which it operates with the help of 250 seasonal workers and 50 year-round staff members.
