Almond Board of California – Starting January 2021, the Almond Board of California (ABC) will provide a new opportunity for growers, PCAs and CCAs to gain timely operational insights that support in-orchard practices and help them meet seasonal challenges head on.
ABC’s Training Tuesdays will kick off on January 5 and continue throughout the crop year. During the webinars, ABC staff and industry experts will present the latest on industry-funded research, new programs available to assist growers, tools within the California Almond Sustainability Program and more. Attendees will walk away from each webinar with tangible, practical tips they can try in the orchard, use to improve a current practice, or run past their local farm advisor for more information and site-specific recommendations. Webinar attendees will also have an opportunity to ask the experts questions specific to their operation, and all webinars will be posted to the Almond Board of California’s YouTube Channel for easy reference about a week after they are hosted.
“With the first-ever virtual Almond Conference this year in addition to COVID-19 restrictions on in-person gatherings, we are implementing Training Tuesdays to provide growers and industry professionals with timely, practical information to ultimately increase their productivity and profitability,” said ABC’s Chief Scientific Officer Josette Lewis, Ph.D.
The webinars will be held on the first and third Tuesdays of every month and begin at 8 a.m. PT, lasting 1-1.5 hours. CEUs will also be offered for webinars eligible for CCA or DPR credits.
The first webinar will be held on January 5 and the topic is “Best Management Practices for Pesticide Use During Almond Bloom.” Visit Almonds.com/Events for more information and RSVP to receive DPR/CCA credits.
One of the many wonderful things about California’s climate is that in many regions of the state you’ll find orchards of walnut, almond, pecan, pistachio or chestnut trees. You may be growing or planning to grow one or more of these trees in your yard so you can enjoy consuming the nuts. But do you know how to safely store, and preserve these fresh nuts?
There are just a few simple steps to follow. First, be sure to promptly remove the hull (the fibrous outer covering) that may still be remaining on some of the nuts. (If you have hulled walnuts before you will know they’ll stain your hands brown, so you should wear gloves to hull walnuts.)
During this time of COVID-19, you may be tempted to wash your fresh nuts, but don’t. Washing the nuts in their shell could increase their moisture and provide the environment for mold or bacteria to grow. Although not required to safely store the nuts, to decrease the likelihood of walnuts, almonds, pecans and pistachios developing mold, you may want to dry them. For walnuts and almonds, spread them out preferably single layer on a flat screen or tray that allows good air circulation. To prevent birds and other critters from making off with them while they are drying, cover them with another screen or plastic netting. Stir and move the nuts around daily.
It will take several days for them to dry. To determine when they are sufficiently dry, remove the shell from several nuts. Break apart the almond kernels, or walnut meat. If they are rubbery, they’re not dried sufficiently. If they are crisp or brittle when broken, then they are dried adequately.
For pecans, they should be dried slowly in air temperatures 75–85 degrees Fahrenheit to prevent the shells from cracking. A fan blowing on the nuts will speed up the drying process, which can take up to 10 days. The pecans are dry when they’re brittle and the membrane between the kernel halves separate easily from the kernels.
Pistachios can be dried in the sun on a plastic tarp, or they can be dried in the oven at 140–160 degrees Fahrenheit for 10–14 hours. They are dried when the kernels are crisp, but not brittle.
Before consuming or storing at room temperature, fresh home-grown walnuts, almonds, pecans, pistachios or chestnuts, or those bought at farm stands, pasteurize them to kill any insects or insect eggs. To pasteurize, simply place them in the freezer for 48 hours. (Make sure your freezer is set at 0 degrees Fahrenheit or lower.)
To store your walnuts, almond, pecans or pistachios, place them in clean moisture free, odor tight packaging, such as glass or plastic jars or other containers. The nuts can be stored shelled or unshelled. They can be stored up to a year in your refrigerator set at 40 degrees Fahrenheit or lower. Almonds can be stored in your freezer (set at 0 degrees Fahrenheit or lower) for a year or more, walnuts and pecans for two years plus, and pistachios for three years.
Chestnuts are different from the other nuts because they’re more like potatoes than tree nuts. They usually develop mold within two weeks if stored at room temperature. Unshelled chestnuts can only be stored for two to three months in the refrigerator, but shelled chestnuts can be stored for a year in the refrigerator. Both shelled and unshelled chestnuts can be stored in the freezer for one year or more. Enjoy your stored nuts throughout the year! — By Kathy Low, UC Master Food Preserver of Solano & Yolo Counties
For more information about the UC Master Food Preserver Program, including the Food Preservation Video Library, visit mfp.ucanr.edu.
Ganoderma butt rot has been an increasing problem in the almond industry. The disease has been responsible for trees falling over all throughout the Central Valley. Ganoderma butt rot is caused by wood decay fungi that can spread via spores in the air. In order to better focus our management efforts, researchers must conduct a spore survey that will help us determine the times and locations that are at greatest risk of infection and spread by spores.
The survey will include collecting air samples at almond orchards once a month for 2 years, so it will require long-term cooperation, but will be non-invasive and will not interfere with management practices. Any almond growers interested in volunteering their orchards (any age orchard works) for the research conducted by UC Davis plant pathologists, please contact Daisy Hernandez.
Thank you all for your time and help.
Contact: Daisy Hernandez, PhD, Student David Rizzo Lab, UC Davis Email: dahe@ucdavis.edu
A weather station in the AgriMet Cooperative Agricultural Weather Network was installed at OSU’s Woodhall Vineyard in late October 2020. The weather station will provide critical weather information and a climatic archive of weather conditions for the south Willamette Valley location. This is an important service for Oregon State University to provide grape growers, other agriculturists, and the public. Woodhall Vineyard is one of several research farms owned and operated by Oregon State University and currently has research plots in wine grapes, olives, honeybees, and hops. The location is within Benton County and is surrounded by land used for forestry and commercial vineyards.
Installation of the weather station at this site provides publicly available weather data to an area of the Willamette Valley that was not previously represented by public weather stations. There is growing agricultural acreage in the area, including wine grape vineyards and hazelnut orchards, amongst other specialty crops. There are currently 4,323 acres of wine grapes in the south Willamette Valley, the third- largest production region in the state, outside of the north Willamette Valley and the Rogue Valley, both of which have access to local AgriMet weather stations. Most producers in the south Willamette Valley either did not have access to weather data from nearby or had to rely on AgriMet stations in Corvallis, Roseburg, or purchase weather stations to install on-site. Many producers are farmers of smaller acreage who are not likely to install weather stations due to cost and/or cannot maintain them properly. We encourage farmers to use weather data to determine production risks, such as frost events, calculate growing degree days for pest and crop management, determine crop and location suitability, and estimate irrigation needs. Without this information, it is difficult for growers to make informed decisions on water use.
Placement of a weather station at OSU’s Woodhall Vineyard provides additional benefits of value to regional producers, including a hillside site that may better reflect weather conditions for hillside producers in the region than the Willamette Valley AgriMet stations located on the valley floor (i.e., Corvallis and Aurora). The land is publicly owned and managed by Oregon State University, so the location is available long-term. Finally, the southern Willamette Valley is being developed for both agricultural and residential land use, and the water demand is increasing. The vineyard is located within the Long Tom Watershed, which includes a community with growing concerns over groundwater depletion. This weather station will provide climatic information to help the local community understand water resource needs. Furthermore, the weather data is a part of a more extensive publicly available weather network available for research from local to international in scope.
You can access weather data from this station online here. The weather station installation and annual maintenance are funded by the Oregon Wine Research Institute at Oregon State University.
Almond Board of California – Logging in instead of looking for a place to sit. Walking from the coffee pot to the office chair instead of driving to Sacramento. Connecting with attendees via online chat instead of shaking hundreds of hands while walking the trade show floor. Instead of sitting shoulder-to-shoulder in session rooms, participants of The Almond Conference (TAC) 2020 connected remotely from their office, the seat of their pickup truck, or, perhaps for some, from their favorite recliner.
The 48th annual staging of The Almond Conference on December 8-10 looked much different than past events. Still, the structure and offerings of the Conference provided an opportunity for industry members to gather and learn about the latest research, marketing efforts, and global developments impacting the industry. From the (un)usual State of the Industry to 30 educational sessions, an exhibit hall and even an online version of the Passport Game, the Conference provided many of the same features that attendees have come to expect from the premier almond industry event.
The Almond Board of California (ABC) Industry Relations team saw the need to host a virtual event as an opportunity, not a hindrance. The online setting provided the opportunity to host a truly global event, bringing attendees and speakers from across California, the U.S. and the world. More than 3,000 attendees representing 45 countries participated in TAC 2020 and had virtual access to 149 exhibitor booths, 30 educational sessions and 14 sponsor presentations.
“It was a pretty amazing experience. The three days just flew by,” said ABC President and CEO Richard Waycott during the live Closing Remarks. “It was a great example of the flexibility of our staff and the resilience of the industry throughout this year.”
Amid Challenges, Industry Continues Onward & Upward
This year’s State of the Industry address featured Waycott hosting ABC Board Chair Kent Stenderup and Vice Chair Brian Wahlbrink in a “late-night” TV show setting at the historic State Theatre in downtown Modesto. Stenderup and Wahlbrink provided an overview of key trends and marketing challenges faced by the industry throughout 2020, as well as insights into strategic ABC initiatives aimed at further supporting the industry’s profitability. From the massive responsibility of marketing a projected record 3-billion-pound crop to ongoing trade tension with China and growing advancements in production technologies, the address set the stage for the rest of the Conference.
ABC Board Chair Kent Stenderup
“Growers were worried about what we were going to do with all these nuts,” Stenderup noted, referencing the fact that production is up 32% (about 730 million pounds) compared to just two years ago. And yet, he said, processing facilities are working harder than ever before to get almonds out the door. “With the advent of a possible 3-billion-pound crop, I witness handlers very responsibly getting out in front of it and moving product, setting monthly shipping records.”
Wahlbrink praised ABC’s Global Market Development Committee, of which he is a member, for building global demand in emerging markets beyond traditional export leaders like India, Spain, China and Germany.
“Despite everything, we increased shipments by almost 5% [in the last crop year], which is a real testament to building global demand year on year,” said Wahlbrink.
While the industry is ready to turn the page on 2020, Waycott praised the California almond community for remaining headstrong in facing each challenge. “It has been a remarkable year,” he said, “but there were a number of curveballs that came our way. COVID-19. A lockdown in India, our biggest market, fires in California, a perfect bloom, and now we’re headed to a 3-billion-pound crop. Just an awful lot to deal with.
“Still, the resilience and the ability of this industry to handle a large crop, and to be able to ship the numbers we’ve shipped, is really admirable—congratulations to all of you.”
Leadership Recognizing Leadership
During the State of the Industry address, Waycott, Stenderup and Wahlbrink honored two esteemed, established industry leaders, the first being Dr. Karen Lapsley. Lapsley, who retired earlier this year after 22 years of service for the California almond industry, began her ABC career as director of Nutrition Research and then acted as the Almond Board’s Chief Scientific Officer for many years before retirement.
“She catapulted us into the area of super foods,” said Waycott. Stenderup referred to Lapsley as the “matriarch of nut nutrition,” crediting her with developing “a health halo” around almonds through her work with food researchers and experts in a variety of human health and nutrition specialties.
While reflecting on Lapsley’s myriad of contributions, Waycott got a special twinkle in his eye and introduced a surprise guest to the stage – Lapsley herself! In her remarks Lapsley praised ABC’s long-term commitment to human health research and commitment to scientific excellence. When asked to share the most fun she had during her time at ABC, she said that her efforts to create the Almond Board’s biomass program over the past five years would be among the top of her experiences.
Waycott, Stenderup and Wahlbrink also announced the winner of the 2020 Almond Achievement Award, Jim Paiva, who sadly passed away in November before the award was announced.
Paiva planted his first orchard in 1970 in Lost Hills and his properties grew to about 5,000 acres in the Sacramento Valley as well as Kern County. He also started Paiva Hulling and Shelling – which serves hundreds of growers in Northern California – and later co-founded Riverwest Processing in Glenn County.
“I cannot think of one person in our industry who is more deserving of this honor,” said Stewart & Jasper CEO Jim Jasper, who was the Almond Achievement Award recipient in 2015 and, among multiple other industry members, nominated Paiva for the award.
Paiva is survived by his wife Geraldine and sons Jim and Dan. The Almond Board is proud to recognize Paiva’s years of service and dedication to the California almond industry and sends its sincerest condolences to the Paiva family in Jim’s passing.
Trade, Policy & Election Outcomes Highlight General Sessions
On Wednesday morning, ABC hosted a general session featuring two nationally recognized agricultural leaders with deep experience in trade issues.
Former U.S. Trade Representative Darci Vetter, now vice president at Edelman Communications in Washington, D.C., and former USDA Deputy Secretary Krysta Harden, who today is executive vice president of Global Environmental Strategy for Dairy Management, Inc., shared the virtual stage to discuss the global agricultural scene and how the events of 2020 may affect the future.
Vetter said the pandemic is taking an “economic toll that is hugely significant in terms of unemployment, the food and beverage industry, restaurants… We should expect that while trade is really important, there are lots of things on the plate of the administration coming in that will likely take priority.”
She also encouraged growers to become more transparent about and comfortable with communicating to consumers, trade regulators and others about what they do and how they grow their product.
“Telling our story is important, and when that story comes from the mouths of farmers themselves, it’s even more effective,” Vetter said.
Harden agreed, saying American growers are “very committed to the environment” even if “they don’t always know how to measure it or talk about it, and don’t want the spotlight on what they’re doing.”
“No one can produce more than U.S. farmers, but having the best product is not enough. You have to be accountable,” Harden said. “Some farmers don’t want to have these conversations, but if they don’t, they may not be farming in a decade.”
The following morning respected political journalist Charlie Cook, publisher of The Cook Political Report, addressed the Conference from his home in the Nation’s Capital. For more than 35 years, Cook has been highly regarded as a non-partisan observer of U.S. politics. During this general session, he provided insight into the state of our nation’s political landscape after one of the most divisive presidential elections in American history.
“I think we are losing our fabric as a nation,” Cook warned. “We are supposed to be the United States of America, but we’re not very united right now.”
On a positive note, Cook believes Tom Vilsack – President-elect Joe Biden’s nominee to run the U.S. Agriculture Department – is a good choice for the California almond industry. Many industry members will remember Vilsack as he served in the same role for eight years under former President Barack Obama.
“I think Biden made a good decision to pick someone from the ag side who knows the whole set of issues,” Cook said. “Vilsack knows about your sector. My guess is you’ve dodged a bullet, because if he went with a more urban-oriented person, you wouldn’t have gotten the time of day.”
Educational Sessions, Virtual Exhibit Hall ‘Just Awesome’
The Conference virtual exhibit hall – though missing the buzz of attendees rubbing elbows as they migrated from booth to booth – still provided a way for exhibitors and sponsors to interact with participants. “The exhibit hall was really well done – it was just awesome,” Wahlbrink said. “It made it really easy to access information and have a quick chat.”
Similarly, the format of this year’s educational sessions allowed attendees to tune in while on the road or in the office, an element of the virtual event that was largely well received.
“I appreciated the ability to still work during this busy time of year while also attending the sessions. I was better able to focus on the sessions,” commented one attendee in the post-Conference survey.
Even though the Conference is expected to return to Sacramento next year, Waycott predicts a hybrid model will be put in place to allow attendees the option to participate in at least a portion of the Conference virtually.
Final session recordings and presentation slides are now available at Almonds.com/Conference – be sure you check out any sessions you could not attend! And be sure to mark your calendar for next year’s event, The Almond Conference 2021 is scheduled to be held Dec. 7-9 at the Sacramento Convention Center.
Editor’s Note: Read more about the proceedings from the Almond Conference in the coming issue of Pacific Nut Producer Magazine.
Connie Conway, Director of the USDA Farm Service Agency in California, has been honored as the Almond Alliance of California’s 2020 Almond Champion of the Year for the agency’s outstanding efforts in assisting almond growers with the Coronavirus Food Assistance Program (CFAP.)
The Almond Champion of the Year Award is presented annually to those who have demonstrated extraordinary leadership in education, coalition building, partnerships and promoting legislation and policies that encourage the advancement and protection of California agriculture and the California almond industry.
The CFAP consists of direct payments to almond growers for losses suffered as a result of COVID-19 as well as disruptions to the supply chain. The Almond Alliance advocated for federal funding for the original program and the subsequent program known as CFAP 2. To date, the California almond community has received over $125 million through the programs.
The Farm Service Agency (FSA) administers the funding and provides technical assistance to potential applicants. Almond Alliance Chair Mike Curry praised Conway for her leadership in providing access to the program. “Some of these programs can be incredibly technical and complex. Connie and her team have been very attentive and worked with our industry members above and beyond what would normally be expected,” he explained. “Her team has conducted numerous educational webinars for our members and addressed literally hundreds of questions about the program and how it works. Her leadership and commitment to excellence in providing this assistance during these unprecedented times is truly appreciated.”
Prior to her appointment, Conway ran her own consulting business, focusing on strategic planning, business development, and government relations services. She also served as an assemblywoman for the California State Legislature where she served as Minority Leader and on the Agriculture, Transportation, Labor and Health Committees. She also served as a member of the Tulare County Board of Supervisors.
About the Almond Alliance of California
The Almond Alliance of California (AAC) is a trusted non-profit organization dedicated to advocating on behalf of the California almond community. California almonds generate more than $21 billion in economic revenue and directly contribute more than $11 billion to the state’s total economy. California’s top agricultural export, almonds create approximately 104,000 jobs statewide, over 97,000 in the Central Valley, which suffers from chronic unemployment. The AAC is dedicated to educating state legislators, policy makers and regulatory officials about the California almond community. As a membership-based organization, our members include almond processors, hullers/shellers, growers and allied businesses. Through workshops, newsletters, conferences, social media and personal meetings, AAC works to raise awareness, knowledge and provide a better understanding about the scope, size, value and sustainability of the California almond community.
For more information on the Almond Alliance, visit https://almondalliance.org/ or check out the Almond Alliance on Facebook, Twitter and Instagram.
The 110th Blue Diamond Growers Annual Meeting countered the challenges of 2020 with a sense of accomplishment for the present and optimism for the future.
“We are a growth business by choice, and I’m confident in declaring that the best is yet to come,” said Mark Jansen, President and CEO, Blue Diamond Growers.
In his virtual presentation to Blue Diamond almond growers on Nov. 18, Jansen acknowledged the numerous obstacles the co-op overcame during the past year due to the COVID-19 pandemic and other factors.
“With trade wars, port-related receiving disruptions, market price corrections, foodservice shut-downs, and a fire at the Sacramento Blue Diamond plant, it was a tough year to sell almonds,” said Jansen. “Yet, Blue Diamond prevailed in continuing to build a remarkably strong business in support of a 3-billion-pound almond crop – the largest ever in our 110-year history.”
Mark Jansen
Jansen reported that in 2020 alone, Blue Diamond was able to:
Provide growers a 16-cent competitive advantage per pound of almonds delivered.
Complete a multi-year construction plan including the addition of a 50-million-pound-capacity raw almond warehouse in Salida, Calif. The new warehouse is the second facility of similar capacity recently built at the site.
Incorporate engineering upgrades and expand a high-efficiency production line for Almond Breeze® almondmilk at the Blue Diamond facility in Turlock, Calif. The newly enhanced line more than doubles the plant’s Almond Breeze production volume. Almond Breeze leads as the co-op’s most profitable product with more than $800 million in annual retail sales.
Increase direct sales into India by 40 percent as trade pressures dramatically curtailed access into the Chinese market.
More than double e-commerce sales of Blue Diamond products, while achieving the goal of Amazon becoming the co-op’s fifth largest customer.
Be recognized, for the fourth consecutive year, as an IRI Growth Leader for fastest-growing consumer-packaged goods sales in terms of volume, revenue and market share.
Achieve its fifth consecutive year – representing five million work hours – of no lost-time accidents at the Salida facility.
Dan Cummings
Blue Diamond Board Chairman Recognizes Leadership Milestone and Co-op Honor
In addition to the business performance highlights shared by Jansen, Dan Cummings, Blue Diamond Board Chairman and Director, District 1, announced Jansen’s tenth anniversary as President and CEO of Blue Diamond Growers. Cummings made note of Jansen’s remarkable leadership and accomplishments on behalf of the co-op. “We are confident in the future with Mark’s great leadership to guide us,” said Cummings. “Considering the successes so far, we can only imagine what the next10 years will bring. Blue Diamond is in great hands with him.”
Additionally, Cummings announced Gurcharan Dhillon as the 2020 Chairman’s Grower Ambassador of the Year. Dhillon serves as a Grower Liaison Committee Member for District 9, and he is also active on Almond Board of California committees. “We thank Gurcharan for his outstanding service and unwavering commitment to the co-op and the almond industry. He is truly an inspired leader,” said Cummings. “We also thank our many partners, including haulers, shellers, truck drivers, co-manufacturers, marketers and the 1,800 Blue Diamond employees who go above and beyond each day to help provide Blue Diamond almonds to the world.”
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 1,800 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.
India’s tree nut imports continue to surge, with demand growing despite a tariff stranglehold. Consumption is growing as a result of the expanded perception of the health benefits of almonds and walnuts among middle- class consumers. FAS New Delhi forecasts in marketing year 2020/2021 Indian almond imports to reach 115,000 metric tons (MT). While walnut imports are forecast to reach 32,000 metric tons. Trade volumes can potentially be higher if it were not for Government of India imposed trade barriers (both tariff and non-tariff).
ALMONDS, SHELLED BASIS
PRODUCTION:
FAS New Delhi (Post) forecasts marketing year (MY) 2020/2021 (August-July) Indian almond production at 4,500 metric tons (MT) (kernel-weight basis), up seven percent on a year-on-year basis. More favorable weather conditions and new tree varieties are helping to increase production. Almond production is concentrated in the union territories of Jammu and Kashmir and in Himachal Pradesh. Shelling rates range between 20 and 30 percent for hard-shell varieties, and 40 percent for thin-shelled varieties.
Post revises downward to 4,200 MT the MY 2019/2020 production estimate, down 300 MT compared to the U.S. Department of Agriculture (USDA) official figure of 4,500 metric tons. The lower number is due to an increase in the number of non-bearing trees observed, despite there being no changes in the area planted. The union territory government of Jammu and Kashmir through its Almond Development program aims to increase by 12,000 hectares the almond cultivation area, and in the process, phase in new higher yielding cultivars.
CONSUMPTION:
FAS New Delhi forecasts MY 2020/2021 Indian almond consumption at 125,000 MT, up nine percent from the MY 2019/2020 volume of 114,500 metric tons. The increase is due to strong, steady growth in household consumption of almonds, perceived as a healthy and immunity building snack nut at a time of expanded health concerns. A key factor facilitating driving greater consumption, notwithstanding the novel coronavirus (COVID-19) lockdown, is the rise of e-commerce platforms. With growing numbers of consumers shopping now online for groceries, almonds are making their way onto online shopping carts in greater quantities.
With India’s middle-class (300-350 million) expansion, there is growing awareness of, and demand for healthy foods. The COVID-19 pandemic accelerated almond consumption in this country of 1.3 billion (Central Intelligence Agency – July 2020 estimate). Perceived nutritional benefits of almonds as a food ‘good for the brain’ and its ‘immunity building characteristics’ are being used to tackle the pandemic. This is resulting in fundamental changes in consumer behavior that will last even after a COVID-19 vaccine is developed. Almonds are today displacing cashews as health-conscious consumers’ nut of choice. A reliable, steady supply combined with growing consumer awareness of the health benefits of almonds, is leading to almonds expanded use as a food ingredient by the Indian food processing industry. Almonds are making their way in greater numbers into breakfast cereal bars, snack foods, beverages, and confectionaries manufactures, as well as the in personal care industry (utilizing almond oil).
PRICES:
India is price-sensitive consumer market. Consumers favor affordably priced almonds, and in particular, quintessential California non-pareil almonds that are uniform in size and ‘eye’ shaped and count with the sweetness desired. Australia-origin non-pareil almonds and Carmel (often used for blanching and roasting) varieties account for a growing segment of the market. Iranian Mamra and Oumi varieties are popular in India’s western and northwestern regions (i.e., the National Capital Region – New Delhi, Rajasthan, and Gujarat) and often command price-premiums.
Favorable Californian crop production and ample supply along with COVID-19 containment measures are driving down almond average prices compared to MY 2019/2020. Almonds will command higher pricing once the Indian hotel-restaurant-institutional (HRI) sector’s own demand for almonds picks up in 2021/2022.
TRADE:
FAS New Delhi forecasts MY 2020/2021 Indian almond imports at 115,000 MT, up nearly 10 percent from the USDA official MY 2019/2020 estimate of 105,000 metric tons. Post’s earlier MY 2019/2020 estimate is six percent higher compared to the previous year despite an increase in the basic-customs-duty (see PIB andGAIN-INDIA (IN2019) Government of India – GOI Raises Tariffs on Specific U.S. Ag Products (June 16, 2019).Although shipments of almonds to India increased between January and August 2020, the post-Diwali festive season (when demand for tree nuts normally peaks) will be a bit leaner this year compared to 2019.
U.S.-origin almonds account for 81 percent of India’s total import volume in MY 2019/2020; Australian almonds come in second with seven percent of the import volume. Almond imports from the United States and Australia are in shell, non-pareil or Carmel varieties, and are shelled locally (machine cracked and hand sorted); other origins supply shelled almonds. Packaged almonds only account for 10 percent of retail sales.
FAS New Delhi forecasts MY 2020/2021 Indian almond exports at 200 MT, down by 20 MT or nine percent lower compared to the MY 2019/2020 estimate. India’s exports of almonds remain negligible. Exports in MY 2019/2020 are estimated at 220 MT; with the United Kingdom (28 percent), Nepal (14 percent), and the United Arab Emirates (13 percent) being the main export destinations by volume.
POLICY:
India does not set quantitative restrictions on almond imports. U.S.-origin almonds, however, face retaliatory tariffs of India rupees (INR) 41/kilogram (kg) (in shell basis) and INR 120/kg (shelled basis). (FOREX: INR 73.92 to $1.00).
On May 23, 2018, the Indian government issued notifications announcing an increase in the basic-common-duty on several imported agricultural products, including shelled almonds. The tariff increases are applicable to all third-country suppliers. The tariff on shelled almonds increased from INR 65/Kg to INR 100/kg, and significantly restricts trade (see GAIN-INDIA (IN2018-8067) Government of India Increases Tariffs on Certain Agricultural Imports (June 7, 2018).
Non-tariff barriers include a third amendment to the Almond Kernel Standards, published by the Food Safety and Standards Authority of India (FSSAI) on August 14, 2020. The standards’ implementation date is set for July 1, 2021 (see GAIN-INDIA (2020-0103) Almond Kernel Standards and Other Various Food Products Published in the Indian Gazette (August 24, 2020).
Industry sources indicate that the proposed almond kernels standards are too prescriptive to be widely applied across multiple commercial grades. Proposed quality/grade factors pertain to commercial contracts and should not form the basis for import or retail controls. Traders sustain that there is a need for flexibility in grades to account for varying commercial situations, including varietal differences, crop quality variability, and pricing differentials. For these, physical parameters such as damage and the presence of foreign material should not form the basis of import controls.
Despite these challenges, FAS New Delhi continues to identify market development opportunities, particularly among markets serving children, young adults, and the growing urban work force. Additional opportunities exist with medium- and large-scale bakeries, boutique/artisan patisseries, food processors, such as cookie manufacturers and breakfast cereal companies, consumer packaged goods, and institutional end users. Regions in southern and eastern India offer new, worthwhile marketing opportunities.
WALNUTS, IN SHELL BASIS
PRODUCTION:
FAS New Delhi forecasts MY 2020/2021 (September-August) Indian walnut production at 35,000 MT (in shell basis), a volume largely unchanged from the previous marketing year’s estimate. Indian walnut production is cyclical in nature and yields can vary by as much as 20 percent, depending on weather conditions at the time of blossom and harvest.
India’s walnut harvest runs from late August through September, with market arrivals peaking in late October. Walnut production is concentrated in Jammu and Kashmir, Himachal Pradesh, and Uttarakhand. Lack of adequate infrastructure in the production areas, long gestation periods, poor orchard management, and uneven yields limit India’s walnut production. India produces hard, medium, or thin shell (kaghazi) walnut types, with an average shelling rate of about 40 percent.
CONSUMPTION:
FAS New Delhi forecasts MY 2020/2021 Indian walnut consumption at 60,000 MT, roughly 20 percent above its MY 2019/2020 estimate of 50,000 metric tons. Increases in consumption levels is attributable to greater at home consumption of walnuts during the COVID-19 pandemic outbreak in pursuit of health-related benefits.
Higher walnut consumption stems from the growing perception among Indian middle-class consumers that walnuts help to reduce cholesterol, improve brain health, and lower risks of diabetes, among other health benefits. The Indian government’s FSSAI issued the public guidance document titled “Eating Right during COVID-19” encouraging the intake of walnuts for their nutritional benefits (especially as it pertains to Omega- 3 fatty acids, Vitamin B-9, Protein, Zinc, and Selenium concentrations). With people confined to their homes during the lockdown, consumption of walnuts increased significantly in 2020.
Indian walnut consumption is growing steady since MY 2015/2016 through MY 2019/2020, by almost 15 percent. Strong growth is indicative of the presence of a consistent supply to meet strong domestic demand. Packaging innovations (e.g., vacuum-packed bags, combined with attractive product packaging) is improving the shelf life and quality of walnuts, while encouraging year-round consumption. The rise of new distribution channels such as e-commerce websites are driving consumption and availability of walnuts. Between 70 and 75 percent of Indian walnuts are consumed domestically, and more than half of Indian walnuts are consumed during the holiday, festive, and winter seasons. Industry sources estimate that roughly 17 percent of walnuts go into food processing, with another four percent crushed for the personal care industry.
PRICES:
Domestic walnut prices were weak from January 2019 to September 2019. Prices saw improvement during the peak 2019 demand period towards the end of the year, with the upward trend in prices running through 2020. In the wholesale market, imported walnut (in shell) prices in 2020 range INR 52,500 ($710) to INR 60,000 ($812) per 100 kilograms. (FOREX: INR 73.92 to $1.00).
TRADE:
FAS New Delhi forecasts MY 2020/2021 Indian walnuts imports at 32,000 MT, up nearly seven percent or 2,000 MT greater than the USDA official 2019/2020 estimate of 30,000 metric tons. The United States will remain the dominant supplier with a 54 percent market share, followed by Chile at 40 percent.
India is primarily an in shell walnuts market. Trade sources indicate that Indian imports of in shell walnuts grew 46 percent between January and August 2020, while shelled walnuts imports rose by an astonishing 329 percent during that same period.
FAS New Delhi forecasts MY 2020/2021 Indian walnuts exports at 4,000 MT, up 800 MT or 25 percent higher than the USDA official MY 2019/2020 estimate of 3,200 metric tons. Indian walnuts exports declined in MY 2019/2020 due to high domestic demand for product, which will ease somewhat this year. Walnuts from India will make their way again to the traditional export destinations of France, the United Kingdom, and Germany.
Over 95 percent of Indian walnut exports go out as kernels in vacuum packs (35-40 percent light halves, 35-40 percent amber halves/light broken, and the remaining balance as amber halves). Market sources report that Indian walnuts compete with those from the United States, Mexico, Chile, Turkey, China, and Ukraine.
TRADE POLICY:
India’s Open License program permits the import of walnuts without quantitative restrictions. In shell walnut imports, however, are subject to a 100 percent tariff, and shelled walnuts are similarly subject to a 100 percent tariff (effective February 2020). Afghanistan-origin import shipments face a lower, 50 percent tariff due to the enactment of the Indo-Afghan Preferential Trade Agreement.
India is implementing a retaliatory tariff on U.S.-origin walnuts at 20 percent above the applied basic-common-duty of 100 percent. U.S. shipments of walnuts suffered from this measure in MY 2018/2019. However, California walnuts remain in the Indian market, counting with high consumer demand to help drive volumes.
Post identified non-tariff barriers to trade include the Walnut Kernel Regulation published by the Indian government’s FSSAI on September 3, 2020 (see GAIN-INDIA (2020-0121) FSSAI Proposes Draft Standards for Walnut Kernels and Other Various Food Products). The effective implementation date is either January 1, 2021, or alternatively July 1, 2021, depending on when the amendment is published in the official gazette. The published standards are non-transparent, ambiguous, and likely difficult to adhere to; particularly as it pertains to moisture levels, foreign matter, damaged units, acidity, color, acid-insoluble ash, and extraneous vegetable matter. These standards deviate from globally established practices.
India, given its huge market size, and despite the challenges, remains an attractive market especially as it relates to the Indian sweets and snacks industry.— By Ankit Chandra & Mariano J. Beillard, USDA Foreign Agricultural Service
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