Olam's garlic plant in Firebaugh could close — temporarily or permanently — come Aug. 30. Photo illustration by Cecilia Lopez

Editor’s note: This story was corrected to indicate the Firebaugh plant processed parsley and onion, and not garlic. The story also clarifies the plant would close by December 2024.

Olam America will begin closing operations at its Firebaugh spice plant and warehouse by Aug. 30, according to a notice posted with the state Employment Development Department. The facility is the former De Francesco dehydrating plant purchased by Olam in 2009. The closure is permanent and 275 workers will be laid off.

Firebaugh City Manager Ben Gallegos says the Olam plant manager has told him the closure is temporary and the Western Fresno County food processor would close only for a year and then reopen. The idea, Gallegos was told, was to clear a surplus of ingredients that has built up.

The plants owners clarified on Tuesday the closure will be permanent.

The plant processes parsley and onion, said Julie Ketay, director of communication, North America, for ofi — rebranded from Olam Food Ingredients in 2021.

The spices are used by food manufacturers.

Layoffs permanent

“The news is devastating for our community with the loss of so many jobs,” says Gallegos.

Olam, based in Singapore, is one of the world’s leading suppliers of agricultural products and food ingredients, sourcing 14 products from more than 52 countries.

The decision to permanently close the plant by the end of 2024 to close out the current growing season was due to “macroeconomic” reasons, after careful consideration of market conditions, said Ketay, the Olam spokesperson. The company’s strategic exit from the U.S. parsley market was also a factor, Ketay added.

Olam operates other food processing facilities, including a large garlic processing plant in Gilroy. The other plants in the area will continue to operate, Ketay said.

On exiting the California processing tomatoes market, Olam closed a plant in Lemoore. An auction was held in 2023 for the plant’s assets. Some 250 employees worked at the Lemoore tomato plant.

Olam Spices made the news in 2023 when they agreed to pay $4.5 million as part of a settlement to resolve claims it didn’t pay its California employees minimum and overtime wages. The settlement benefits individuals who worked as a non-exempt or hourly non-exempt employees at Olam West Coast Inc.’s Fresno, Firebaugh, Hanford, Lemoore, Gilroy or Williams locations in California between July 7, 2011, and Sept. 22, 2021.