Diamond Foods looking to amend relationship with California walnut growers, but several not convinced by company's efforts
February 17, 2012
– The new management of Diamond Foods Inc. is looking to mend its strained relationship with its California walnut growers, making a payment to them this week and sending a letter seeming to say that their payments have not been competitive, Reuters reported Feb. 17.
According to Reuters, which obtained a copy of the letter, Diamond officials seemed to say that its payments had not been on par with what growers can expect from other buyers. The letter also stated that Diamond is pushing back the contract renewal date with the growers by three months to June, giving the company more time to meet with farmers to convince them to stay with the company.
But Reuters was told by several of the growers that they’re not convinced by Diamond’s efforts, with some adding that they planned to stop selling their walnuts to the company because of years of low payments.
The primary source of this article is Reuters, London, England, on Feb. 17, 2012.