The California Canning Peach Association has reached a price agreement with Del Monte Foods for #1 grade peaches delivered to them for canning in 2008. The price of $321 is a 12% increase over the price paid in 2007. It represents an interest on the part of the cannery to keep growers from removing more trees from production in California. The grade standard has been relaxed in 2008 from where it was in 2007. The tolerance standards are now set to allow growers more room to place damaged fruit into a bin without an economic penalty. There will be less interest on the growers part to sort their peaches for juice in 2008.