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US: Diamond looks to patch up relations with growers

Diamond Food has made moves to patch up its flagging relations with California walnut growers.

Last week the company sent a letter to the growers in question stating, "Recently, this long-standing important relationship has been strained and now needs to be addressed."

The letter did seem to suggest that their was fresh realisation of the need to pay competitive rates:

"We realize that our growers are looking for us to be competitive with the other alternatives available to them," the letter said.

The letter comes just as some growers had stated that they would not be continuing their relationship with Diamond after their current contracts came to a conclusion, after they alleged that they had been underpaid by the company for years.

Diamond stated in the letter that it was pushing back the contract renewal date by three months to give the company time to convince growers to stay with them.

The company appears to be trying to set things straight after an internal investigation last week found the company had been impropriety accounting for payments to growers. The CEO and Chief Financial Officer were removed from their positions as a result.

Some growers, however, remain unconvinced and are not impressed by recent payments, ever after the finding of then internal investigation.

Source: af.reuters.com

Publication date: 2/21/2012


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