Pacific Nut Producer Magazine

Category: Economics

  • Increase of Chilean Almond & Walnut Production/Exports Forecasted

    The USDA Foreign Ag Serive (Post) projects increased production in both Chilean walnuts and almonds in marketing year (MY) 2024/25 due to high yields caused by plentiful rainfall and favorable temperatures. Post estimates walnut production will reach 195,000 metric tons (MT) in MY 2024/25, a 11.4 percent increase year over year. Walnut exports will total 192,500 MT (in-shell basis), which represents a 12.1 percent increase over MY 2023/24. Meanwhile, walnut area planted is projected to increase only slightly, continuing a trend from recent years of stagnating growth. Producers have shifted to more profitable crops such as cherries, lemons, and mandarins, and because of changes in land use as urban areas continue to expand in the central area of the country. For almonds, Post projects that production will reach 11,500 MT for MY 2024/25, a 1.8 percent increase over MY 2023/24. Chilean almond exports will total 7,600 MT, a 4.1 percent increase over MY 2023/24.

    Commodities:

    Walnuts, Inshell Basis

    Production:

    In MY 2024/25, due to high yields, Post estimates walnut production at 195,000 MT, a 11.4 percent increase year over year. Post expects yields to increase in MY 2024/25, due to a winter with abundant rainfall and chill hour accumulation, and assuming no unexpected climatic events during the spring and summer which could lower production. In MY 2023/24, yields were low as production was hindered due to unfavorable climatic conditions.

    Post expects area planted in MY 2024/25 to increase slightly, by 0.8 percent, to 45,000 hectares because growth in the central-southern walnut production regions is offset by a decrease in the central- northern regions.

    In MY 2023/24, area planted decreased by 3.5 percent, totaling 44,626 hectares (Figure 1). Area planted is concentrated mainly in the central-south part of the country, specifically in the Metropolitana, O’Higgins and Maule regions, which together hold over 72 percent of the area planted (table 2). However, area planted in the Metropolitana region, the top walnut producing region in Chile, decreased by 5.5 percent. Walnut area planted was replaced by more profitable crops such as cherries, lemons, and mandarins, or was displaced by expansion of the urban area. Walnut area planted also decreased in the regions in the central-north part of the country, Valparaiso and Coquimbo. In these regions, area planted with walnuts was replaced mainly by citrus and cherries.

    Consumption:

    In MY 2024/25, Post estimates consumption at 2,850 MT, a 1.8 percent increase over MY 2023/24, following higher production and population growth which is situated at close to one percent annually. Producers export most of their walnut production, and domestic consumption of walnuts represents a little over one percent of total production. Local consumers use shelled walnuts for snacks. Walnuts for snacks are generally the highest quality in terms of color, size and shape. The confectionary industry uses fragmented walnuts as an ingredient in desserts, pastries, and chocolates.

    Trade:

    For MY 2024/25, due to higher production, Post projects 192,500 MT of walnut exports (in-shell basis), which represents a 12.1 percent increase over MY 2023/24. For MY 2023/24, Post estimates that walnut exports will finalize at 171,788 MT, which represents a 9.9 percent decrease from the previous marketing year.

    Figure 2 shows monthly export volume of walnuts. In MY 2023/24, monthly exports show low volumes compared to the previous marketing year, especially in May and June, which are regularly peak export months. The low exports volumes follow low production volumes and a reduction in walnut quality due to unfavorable climatic conditions.

    In MY 2023/24 (January to June data) exports decreased by 40.6 percent in volume and 32.2 percent in value (see Table 3 and Table 4). Post estimates that this high decrease in exports is due to the low export volumes observed in the first half of MY 2023/24. Post expects exports to increase in August and September, which are peak export months for Chilean walnuts.

    In MY 2022/23 Turkey, India and Italy were the top markets for Chilean walnuts. The Chilean walnut export industry has focused a lot of its marketing efforts in developing the Indian market. Exports to India increased by 108 percent and became Chile’s top market for in-shell walnuts, displacing Turkey, which had been the top market for in-shell walnuts in the past. On the other hand, the European market imports most of the Chilean shelled walnuts.

    Stocks:

    Post projects MY 2024/25 stocks at 4,000 MT, unchanged from the previous marketing year, assuming regular market conditions. Chilean walnut exporters do not store large quantities of walnuts unless there are specific market conditions that justify it, such as high freight costs or low prices. Post estimates MY 2023/24 stocks at 4,000 MT, which is a 29.5 percent increase over MY 2022/23. This increase is due to a lower quality crop, which decreased the share of almonds that complied with export quality requirements, which will result in an increase in stocks.

    Policy:

    No policy updates since the last GAIN report.

    Commodities:

    Almonds, Shelled Basis

    Production:

    For MY 2024/25, Post estimates almond area planted at 8,700 hectares, a 0.3 percent decrease over MY 2023/24 (see Table 5). Almond area planted spans from the Coquimbo region, in the northern part of the country, to the O’Higgins region in the central south. The top almond producing region in Chile is the O’Higgins region, which holds 37.7 percent of the area planted and which grew 11.1 percent in the past three years (table 6). On the contrary, the second top production region, the Metropolitana region, decreased by 13.3 percent in a three-year period. The Metropolitana region comprises 35.9 percent of the almond area planted.

    For MY 2024/25, Post projects that production will reach 11,500 MT, a 1.8 percent increase over MY 2023/24. This increase is driven by high yields and assumes no adverse climatic events that could hinder production. In MY 2023/24, almonds experienced adverse climatic conditions which lowered yields. As a result, Post estimates MY 2023/24 production volume will decrease by 9.6 percent and total 11,300 metric tons. However, almond production remains a good and relatively profitable alternative to other crops which have grown substantially in area planted, such as cherries, citrus, and walnuts.

    Consumption:

    In MY 2023/24, Post projects almond consumption at 7,700 MT, a 1.3 percent increase over MY 2022/23 due to population growth and a high demand for almonds. The domestic market for almonds is attractive for producers due to the competitive prices observed in Chile. Post estimates that 67 percent of commercial production is consumed domestically.

    Chile also imports almonds for use in the confectionary industry. The industry uses imported almonds to produce chocolates since they require smaller sized flat almonds that are not characteristic of the Chilean varieties.

    Trade:

    In MY 2024/25, Post estimates that total exports of Chilean almonds will reach 7,600 MT, a 4.1 percent increase over MY 2023/24 due to the higher yields and production volume. In MY 2023/24 (data until June), Chilean almond exports decreased by 20.5 percent in volume and 6.3 percent in value over MY 2022/23 (see Table 7 and 8). This decrease in exports follows the decrease in production.

    Figure 4 shows monthly almond exports. Almond monthly export volume in MY 2023/24 is lower compared to the previous marketing year. This reduction in exports is explained by lower almond production. Exports usually peak between June and October each marketing year since exporters can pack and store until they can allocate their exports and maximize their sale price.

    Top markets for Chilean almonds are Argentina, Russia, and Ecuador. Exports to Argentina grew by 10.2 percent in MY 2022/23. Exports to Russia grew by 59.6 percent as market conditions for Chilean exporters recovered in MY 2022/23. Ecuador remains the third top market for Chilean almonds, although almond export to Ecuador decreased by 10.5 percent in MY 2022/23.

    Post estimates that in MY 2024/25 almond imports will increase by 14.3 percent and total 4,000 MT to cover domestic consumption needs. Post expects an increase in imports as production remains virtually stagnant and consumption keeps growing at a moderate rate. The United States remains the top supplier of almonds to Chile. In MY 2023/24 (data until June), Chile imported 1,675 MT of almonds, representing a 3.3 percent increase over MY 2022/23. Ninety-nine percent of total almond imports were sourced from the United States.

    Stocks:

    Post estimates stocks in MY 2024/25 at 819 MT, a 32.3 percent increase, assuming higher production. Chilean almond exporters do not store large stocks of almonds, and stocks correspond to regular remaining monthly stocks.

    Policy:

    No policy updates since the last GAIN report. — By Sergio Gonzalez, USDA Foreign Ag Service

  • Record Turkish Pistachio Production Volumes Anticipated

    Turkey’s pistachio production in marketing year (MY) 2024/25 is forecast to reach a new record due to multiple factors. Higher production volumes and larger-than-normal carryover stocks are expected to prompt sizeable export volumes of Turkish pistachios for the first time. While Turkey’s production of tree nuts continues to grow, the country is expected to import substantial volumes of almonds and walnuts in MY 2024/25 to meet steady consumer demand. Imports of U.S. tree nuts continue to be disadvantaged by a 10 percent retaliatory tariff that was imposed because of U.S. Section 232 duties on Turkish steel and aluminum. However, despite this additional tax and growing competition, the United States is still the one of the top suppliers of walnuts, almonds and pistachios to Turkey.

    I. PISTACHIOS a. PRODUCTION

    Turkey’s pistachio production in marketing year (MY) 2024/25 is forecast to more than double year- over-year to a record of 385,000 metric tons (MT). There are multiple factors contributing to this projected increase, the most notable of which is this year is considered an “on-year” in the production cycle for pistachios. The growth in production is also linked to an increase in the number of bearing trees, higher yields as trees reach optimal bearing age, and favorable weather conditions during the growing season.

    According to the Turkish Statistical Institute (TurkStat), there were an estimated 60.5 million bearing pistachio trees at the beginning of the current marketing year, up nearly 4 percent from last year. Market sources confirmed that many of these trees are now approaching ten-years in age, which when yields start reaching their optimal range. This age-related yield factor will contribute to higher production volumes this year and in the years ahead.

    At the same time, there are about 26.6 million non-bearing trees, which is about 4.5 percent higher than a year ago. Turkey’s production of high-quality pistachios is predicted to increase in the future with the increasing number of young trees.

    Market sources indicate that TurkStat might be undercounting the actual number of bearing and non- bearing trees. However, even if the number of trees is being undercounted, TurkStat’s figures reconfirm the expansionary trend in the country’s production of pistachios.

    Over the last 10-15 years, pistachio growers have invested in developing and expanding their orchards, replacing old trees (some of which are 50-years old) and introducing modern growing techniques. These more sophisticated orchards with their newer trees, which are less affected by the periodicity in production, are expected to achieve higher yields and production volumes in the future. For the new trees being planted, market sources confirmed that growers are planting more of the Siirt variety compared to earlier years, known to be less periodical than the Antep variety. However, the Antep variety still accounts for most of the pistachio trees being grown.

    Good rainfall conditions in the spring of this year also contributed to the increase in pistachio production in MY 2024/25. Timely and adequate precipitation is critical since most pistachio production across Turkey is rain-fed.

    As seen in the Map 1, rainfall this spring in the southeastern part of the country, where most of the pistachios are grown, was near normal. A sunny summer, with no major weather events, and no unexpected pest attacks also promoted higher yields this year.

    Pistachio yields and production levels can vary dramatically from year-to-year with average yields during an on-year ranging from 4-6 kilograms (kg) per tree and 2-3 kg per tree during off-years. However, periodicity effects on yields have decreased in recent years with the planting of new trees, on- farm investments, and the introduction of good agricultural practices. At the same time, with the help of outside training provided by different institutions, farmers have learned how to reach higher yields by taking better care of the soil and trees. As a result of these improvements, average yields are expected to continue to slowly increase in the coming years.

    One of the more notable and ongoing training programs, called “May you have abundant pistachios,” was launched back in 2011 by the Turkish Foundation for Combating Soil Erosion, Forestation, and Protection of Natural Habitats (TEMA), with contributions from private companies. The initiative trains farmers in Gaziantep and Sanliurfa – the two biggest pistachio-producing provinces in the country – to properly care for their trees through improved pruning and trimming techniques, and better practices for applying fertilizer and pesticides. Farmers applying this training report seeing their yields double or even triple at times, while also reducing periodicity effects in off-years. In parallel to this training program, local universities in the major pistachio growing regions have developed better production methods and plant protection measures to help farmers improve yields.

    The two southeastern provinces of Gaziantep and Sanliurfa account for 80 percent of the country’s total production of pistachios. The southeastern provinces of Adiyaman, Siirt, Kilis, Kahramanmaras, Mardin, and Diyarbakir account for another 15 percent of total production. The remaining five percent is thinly spread across the Aegean, Mediterranean, and Marmara regions.

    There are two main types of pistachios grown in Turkiye, the Gaziantep (Antep) and Siirt varieties. Both are unique to Turkey and differ in size and shape compared to the pistachios grown in Iran and the United States. The Antep variety accounts for 85 percent of pistachios grown in Turkey. The Siirt variety makes up the remaining 15 percent of production; the Siirt variety is considered a higher-yielding variety than the Antep variety.

    The quality standards for Turkish pistachios are directly related to the size of the nut. 90 nuts or fewer per 100 grams is considered first quality; 90-100 nuts are second quality; 100-120 nuts are third quality; and more than 120 nuts are fourth quality.

    CONSUMPTION

    MY 2024/25 consumption is forecast higher year-on-year at 235,000 MT, based on a projected increase in domestic pistachio production and the expectation that traders will want to draw down their record- sized stock levels as much as possible.

    Turkiye continues to grapple with high inflation, including rising food prices. In August, the annual consumer price index (CPI) inflation was nearly 52 percent and annual food inflation reached almost 45 percent. See Post’s latest Exporter Guide for more information about the current economic conditions in Turkiye.

    In the case of pistachios, retail (and bulk) prices during the month of August were nearly 30 percent higher in terms of Turkish Lira (TL) than the same time last year. By comparison, though, the price in U.S. dollars (USD) was almost unchanged. See table 1.

    The reason retail (and bulk) pistachio prices (30 percent) did not increase as much as general food inflation (45 percent) was primarily due to the downward pressure on pistachio prices resulting from the anticipated record in production and large carryover stocks in MY 2023/24 and 2024/25. While still high, these relatively lower retail prices for pistachios will encourage increased consumption, especially among the upper-and higher-income households who are less impacted by the difficult economic realities in the country.

    Historically, most of the country’s pistachio crop is consumed domestically, though Turkiye is expected to export a share of its crop this year because of an anticipated oversupply. Consumption levels vary year-to-year depending on the availability of domestic supplies. About 35 percent of pistachios are consumed as snacks and the remaining 65 percent are used in making confectionary products, especially traditional desserts like baklava. In addition, during the last decade, more pistachios are being used in other desserts, such as chocolate and ice cream.

    In the last few years, consumers in larger cities increasingly prefer to buy packaged pistachios and other nuts from retail supermarkets instead of buying them from a traditional bulk nut store. This trend is expected to continue as consumers demand greater convenience and as more supermarkets spread across the country. For more information about the latest retail sector trends, please refer to Post’s latest Retail Food Report.

    Approximately half of the pistachios that are consumed for snacking are packaged. This percentage is expected to increase in the future as consumers demand greater convenience and shop at discount retail outlets where packaged food products are the norm. With this shift towards increased consumption of packaged pistachios, per capita consumption (2 kg/year) and overall consumption is expected to grow.

    b. TRADE

    Exports

    MY 2024/25 exports are forecast at a record 80,000 MT, assuming steady demand for re-exported pistachios and the potential for Turkiye to export domestic pistachios. Given the anticipated oversupply of domestic pistachios this year, Post expects Turkiye will export a sizeable amount of domestic pistachios to overseas markets this year. Up until this year, Turkiye only exported minor amounts of domestic pistachios, mostly in processed products. The bulk of Turkiye’s exports have historically consisted of U.S. and Iranian pistachios, which are sorted and packed in Turkish free trade zones and re- exported to third markets. Looking ahead, given the yearly fluctuations in domestic pistachio production, Post expects that the re-export business will continue to dominate overall exports for the foreseeable future.

    Turkiye predominantly exports shelled pistachios. The leading export destinations are Italy, Germany, Iraq, Syria, Malaysia and Saudi Arabia.

    Imports

    MY 2024/25 imports are forecast at 35,000 MT, which is down about 27 percent from the previous year’s newly revised figure as import demand is expected to slacken because of a record domestic harvest and large pistachio stocks.

    MY 2023/24 pistachio import volumes are revised higher to 48,000 MT in line with the latest trade data. The United States and Iran were the largest sources of imported pistachios, with U.S. pistachios accounting for 80 percent of total imports. According to market sources and Post observations, imported pistachios are typically not sold on the domestic market because of the high import taxes but are instead brought into free trade zones for processing and re-export. The absence of a bilateral phytosanitary protocol also discourages imported pistachios from entering the market for domestic consumption.

    The Most Favored Nation (MFN) duty on imported pistachios is 43.2 percent. However, since May 2019, imported pistachios from the United States have been subject to an additional 10 percent retaliatory tariff, bringing the total applied tariff rate to 53.2 percent. The retaliatory duty was imposed in response to U.S. Section 232 tariffs on Turkish steel and aluminum.

    c. STOCKS

    With the record harvest, year-end stocks for MY 2024/25 are forecast to more than double from last year’s newly revised estimate to 200,000 MT. This prediction assumes that traders will only sell off a portion of their inventories because stock levels are so large.

    MY 2023/24 ending stocks are revised higher to 95,000 MT based on an upward revision to the pistachio production number and in alignment with market expectations.

    Pistachio stocks vary considerably from year to year, in line with the cyclical nature of production. This cyclicality and the fact that neither the government of Turkiye (GoT) nor producer associations maintain ending-stock numbers leads to speculation, price fluctuations, and artificially inflated prices. According to industry insiders, pistachio traders intentionally hold onto inventories longer than normal to drive domestic prices higher. Accurate end-stocks data would help stabilize price fluctuations and consumption levels, especially in off-years.

    Municipal governments in Gaziantep and Sanliurfa have taken steps to increase transparency of pistachio stock levels in hopes of reducing speculation in the market. In June 2021, the Gaziantep Commodity Exchange (GCE) built Turkiye’s first licensed pistachio warehouse with a capacity of 10,000 MT. The warehouse has an electronic trading platform as well as a laboratory for quality testing. Sanliurfa Commodity Exchange has also invested in a licensed pistachio warehouse project with 10,000 MT of storage capacity.2 As these licensed warehouses represent just a small fraction of overall production, more of these facilities are needed to increase market transparency on the status of domestic stock levels. The government operates licensed warehouses for other crops, such as wheat, sunflowerseed, and cotton to create price stability.

    Scientists from various local universities continue supporting research applications to improve storage conditions, which is important in maintaining the quality of pistachios and in helping minimize food safety concerns, such as aflatoxin.

    d. POLICY

    Changes on the Horizon for Agricultural Support Payments

    While the central government does not provide specific, direct support payments to pistachio or other tree nut growers, the government does offer generic subsidies that are available to all registered farmers. The amount of generic subsidies in 2024 were up year-over-year in Turkish Lira but were nearly unchanged in USD. Pistachio growers and other farmers continue to complain that the subsidy this year, like the past several years, is inadequate to cover the rising cost of inputs, such as electricity, labor, and water.

    On August 29, 2024, the GoT announced in a Presidential Decision Decree (PDD) that it was instituting

    a new support system that would come into effect for 2025-2027. The payment under the new system is based on a calculation in which a standard coefficient amount per decare (da) for all crops that is multiplied by a multiplier factor depending on the crop. For 2025, the coefficient has been set at 244 TL/da and the multiplier for tree nuts is fixed at the lowest level of just one. (Note: Other crops, which are considered more strategic like wheat, have a higher multiplier factor.) Thus, tree nut farmers will receive 244 TL/da (=244 TL/da x 1). The coefficient may be updated each year, depending on the overall market conditions and economic situation in the country.

    Additionally, a subsidy payment will be paid for some products each year. The products and amount of the subsidy to be paid will be declared each year depending on needs of the country. Tree nuts are not expected to get a subsidy but only the basic support (as defined in this paragraph) starting 2025.

    Grower Groups Advocate for Gov’t to Set Purchase Prices for Pistachios

    Some agriculture-related non-governmental organizations (NGOs) in the Sanliurfa and Gaziantep provinces are demanding that the GoT, through the Turkish Grains Board (TMO), establish official purchase prices for pistachios like it does for hazelnuts. These groups argue that pistachios are just as strategic as hazelnuts to the wellbeing of the Turkish economy. These groups are also advocating for specific, direct government subsidy for pistachio producers.

    While the national government has not actualized these demands, the Metropolitan municipality of Gaziantep – one of the two largest pistachio- producing provinces – appears to have taken some small steps towards establishing a set price when purchasing pistachios from local growers. In late August 2024, the municipality started purchasing pistachios for making baklava and storing these nuts in the licensed pist

    achio warehouse that is operated by the Gaziantep Chamber of Commerce. At the same time, the Sahinbey district municipality in Gaziantep also started purchasing pistachios for making baklava.

    The Mayor of Sahinbey announced that the municipal government had started purchasing pistachios to keep traders from manipulating the market and stabilize prices. Supermarket chains and nut retailers have lodged similar complaints in the past. Post concurs with these claims, though prices in MY 2024/25 should soften due to increased supplies.

    Gaziantep metropolitan municipality’s purchase price is between 250 to 310 TL/kg (7.35 – 9.12 USD/kg), depending on product quality.  The price for same product in Gaziantep Commodity Exchange is between 265 to 320 TL/kg. (7.79 – 9.41 USD/kg), as of early September.

    Pistachio Imports for Consumption Considered One Potential Solution to Artificially High Prices

    According to industry analysts, there are some traders and retail chains that are advocating for the GoT to remove/lower the import tariffs and other trade barriers that would enable price-competitive, imported pistachios to enter the local market and, thereby, help stabilize the domestic price for pistachios. From Post’s perspective, imports for consumption would definitely have a stabilizing effect considering that exports of in-shell U.S. pistachios from January-July of this year cost about 6.80 USD/kg whereas the retail price in Turkiye for domestic pistachios is currently around 17 USD/kg.

    At the same time, market sources report that nut traders have petitioned the government to allow pistachios to be imported duty-free for processing and re-export under the Inward Processing Regime (IPR). The IPR allows companies to bring in certain goods tax free for processing inside the country and re-export. At present, pistachio imports can only enter duty free inside a tax-free zone. The IPR customs arrangement offers companies greater flexibility to process and re-export from anywhere in the country.

    Training Growers and Processors to Comply with EU Standards

    The Gaziantep Commodity Exchange (GCE), in cooperation with the German Institute of International Cooperation (GIZ), is conducting trainings for people who work or would like to work in the pistachio industry. These trainings include processing and roasting, marketing, foreign trade, and sustainability. Additionally, there are trainings, in cooperation with GIZ, for GCE member companies on topics covering the EU Green Transformation Agreement, EU Carbon Decreasing Mechanisms, EU Field to Fork Strategy, and EU Supply Chain Regulations. For farmers, there will be trainings about smart agriculture applications, reducing the use of pesticides and fertilizers, and pest management.

    For the full article from USDA Foreign Ag Service, including details on the Turkish almond, hazelnut, and walnut markets, click HERE.

  • Blue Diamond Growers Receives Cal/OSHA Recognition for Exceptional Safety

    Blue Diamond Growers, a farmer-owned Cooperative and the world’s leading almond marketer and processor, recently received the “Star Site” designation through Cal/OSHA’s Voluntary Protection Program (VPP) at their Salida Facility. The designation recognizes employers who have voluntarily managed outstanding safety and health programs. Only 63 sites within the state, including Blue Diamond, share the “Star Site” title.

    Beginning the formal process in 2023, Blue Diamond underwent the rigorous application to demonstrate exceptional safety at their Salida facility. This included numerous audits, formal interviews and a comprehensive review of their employee-driven program. As with all Star Site designees, the facility showed that their work-related injury and illness rates over the last three years (DART and TCIR) were 90 percent below industry average.

    “Through our partnership with Cal OSHA, we have elevated our safety program from best-in-class to world class,” said Victor Gomez Terres, Blue Diamond Site Director of Salida. “Safety at Blue Diamond is team member-led, and this designation is a culmination of their incredible effort and commitment to keeping themselves and each other safe.”

    Blue Diamond’s Salida facility has received and processed its farmers’ almonds since 1969. Today, it is the largest almond receiving center in the world. With eight warehouses and multiple processing lines, millions of pounds of almonds are either received or shipped out of the facility on any given day. The Cooperative’s ability to bring delicious, healthy products to the world would not be possible without its strong commitment to the health and safety of their 1,600 team members.

    “Blue Diamond’s success as the world’s largest almond company hinges on the safety of our operations and the wellbeing of our team members. I am proud that this milestone achievement validates our commitment to safety culture,” said Jeff Hatfield, SVP of Manufacturing for Blue Diamond.

    Coinciding with October as National Manufacturing Month, the Cooperative will hold a formal celebration and flag raising ceremony to honor team members and their partnership with Cal/OSHA.

    About Blue Diamond

    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.

  • Nominations Being Accepted for Almond Achievement Awards

    The Almond Board of California honors two industry or allied industry members annually at their annual Almond Conference in Sacramento, CA. The nomination deadline for the 2024 awards is October 29, 2024.

    Almond Achievement Award

    Beginning in 2011, the goal of the Almond Achievement Award is to recognize an industry member who has added value through long-term service for the betterment of the California almond industry. ​Award recipients are individuals with long-standing and direct involvement, who ​demonstrate lasting impact on, and commitment to, the California almond industry.​

    Dick Cunningham received the 2023 Almond Achievement Award at The Almond Conference in December.

    Left to right – Bertie Areias, Dick Cunningham, Sarah Cunningham, Alexi Rodriguez (image courtesy of the Almond Board of California)

    Nominate someone for the 2024 AAA award.

    Almond Technical Achievement Award

    Beginning in 2021, the goal of the Almond Technical Achievement Award is to recognize an industry or allied industry member who has contributed a significant technical advancement for the betterment of the California almond industry through research, innovation or facilitated adoption of practices. Award recipients have contributed significant research, facilitated an innovative practice, or assisted in the adoption of a practice for the betterment of the industry.

    Wes Asai was awarded the 2023 Almond Technical Achievement Award at The Almond Conference in December.

    Left to right – Wes Asai, Gina Asai, Carrie Asai, Alicia Rockwell (image courtesy of the Almond Board of California)

    Nominate someone for the 2024 ATAA award.

    Past Winners

    Almond Achievement Award Winners

    2023 – Dick Cunningham

    2022 – Brian Ezell

    2021 – George Goshgarian, Sr.

    2020 – Jim Paiva

    2019 – Rob Kiss

    2018 – John Thoming

    2017 – Tony Campos

    2016 – Dave Phippen

    2015 – Jim Jasper

    2014 – Dave Baker

    2013 – Martin Pohl

    2012 – Joe Macllvaine

    2011 – Ned Ryan

    Almond Technical Achievement Award Winners

    2023 – Wes Asai

    2022 – Paul Lum

    2021 – Ken Stevenson

  • Applications Open for Almond Board Leadership Program 2025

    In 2009, Almond Board of California (ABC) set out to encourage a new group of individuals with diverse backgrounds to become leaders in the almond community. The result was the creation of the Almond Leadership Program. The yearlong program is designed to provide a mentored experience for the next generation of leaders, and includes leadership training seminars, hands-on educational opportunities, field experience and a firsthand look at the inner workings of ABC. Through the Almond Leadership Program, participants will learn how to effectively lead, manage and inspire others in the almond community; enhance business relationships; understand current social, political, scientific and economic issues facing almonds; and master communication and leadership techniques relevant to managing or retaining a leadership role in almond organizations and their local community.

    Seeking to cultivate and inspire passionate leaders for years to come, applications are now open for the 2025 Almond Leadership Program and must be received by November 22nd at 11:59 p.m.  Interviews are scheduled to take place November 25-26th AND December 3-5th.

    The program consists of approximately 110 hours of seminars and events, and 70 hours of interactive learning to complete assignments (time estimates do not include travel time). Attendance at all seminars and events is mandatory. All applicants must have reliable transportation and be available to travel to seminars and events as scheduled. Full consideration will be provided to all applicants regardless of age, gender, race or other distinguishing characteristics.

    Evaluation and Review of Applications

    A panel will evaluate completed applications. Consideration will be given to applicants who show the greatest potential to further the interests of the California almond community. Applicants will be notified to schedule a personal interview with ABC staff and other stakeholders in the Almond Leadership Program. Successful applicants will be notified by email.

    Participant Costs

    The Almond Leadership Program does not charge for participation in the program. Any costs incurred with mileage will be reimbursed at the government rate. Educational materials, meals and occasional lodging accommodations are paid for courtesy of Almond Board. Please note that participants in ALP may incur small incidental expenses associated with scheduled seminars, industry events, and special projects. These costs are the responsibility of the participant and should be paid for at the time of the event.

    Click HERE for more details and to apply for the program. For questions about the program, email Rebecca Bailey.

  • Harnessing the Power of Hydrogen to Support California Agriculture

    California leads the nation in the adoption of renewable energy. Significant investments have been made in solar electricity generation and biogas digesters in its agricultural industry, but what about hydrogen power? The State of California was recently awarded $1.2 billion from the Federal Dept. of Energy to invest in hydrogen power as a renewable energy source and offers much promise to the agricultural processing and trucking industries. Neil Navin from SoCalGas met with Matthew Malcolm on California Ag Network to share some of the possibilities, and explain how hydrogen power compares with electricity in its sources for sustainable generation and its ability to serve the needs of trucking and large equipment. Watch this brief interview and learn more in Malcolm Media’s agricultural publications.

  • Roller Crimping – A Cover Crop Termination Option

    With the end of harvest comes the beginning of winter prep work. One practice that provides a bevy of positive impacts for orchards is planting a winter cover crop. Adding organic matter to the soil via cover crops can improve water infiltration and water holding capacity of the soil. Fixing nitrogen and breaking up compacted soil can also be achieved by selecting appropriate species for your cover crop mix.

    While the benefits of winter cover cropping in orchards are well-known, the particulars of when and how to terminate the cover crop can be overwhelming. Using herbicides to terminate a crop can be expensive, and achieving good coverage can be difficult with large amounts of biomass. Mowing or tilling can disrupt the soil, losing some of the accumulated carbon. Annie Edwards and Margaret Smither-Kopperl with the USDA recently released a report on termination using a roller crimper in orchard systems. Their findings show that, while this can be a great tool to maximize the benefits of cover cropping, roller crimping works best with certain cover crop species and growth stages.

    Figure 1. Roller crimper implement. Photo credit: Tracy Robillard, USDA NRCS.

    Roller crimping is a common practice in other parts of the country but had not yet been studied in California orchard systems. A roller crimper is a drum-shaped implement with blunt curved blades (Figure 1.) that rolls over and crushes down the vegetation without disturbing the roots. This creates a mat of biomass over the soil’s surface, similar to mulch. This has been shown to reduce soil temperatures, conserve soil moisture, decrease erosion, and reduce herbicide use. The timing of roller crimping is critical; too early and you won’t have enough biomass produced to adequately cover the soil and provide the desired benefits. Too late and the cover crop may have produced seed that can germinate in the current season, depending on irrigation practices and precipitation.

    Research completed at the USDA’s Lockeford Plant Materials Center compared four different cover crop seed mixes to determine how well the roller crimper terminated each. Additionally, each of the four mixes was crimped at 6 different times to evaluate which growth stage was most successful for termination. Data on “bounce back” (when plants stood back up and continued to grow) as well as regrowth, biomass, vegetative stage, and cover crop canopy height were collected.

    • Results showed that the brassica mix “bounced back” and regrew when roller crimped too early. Termination with the roller crimper was most effective when these species were at least a week into flowering, with termination remaining effective through “seed maturing” stage.This termination timing allowed for good biomass accumulation,  and the study notes that the brassica mix formed a vegetative mat when crimped, which is the ultimate goal of this termination technique.
    • The fava beans alone remained crimped after the plants had visible early pods reaching about 3/16”. The fava beans and the brassica mix were the only treatments that were completely successfully terminated with the crimper.
    • The “annual plow down” mix, consisting of oats, vetch, peas and fava beans, showed best results when crimped at early visible pods in the fava. This mix also had the largest biomass accumulation over the season. However, the oats in the mix had a high rate of “bounce back”. Crimping was not an ideal method of termination for this mix.
    • The triticale crop continued to regrow when crimped too early. Crimping was most successful for this species after the plants started to flower. However, even then, the triticale “bounced back” and was never fully successfully crimped.

    Ultimately, roller crimping is most effective for termination of cover crop mixes without grass species. Crimping brassica mixes and fava beans produces a vegetative mat that can protect soil and maximize the benefits of cover cropping. It is key to use this technique at the appropriate vegetative growth stage for the species in your mix, as crimping too early can necessitate repeating the practice.

    The entire USDA report, including seeding densities, seed sources, and photos can be found here. — By Becky Wheeler-Dykes, UCCE Farm Advisor, Glenn, Tehama and Colusa Counties

  • Prepare to Prevent an Autumn Freeze from Damaging Walnut Trees

    Autumn freeze damage in walnuts can occur when trees experience freezing temperatures prior to going into dormancy. In recent history, Sacramento Valley growers experienced this most severely in 2018, and since then, many have implemented management practices to prevent widespread damage.

    Symptoms of freeze damage can include:

    • Late leaf-out in affected limbs
    • Weak or dead terminal budwood and smaller upper limbs (mild/moderate damage)
    • Major limb death, mainly in the upper and exposed portions of the tree, and/or apparent whole tree death (severe damage)
    • Darkened or orange-tinted wood, with gray/black streaking in the cambium underneath
    • Sunburn on damaged limbs, usually on south- and west-facing sides

    This past spring (2024), growers in Sutter, Yuba, Yolo, and Tehama counties reported symptoms of freeze damage, likely from an early autumn freeze that occurred near Halloween. If you noticed any of these symptoms in your orchards this past spring or are aware of cold pockets in certain areas/fields, consider the following steps to prevent another year of freeze damage.

    Preventative management:

    Increase soil heat storage:

    1. For young trees, it’s best to cut off N applications by mid-August to prevent tender new growth that is most vulnerable to freeze damage. Also, withhold irrigation starting in early to mid-September to set a terminal bud on the trunk (Figure 2). After the terminal bud has set, resume irrigation to avoid tree stress and defoliation, without the fear of pushing tender new growth.

    2. For mature trees, cut off nitrogen (N) applications by the beginning of September. Terminal buds may set as a positive side effect of the water cutoff done ahead of harvest to avoid shaker injury.

    Increase soil heat storage:

    3. Maintain short groundcover during autumn frost season, beginning mid-October. Keeping groundcovers cut to 2 inches or less during frost season allows sunlight to reach the soil surface, increasing soil heat storage for a warmer orchard through the night. Recently cultivated soil has many air spaces, low heat storage capacity, and low heat conductivity resulting in colder minimum temperatures. The ground surface must be moist for bare ground to be the warmest (see steps 4 and 5).

    4. Trees that remain water-stressed after the heat of summer are the most vulnerable to autumn and winter freeze damage. If there has not been adequate rainfall by mid-October for young orchards, or immediately after harvest for mature orchards, begin irrigating to refill the soil profile.

    5. Water-filled spaces in the soil conduct and store more heat than empty air spaces. Once the soil profile has been refilled, the top several inches of soil are the most important for freeze mitigation and should be kept at field capacity (not saturated/ponding) if possible. Either a dry surface crust on one extreme or a frozen sheet of ponded water on the other extreme will both hinder the re-radiation of stored daytime heat during the night.

    6. Continue to actively monitor soil moisture and freeze predictions in November and December (until trees are acclimated to frost – see note below). Since freeze events are variable depending on location, monitoring each block remotely with a freeze alarm makes good sense. If a freeze is predicted and the soil is dry, irrigate to wet the soil 2 to 3 days before a freeze event to fill the air spaces so the soil will store more heat. Light irrigation to moisten a dry soil surface the morning before a freeze will help obtain the greatest heat storage for re-radiation at night (as long as there is no standing water during the freeze event).

    Active irrigation during freeze event:

    7. Some growers with the ability to actively irrigate during sudden autumn freeze events have reported success in preventing damage. With active irrigation, heat is given off as water converts from liquid to ice. This occurs during the coldest hours of the early morning of the freeze event and is the reason higher flow rates are needed to more successfully manage frost events.

      • We know from work in almonds that active frost protection with solid set irrigation can achieve as much as 4 degrees protection if your system can run 40 gpm/ac.
      • With micro-sprinkler irrigation, 1-2 degrees of warming can be achieved with at least 30 gpm/ac. 25 gpm/ac has been shown to be enough to keep sprinkler heads from freezing.

    Painting:

    8. In addition to water management, painting young trunks and shoots white can minimize damage if applied as soon as possible after a freeze. Research by UC Walnut Specialist Bruce Lampinen has shown painting after leaf fall with white interior latex paint diluted 50% with water minimizes damage to shoots and buds, especially on the south-west side of the tree. The paint moderates large day-to-night temperature fluctuations after sunny winter days.

    Treatment:

    If you suspect freeze damage occurred, cut into the branches shortly after a freeze event and check the tissue for drying or browning. Swift action in the week after a freeze event can significantly decrease damage. If you don’t paint early, painting trees after a freeze can still help decrease severe damage. Wilbur Reil, Farm Advisor Emeritus, found that when trees were painted a week after a freeze event 18% showed damage, compared with 46% damaged in the unpainted trees. Painting any parts that may be damaged should improve recovery and protect against winter sunburn of affected tissue.

    New growth typically occurs below the damaged/dead locations. Dead wood should be pruned out later in the season (mid-summer), after the tree has fully leafed out, to reduce potential colonization sites by Bot or Phomopsis. In young trees with significant freeze damage, remaining limbs or new limbs may have to be trained as new scaffolds.

    Potential causes:

    In “normal” years, the combination of short days, gradually dropping fall temperatures, and rainfall pattern allows trees to go into dormancy in a stepwise pattern (2021 and 2022 in Figure 3 below). In years where we’ve received more reports of autumn freeze damage, there have been large differences in daily high and low temperature (2020), and sudden drops to freezing temperatures prior to trees reaching full dormancy (2020 and 2023).

    As temperatures drop into the low 30s °F and days shorten, carbohydrates move from leaves to wood and starch converts to soluble sugars. Slow cooling is needed to promote starch degradation into sugars, which act as “antifreeze” to protect cells from freezing, as does adequate soil moisture, which keeps cells hydrated. When temperatures suddenly and prematurely drop below 32°F before the acclimation process is completed, carbohydrate movement is likely disrupted and trees are susceptible to freeze damage.

    Unfortunately, we do not know how many frost/mild freeze events are required to sufficiently acclimate trees in autumn. So far, growers that were previously hit hard by fall freeze events have reported success in avoiding subsequent freeze damage by having frost alarms ready and turned on by October 15, completely rehydrating trees after harvest, and actively irrigating during freeze events. Eventually, once mature healthy trees are fully dormant, they can tolerate temperatures to the low 20s °F or below. — By Clarissa Reyes, Orchards Advisor, Sutter-Yuba, Butte & Placer Counties, and Luke Milliron, UCCE Farm Advisor Butte, Glenn & Tehama Counties

  • New Project Aims to Use Farm Waste to Fuel Bioeconomy

    In California’s Northern San Joaquin Valley, crop leftovers such as almond shells, fruit peels and orchard trimmings can potentially be converted into sustainable bioproducts and biofuels – with the right technology. The philanthropy Schmidt Sciences’ Virtual Institute on Feedstocks of the Future, which supports replacing fossil feedstocks with renewable biomass sources, has awarded new funding to a group investigating how to make better use of the diverse agricultural waste in the region.

    “This is an important project for California as it quantifies the diverse ‘ingredients’ in the North San Joaquin Valley available to fuel the emerging biomanufacturing industry in the state,” said Gabe Youtsey, chief innovation officer for the University of California Agriculture and Natural Resources. “This foundational work will kickstart a completely new innovation bioeconomy in the Central Valley that will create new high-paying jobs for our communities and support a resilient food and agriculture industry through circular biomanufacturing.”

    Circular biomanufacturing is a process that uses waste streams as raw materials to create new products.

    “Circular means taking waste streams from agriculture such as almond shells or grape pomace, forest waste or food processing waste and using that material as the ‘feedstock’ in a fermentation tank to create new bioproducts,” Youtsey explained.

    The group, “Building the Circular Bioeconomy in the North San Joaquin Valley” or BioCircular Valley, is co-led by the Department of Energy’s Lawrence Berkeley National Laboratory (Berkeley Lab), UC Berkeley, and BEAM Circular, with partners at UC Merced, UC Agriculture and Natural Resources, the Almond Board of California and USDA Agricultural Research Station in Albany.

    “California has this incredible diversity of materials, but they aren’t well understood – and this makes it difficult to know how to extract the most value out of them,” said Corinne Scown, a senior scientist at Berkeley Lab and UC Berkeley and one of the project leads. “We want to characterize them and make that information available so companies can more easily figure out which feedstock is a good match for them, and then use that agricultural residue to make everything from bio-based polymers and chemicals to sustainable materials and aviation fuels.”

    One of the group’s goals is to build a publicly accessible database and user-friendly map full of information about different feedstocks, the raw plant materials and biomass that can be broken down and used to make bioproducts. That includes where feedstocks are located, when they are available, how they are currently disposed of, how they perform in different bioreactors, how much sugar or lignin they contain, whether they can be processed with other feedstocks, their greenhouse gas footprint, the potential cost, and much more.

    UC ANR’s role is to collect data on available feedstocks from forest, agricultural and food processing byproducts, as well as municipal waste streams through sampling and observation.

    “We will do this through the extensive knowledge and relationships we have with the California agriculture industry in the North San Joaquin Valley,” Youtsey said. “UC ANR will also support industry outreach as new ‘conversion’ technologies are developed, to pilot them with California growers and processors.”

    The project will also test ways to improve the flexibility of the conversion process, which breaks down feedstocks to prepare them to make bioproducts. Researchers will apply artificial intelligence to their lab-generated data to improve predictions of how feedstocks can be processed most efficiently or blended together. Being able to use the same technique on different (or mixed) kinds of plant matter would open up ways for companies to make bioproducts more easily.

    “Our region has a fantastic combination of diverse and large-scale agricultural activities alongside manufacturing expertise, making this a great place to scale up bioeconomy innovation,” said Karen Warner, CEO of BEAM Circular. “This project will allow us to reduce barriers to using our region’s abundant waste streams in more sustainable and valuable ways, so that we can create the products that people need with renewable inputs that are better for the planet.”

    The project builds on ongoing efforts to establish biomanufacturing capabilities in the northern San Joaquin Valley, which includes San Joaquin, Stanislaus and Merced counties. Providing better data on how to convert the valley’s millions of tons of agricultural waste into valuable products may spur biomanufacturing companies to build facilities nearby, minimizing how far the raw materials have to be moved and generating new jobs.

    “This project is designed to benefit a region that has massive potential, but so far has been economically left behind, and to develop a new industry that can provide improvements in air quality, water quality and greenhouse gas emissions as well as significant opportunities in economic equity and the creation of new jobs,” said Blake Simmons, director of Berkeley Lab’s Biological Systems and Engineering Division and the BioCircular Valley project lead.

    “This kind of research started as basic science, and now we’re bringing information and solutions to people who can use them. And the knowledge generated through this project will advance not only the ability of the NSJV to make use of its own regionally available future feedstocks, but will also accelerate the understanding of feedstocks relevant across California and across the U.S.”

    The new funds for the project come from the Virtual Institute on Feedstocks of the Future, a partnership between Schmidt Sciences and the Foundation for Food & Agriculture that supports collaboration on research to transform biomass into alternative feedstocks for biomanufacturing. The award is one of five, which total $47.3 million over five years. It is expected that the five teams will collaborate to share best practices and knowledge to boost the bioeconomy at the national level.

    “We are grateful for Schmidt’s generous support that will help deploy advanced technologies on the ground,” said Alicia Chang, interim president of Berkeley Lab Foundation. “The foundational research and expertise developed through work for the Department of Energy sets the stage for this team to apply their capabilities to bring jobs and lift the community and the economy in the Northern San Joaquin Valley.” — By Lauren Biron & Pam Kan-Rice, UCANR

  • Visual ID Guide to Help Manage New Almond Pest

    Since the first reports of a new almond pest – the carpophilus beetle (Carpophilus truncatus) – came in during fall 2023, it has become clear that the beetle is widely dispersed across the San Joaquin Valley.

    “My lab has identified infestations from every county in the San Joaquin Valley; we have found infestations in both almonds and pistachios, and we will likely find infestations in walnuts this fall,” said Houston Wilson, a University of California Cooperative Extension entomology specialist at UC Riverside. The California Department of Food and Agriculture has confirmed the beetle’s presence in Stanislaus, Merced, Madera and Kings counties.

    Historically a major threat to almond production in Australia, the beetle – as larvae and adults – feeds directly on the nut kernel. In California, some almond growers have lost 10 to 15% of their yield – a “significant economic loss,” according to Jhalendra Rijal, University of California integrated pest management (IPM) advisor for the region. Given the prominence of almonds as a commodity, even a 1% overall reduction statewide represents an approximately $70 million loss.

    “This year there has been a lot more reports from PCAs [pest control advisers]; they’re sending me the pictures of the damage and beetles,” said Rijal, noting that the increase is likely due to greater awareness of the pest.

    To help almond growers identify the carpophilus beetle and develop management plans, Rijal, Wilson and their IPM colleagues have put together a visual ID guide for the beetle and the damage it causes, as well as telltale signs of navel orangeworm (Amyelois transitella) and ant damage. In particular, the experts would like PCAs and growers to differentiate between the carpophilus beetle and navel orangeworm, another key pest in almonds.

    “Even though their way of causing damage looks more or less similar, we’re dealing with two different types of insects,” Rijal explained. “One is a Lepidoptera moth [navel orangeworm], and the other one is a beetle – many of the management practices and biological controls would be different for these two different things.”

    TOP: Both carpophilus beetle adults and larvae feed on the kernel and cause damage characterized by fine powdery frass and nutmeat, a white-creamy color with some webbing. Often, large numbers (more than 10) of adult and larvae are found per nut. BOTTOM: Navel orangeworm larvae cause damage characterized by thicker frass and silky webbing entangled with a darker, brownish appearance. Only larvae are present at harvest, usually 1 to 3 larvae per nut. Photos by UCCE Stanislaus IPM team

    To control carpophilus beetle, ‘sanitize, sanitize, sanitize’

    One crucial cultural practice for managing both pests, however, is destroying the remnant “mummy” nuts – the nuts that remain in the orchard postharvest. They serve as overwintering habitat for the carpophilus beetle, as well as its sustenance for the next generation of beetles in spring.

    “The best way to manage this pest is to do the orchard hygiene – continuing the winter sanitation, destroying the nuts that are on the ground and on the tree and on the berms,” Rijal said.

    Based on observations in Australia and locally, carpophilus beetles tend to rely more on mummies on the ground, whereas navel orangeworm generally favors mummies in the tree canopy. Correctly identifying the pest – with help from the new ID guide – enables growers to better target and prioritize their management efforts, Rijal said.

    “What we are strongly emphasizing is that growers need to sanitize, sanitize, sanitize to control both pests,” Wilson added.

    Correct identification of the pest would also prevent unnecessary application of insecticides, as those used for controlling Lepidoptera such as navel orangeworm would be largely ineffective on the beetle.

    Indeed, another insight shared by Australian experts is that the carpophilus beetle cannot be controlled just by insecticide.

    “Insecticides are not very efficient, given the cryptic nature of these beetles; exposing these beetles to the insecticide is very hard,” said Rijal, noting that the beetle spends most of its life cycle protected inside the nut.

    Reporting carpophilus beetle infestation helps researchers

    Mature larva of navel orangeworm (NOW) is 3 to 4 times larger than carpophilus beetle (CB) mature larva. Photo by Jhalendra Rijal

    This harvest season, Rijal advises almond growers to harvest as efficiently as possible, to minimize the number of mummies that need to be cleaned up. And because signs of damage (like damaged hulls and frass) are most obvious during harvest time, Rijal said growers should review the new guide, using the photos and other resources to help identify potential pests.

    If the grower or PCA suspects a carpophilus beetle infestation, they should contact the UCCE farm advisor in their area.

    Scientists are looking to expand their knowledge about this relatively new pest to California. In the coming weeks, for example, researchers are planning to survey for the carpophilus beetle in the Sacramento Valley.

    “Technically it has not been found there, but we suspect that we’ll find it this fall when we go looking for it,” Wilson said.

    Researchers are also collecting samples from infested orchards to better understand the biology of the species, as well as how it progresses through and responds to seasonal and climactic changes. In addition, they are analyzing data from a trial study of an insecticide that might be used as a supplemental control measure.

    “This is our first full season dealing with this insect, and there are still many things we need to understand,” Rijal said. “We are continuing our research efforts on all fronts.” — By Michael Hsu, UCANR