Martinelli's Ends Some 2027 Apple Contracts, Pushing Pajaro Valley Growers to Tear Out Orchards
Updated
Updated · Lookout Santa Cruz · Jun 1
Martinelli's Ends Some 2027 Apple Contracts, Pushing Pajaro Valley Growers to Tear Out Orchards
3 articles · Updated · Lookout Santa Cruz · Jun 1
Summary
Pajaro Valley growers say Martinelli’s told them it will stop renewing some contracts after the 2027 season, leaving farmers who sold most or all of their crop to the cider maker without a major replacement buyer.
The shift appears tied to economics: local cider apples fetch about $400 a ton, versus roughly $135 for Washington “seconds” and $70 for juice, though Martinelli’s says only that it is evolving sourcing while remaining committed locally.
Peter Knego has already begun removing family orchards and leasing land to berry growers, while other farmers are weighing grafting new varieties, direct sales or u-pick models that cannot absorb Martinelli’s former volumes.
The fallout extends beyond fruit sales because Martinelli’s also underpinned labor, equipment and orchard management; small cideries say they have had to turn away growers and cannot replace that infrastructure.
The retrenchment threatens a century-old Watsonville apple culture founded by Croatian immigrant families, in a region where apples brought in $13.3 million in 2024 versus more than $446 million for berries.
With its apple-growing legacy gone, what is the future of Pajaro Valley's cultural and economic identity?
Is replacing historic orchards with berry farms an environmental loss or a sustainable evolution for local agriculture?
Can a heritage brand survive after abandoning the very heritage it was built on?
Martinelli’s Ends Local Apple Contracts: Pajaro Valley Faces Economic, Cultural, and Agricultural Upheaval
Overview
S. Martinelli & Co. has decided to stop renewing contracts with Pajaro Valley apple farmers, leaving many growers—who have long depended on Martinelli’s as their main buyer—facing major uncertainty about their future sales and income. Without these contracts, farmers must now find new markets for their apples, a process that is both complex and time-consuming. This sudden change threatens their financial stability and makes planning for the future difficult. The reasons behind Martinelli’s decision have not been explained, adding to the uncertainty and concern among local farmers and the wider community.