
Sonoma County was built on fruit trees. Now, the last cannery is leaving
Inside one of the nation's largest organic apple canneries, glass jars rumble down conveyor belts to robot arms delivering squirts of apple juice, apple sauce and apple cider vinegar. A hulking stainless steel machine fills plastic fruit pouches before they tumble down the line to be pasteurized and cooled.
Manzana Products Co. started nearly a century ago as a fruit drying hub in Sebastopol's Green Valley, at a time when fruit trees far outnumbered grapevines. It grew into a major apple processing plant. But Sonoma County's apple harvest has been declining for decades, and today most of Manzana's apples are trucked in from Washington State farms.
'If we want to be here another 100 years, we need to move,' Manzana chief executive officer Andy Kay said.
Kay said many factors led to the decision, which the company has been considering for years. Manzana (which means apple in Spanish) was locally owned until 2012 when Agrial, a large French agricultural cooperative, purchased the company as a beachhead into U.S. farming.
Manzana wanted to grow, Kay said, but the company couldn't expand at its current site, which is hemmed in by farmlands and rural roads. Another issue was the high cost of doing business in California — taxes, gas prices and regulatory costs, among them, all worsened by high inflation in 2021 and 2022 — versus Washington state, where most domestic apples are grown.
The organic apple industry isn't declining — far from it, said Kay. It just isn't in California.
The apple's heyday in Sonoma County came in the 1940s and 1950s when nearly 15,000 acres of apple orchards bloomed each spring — long before winegrapes took over Sonoma County's farmlands. Elementary schools bear names like Apple Blossom and Gravenstein, after the flavorful varietal promulgated by famed horticulturalist Luther Burbank. An estimated 2,000 acres of productive apple orchards remain. The 2023 apple harvest was worth just under $3.6 million, compared to a winegrape crop worth more than $716 million.
Manzana has for generations been a reliable buyer for the region's apple farms, which are comprised of a few large plantations like Dutton Ranch and numerous smaller backyard orchards. Many Manzana employees' families have worked for the company for generations.
Sonoma County Agricultural Commissioner Andrew Smith said that while apples have been a valuable crop, the sector has been stagnant for decades, in part because much of the harvest comes from small backyard orchards. Smith expects smallscale orchard owners will find it harder than larger growers to survive without a local processing plant.
Manzana's departure is the latest in a series of hits to Sonoma County agriculture, a lasting bastion of farms and ranches that is still the most productive in the Bay Area. A string of longtime dairies closed in the last several years, and poultry farms have been rocked by the avian influenza and persistent animal rights protests. Even wine grape farmers have struggled to sell their harvests.
'We're at a point of an agriculture crisis,' Sonoma County Supervisor Lynda Hopkins said.
Hopkins said she's regularly hearing from farmers, ranchers and producers who are scraping by — and from laborers who can't find work. Soaring expenses, stringent California regulations, steep taxes compared to nearby states, and sluggish alcohol sales have driven many businesses to the brink.
Some apple farmers are putting their hopes into hard ciders, with several top brands headquartered in Sebastopol — including nationally distributed Ace Cider and Golden State Cider, a leading brand statewide, plus many other smaller makers in Sonoma County like Goat Rock, Horse & Plow and Tilted Shed.
Both Smith and Hopkins said that if orchards go fallow, especially small backyard plots, they could become breeding grounds for pests, especially the prime enemy of the apple: the coddling moth.
'Your neighbor's coddling moths are your coddling moths,' said Carole Flaherty, who has about 200 trees at her farm outside Sebastopol.
Donning a hair net, protective goggles, white coat and ear plugs in a Manzana warehouse, Kay walked through a bustling work bay, waving at employees working the machines. The company uses only organic fresh apples grown on American farms — about 20% in Sonoma County and the other 80% in Washington State.
Manzana's North Coast brand apple products stands out on grocery store shelves because they are made from fresh apples — not concentrates.
Kay said it no longer made sense, either financially or environmentally, to truck apples hundreds of miles from Washington to Sebastopol. The company is planning to phase out operations at the Sebastopol warehouse gradually through the end of 2026. He said Manzana has offered jobs to local workers willing to move, and some have jumped at the opportunity to move to a less expensive area. The company has signed contracts to continue buying Sonoma County apples and truck them north through 2029.
Manzana is refurbishing a Washington warehouse that is nearly double the size and located on a rail spur, which is expected to lower transportation costs for materials, ingredients and finished products. Kay said more consumers are reaching for organic products and the company wants to get North Coast branded juice, sauce and vinegar on more grocery stores shelves across the country.
'We have big plans,' he said.
A short, winding drive west on narrow country roads from Manzana's warehouse, the Dutton family has been farming Granvesteins and other popular varieties like Jonathans and Golden Delicious since the 1960s.
Behind the wheel of an extended cab pickup on his family's Graton ranch, Joe Dutton turned off a dirt road and navigated between pinot noir and sauvignon blanc vines to rows of gnarled 75-year-old trees. Gravensteins are delicate and easily bruised, and best suited for local farmers markets or to be made into pies, juice and sauce.
'Tart, sweet — incomparable,' Dutton said, pointing out tiny green clusters of baby apples.
Wine grapes have gradually replaced orchards on Dutton Ranch, but the farm still produces about 200 acres of apples and just replaced a patch of less productive Rome Beauties with young Gravensteins. For Dutton and his brother Steve, their decision is part nostalgia for their childhoods on the family apple farm. But it's also practical: The trees need tending during lulls in grape growing, which keeps their workforce employed fulltime throughout a 10-month farming season.
Joe Dutton said he's not surprised or alarmed by Manzana's departure because he's hopeful Manzana's expansion plans means it will continue needing Sonoma County fruit. 'I take a long view,' he said.
Four miles south of Manzana at Quail Run Orchard, Flaherty has about 200 trees including old and gnarled Gravensteins dating back to 1915 and young trees with their most productive years ahead.
Like many small orchard owners, Flaherty contracted with a farmer who cared for her apples and sold them to Manzana, but she said he quit after learning that the company planned to leave, so Flaherty's not sure what she will do with this year's bounty.
She said small farmers are discussing their options and batting around ideas like collaborating on a mobile apple processor or leasing unused wine production space.
'I'm afraid we're going to lose a lot of orchards — and we've already lost a lot,' Flaherty said.

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
2 hours ago
- Yahoo
China carefully assembling a deep-sea mining strategy
In a world hungry for crucial resources, China may not be poised to start deep-sea mining but it is planting seeds for such operations in a meticulously planned economic and geopolitical strategy. The world's oceans, both international waters and those under national jurisdiction, are rich in minerals and metals, like cobalt, nickel and copper. These are important for building electric car batteries, for instance, and other technologies as countries try to transition away from fossil fuels. China "is an energy-thirsty country. It will look for resources everywhere," including the deep sea, said Julia Xue of Shanghai Jiao Tong University. But she said China is not particularly anxious over the issue, although recent developments -- one company is itching to be the first to start mining the sea bed -- may put more pressure on Beijing. A Canadian firm, The Metals Company, has filed an application with the United States to begin undersea mining in international waters. Using its American subsidiary, it acted after President Donald Trump, bypassing international negotiations, signed an executive order in April to speed up the permit-issuing process for such mining in US and international waters. Trump cited an obscure 1980 US law that says American citizens can explore for and recover deep sea minerals in areas beyond the country's jurisdiction. Environmental groups are outraged by Trump's order, arguing that a wild hunt for the potato-sized, metal-containing nodules could harm fragile undersea ecosystems. The Canadian company initially said it would submit its request to the International Seabed Authority (ISA), a body which has jurisdiction over the ocean floor in international waters. The Metals Company says it ignored this authority because of its slow pace in talks on adopting a mining code that establishes rules for exploiting seabed resources. The United States is not an ISA member. A long-time observer of those talks who spoke on condition of anonymity said China is not particularly worried about who starts mining first. "For them it's more about dominance, staying competitive in the game, and giving the impression that you can't mess with us," the observer said. With that goal in mind "they're definitely developing the technology and putting the strategic agreements in place," Alex Gilbert, a researcher at the Payne Institute for Public Policy at Colorado School of Mines, told AFP. For instance, China has reached an agreement with the Cook Islands to explore for minerals in that Pacific country's waters. Another tiny Pacific nation, Kiribati, also says it is exploring a deep-sea mining partnership with China. This approach is "more geopolitical than economic," said Emmanuel Hache of the French Institute for International and Strategic Affairs, noting Beijing is using undersea mining as a lure to cement greater diplomatic support as it exerts power. China holds five contracts handed out by the ISA to look for resources in the Pacific and Indian Ocean sea beds and these contracts cover all types of undersea mineral resources. China's is the largest number of the 22 contracts the organization has granted. - Years behind - "From a research perspective, we have been continuously getting closer. And from a technical perspective, we have been continuously improving," said Chen Xuguang, a researcher at Ocean University of China. In 2024 a Chinese prototype deep-sea mining vehicle called Pioneer II, developed by Shanghai Jiao Tong University, set a national record by operating at a depth of more than 4,000 meters (13,100 feet). State-owned Beijing Pioneer Hi-Tech Development Corporation told AFP that later this year it plans a seabed nodule collection test. Still, China is not as advanced technologically as The Metals Company, experts say. "I would characterize China as being two to four years behind them in terms of their technology," said Gilbert in Colorado. Hache, the French expert, put the gap at five years. But China has an advantage over firms like the Canadian one in recovering and processing nodules: its companies are supported by the state and China has infrastructure for processing metals. The observer of the international seabed talks said China does not need seabed mining for metal supply, "but maybe geopolitically, in the context of maintaining their control over the commodities market." China wants to keep its options open, this person said. And while it supports an international mining code, China does not need one now and "they're not going to put pressure until they've decided strategically that they're ready," said Gilbert. abd/dw/mlm
Yahoo
5 hours ago
- Yahoo
Klarna CEO predicts AI-driven job displacement will cause a recession
Klarna's CEO has predicted that a recession could be around the corner as companies around the globe—including his own—reduce the headcount of well-paid, white-collar jobs and replace them with AI. Sebastian Siemiatkowski, the boss of the Swedish Buy Now, Pay Later group is once again sounding a pessimistic tone on AI's impact on the workforce. But as he embraces the potential positive effects of AI on his own bottom line, he may have to contest with the negative fallout of a company that has flirted with growing credit losses in the last year. While he admitted that 'making future statements about macroeconomics is like horoscopes,' Siemiatkowski's well-documented feelings about AI's impact on the labor market leave him making a pessimistic prediction about the economy. 'My suspicion…is that there will be an implication for white-collar jobs. And when that happens, that usually leads to at least a recession in the short term. And I think, unfortunately, I don't see how we could avoid that with what's happening from a technology perspective,' Siemiatkowski said on the Times Tech Podcast. Siematkowski has long warned of the disruptive nature of AI on the labor market, using his experience of shifting recruiting practices at Klarna to support his argument that it will replace roles. He told the podcast that the company's headcount had fallen from 5,500 people to 3,000 in the space of two years. Speaking in August last year, Siematkowski said his ambition was to eventually reduce that figure to 2,000 through workplace norms like attrition rather than by engaging in layoffs. In February last year, Klarna announced that its AI chatbot was doing the work of 700 customer service staff, previously a role filled by customer service agents working for the French agency Teleperformance. While Siemiatkowski has faced criticism for his willingness to talk about AI's disruptive potential, he indicated he felt it was more of a duty to be frank about the technology. 'Many people in the tech industry, especially CEOs, tend to downplay the consequences of AI on jobs, white-collar jobs in particular. I don't want to be one of them.' Indeed, Siemiatkowski implied that if he added up the number of employees of CEOs who had called him to ask about making 'efficiencies,' that figure in itself would make for a seismic economic event. An AI-induced recession would combine a number of brewing themes for the Swedish tech group. Siemiatkowski's comments come as the group reported widening credit losses, which rose by 17% to $136 million last year. Siemiatkowski explained the losses as a result of the group taking on more customers, naturally leading to a rise in defaults. On a relative basis, the percentage increase in defaults was small, Siemiatkowski said. The Swede added that because Klarna customers' average indebtedness was £100, they were more likely to pay back their loans compared with typical credit card debt of what he said was £5,000. The typical U.K. credit card holder has an outstanding credit balance closer to around £1,800, while in the U.S., the average is about $6,300. Regardless of the variance, Siemiatkowski says the difference means customers are more likely to pay off their Klarna debts. 'We are very unsensitive to macroeconomic shifts. We can still see them, but they're much less profound than if you're a big bank, you have tons of mortgages. And for people to really increase losses, credit losses, what has to happen is people have to lose jobs.' Despite that, predictions of mass layoffs among white-collar workers could inform higher risk for the company's credit business. While there wasn't any sign of a recession currently, Siemiatkowski did observe falling consumer sentiment, which would impact spending. Siemiatkowski's views on AI in the labor force have evolved over time. Speaking to Bloomberg in May, Siemiatowski was reported to have said the company was embarking on a recruitment drive, contrary to his previous statements about a workforce reduction. Speaking with the Times, Siemiatkowski clarified that the company needed different types of workers to handle more complex customer service requests. 'When we started applying AI in our customer service, we realized that there will be a higher value to human connection,' he said. This story was originally featured on

Miami Herald
5 hours ago
- Miami Herald
Deputy secretary of State to hold talks in Mexico, El Salvador, Guatemala
June 9 (UPI) -- U.S. Deputy Secretary of State Christopher Landau will travel this week to Mexico, El Salvador and Guatemala in an effort to boost economic growth and end undocumented immigration, the State Department announced Monday. Landau will participate in high-level bilateral talks "to further strengthen diplomatic ties and cooperation," starting Tuesday. He will also work to "drive private sector led economic growth, boost U.S. commercial investments in our region and highlight the importance of ending illegal immigration," before returning Friday to the United States. Landau, who was born in Madrid, Spain, and speaks fluent Spanish, served as the U.S. ambassador to Mexico from 2019 to 2021. He was confirmed by the Senate to become U.S. deputy secretary of State in March. After his confirmation, Landau addressed the people of Mexico in a Spanish-language statement saying, "the relationship between our countries will continue to be one of my top priorities." "Even if I do not have the pleasure of living among you again, you will always be very present to me," he added. Landau's return to Mexico this week comes three months after Trump threatened 25% tariffs on all imports to stop the flow of undocumented migrants and illegal drugs into the United States. Those tariffs were later suspended for products compliant with the U.S.-Mexico-Canada Agreement. While Trump set 25% tariffs on Mexico, he set only 10% tariffs on Guatemala, which officials hope put their country in a better position to spur more investment. Lisardo Bolaños, former deputy minister of Investment and Competitiveness in Guatemala's Ministry of Economy, said unlike Mexico, the United States maintains a goods trade surplus with Guatemala. "Guatemala is a key U.S. ally in the region. We have shown decades-long support for U.S. policies in the international arena," Bolaños said last month. Undocumented immigration is expected to be among the lead topics discussed this week when Landau meets with officials in El Salvador, which is currently housing more than 137 migrants flown out of the United States to a maximum-security prison. Many of the deportees, removed under the provisions of the Alien Enemies Act, were Venezuelans accused of being members of Tren de Aragua, which Trump calls a terrorist organization. Earlier this month, a federal judge ruled the Department of Homeland Security had "improperly" flown the migrants from Texas to El Salvador without granting them due process to challenge their designation as "alien enemies." Copyright 2025 UPI News Corporation. All Rights Reserved.