The Cargill Fresno Protein Processing Plant. Google Street View

Attorney General Rob Bonta announced Thursday a settlement with Western Valley Meat Co., an affiliate of Central Valley Meat, over concerns about its planned purchase of Cargill, Inc. in Fresno.

Central Valley Meat announced the acquisition agreement in May for Cargill Meat Solutions beef processing facility on North Avenue just west of Highway 41.

Bonta filed suit on Wednesday in Los Angeles County Superior Court, saying the acquisition would hurt market competition.

Cargill and Central Valley Meat are two of the largest facilities in the San Joaquin Valley that slaughter and process non-milk producing or “cull cows,” purchasing culled cattle from dairy farmers, according to Bonta’s office.

Under the settlement, Western Valley Meat must keep the Fresno plant operating for at least 12 months upon acquisition and retain at least 700 plant workers during that time. Cargill processes more than 300,000 head of culled cattle annually, according to court documents.

Central Valley Meat’s own culled-cattle slaughter plant in Hanford processes over the same amount, according to U.S. Department of Agriculture data.

Bonta’s office said the acquisition sparked competition concerns because with less market pressure processors could suppress prices offered to dairy farmers, or the plant capacity could have disappeared altogether.

“For dairy farmers, the loss of the Fresno Cargill plant could have meant lower cattle prices and fewer options when selling their cattle,” said Bonta. “The Central Valley has fed California and the U.S. for decades, and today I am proud to have secured the continued operation of an important processing plant and protection of 700 jobs for at least 12 months.”

Rep. Jim Costa of Fresno said food is a national security issue, adding the acquisition can serve the needs of the region.

“By combining resources and expertise, this acquisition will not only support local dairy farmers but also meet market demand and keep our supply chain intact,” Costa said. ” I am grateful to our local and state partners like Attorney General Rob Bonta who worked to sustain good paying jobs in the San Joaquin Valley and find paths forward.”

Today’s settlement allows for Western Valley Meat’s purchase of the Cargill facility in Fresno to be finalized, Bonta said.

At the time of the announced acquisition, Cargill’s Fresno plant employed about 880 workers, with Central Valley Meet stating it would retain about 700 of those employees when it acquires the plant.

Between June 5-7, layoffs notices were issued to 178 employees who Central Valley Meat did not intend to retain, according to court documents.

Under the settlement, Western Valley Meat agrees to continue operating the Fresno plant for 12 months and agrees to retain at least 700 existing employees for 12 months, during which they will be offered wages and benefits equal to or better than those offered before the merger.