California walnut growers are expecting a shorter crop this year, but high quality product. With a lower carry-in inventory, things are looking more positive in the market ahead. Watch this brief interview with Robert Verloop, CEO of the California Walnut Board & Commission, as he met with Matthew Malcolm on California Ag Network to share highlights of this year’s walnut crop and a look at global market trends. Verloop will be sharing the State of the Walnut Industry report at Malcolm Media’s Grape, Nut & Tree Fruit Expo on Nov. 8th at the Fresno Fairgrounds and at the Tree & Vine Expo on Nov. 12th at the Stanislaus County Fairgrounds, so be sure to register to attend free at https://agexpo.biz/.
Category: Economics
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Oregon Hazelnut Industry Loses Two of Six Packers – Should Growers Be Concerned?
Oregon hazelnut growers are beginning their 2024 harvest with two fewer packers than last year. While this seems pretty alarming, seeing that growers may potentially deliver their largest crop ever this year, the remaining four packers remain dedicated and confident in their ability to take in the extra inventory without any real setbacks to the growers. Pacific Nut Producer Editor Matthew Malcolm met with hazelnut packer Michael Severeid of Willamette Hazelnut who elaborated on the subject. 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.
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War in Ukraine Leads to Lackluster Investment in Future of Walnut Industry
The USDA Foreign Ag Service forecasts Ukraine’s walnut production at 101,300 metric tons (MT) for marketing year (MY) 2024/25, a 4 percent decrease against MY2023/24. Household production continues to slide as old, non- productive trees are being chopped down. Post forecasts production areas for industrial growers to remain flat, as there is currently little appetite for long-term investments due to Russia’s full-scale invasion. Post forecasts MY2024/25 exports will decrease by 9 percent as large ending stocks, which were predominantly amassed during MY2021/22, have been slowly depreciating for two consecutive MYs. At the same time, rebounding imports of tree nuts in line with economic recovery and adjustment to the “new normal” are putting downward pressure on volumes of domestically consumed walnuts.
SSSU published official production numbers for CY2023. The total walnut reported area is 16,400 ha, a 4.1 percent decrease compared to the previous CY. Walnut production is reported at 106,120 MT, similar to the previous CY. Post accepts these as MY2023/24 estimates. Note that a MY for Ukraine starts in September and ends in August; therefore, MY2023/24 refers to the period between September 2023 and August 2024.
The main reason for sliding production area is a constant area decrease by households (Figure 1). The majority of walnuts harvested in Ukraine are produced by individuals or small private family farms harvesting trees on their land or in the vicinity of their farms. This category of producers is not typically concerned with the application of fertilizers and agrochemicals and uses manual labor to harvest and shell walnuts. Harvested walnuts are typically sold to intermediaries, who assemble batches for export or store them in-house in times of low demand or unfavorable prices.
In CY2015, over 95 percent of Ukrainian walnut production area was on small, private family farms. In CY2023, these farms represented around 74 percent of total area. Post predicts this downward trend in walnut production on family farms will continue in the medium to long term as aging trees lose their productivity and are chopped down. However, family farms still enjoy a dominant position in production volumes, as they hold an absolute majority of the bearing tree area compared to industrial growers – 81 percent for CY2023.
The main reason for decreasing production area among households is Ukrainian farmers began developing walnut orchards for commercial purposes in 2009. The average size of these commercial orchards ranges from 20 to 50 ha. The establishment of commercial farms can be attributed to pre-2022 GOU financial support for orchard and berry producers and the establishment of the agricultural land market in Ukraine. Industry notes that farmers were investing in high-yield commercial orchards with multiple walnut varieties, installing irrigation systems, and applying fertilizers. Some regions, especially in central and southern Ukraine, require irrigation to secure expected yields, while orchards in the northern part of Ukraine may experience lower yields because of the cooler climate. In southern Ukraine, seedlings can be planted in autumn, while in northern Ukraine, it is still advisable to plant in spring to avoid winter frost damage for newly planted trees. Walnuts are normally harvested from the end of September through the end of October.
According to SSSU data, commercial growers scaled down their total walnut areas to 4,300 ha for MY2023/24 from a peak area of 5,600 ha in MY2019/20. This might be an indication that some growers went out of business due to uncertainties caused by Russia’s full-scale invasion of Ukraine and are subsequently cutting down or leaving behind the newly established orchards.
Professional growers are currently reluctant to make long-term investments due to the ongoing Russian aggression against Ukraine. Fruit tree import dynamics confirm this (Figure 2). The initial investment required to establish an orchard ranges from $1,200 to $1,800 per ha. Read the full report from the USDA Foreign Ag Service HERE.
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Ag Processing Labor Contractor Thoughts on New Indoor Heat Illness Rule
California has experienced an unusually hot Summer this year, which may have had influence in Cal/OSHA’s recent approval of a new regulation “Heat Illness Prevention in Indoor Places of Employment” that went into effect immediately, which impacts indoor workplaces in ag such as nut hulling and processing facilities, wineries, dairies, packinghouses and more. Key indoor temperature/heat index thresholds of 82 & 87 degrees F will mandate certain procedures to ensure the health and safety of employees. Looking into the impact of the new regulation, Matthew Malcolm visited with labor contractor Robert Heredia of H&R Labor, who specializes in meeting the labor needs of food processing facilities in one of the hottest regions in the nation — the Central Valley of California. Watch this brief interview as Heredia shares his thoughts on the recent changes.
Special thanks to American Pistachio Growers for sponsoring this video.
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2024 Oregon Hazelnut Production & Market Forecast
As Oregon hazelnut growers begin the 2024 harvest with the potential of reaching another record crop, many wonder how the market will receive it and what kind of return growers should be expecting for their hard work this season. Pacific Nut Producer Editor Matthew Malcolm met with Larry George of George Packing Company, the largest hazelnut packer in the Pacific Northwest, to share his expectations and optimism in taking this crop to market.
Please thank this video’s sponsor George Packing Company for their industry support.
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Coach Prime Turns to Almond Research to Help with Exercise Recovery
Almond Board of California — Deion “Coach Prime” Sanders is using all his coaching tools to prepare for the college football season ahead. Those include his Prime Time swagger, electric motivational style, and his unique partnership with California Almonds, which opened his eyes to research showing almonds can help with recovery from workouts.
One of the most singular motivators in college sports, Coach Prime works to prepare his players mentally and physically, both before and after practice and games. Sanders says recovering from workouts doesn’t have to be complicated — it can be as simple as fueling up on two servings of almonds (about 46) daily.
“You gotta WANT it, then you gotta WORK it, which then places you in a position to WIN IT. And to WIN IT, you gotta take care of YOU and make sure your recovery is right,” says Coach Prime. “We are working day in and day out to DOMINATE both on the field and off, which is why I make sure almonds are a part of my life each day. You already know we WANT it, and almonds help us WORK IT, and then WIN IT. IT DON’T STOP, BABY!”
Groundbreaking research shows that most study participants who ate two servings of almonds, (vs. a calorie matched cereal bar,) four weeks prior, reported reduced fatigue and tension, increased leg and lower back strength during recovery after completing 90-minutes of exercise, and decreased muscle damage during the first day of recovery after completing the exercise.
This research, funded by the Almond Board of California, was conducted over four weeks among 64 U.S. adults ages 30 – 65 who are occasional exercisers.
Coach Prime’s partnership with California Almonds became one of the most high-profile sponsorships in college sports in 2023 and is kicking off a second year. He says often that he learned how snacking on almonds can help with exercise and exercise recovery.
Fans can catch Coach Prime and California Almonds at the start of the college football season with ads airing on national and cable TV networks like ABC, NBC, Fox, ESPN, and on social media. For more tips on how to own your prime from Coach Prime himself, visit almonds.com and follow California Almonds on Facebook, Instagram, and Twitter.
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Survey Projects Another Record Crop for U.S. Hazelnuts
The Hazelnut Marketing Board (HMB) concluded its annual Subjective Yield Survey (SYS), and with approximately 20 percent of acres accounted for, the harvest is anticipated to be 97,460.39 tons.
This would represent a slight increase from the 2023 harvest of 93,300 tons, and a moderate boost over informal industry estimates that have placed the 2024 harvest closer to 90,000 tons. All totaled, 20,505.95 acres were submitted for in the Subjective Yield Survey. Extrapolated over the total industry acreage, per the Pacific Agricultural Survey aerial field mapping data from July 2024, the total merchantable weight would be 194,920,782.18 pounds, or 97,460.39 tons.
The Subjective Yield Survey is conducted by sending postcards to all hazelnut growers in early July and asking them to project what they think their yield will be. Cards were accepted through the Nut Growers Society Summer Tour on August 7 to allow growers more time to complete the survey and more accurately predict their harvests.
The Subjective Yield Survey is the only industrywide predictor for the U.S. hazelnut harvest this year. Questions regarding the Subjective Yield Survey may be directed to the Hazelnut Industry Office at 503-582-8420 or Hazelnut@OregonHazelnuts.org.
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2024 California Walnut Crop Forecast Down Significantly
The USDA’s National Agricultural Statistics Service (NASS) released the official 2024 California Walnut Industry Objective Measurement Report on Wednesday, September 4, 2024. The 2024 California walnut production is forecasted at 670,000 tons (607,814 MT), down 19% from 2023’s production of 824,000 tons (747,520 MT). The forecast is based on 370,000 bearing acres, down 4% from 2023’s estimated bearing acreage of 385,000 acres.
The September 4th announcement from USDA provides the industry with an objective crop volume estimate. Using scientific methodologies, USDA field staff counted, measured, weighed, and evaluated thousands of walnuts from major growing regions in July and August for use in a statistical acreage model to establish the annual walnut crop estimate.
In addition to the updated acreage and crop estimate, the CA walnut industry is finalizing the close out of the 2023 crop year. While final shipment and inventory figures will be released later this month, preliminary data indicates that the 2023 crop is virtually sold out.
As anticipated, the upcoming 2024 crop is lower than the historic record crop of 2023 and will deliver the high quality that defines California walnuts globally,” said Robert Verloop, Executive Director and CEO of the California Walnut Board and Commission. “The 2024 estimated crop size, while moderate, is similar to the 2019 crop. In addition, due to strong summer demand, we expect the end of season shipment report to show the carry-in volume to be substantially less than last year. Combined, the carry in and new 2024 crop volumes are very manageable, providing improved seller and buyer confidence and stable markets.
“As an industry, based on the favorable crop statistics and overall market conditions, we feel confident about the upcoming crop year. We continue to focus on delivering quality all the way to the consumer, with enhanced handling of walnuts through the supply chain and increasing our demand-building initiatives to drive more sales and excitement for California walnuts. We continue to work to make walnuts more relevant to consumers as a nut for every day eating occasions and partnering with retailers, bringing visibility and excitement to walnuts with expanded offerings of package size options, flavors, and more walnut products. Together as an industry, we are focused on building more consumer demand while delivering high-quality California walnuts around the world.”
About the California Walnut Board and Commission
The California Walnut Board (CWB) and 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 CWB, established in 1948, promotes usage of walnuts in the United States through publicity and educational programs. The CWB also provides funding for walnut production, food safety and post-harvest research. 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.
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2nd Summer of High Temperatures Takes Toll on Oregon Hazelnuts
Temperatures across the West have reached some new record highs this year. No doubt, it has been an extra hot summer. While most specialty crops can handle the high temperatures of summer, they do have a breaking point, and hazelnut orchards across the Willamette Valley of Oregon have been impacted for the second year in a row by the persistent heat of the summer. Watch this brief interview with Nik Wiman, Orchard Crops Extension Specialist at Oregon State University (OSU) as he shares what happens when hazelnuts reach their breaking point and how growers can help their trees get through it.
Please thank this video’s sponsor George Packing Company for their industry support.
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Congressman Duarte Addresses Water Issues & Solutions for California Ag
Despite the great rainfall and snowpack California has experienced in the last couple years, little of this abundance has been shared with agriculture or even saved for the inevitable times of drought that lay ahead. Farmers are fed up with the state’s many years of mismanagement of our water resources and lack of practical investment in our water future. This led a farmer to run for congress and bring some new, realistic solutions to the table. Watch this brief interview with Representative John Duarte from the 13th Congressional District of California as he shares some of these priorities that offer relatively quick and longterm water availability benefits for farmers and all Californians.
Special thanks to American Pistachio Growers for sponsoring this video.