Olam Exits from U.S. Parsley Market, Impacting Fernley

Olam, a global food and agriculture company, announced its decision to exit the U.S. dried parsley market, resulting in the closure of its Firebaugh, Calif., plant and the layoff of 275 workers. The Singapore-based Olam Group, which reorganized in 2020 to create Olam Food and Ingredients (OFI) and Olam Agri, will continue to operate other dehydrating facilities, including one in Fernley.

The Firebaugh plant, known for producing dried onions and parsley for global food manufacturers, will shut down in phases starting August 30, with final layoffs in December. This closure will redirect onion dehydration to other OFI plants, including the Fernley facility.

Director of Communications for OFI Julie Ketay said the decision was prompted by market conditions.

“Everyone is looking for the best ways to meet the needs of our customers,” she stated.

The permanent closure of the Firebaugh plant, clarified by Ketay, contradicts initial statements suggesting a temporary shutdown. Firebaugh City Manager Ben Gallegos highlighted the significant economic impact on the community, affecting not just plant workers but also local businesses, truck drivers, and farmworkers involved in the supply chain.

In response, the city of Firebaugh is collaborating with the California Employment Development Department to organize job fairs and provide resources for affected employees.

Despite the closure, OFI continues to operate several other plants, including those in Gilroy and Hanford, California, and Boardman, Oregon, ensuring the company’s continued presence in the U.S. agricultural sector.

The Fernley plant’s operations will be crucial in absorbing the production capacity from Firebaugh, maintaining employment, and supporting the local economy around Yerington.

As Olam navigates these changes, the focus remains on meeting customer needs while adapting to shifting market conditions. The closure leaves questions about the future of the 290-acre property owned by Firebaugh LLC., a subsidiary of Olam. Ketay indicated that the status of the property remains undetermined.