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Darigold has finalized plans to close its production facility in Chehalis, the company confirmed in a statement to The Chronicle Wednesday, with operations expected to conclude by early December.
The decision was made by the company’s board of directors and senior leadership as part of a broader strategy to optimize its production network, and to align operations with the location of its member farms and centered on customer needs, the company said.
“This was a difficult decision, and one we did not make lightly,” the Seattle-based processing and marketing company wrote. “We are deeply grateful to our Chehalis team members for their dedication and contributions to our cooperative. This change reflects the evolving dynamics of our industry and our commitment to building a sustainable future for our farmer-owners and customers.”
Darigold said it is working closely with affected employees to support them through the transition. Darigold is offering impacted team members compensation packages, as well as opportunities to apply for open roles at other Darigold locations in accordance with labor agreements. The company recently opened a 500,000-square-foot, $900 million plant in Pasco.
“The Chehalis facility has been a valued part of our operations for five decades, and we will always be grateful for the support we’ve received throughout our time in Chehalis,” the company said. “We will soon begin preparing the site for sale and hope it will continue to serve the community in a new capacity. While a difficult decision, we are confident it is the right one for our business and our members.”
Darigold Inc. was recently in local news in early August as Lewis County Assessor Ross Nielson signed an agreement with the company to adjust the county’s property value assessment of the Chehalis facility, located at 67 SW Chehalis Ave. The change reduced the value of the building in the county’s eyes by more than $70 million, significantly lowering the company’s property tax burden for 2025, according to previous Chronicle reporting. The property reduced the official county assessed value of the Darigold property from approximately $97 million in 2024 to just over $22.5 million.
Darigold is expected to pay almost $600,000 less in property taxes in 2025 for the Chehalis property, with the company paying property taxes on the holding of just over $8 per $1,000 of assessed value, according to Chronicle reporting and the Lewis County parcels website.
According to a source to The Chronicle that said they were previously employed at the Chehalis Darigold plant, a rumor had been circulating among Darigold employees for months, especially with the construction of the Pasco facility. The source said Chehalis Darigold employees were “constantly reassured” by corporate that the Chehalis plant would not close.
"The decision to close Chehalis was only made quite recently — in just the last couple weeks," Darigold said in a statement. "News of that decision was shared with employees very shortly after it was made."
According to The Chronicle’s archives, the Chehalis Darigold plant went into operation in 1975.
There are currently 54 employees at the plant, according to the company.
For more information on the property tax adjustment, visit https://tinyurl.com/mr46z978.
