Category: Economics

  • SGMA Progress Hampered by Insufficient Surface Farm Water Allocations

    Farmers and local water districts have worked together endeavoring to rebuild and sustain California’s underground aquifers through groundwater recharge projects among other conservation practices. Much progress has been made in complying with the Sustainable Groundwater Management Act (SGMA), but without access to adequate surface water in year’s of plenty such as this, farmers are left struggling to keep their crops alive and productive, prematurely having to tap back into groundwater supplies. Watch this brief interview with pistachio grower and Chairman of the California Water Alliance — William Bourdeau, as he explains. And read about farm water solutions in the September issue of Pacific Nut Producer Magazine.

    Special thanks to American Pistachio Growers for sponsoring this video.

  • Almond Alliance Announces Alexi Rodriguez as New CEO

    The Almond Alliance is proud to announce the appointment of Alexi Rodriguez as its new Chief Executive Officer, effective January 2025. With a distinguished career in the almond industry and a deep commitment to agricultural advocacy, Rodriguez will lead the Alliance into its next chapter of growth.

    “We are thrilled to welcome Alexi Rodriguez as the next CEO of the Almond Alliance,” said Blake Vann, Chair of the Almond Alliance. “Her proven leadership and deep understanding of the almond industry make her the ideal choice to guide our organization into the future. Alexi has been a steadfast advocate for the industry and we are confident that under her leadership the Almond Alliance will continue to thrive and champion the interests of our members.”

    Rodriguez brings over 15 years of experience in the industry, having served in various high-impact positions, including Chair for the Almond Board of California (ABC) and Director of Operations for Campos Brothers Farms. Her leadership has driven strategic growth, operational efficiency, and innovation across the industry. Beyond her operational roles, Rodriguez has strongly advocated for the almond industry on regulatory and compliance matters.

    “I’m excited and honored to be selected to lead the Almond Alliance,” said Alexi Rodriguez. “I’m looking forward to utilizing my knowledge and experience to advocate for this great industry and connect with industry members as we navigate the challenges ahead.”

    Rodriguez’s appointment follows an extensive search process, underscoring the Almond Alliance’s commitment to finding a leader who embodies the organization’s vision and values. Her leadership is expected to bring fresh perspectives and strategies to strengthen the Alliance’s role as the voice of American almonds. Rodriguez is uniquely positioned to lead the Almond Alliance as it continues to promote the interests of its members and drive the industry toward a sustainable and prosperous future.

    Alexi being interview by Pacific Nut Producer Editor Matthew Malcolm while serving as Chair of the Almond Board of California

    About the Almond Alliance
    Almond Alliance is the leading authority in state and national policy, championing American almond farmers, industry, and community for the continued global growth, innovation, and success of American almonds and agriculture.

    Established in 1980, the Almond Alliance is a non-profit trade association with a local and international network of almond processors, hullers/shellers, growers, and allied businesses. The Alliance is dedicated to providing resources and solutions for our members, ensuring industry success and growth opportunities. Learn more at almondalliance.org.

  • Brendan O’Donnell Selected as President/CEO of DFA and Safe Food Alliance

    DFA of California and Safe Food Alliance are pleased to announce the appointment of Brendan O’Donnell as their new President and CEO, effective August 1st, 2024. Brendan brings over two decades of extensive leadership experience in the food and agriculture industry, marked by his commitment to innovation, food safety, and sustainable practices.

    Prior to joining DFA and Safe Food Alliance, Brendan served as Global Segment Director, Nuts & Citrus at TOMRA Food, where he led global teams and spearheaded customer-focused product development initiatives. His tenure at TOMRA showcased his strategic acumen and ability to drive growth through effective leadership and market insights.

    “Looking ahead, we are very pleased with the appointment of Brendan O’Donnell to succeed Vaughn as President & CEO. Brendan has demonstrated extraordinary communication and leadership skills in his roles at TOMRA and Monte Vista Farming Company. These skills, along with his technical background, make him an excellent fit to lead the DFA/Safe Food Alliance organization,” said Brian Dunning, President & CEO
    of ShoEi Foods USA and current Chair of the DFA Board. “His vision aligns perfectly with our commitment to supporting the dried fruit, tree nut, and specialty crop industries, and I am confident in his ability to enhance our member services and strengthen our industry partnerships.”

    Throughout his career, Brendan has held pivotal roles at Monte Vista Farming Company and Sun Valley Rice, where he contributed significantly to business growth and market expansion. He holds an Executive Certificate in Negotiation from the University of Notre Dame’s Mendoza College of Business and a B.S. in Agricultural Systems and Environment from the University of California, Davis.

    “I am honored to join DFA and Safe Food Alliance at such an exciting time in our industry,” said Brendan O’Donnell. “I look forward to leveraging my experience to drive innovation, strengthen food safety standards, and support our members and partners as we navigate new opportunities and challenges ahead.”

    In addition to his professional achievements, Brendan is dedicated to his family and enjoys exploring the outdoors with his wife, Erin, and their two teenage children.

    About DFA of California

    Founded in 1908, DFA of California is a non-profit trade association dedicated to supporting the dried fruit, tree nut, and specialty crop industries. DFA supports processors through rigorous inspection services, member benefits, food safety training, and provides support on numerous export related matters. For more information, visit DFA of California.

    About Safe Food Alliance

    Safe Food Alliance provides a comprehensive range of food safety services designed specifically for food processors and manufacturers throughout California. As a full service food safety company, Safe Food Alliance provides third-party laboratory testing, complemented by extensive food safety training, consulting services, and third-party certification audits offered through a separate company, Safe Food Certifications.

  • Consider “Spoon-Feeding” Almond Trees

    Almond Board of California — Nutrient application, such as nitrogen application, is undoubtedly one of the most important “make or break” economic and environmental decisions almond growers make. Not only can nitrogen affect yields and productivity, but growers can see a huge difference in their profit margins if applied efficiently.

    “When we think about managing nutrients such as nitrogen, our goal is the balance between supply, all of the inputs of nitrogen into the system, and the demand of the tree with the goal of maximizing your efficiency,” said Patrick Brown, professor at UC Davis during a 2023 Almond Conference session.

    Because nitrogen application can differ from one crop to the next, Brown encouraged growers to fully understand the conditions of their individual orchard before applying fertilizer. This includes when it is needed, how much should be applied, the placement, and source.

    Minimizing losses

    The goal when using these considerations is to minimize losses, with environmental concerns being top of mind. “Any loss is a lack of efficiency, but any loss is also a source of greenhouse gases for pollution or a source of nitrates for pollution into the groundwater,” Brown said.

    Research has shown that nitrates move through the soil very rapidly, and as you increase application, uptake of nutrients from the soil is not uniform. For example, if fertigation is infrequent and application exceeds a certain rate, saturation can occur causing waste or leaching.

    “A large proportion of that nitrogen will sit in the root zone waiting for the plant to catch up,” he said. “This is an important principle because it underlies where and how inefficiencies occur.”

    Growers can avoid these scenarios if they follow the 4 Rs of nutrient management: right rate, at the right time and in the right place, using the right source of nutrients. An in-depth explanation of the 4 Rs can be found in Almond Board of California’s (ABC) Nitrogen Best Management Practices.

    Right Time

    Firstly, it’s important to understand the ideal time to apply nitrogen to an almond orchard. Studies show there is no nitrogen uptake from the soil at 70% leaf out because the tree is still utilizing reserves established in the previous year. Until those reserves are consumed, new uptake doesn’t occur, and that’s where loss transpires, Brown explained.

    “Those early excesses are particularly prone to losses from rainfall, irrigation, and other events, so you have an increasing number of periods where there’s excess availability of nutrients and hence, the potential for loss,” he said.

    Instead, optimal fertilization will occur with multiple applications in a season, timed accordingly with the demand of the tree.

    Active Root Zone Placement

    Another key aspect of nitrogen application is placement. This is where growers must be educated in understanding the relationship between irrigation and nitrogen movement. Nitrogen that sits on the surface of the soil and remains in the top five inches will be lost if water moves through the profile.

    In order to be utilized properly, nitrogen must be kept within the active root zone, which through research, has proven to typically be within the top 18 inches of soil. This is especially true for the young roots that are highly active in feeding, Brown explained.

    So, how can growers ensure fertilizer applications remain within the active root zone? Brown said this depends on the integration of how and when an orchard is fertilized and how and when it is irrigated.

    “Your goal optimum irrigation is a fertilizer application towards the end of the irrigation event so that you don’t push it through the profile,” Brown said. “This is another example of where having small, spoon-feeding applications minimizes the potential of pushing the nitrogen through the profile.”

    Less is More

    This “spoon-feeding” method is known as continuous fertigation (fertilizing with every irrigation) as apposed to episodic fertigation (fertilizing once every month or two).

    If there is too much excess caused by episodic fertigation, that is where inefficiencies occur causing leaching or gaseous nitrogen losses, which can come with a number of implications for the air resources board and grower.

    Another factor that needs to be considered is how irrigation distribution uniformity determines nitrogen distribution uniformity.

    “If you have a very uniform irrigation system, you inject 250 pounds of nitrogen in a year, and you will be able to deliver that 250 pounds uniformly across the orchard,” Brown said. “If you have a distribution uniformity that’s poor, not only are you not distributing water uniformly, but every time you do an injection of a fertilizer, you’re also not distributing the fertilizer uniformly.”

    Grower Resources

    Because of the increasing complexities involved in the relationship between irrigation and fertilization, the ABC built the California Almond Stewardship Platform (CASP). This platform offers growers tools as it relates to their operation and can run iterations based on customizable inputs. Using the solutions computed by CASP, growers can determine the best path for an individual orchard.

    It’s well recognized that continuous fertigation requires dedicated equipment and constant vigilance from the grower. However, the investment will be worthwhile when efficiency savings and productivity boosts are taken into consideration, Brown assured.

    “It’s very clear that for profitability, efficiency, lack of nitrogen loss, and environmental considerations, that continuous fertilization strategies are the secret to success,” he concluded.

  • Almond Board’s Clever Campaign Captures French Audience

    The Almond Board of California (ABC) conducted an innovative marketing campaign in France, designed to captivate the French audience with humor and creativity. Dariela Roffe-Rackind, ABC’s European marketing director, said the campaign leveraged the high energy and excitement surrounding the Paris 2024 Olympics without the hefty price tag of official sponsorship.

    Long-Lasting Energy: The Foundation

    ABC’s current messaging in France revolves around the theme of “long-lasting energy.” This concept is cleverly encapsulated in ABC’s ongoing campaign, “Mettez la fatigue à l’amande” that highlights the energy-boosting benefits of almonds through humorous scenarios. For instance, a family is on a road trip and the parents, energized by almonds, outlast their exhausted kids in the backseat, or a woman, reinvigorated by almonds, keeps up with her lively dog after a long day at work. These relatable and funny scenes have successfully resonated with the French audience, laying a strong foundation for the new campaign.

    Capitalizing on the French Buzz

    Recognizing the buzz surrounding the Paris 2024 Olympics, ABC aimed to harness this excitement. However, the cost of becoming an official Olympic sponsor — starting at $50 million — was prohibitive. Additionally, strict rules govern non-sponsors’ usage of Olympic-related imagery and terminology. To navigate these challenges, ABC devised a clever strategy: position themselves as the “unofficial sponsor of unofficial sports.”

    The Unofficial Sports Campaign

    With the help of their marketing agency, ABC crafted a campaign – “the unofficial sponsor of unofficial sports” – that references unconventional sports and nutrition in a humorous and memorable way. “We wanted to use the existing tone of our current campaign in France but be even bolder and funnier, and even more absurd to really help us stand out and have a message that would be relatable,” Roffe-Rackind said.

    The sports, which are both very real and energy-demanding, include underwater hockey (snorkeling and hockey on the bottom of a pool), artistic cycling (think acrobatics while riding a bike) and others like unicycle hockey and the internet sensation, Hobby Horse (an imaginative form of equestrianism). “We did a lot of research to find these sports which we think are probably invisible to a lot of people, but they’re just as interesting and probably even more demanding energy-wise than some of the regular sports that are in the Olympics in some cases because they require these athletes to be doing two sports at the same time,” Roffe-Rackind added.

    Leveraging Influencers for Greater Impact

    To echo the current humorous tone of French marketing efforts, ABC collaborated with popular French comedian and influencer, Léa Camilleri (pictured right). In a series of entertaining videos, Camilleri pretends to be a former athlete of these unconventional sports and their number one fan. “She went in with a lot of enthusiasm, interviewed them, talked about how her career ended in these sports in a very humorous, entertaining way,” Roffe-Rackind said. “And in all those scenes, you see her carrying her bowl of almonds, offering them to the athletes as the solution to that long-lasting energy that you need to perform these two sports at the same time.”  Article & Image by the Almond Board of California 

  • Rabobank Reports Slowdown in International Walnut Trade and Production Expansion

    The walnut industry is navigating a period of significant adversity, with several key regions grappling with a host of challenges that have impacted production and trade. These include persistent drought conditions, stringent water regulations, rising costs, logistical hurdles, intensifying competition, and subdued demand, all of which have exerted downward pressure on walnut prices. According to a recent RaboResearch report, as a result of these challenges, acreage reduction is expected in key regions. As for international trade, exports from Chile and China will decelerate, while the US will sustain its share.

    Producers focus on balancing the supply-demand equation

    In order to counter the many challenges they are experiencing, producers are expected to reduce acreage, particularly in areas with less competitive walnut varieties and more severe water constraints. “The industry’s focus is now on enhancing efficiency and producing higher-quality walnuts to achieve a more balanced supply-demand equation,” explains David Magaña, Senior Analyst – Fresh produce and tree nuts for RaboResearch. “Although prices are showing signs of recovery, they continue to linger below the break-even point in certain regions. But we remain optimistic about the potential for profitable operations in the near future.”

    Deceleration in production expansion after two decades of growth

    The global walnut production landscape has seen a steady compound annual growth rate (CAGR) of approximately 5% over the past decade. Four major regions – China (48%), the US (27%), Chile (7%), and the EU (6%) – dominate production and have collectively contributed to 89% of the world’s walnut output. While China and Chile have experienced CAGRs of 5% and 13% respectively, the US and the EU have seen a more modest growth rate of 4% CAGR over the past ten seasons.

    However, the trend of increasing production is set to plateau, with some of the largest producing areas expected to witness a gradual decline in acreage due to economic and environmental pressures. The phasing out of older, less productive orchards and traditional varieties is anticipated to be a key factor in this reduction.

    China remains the world’s top walnut producer and consumer

    On the consumption front, China, the EU, the US, and Turkey collectively represent 75% of global walnut consumption. Notably, the UAE and India have emerged as significant growth markets, with CAGRs of 23% and 12% respectively, signaling a growing demand in these regions.

    For China, the world’s top walnut producer and consumer, the upcoming 2023/24 season marks the fifth consecutive year in which domestic production will surpass consumption by over 100,000 metric tons, reinforcing China’s position as a significant net exporter. The industry consensus indicates a stabilization in China’s walnut production and export levels in the coming years.

    The international trade outlook shows a slowdown

    “The trajectory of global walnut exports has been remarkable, soaring from around 300,000 metric tons in the mid-2000s to approximately 1 million metric tons in recent seasons,” says Magaña. The past decade has seen a 7% CAGR in exports, with notable increases from China, Chile, and Turkey. Despite a reduction in its export share from 64% in the 2014/15 season to about 45%, the US remains the leading exporter of walnuts.

    The future, however, points to a deceleration in exports from Chile and China, while the US is expected to sustain its share of 45% to 50% in the international walnut market.

    The top five importing countries – the EU, Turkey, the UAE, Kyrgyzstan, and India – account for 62% of global walnut imports. Their respective shares stand at 31%, 11%, 9%, 6%, and 5%. Notably, imports by India, the UAE, and Kyrgyzstan have surged, with CAGRs of 25%, 18%, and 15% respectively over the last five marketing seasons.

    For more details on the report, reach out to David Magaña at david.magana@rabobank.com or (559)970-1100.

  • Low, Late Water Allocations Undercut California Ag, Pistachio Grower Aims to Make a Difference

    After years of drought conditions, California has finally had a couple years of great rainfall and snowpack — yet that has not translated to much better water availability for California growers responsible for feeding the world with some of the safest most nutrient-dense crops. With the Sustainable Groundwater Management Act (SGMA) taking effect in the state as well, growers are very concerned for the future of their family operations. Crippled by gov’t regulations and delayed water allocations, watch this brief interview with pistachio grower Rebecca Kaser, who farms in Westlands Water District and aims to make a difference.

    Special thanks to American Pistachio Growers for sponsoring this video.

  • Big DPR Licensing Changes for Pest Control Advisers and Invitation to Gather for 50th Anniversary CAPCA Conference

    To help California Pest Control Advisers and qualified/aerial pesticide applicators prepare for several changes to their license renewals with DPR, Ruthann Anderson, President/CEO of the California Association of Pest Control Advisers (CAPCA), met with Matthew Malcolm on California Ag Network on August 5th to explain the changes. Among them is a significant renewal fee increase. While increasing costs are never welcome news, Anderson calls upon DPR for transparency and accountability in the use of the increased funds to better serve licensees. She also points out that 2024 is a milestone year for CAPCA, as they will be holding their 50th annual Conference this fall. Watch this brief interview to learn more specifics on California DPR license renewal changes, and some exciting things to expect in attending CAPCA’s 50th Conference this October.

    Please thank this video’s sponsor Southern California Gas Company for their industry support.

  • Opportunities for California Tree Nuts, Dairy & Beef in Upcoming Trade Mission to Morocco

    U.S. Department of Agriculture Under Secretary for Trade and Foreign Agricultural Affairs Alexis M. Taylor will lead an agribusiness trade mission to Casablanca, Morocco, Dec. 2-5, 2024. Current and potential U.S. exporters interested in participating should apply for consideration by Aug. 28.

    “This mission presents a pivotal opportunity for U.S. agribusinesses to tap into Morocco’s dynamic market and leverage its strategic position for wider African access,” Taylor said. “We are committed to facilitating these vital connections and expanding U.S. agricultural exports.”

    Morocco is the second-largest export market for U.S. agriculture in Africa. U.S. sales of farm and food products to the country topped $619 million last year, representing 16 percent of the continent’s market share. American agricultural exports to Morocco have doubled since the U.S.-Morocco Free Trade Agreement entered into force in 2006.

    Morocco offers a stable market and growing economy and serves as a key distribution hub for the African continent. The country is already a major importer of bulk and intermediate commodities from the United States and its expanding food processing sector and rising consumer demand are creating new potential for sales of consumer-oriented products.

    U.S. exporters have opportunities in numerous sectors, including beef and beef products, dairy products, feed grains, live animals and genetics, rice, seafood, seed potatoes, soybeans and tree nuts.

    During the trade mission, representatives from U.S. companies will participate in business-to-business meetings with potential importers from Morocco, Senegal, Côte d’Ivoire and other West African nations. Participants will also receive in-depth market briefings USDA Foreign Agricultural Service staff and other regional trade experts.

    To learn more about the trade mission and to apply to participate, please visit: https://fas.usda.gov/topics/trade-missions/morocco-december-2024.

  • Smaller Pistachio Crop This Year – Can Growers Expect Higher Prices?

    American Pistachio Growers held their first ever Pistachio Industry Insights Day, expanding upon their annual Summer Luncheon from years past. During this well-attended event in Visalia, CA, Jim Zion from Meridian Growers met with Matthew Malcolm on California Ag Network to discuss the current state of the pistachio market. As pistachios are in their “off-year” and with weaker chill hours over the winter, growers are expecting a much smaller crop than last season. The big question that’s on everyone’s mind is whether this will translate to a higher pistachio price and where the market is heading. Watch this brief interview with Jim and read more about it in Pacific Nut Producer Magazine.

    Special Thanks to American Pistachio Growers for sponsoring this video.