Pacific Nut Producer Magazine

Category: Economics

  • Blue Diamond Growers Honors Bill Brush, Releases Annual Report

    Blue Diamond Growers held their 114th Annual Meeting on Nov. 20 in Modesto, CA. President and CEO, Kai Bockmann, highlighted the farmer-owned cooperative’s successes over the last year and the progress made against its strategic growth plan. Blue Diamond Grower, Bill Brush of Modesto, received the Chairman’s Grower Ambassador of the Year Award, presented by Blue Diamond Chairman Steve Van Duyn – also of Modesto.

    Kai Bockman, President and CEO, Blue Diamond Growers

    With nearly 1,000 farmer-owners in attendance, Bockmann and Van Duyn reflected on the year noting that despite continued challenges facing the industry, Blue Diamond achieved great successes against its strategic plan to deliver a competitive return to its growers.

    “This year, amidst the challenges, Blue Diamond has fought for its members by tapping into every opportunity to strengthen our portfolio and increase demand for our almonds,” said Van Duyn. “I am confident that through the excellent leadership of our Board of Directors and the Blue Diamond team good times are ahead.”

    Alongside several company executives – Carmen Bourgaize, Chief Commercial Officer, Tony LaurenzanaSenior Vice President, Ingredients and Branded International Sales, Steve Schult, Vice President, Supply Chain, and Mel Machado, Vice President, Member Relations – Bockmann shared how the Cooperative is strengthening its core business while creating new opportunities for growth by expanding its international footprint and product portfolio.

    “What drives us every day is to deliver the highest return for your almonds,” said Bockmann. “Our ability to adapt swiftly to changing market conditions, paired with our strategic planning and forward-thinking approach, enabled us to navigate through difficult circumstances and see positive returns from our strategic plan.”

    Over the last year, Blue Diamond drove strategic investments in key international markets including Canada, Mexico, Japan, Europe and the Middle East. A new partnership with Japanese company, Kagome®, is set to position Japan to be a top international market for Blue Diamond’s Almond Breeze® almondmilk. The Cooperative successfully launched their large format for club stores in Mexico and established a new distributor in the Middle East, catering to markets across the region. In Europe, new flavored almonds are being introduced, offering customers additional flavors and forms.

    Domestically, Blue Diamond’s focus on innovative offerings continues to make an impact in the market, captivating consumers with their unique flavors and textures. Broadening its presence in the grocery store, Blue Diamond released two new product lines – a tasty array of almond and almond fruit blends for retail produce departments and Almonds and More mixed nut products. A new snack nut, Ranch flavor, launched and was picked up by major retails across hundreds of stores, while consumer favorites Chile n’ Lime and Snickerdoodle launched nationwide.

    “Blue Diamond’s products have tremendous value to offer consumers – innovation, flavor, nutrition, and convenience,” said Carmen Bourgaize, Chief Commercial Officer. “We are leveraging these strengths to entice consumers and drive consumption.”

    In addition to outlining progress made on the strategic plan, the executive panel noted the company’s focus on maximizing efficiencies across the business. Investing in state-of-the-art equipment has optimized operations across all facilities, while energy conservation initiatives improved air compression inefficiencies to achieve energy savings.

    Bockmann concluded the business meeting expressing optimism for Blue Diamond’s future and the company’s key differentiator – its people. Supporting more than 4,400 families between its farmers and team members, Blue Diamond is steadfast in its commitment to continued growth and progress for the Cooperative.

    “It all comes down to one thing: build a bigger, better stronger Blue Diamond that provides the best return for our growers’ almonds. This is only the beginning of us Growing Together,” said Bockmann.

    Blue Diamond Chairman’s Award

    At this year’s annual meeting, Blue Diamond’s Board Chairman Steve Van Duyn presented the 2024 Chairman Award to Bill Brush. Brush, a Blue Diamond grower for more than 40 years, is an agronomist, water expert and plant nutritionist. Through his consulting business B&B Ag Consulting, Brush has assisted farmers throughout the world with soil fertility and water treatments. More recently, he has continued his work of educating the agricultural community through his podcast, “Agriculture in a Nutshell.” Brush is a steadfast advocate for agriculture and the almond industry serving more than 18 years on the Almond Board of California.

    Blue Diamond Annual Report Now Available

    In conjunction with the Annual Meeting, the Blue Diamond Growers 2024 “Growing Together” Annual Report is now available on the Blue Diamond website at www.bluediamond.com.

    About Blue Diamond Growers®

    Blue Diamond Growers, a grower-owned cooperative representing nearly 3,000 of California’s almond growers, is the world’s leading almond marketer and processor. Established in 1910, it created the California almond industry and opened world markets for almonds. Blue Diamond is dedicated to delivering the benefits of almonds around the world and does so by providing high-quality almonds, almond ingredients, and branded products. Headquartered in Sacramento, the company employs approximately 1,400 people throughout its processing plants, receiving stations and gift shops. To learn more about Blue Diamond Growers, visit www.BlueDiamond.com and follow the company on Facebook, Instagram, and LinkedIn.

  • California Almond Acreage Drops Again in 2024

    California’s total almond acreage dropped again in 2024, making three years in a row that acreage has decreased, something that has not happened since at least 1995, according to a new report from Land IQ to the Almond Board of California (ABC).

    Total acreage dropped by about 40,000 acres from 1.56 million acres in the last crop year to just over 1.52 million in 2024. Bearing acres – orchards producing almonds and planted in 2021 or earlier – increased by the smallest amount in more than two decades, just 9,000 acres. The total of bearing acres during the 2024 growing season was 1.383 million acres compared with 1.374 million acres at this time last year.

    But the amount of non-bearing acreage – new orchards planted in 2022, 2023 or 2024 – sank about 47,000 acres from 189,000 acres in 2023 to 142,000 in 2024, according to the Land IQ 2024 Standing Acreage Final Estimate.

    “Three straight years of decreased acreage and sizeable orchard removals reflect a trend toward lower overall California almond acreage,” said Clarice Turner, ABC president and CEO. “At the same time, we continue to see strong shipments – in the past crop year, for the first time ever, we shipped more than 200 million pounds in 11 consecutive months, plus for the year, we shipped 300 million pounds more than we produced. We know global demand for California almonds continues to grow and that almonds will continue to have a very significant role in California and global agriculture and food industries for the foreseeable future.”

    There were significant orchard removals again in 2024 totaling almost 67,000 acres. Those add to the 83,000 acres removed in 2023 and 60,400 acres removed in 2022, according to the accompanying Land IQ 2023 Removal Update. Those removals and the decreasing amount of non-bearing acres, or new plantings, contribute to the probability of fewer acres over the next few years, Turner said.

    In addition, slightly more than 30,000 acres are classified as either stressed or abandoned. They were included in the standing acreage total because the orchards “may have the ability to recover,” Land IQ said.

    The estimates come from multiple lines of evidence, including agronomic and remote sensing knowledge, robust on-the-ground verification, customized image analysis, artificial intelligence and more. Land IQ said the 2024 standing acreage estimate is 98.8 percent accurate.

    The report also said the slight change in the amount of bearing acreage from the April initial estimate – which was labeled as exactly that, the initial accounting – was the result of Land IQ crews in the orchards identifying additional bearing acres, and because removals were overestimated in April by about 4,000 acres.

    Land IQ’s acreage estimates are commissioned by ABC to provide statistical transparency and a robust picture of California almonds to industry stakeholders around the world. In 2018, ABC first commissioned Land IQ, a Sacramento-based agricultural and environmental scientific research and consulting firm, to develop a comprehensive, living map of California almonds. The map is the result of more than a decade of research. — By the Almond Board of California

  • Blue Diamond Growers Awarded National FFA’s Distinguished Service Citation for Giving Tuesday Contributions

    Blue Diamond Growers was recently awarded the prestigious Distinguished Service Citation by the National FFA Organization at the 97th National FFA Convention and Expo in Indianapolis, Ind.

    The Distinguished Service Citation is an esteemed award honoring organizations, agencies, businesses, or other groups who have made outstanding contributions to FFA and agricultural education. Awardees must be nominated by a state association. Blue Diamond Growers was among the four awardees acknowledged at this year’s National FFA Convention.

    This year, the California Association FFA nominated Blue Diamond Growers, paying homage to their longstanding partnership on Giving Tuesday. This day is an annual tradition for FFA alumni, friends, and supporters to rally behind the California FFA Foundation’s “Give the Gift of Blue” initiative, which provides FFA jackets and uniform essentials to deserving FFA members.

    Set to be held on December 3 this year, the contributions made on Giving Tuesday are multiplied by the unwavering support of Blue Diamond Growers, who, since 2017, have pledged to match every donation up to $25,000.

    “This marks our eighth Giving Tuesday, a tradition of raising funds to ‘Give the Gift of Blue,’ in partnership with Blue Diamond Growers,” said Emily Rooney, chair of the California FFA Foundation and president of the Agricultural Council of California. “With the support of Blue Diamond Growers, we have raised over $463,785, providing 5,293 FFA jackets to members throughout California. We are delighted to see their efforts recognized by National FFA with the Distinguished Service Citation.”

    With California’s record-breaking membership of more than 104,000 middle and high school students, the demand for blue jackets has never been greater. The iconic blue jacket stands as more than just a part of the official FFA uniform; it also embodies the values of leadership and rich agricultural tradition instilled in FFA members for over 96 years.

    “We are extremely honored and grateful to have received the Distinguished Service Award from FFA,” said Steve Van Duyn, chairman of Blue Diamond Growers. “As a farmer-owned cooperative, we have a long history of supporting the next generation of agriculturists and food producers and are proud to continue this effort through our partnership with FFA.”

    Beyond Giving Tuesday, Blue Diamond Growers has been a steadfast ally to FFA and agricultural education, extending support through sponsorships of various proficiencies and awards. With 114 years of agricultural history in Northern California, and the participation of approximately 3,000 family growers responsible for producing almonds for the world, Blue Diamond Growers epitomizes a legacy of excellence.

    To discover more about the California FFA Foundation’s Giving Tuesday initiative or to contribute, please visit www.calaged.org/givingtuesday. Follow California FFA on Instagram, Facebook, or LinkedIn.

    About the California FFA Foundation

    California FFA Foundation serves more than 104,000 California students and strives to make a difference in their lives by developing their potential for premier leadership, personal growth, and career success through educational education. To learn more about the California FFA, visit calaged.org.

    About Blue Diamond Growers®

    Blue Diamond Growers, a grower-owned cooperative representing over 3,000 of California’s almond growers, is the world’s leading almond marketer and processor. Established in 1910, it created the California almond industry and opened world markets for almonds. Blue Diamond is dedicated to delivering the benefits of almonds around the world and does so by providing high-quality almonds, almond ingredients, and branded products. Headquartered in Sacramento, the company employs more than 1,600 people throughout its processing plants, receiving stations and gift shops. To learn more about Blue Diamond Growers, visit www.BlueDiamond.com and follow the company on Facebook, Instagram, LinkedIn and Twitter.

  • Hazelnut Growers Bargaining Association Market Forecast

    Oregon hazelnut growers are pleased with improving market conditions this year, especially after wrapping up potentially a record large 2024 harvest. Pacific Nut Producer Editor Matthew Malcolm met with Terry Ross from the Hazelnut Growers Bargaining Association to discuss factors influencing what growers will be receiving in return for their crop and the association’s critical role in negotiating fair prices. Watch this brief interview and stay current on hazelnut industry news by reading your monthly issue of Pacific Nut Producer Magazine.

    Please thank this video’s sponsor George Packing Company for their industry support.

  • New Frosted Brownie Almonds for the Holidays

    To kick off the holiday season, Blue Diamond, the world’s leading almond marketer and processor, today announced the launch of a new seasonal flavor: Blue Diamond Frosted Brownie Almonds. A]er exploring over 60 different holiday flavors and experimenting with 11 variations of frosted brownie, Blue Diamond has crafted a unique, festive treat that combines the flavors of rich chocolate and creamy frosting with the signature crunch of almonds creating an irresistible holiday snack.

    “We like to consistently test different flavor innovations, especially around the holidays, to expand our product portfolio based on what we know consumers are craving,” said Maya Erwin, Vice President of Marketing & Innovation at Blue Diamond. “Chocolate and the holidays go hand in hand, so we created Frosted Brownie to lean into this seasonal flavor, allowing snackers to enjoy the rich and creamy indulgence of a brownie, all with the crunch and goodness of an almond.”

    This is the third year Blue Diamond has released limited-edition holiday flavors, following last year’s soaring sales of Blue Diamond’s returning flavor, Snickerdoodle, highlighting the strong consumer demand for seasonal flavor offerings. Returning once again for 2024, consumers can enjoy the delicious cinnamon sugar cookie taste of Blue Diamond Snickerdoodle Almonds that they’ve come to love over the past two years.

    Blue Diamond is known for its unique lineup of craveable flavors such as Ranch, Thin Dipped and Chilé ‘N Lime and will increase its lineup of 20+ flavors with this latest holiday flavor expansion.

    From now through December 2024, holiday fanatics can find these holiday almond flavors in 6oz cans at major retailers nationwide and Amazon.com (MSRP: $4.29). For more information on existing and new products, visit BlueDiamond.com.

  • California Association of Pest Control Advisers Celebrates 50th Conference

    The California Association of Pest Control Advisers (CAPCA) recently gathered for their 50th annual conference. Bringing together a bright group pest control advisors tasked with protecting the most diverse agricultural landscape in the nation, watch this special video presentation highlighting what CAPCA is all about and what it means to be a member of this organization as they celebrate this milestone year.

  • California Walnut Crop Mid-Harvest Update

    Fall is here, and the California Walnut Commission is pleased to provide a mid-harvest update on the 2024 walnut crop. With harvest progressing smoothly, we are excited to share some positive developments.

    While early varieties of California walnuts are nearing completion, the California-developed Chandler variety is at the peak of harvest and the industry is pleased with the quality of this year’s crop. Reports indicate that the walnut crop held up well to the summer temperatures, which were less severe than temperatures seen in 2022. The Chandler variety, which represents over 65% of the California industry acreage, shows excellent color and condition. With the continual advancement of optical sorters and enhanced inspections, processors can remove imperfect walnuts prior to the final pack and provide the high quality product customers expect.

    Gary Thiara, President and CEO of Empire Nut Company

    Gary Thiara, President and CEO of Empire Nut Company, stated, “The quality of walnuts this year is very good and meets the high expectations of our global buyers.”

    Additionally, demand for California walnuts is strong with early bookings for new crop already shipping to many global markets. The robust demand underscores the recognition of California walnuts as a premium product.

    In addition to providing a world class product, food safety is a top priority for the California walnut industry. Our walnuts are grown, harvested, and processed under stringent regulations, adhering to both federal and state food safety regulations. This commitment to food safety ensures that consumers receive a high-quality, safe product.

    The 2024 estimated crop size of 670,000 tons (607,814 MT), while moderate, is large enough to meet the current demands. The California Walnut Commission continues its efforts to expand and develop export markets, building more consumer excitement for premium, nutritious California walnuts around the world. We look forward to the successful completion of the harvest and continuing to meet the high demand for our walnuts.

    Note: The official 2024 California walnut crop production will be released in January 2025.

    About the California Walnut Commission

    The California Walnut Commission (CWC) represent more than 4,600 California walnut growers and nearly 70 handlers, grown in multi-generational farmers’ family orchards. California walnuts, known for their excellent nutritional value and quality, are shipped around the world all year long, with more than 99% of the walnuts grown in the United States being from California. The CWC, established in 1987, is involved in health research with consuming walnuts as well as domestic and export market development activities.

    To explore recipes and learn more about California walnut growers, industry information and health research, visit walnuts.org.

  • Setton Partners with FFA Tulare Chapter to Enhance Environmental Education

    Setton Pistachio of Terra Bella, Inc., the nation’s premier pistachio grower and processor, collaborated with the Future Farmers of America (FFA) Tulare chapter, including Mission Oak, Tulare Union, and Tulare Western high schools, to acquire 50 student-made owl boxes to help promote natural pest control in its orchards. For more information about Setton’s sustainable farming initiatives, visit SettonFarms.com.

    “We are thrilled to support the talented students of the Tulare FFA Agriculture Mechanics Program and their innovative approach to environmental stewardship,” said Jeff Gibbons, Senior Director of Grower Services & Farming. “Through this collaboration, we are reinforcing our commitment to our local community, sustainable farming practices, and supporting the next generation of farmers.”

    The owl boxes, crafted as part of the students’ 2024 curriculum, promote natural pest control by providing safe habitats for owls in agricultural areas, such as pistachio orchards. Owls are regarded for their role in sustainably managing pest populations, thus avoiding artificial pest control methods.

    The owl boxes will be strategically placed within several of Setton’s organic pistachio orchards and Deer Creek Citrus’s citrus orchards to promote natural pest control methods. This collaborative effort is part of Setton’s broader sustainability plan – which includes water conservation and recycling, soil health, regenerative farming techniques, and alternative clean energy sources – t0 further its commitment to support education, environmental stewardship, and community engagement.

    “We are grateful for Setton’s support, which enables our students to bring their projects to life and make a tangible difference in our community,” said Jared Castle, Chair of the Tulare Agriculture Department. “This partnership benefits our local environment and inspires our students to continue their education in the trade, allowing the 450 agriculture mechanics students enrolled in our program to continue to build projects.”

    About Setton Farms:

    Setton Pistachio of Terra Bella Inc., the second largest pistachio grower-processor in the United States, is a family-owned and operated company located in the heart of Central Valley, California since 1986. Highly regarded as “America’s Best Tasting Pistachios” and widely recognized for its superior quality and tradition of excellence, Setton Farms grows, harvests, processes and manufactures pistachios using renewable energy, and eco-friendly and sustainable practices. Setton Farms, its retail brand, offers an established line of premium in-shell and kernel pistachio products that are non-GMO project verified, certified gluten-free, organic and kosher, while a select variety features the AHA heart-check mark. Setton provides pistachios to more than 60 foreign markets worldwide and distributes to wholesalers and retailers throughout the United States. For more information, visit settonfarms.com.

  • California Continues as EU’s Top Supplier of Tree Nuts

    In 2023, the European Union (EU)-27 imported $6.5 billion in tree nuts from the world. The EU remains a net importer of tree nuts for all products as demand highly exceeds domestic production. The United States is the largest EU-27 tree nuts supplier, providing $2.4 billion worth of nuts, or 37 percent of total imports. Nuts continue to benefit from their positive image as a healthy snack and a good source of all macronutrients, including carbohydrates, healthy fats and protein. Consumers are also paying more attention to the origin of what they eat, seeking out locally grown products, including nuts. More eco-friendly production, packaging, and distribution are becoming more popular among European consumers, particularly in the northern countries.

    Executive Summary
    The EU Continues to be a Key Trading Partner for U.S. Tree Nuts

    In 2023, the European Union (EU)-27 imported $6.5 billion in tree nuts from the world. The United States, with $2.4 billion, is the largest EU-27 tree nuts supplier, accounting for 37 percent of total imports. Türkiye is the second largest supplier with 22 percent of imports, mainly hazelnuts, followed by Vietnam (cashews), and Chile (hazelnuts and walnuts). U.S. almonds (both in-shell and shelled) totaled $1.28 billion, followed by pistachios with $758 million and walnuts with almost $276 million. Within the EU, the most significant importers of U.S. tree nuts are Germany, Spain, and Italy.

    The Food Processing and Snack Industry Remain the Most Significant Buyers

    The snacking industry continues to work to satisfy the evolving consumer demands and preferences, offering consumers new products and ways to consume nuts. The trend towards healthy snacking and healthy indulgence continues to gain importance and consumers are paying more attention to their diets. Processed nuts, especially almonds, pistachios, and peanuts, continue to dominate the retail landscape, while the preference for unprocessed nuts remains strong for walnuts and pecans. With consumers increasingly looking for natural products with clean labels, this is likely to encourage more consumers to make the switch to unprocessed nuts, especially for use in cooking, as well as for snacking. Nuts will continue to benefit from their positive image as a healthy snack and a good source of macronutrients, including carbohydrates, healthy fats and protein. The relatively high protein content in nuts will also continue to support their popularity among vegans, vegetarians and flexitarians. The localization trend has also gained significant traction with consumers increasingly seeking out locally grown products, including nuts. More eco-friendly production, packaging, and distribution are becoming popular amongst European consumers, particularly in the northern countries.

    Tree nuts consumption has been affected by the current economic situation, specifically inflation. As a result, consumer purchase decisions are likely to favor staple food products or cheaper options, particularly in more price-sensitive countries. However, consumption forecasts show some positive results, and this market sector has high potential due to the products’ high nutritional value, which increases its attractiveness to consumers. In addition, snack food companies are investing in the efficiency and improvement of production processes to improve their competitiveness. Despite economic uncertainties, the sector has the potential to grow, which should encourage companies to maintain their investment plans and continue investing in innovation.

    Expanding Business in the EU Market

    Trade shows are an excellent opportunity to get to know the market and to meet potential importers. Some of Europe’s leading trade shows are:

    USDA-Endorsed Trade Shows:

    SIAL October 19-23, 2024 Paris, France
    Biofach February 11-14, 2025 Nuremberg, Germany
    Fruit Logistica February 5-7, 2025 Berlin, Germany

    ANUGA October 4-8, 2025 Cologne, Germany

    Other Relevant (Non-Endorsed) Trade Shows:

    Food Ingredients November 19-21, 2024 Frankfurt, Germany

    ISM February 2-5, 2025 Cologne, Germany

    PLMA May 20-21, 2025 Amsterdam, Netherlands

    Alimentaria March 23-26, 2026 Barcelona, Spain

    Snackex TBD 2026 Lisbon, Portugal

    New-to-market exporters interested in a better understanding of EU food regulations and market opportunities are encouraged to reference the Food and Agricultural Import Regulations and Standards (FAIRS) reports and Exporter Guides produced by our EU FAS Offices.

    U.S. Cooperators Active in the EU Market

    Trade associations like the Almond Board of California, American Pistachio Growers, and the California Walnut Commission continue to develop strategies for the EU market. These trade associations, in cooperation with FAS offices, work actively to further develop the market for U.S. tree nuts.

    Almonds, Shelled Basis Production

    The EU-27 is the single largest export region for California almonds, with Spain as the leading European importer. In 2023, the EU-27 represented 29 percent of California’s total almond exports.

    Spain is the EU-27’s largest producer of almonds. For Marketing Year (MY) 2024/25, the latest official forecast published by the Spanish Ministry of Agriculture, Fisheries and Food (MAPA) estimates a production of 110,242 metric tons (MT) (shelled basis). The Nut Production Board estimates a higher result to reach 125,000 MT. In 2023, the total estimated area in Spain planted with almond trees was 765,540 hectares (HA), of which 635,000 are in production. Of the area in production, around 80 percent correspond to non-irrigated and 20 percent to irrigated production. The organic production area exceeds 137,000 hectares, which represents almost 25 percent of the total productive area.

    The estimated production for the current campaign is partly due to the entry in production of more than 14,000 new hectares. The new hectares are mainly irrigated in the regions of Extremadura, Castilla-La Mancha and Andalucia. The entry in production of the new irrigated hectares, along with the spring rains and absence of frost, have partially mitigated the negative impact of the drought, with a higher incidence in the southern producing region and the non-irrigated orchards. Although not all regions have equally benefited from the spring rains, the worst fears that the MY 2024/25 harvest would again be seriously affected not only in terms of volume, but also in size as in the previous campaign, have partly disappear.

    Italy is the second largest EU-27 almond producer after Spain. Sicily and Puglia are the main almond- producing areas, accounting together for approximately 97 percent of total supply. Tuono, Genco, and Lauranne are the leading varieties grown in the country. Italy’s MY 2024/25 almond production is forecast to drop by 31 from the previous season, mainly due to the severe drought that affected Sicily and Puglia. Quality is expected to be good. MY 2024/25 almond area is forecast to decrease as farmers in Sicily grubbed up almond trees crushed by a devastating drought.

    Currently, Italian farmers are facing some challenges, such as high production costs, which result in farmers sometimes preferring to leave the fruit on the plant rather than harvesting, as well as strong competition from California.

    Trade

    Imports

    Tree nut imports are crucial for EU consumers. Traditionally, consumers prefer locally grown products mainly due to consumer loyalty and habits. However, EU consumption of nuts is higher than production, generating an increase in both domestic production and in imports. In MY 2022/23, the United States was the main almond supplier for European importers. U.S. almonds face competition from Australia and locally grown almonds, mainly originating in Spain. By volume, the main EU destinations for U.S. almonds were Spain, Germany, and the Netherlands. Many countries import large quantities of almonds destined both for domestic consumption and re-export markets, as well as for the food and snack industry.

    Exports

    The top destinations for EU-27 almonds in MY 2022/23 were the United Kingdom, Switzerland, and Turkey. The largest EU almond exporter is Spain, whose main customers are mainly other EU Member States.

    Walnuts, In-shell Basis

    Production and Crop Area

    Romania remains the largest walnut producer in the European Union. Most Romanian walnut trees are owned by small farmers, but there is an increasing commercial interest in establishing walnut intensive orchards. The number of walnut trees has been growing steadily, reaching 2.6 million trees in 2023, a nearly 30 percent expansion from 2020. The number of productive trees is expected to expand further due to earlier plantings encouraged by EU subsidies for fruit trees. However, heat and dryness risks require additional investment in the orchards to ensure profitability. In 2024, the prolonged heat waves and dry conditions impacted production, which is anticipated to fall by 3.3 percent as compared to the previous year. The yield per tree is anticipated to drop by nine percent, but an estimated increase in the number of the trees alleviated the harvest decline.

    In France, production is concentrated in southern France, in the Rhône-Alpes, Aquitaine and Midi- Pyrénées regions. The French walnut grove has become the second largest orchard in France in terms of surface area. Along with kiwifruit, walnuts are the only fruit crop whose surface area has increased in ten years. The MY 2023/24 crop was low due to adverse weather, late frost and drought in the summer. MY 2024/25 also experienced late frost in southwestern France but an excess of rain throughout the summer. The crop in the southeastern part of France is reasonable (noix de Grenoble), but the crop is again very low in the southwest (Noix du Perigord) with a crop less than half the average. Overall, the MY 2024/25 French crop will be low, but slightly above 2023.

    In Spain, the main walnut growing regions are Andalucia, Extremadura, Castilla-La Mancha, and the Valencia region. As of the date of this report, MAPA has not yet published the official walnut production data for MY 2024/25. If weather conditions remain favorable, Post expects a production of 16,000 MT for the current MY.

    Italy lost its walnut market leadership a few decades ago and now is a leading importer, mainly from the United States. Since farmers generally grow walnut trees for both timber and nuts, nut yields and quality have suffered. Leading walnut producing regions in Northern Italy are Veneto, Emilia- Romagna, and Piemonte, where farmers have established efficient and profitable orchards planted with Lara and Chandler varieties. In the South, most walnuts are cultivated in the Campania region, where the main varieties are Sorrento, Malizia, and Chandler. Italy’s MY 2024/25 walnut production is forecast to increase from the previous season thanks to favorable weather and new orchards entering production in Northern Italy. Quality is expected to be good and calibers are expected to be medium/smaller.

    Trade

    Imports

    The wide gap between EU walnut production and imports provides excellent opportunities for walnut exporters. The EU imports various types of nuts for direct consumption as well as for further processing and re-export within the region in different forms, such as salted, baked, fried, or mixed with other nuts. The main competitor of U.S. walnuts, other than local production, is Chile (off season).

    Exports

    EU-27 walnut exports are very limited. The top destinations for EU-27 walnuts in MY 2022/23 were the United Kingdom, Switzerland, and Turkey.

    Pistachios, In-shell Basis

    Production

    Pistachio is a traditional crop in Italy, especially in the Sicily region (Bronte area), which accounts for approximately 90 percent of total supply. In recent years, pistachio production has slightly expanded to other areas in Sicily and Basilicata, where newer and input-intensive orchards have been planted. Bianca (also called Napoletana) is the main pistachio variety grown in the country and is normally harvested in September. Since 2004, pistachio from Bronte has been awarded by the European Commission as a PDO (Protected Designation of Origin), distinguishing it from other pistachio varieties worldwide. Pistachio tree production is cyclical, bearing heavily in alternate years. Therefore, after the higher MY 2023/24 crop, MY 2024/25 will be a lower bearing year. Quality is expected to be good.

    The pistachio area in Spain continues to expand rapidly. The production area for the MY 2023/24, according to the latest Ministry estimate, is 78,495 hectares, which is an increase of 145 percent from 2,600 hectares in 2012. The crop adapts well to extreme climates and grows well in inland regions such as Castile-La Mancha, which currently comprises 76 percent of Spain’s pistachio planted area. This year, there will be a lower production in this region, as this year will be “off-year” in the cyclical production. However, this will be partially compensated with the new hectares coming into production.

    At the production level, more and more farmers are choosing to switch from traditional crops to pistachios, attracted by their profitability and resistance to adverse weather conditions. In addition, the projections for the coming years remain optimistic, supported by constant demand and new investments in the sector. Pistachios have, in fact, proven to be an attractive investment for both farmers, companies and investment funds. Farmers have seen pistachios as an opportunity for diversification and to improve their profitability compared to other more traditional crops. However, in recent years, investment funds have also begun to invest heavily in this sector, which has allowed the creation of larger farms based on economies of scale.

    The next five years will be key for the Spanish pistachio sector with much of the planted area coming into production. Spain has 70 pistachio processing plants, 50 of which are in Castilla-La Mancha, with a total capacity of 5,500 dry tons. Thus, if the sector is to remain competitive, the industry is obliged to accompany the agricultural sector in its evolution.

    Trade

    Imports

    Due to very limited production and high demand, the EU pistachio trade balance remains negative, which results in significant imports from the United States and Iran, who together account for 94 percent of total imports. However, the quality and reliability of U.S. pistachios are appreciated assets, making it the chief source of EU imports. In recent years, Turkey has continuously increased their market share, but is still very far from the main two origins.

    Exports

    EU-27 exports of pistachios are limited. The main destination for EU-27 pistachios in MY 2022/23 was the United Kingdom.

    Policy

    Aflatoxin Certification for Tree Nuts

    Aflatoxin certification is an import instrument for U.S. exporters of almonds, pistachios and peanuts to the EU. Information on the product specific programs is available from the respective commodity groups as well as from the USDA Agricultural Marketing Service (AMS).

    Almonds

    At the request of the Almond Board of California (ABC), AMS administers a program for aflatoxin testing of almonds destined for export to the European Union (EU) through the Pre-Export Certification program of ABC. For information on aflatoxin certification on almonds, please go to the links below:

    •   Almond Board of California (ABC)
    •   USDA-AMS Laboratory Approval Service – Aflatoxin Program

       

      1. Pistachios

        At the request of the Administrative Committee for Pistachios (ACP), AMS administers a program for aflatoxins and ochratoxin A testing of pistachios destined for the EU through the Pistachio Export Aflatoxin Reporting (PEAR) Program.

        AMS administers mandatory domestic aflatoxin requirements for pistachio nuts under Pistachios Grown in California, Arizona, and New Mexico (7 CFR Part 983) and administers mandatory import requirements for pistachio nuts under Specialty Crops; Import Regulations (7 CFR Part 999, Section 999.600). The regulations require domestic and import shipments of pistachios intended for human consumption to be tested for aflatoxin contamination by a USDA or USDA-approved lab.

        For information on aflatoxin certification on pistachios, please go to the links below:

        •   Administrative Committee for Pistachios (ACP)
        •   USDA-AMS Technical Services – Pistachio Aflatoxin Program

          EU Import Controls on Food and Feed of Plant Origin

          Official controls are carried out by the competent authorities in the EU countries to verify business compliance with the requirements set out in agri-food chain legislation. Regulation (EU) 2017/625 of the European Parliament and of the Council of 15 March 2017 is the framework regulation setting common rules for carrying out these official controls. The scope of the regulation does not only cover food and feed safety throughout production, processing and distribution, but also covers plant health and plant protection, animal health and welfare, and organic production and labeling rules. Official controls can take place at all stages of marketing. The regulation also covers official controls on imports. A subsequent Commission notice on the implementation of Regulation (EU) 2017/625 of the European Parliament and of the Council (Official Controls Regulation) 2022/C 467/02 compiles further clarifications and best practices in order to contribute to a harmonized understanding and application of the provisions by Member States’ competent authorities and stakeholders.

          EU Controls on Almonds

          Almonds fall under a Pre-Export Checks regime. Regulation (EU) 2015/949 approves the pre-export checks carried out on certain food by certain third countries regarding the presence of certain mycotoxins.

          This regime is in place if a third country’s control system is accepted under Commission Implementing Regulation (EU) 2015/949. For the accepted product/origin combinations, the regulation requires that import authorities subject the consignments to less than a one percent physical control level at the border if they are accompanied by the appropriate pre-export check certificate. This document must be issued by the exporting country’s competent authority and include the sampling and laboratory analysis results. This documentation (government-issued certificate plus sampling/analysis data) is not a pre-condition for import. However, in the absence of this documentation, Member States are not required to apply the reduced testing levels upon import. Under this system, there is no charge to the operator for testing and the rejection rates are not specifically tracked or reported.

          For more information details, please check GAIN Report “EU Import Controls on Food and Feed of Plant Origin.”

          Maximum Residue Levels (MRLs) for Tree Nuts – Upcoming reviews

          Maximum Residue Levels (MRLs) for pesticides, including import tolerances, have been harmonized throughout the EU and can be found in the EU MRL database. Advance notice of active ingredients under review for renewal of approval in the EU, listed with a U.S. MRL, can be found in the global MRL database. For additional information, please consult the FAS/Brussels’ website on EU Early Alerts.

          Upcoming reviews for MRLs: Article 12 review: https://www.efsa.europa.eu/sites/default/files/pesticides-MRL-review-progress-report.pdf

          Maximum Levels for Contaminants in Food

          Maximum levels of aflatoxins (aflatoxins B1, B2, G1, G2 and M1) are laid down in Commission Regulation (EC) No 165/2010. The European Commission’s web page on contaminants provides further specific information on contaminants in general, and Plant toxins and mycotoxins and aflatoxins in particular.

          Commission Regulation (EU) 2021/1323, amending Regulation (EC) No 1881/2006 introduced maximum levels for Cadmium in certain foodstuffs.

          Commission Regulation (EU) 2022/1370, amending Regulation (EC) No. 1881/2006 as regards maximum levels of ochratoxin A in certain foodstuffs. — By Arantxa Medina, USDA Foreign Ag Service

          Disclaimer: This report presents the situation and outlook for tree nuts (almonds, walnuts, and pistachios) in the EU-27. This report presents the views of the authors and does not reflect the official views of the United States. Department of Agriculture (USDA). The data are not official USDA data.

          This report would not have been possible without the valuable expert contributions from the following Foreign Agricultural Service analysts:

          1. Xavier Audran, FAS/Paris covering France
            Mila Boshnakova, FAS/Sofia covering Bulgaria
            Ornella Bettini, FAS/Rome covering Italy
            Monica Dobrescu, FAS/Bucharest covering Romania
            Marcel Pinckaers, FAS/The Hague covering The Netherlands
            Gerda Vandercammen and Tania De Belder, FAS/Brussels covering EU policy

            Abbreviations and definitions used in this report:

            Conversion factors: conversion factor is used to convert shelled to in-shell tree nuts. Almonds: 0.6
            Walnuts: 2.34
            Pistachios: 2.0

            HA hectare; 1 hectare = 2.471 acres
            MT Metric ton = 1,000 kg
            EU MS European Union Member State(s)

            HS Codes: Harmonized System codes for commodity classification used to calculate trade data. Almonds: Shelled 080212; In-shell 080211
            Walnuts: Shelled 080232; In-shell 080231
            Pistachios: In-shell 080251, Shelled 080252 (since January 2012)

  • Indian Market Continues on Impressive Growth Trajectory for California Tree Nuts

    For marketing year (MY) 2024/2025 (August-July), the USDA Foreign Ag Service (Post) forecasts India’s almond production marginally lower at 4,150 metric tons (MT) (shelled basis), compared to last MY estimates. For the same MY, post projects almond imports at 190,000 MT, up by six percent from the previous MY 2023/2024 estimates of 180,000 MT. Post is revising its earlier MY 2023/2024 import estimates to 180,000 MT based on the latest updated trade data. For MY 2024/2025 (September-August), post forecasts India’s walnut production at 33,200 MT (in-shell basis). For MY 2023/2024, post is revising its estimates lower at 33,000 MT as there were no seasonal rains in the state of Jammu and Kashmir, and soil degradation in the walnut regions has affected its production yield. For MY 2024/2025, post expects India’s walnut imports to reach 70,000 MT, a 17 percent increase from the previous MY estimates. India’s MY 2024/2025 (September – August) pistachio (in-shell basis) imports are forecast at 40,000 MT.

    COMMODITY
    ALMONDS, SHELLED BASIS

    PRODUCTION

    For marketing year (MY) 2024/2025 (August-July), post forecasts India’s almond production lower at 4,150 metric tons (MT) (shelled basis), owing to climate and soil challenges within the top almond producing states of Jammu and Kashmir and Himachal Pradesh. There has been a continued trend of high temperatures, a lack of soil moisture, and prolonged dryness (Figure 1) in these top growing areas, which indicates an ongoing threat to India’s almond orchards that results in damaged crops at the blooming stage and reduced fruit setting. Additionally, aging orchards and low yields are enticing farmers to shift away from almonds to more profitable, and government supported, apple cultivation.

    India’s Almond Production Locations: According to the National Horticulture Board 2021-2022 (First Advance Estimates), India’s Union Territory of Jammu and Kashmir has the country’s top almond production share (91.26 percent), followed by Himachal Pradesh (8.73 percent) and Maharashtra (0.09 percent). Popular varietals grown in India include the Shalimar, Makdoon, Waris, and Kagazi (thin shell). The Kashmir Horticulture Department actively promotes the production of Kagazi almonds due to its higher yields and late blooming characteristics. Shelling rates range between 20 and 30 percent for hard-shell varieties, and 40 percent for thin-shelled varieties.

    To revive local almond cultivation and production, the Jammu and Kashmir government in recent years has launched several schemes and initiatives. These include the High-Density Plantation Scheme (HDPS), establishment of nurseries exclusively for almonds, and the development and enhancement of irrigation infrastructure.

    CONSUMPTION

    For MY 2024/2025, post estimates an increase in almond consumption at 195,660 MT, rising in tandem with Indian consumers’ growing incomes. Post is revising MY 2023/2024 estimate to 187,290 MT on account of an expanding consumer base. The increased purchasing power and the preference for healthy and nutritious snack foods is expected to continue to drive the demand for almonds. Globally, India ranks second in terms of consumption of almonds.

    With limited domestic almond production of its own, India turns to imports to satisfy its cravings for almonds. Indian media sources highlight that India’s in-shell almond imports over the last decade have grown with an astounding compound-annual-growth-rate (CAGR) of 17.5 percent. Market reports (from 2021) report that per capita consumption of almonds is about 0.11 kilograms (kg), which is a jump from the per capita figure of 0.08 kg being reported in 2019. Despite being a major importer of almonds, India’s per capita consumption of almonds, due to its large population size, is lower than that of other markets but still has major potential for expansion as consumers shift from other snacks to greater almond consumption.

    Half of India’s population is under 30 years of age, and there is a rising awareness of health and nutrition that is increasing demand for almonds. Indian consumers value the nutrient-rich crunchy nut that is packed with protein, fiber, vitamin E, and antioxidants. Traditionally, almonds have been seen to help improve memory performance and as being heart healthy.4 However, Indian almond consumption is no longer based just on traditional, cultural habits, for example, eating of almonds (soaked in water) each morning to improve memory and for the festive season. They are now commonly used in several Indian sweets as well as health drinks, breakfast cereals, snacking nuts (i.e., salted, and spicy almonds, trail mix, etc.), chocolates, cookies and ice-cream. India is also set to see a growth in the imports of some derivative products of almonds such as almond milk, flour and butter. These factors will contribute to spur the growth in India’s food processing and personal care industries. Bulk sales, associated with business and corporate gift giving, are also expanding in popularity driving overall consumption numbers upward. The packaged almond snack market in India is projected to reach Indian rupees (INR) 1 billion ($12 million) by end of calendar year 2024.

    STOCKS

    For MY 2024/2025, post estimates India’s almond ending stocks lower at 29,000 MT on expectations of continued strong domestic demand.

    TRADE

    Imports: For MY 2024/2025, post projects almond imports at 190,000 MT, up by six percent from the previous MY 2023/2024 estimates. Post is revising its earlier MY 2023/2024 estimate to 180,000 MT based on the latest updated trade data. The removal of India’s 2019 retaliatory tariffs last year has strongly boosted U.S. almond exports and in value terms there has been a 30 percent growth.

    India is the top destination for U.S. almonds (Figure 2). Specifically, California- origin almonds in MY 2024/2025 account for roughly 86 percent of India’s overall almond imports; Australian- origin almond imports come in a distant second with 10 percent market share (See, Table 2). Almond imports from the United States and Australia are typically the in-shell nonpareil or Carmel varieties, which are shelled locally (i.e., machine-cracked and hand sorted). By shelling the almonds locally, value addition occurs domestically; this contributes to expanded Indian employment opportunities and helps with the Indian government’s “Make in India” initiative. Most other origins, however, supply shelled almonds.

    Though the sea freight rates oscillated between January 2023 and March 2024, almond shipments to India continued its rising trend due to growing demand.

    Exports: India, with limited domestic production of its own, will continue to have negligible exports for the foreseeable future. India’s exports will consist mainly of small quantities of branded almond snack food products being exported to neighboring countries in South Asia.

    POLICY

    India’s removal of its retaliatory tariffs in September 2023, has restored and expanded market opportunities for U.S. agricultural producers and manufacturers. The reduction of duty for almonds is from INR 41/kg to INR 35/kg on the applied rate for in-shell almonds (see, GAIN- INDIA | IN2023-0066 | Success Story – India Cuts Retaliatory Tariffs on U.S. Almonds-Apples- Walnuts-Chickpeas-Lentils).

    India’s Non-Tariff Barriers: India’s non-tariff barriers include stringent almond kernel quality standards as prescribed by the Food Safety and Standards Authority of India (FSSAI).5 These standards, as informed by local trade sources, are too strict to be widely applied across multiple commercial grades. These only create challenges, causing needless custom clearance delays.

    Traders sustain that there is a need for greater grading flexibility. Grading needs to account for varying commercial situations, including varietal differences, crop quality variability, and pricing differentials. It should not be largely premised on just physical parameters such as damage and the presence of foreign material.

    Read the full USDA Foreign Ag Service report, including detailed insights on walnut and pistachio production and market trends HERE.