Pacific Nut Producer Magazine

Tag: COVID-19

  • Five Steps for Ag Processors to Adapt their COVID-19 Incident Response Approach

    COVID-19 is a health crisis in the United States but major industries, like agriculture, chemical manufacturing, oil and gas exploration and production, all need to keep functioning as essential businesses in the midst of the crisis.  The response to COVID-19 has core parallels to major industrial accident response, which involves deploying the right resources for the task.  Every incident, be it a fire, explosion, or a government inspection and citation for regulatory compliance failures involves four key elements of response:  (1) the immediate response; (2) the extended response; (3) compliance and prevention; and (4) preparedness/lessons learned to improve.  This lifecycle of an incident applies equally to a COVID-19 contact among your employees or customers.  Make no mistake.  The stakes are high.  Recently, Cal/OSHA issued COVID-19 related citations to two companies of over $200,000 each, one to a frozen food manufacturer and the other to a temporary employment agency.  New legislation that becomes effective next year gives Cal/OSHA expanded authority to issue Orders Prohibiting Use for workplaces that pose risk of an “imminent hazard” relating to COVID-19.  In other words, they can shut your plant down if you don’t have the right procedures in place to respond to a COVID-19 incident.

    Processing plant managers are accustomed to incidents, such as injuries, agency inspections, or citations (hopefully not too frequently with respect to citations); applying the process in the context of COVID-19 can work extremely well, even where handling these situations requires adjustment for the particular crisis at hand.  In every crisis, the approach needs to be tailored, and COVID-19 incidents are no different.

    Examples of how a COVID-19 response needs to be tailored include determining work-relatedness to a positive test to COVID-19, identifying close contacts, identifying the agencies to whom notifications must be provided, and contact tracing for potentially exposed employees, testing, and implementing isolation protocols.  In the context of COVID-19, agriculture companies need to be keenly aware of increased Cal/OSHA oversight, as the agency has identified agricultural processing as a priority for enforcement because agricultural processing facility workers have been disproportionately impacted.

    When confronting a COVID-19 incident, follow these useful tips to help minimize liability and potential for citation by the government.

    1. Familiarize yourself with the Extensive Government Guidance Issued, Especially that Tailored to Your Industry

    There’s a saying in incident response:  your greatest exposure is not the incident itself but whether you follow the regulations for reporting and responding to the incident.  That’s true for a major chemical release from your operations and a COVID-19 incident, alike.  When the crisis emerged, several federal and state agencies provided guidance documents to companies on how to address potential cases of COVID-19.  Like the crisis, the guidance is evolving.  The government continues to update its approach and has even offered tailored to specific industries.  Following the agency guidance will put a facility in a much stronger compliance position when faced with a compliance inspection or determination of work-relatedness.

    Some key recent government guidance specific to the agricultural processing industry is listed below:

    • September 18, 2020, California Department of Public Health (CDPH) updated Guidelines intended for use by employers experiencing an outbreak of COVID-19 in their workplace.  It emphasizes that employers should be proactive and keep in mind that identification of even a single positive case among employees may quickly develop into an outbreak.
    • July 29, 2020, California COVID-19 Guidance for the agriculture and livestock industry to support a safe, clean environment for workers.  Recommendations include that an employer investigate any COVID-19 illness and determine if any work-related factors could have contributed to risk of infection;    identify close contacts (within six feet for fifteen minutes or more) of an infected worker and take steps to isolate COVID-19 positive worker(s) and close contacts; implement the necessary processes and protocols when a workplace has an outbreak, in accordance with the CDPH guidelines.
    • July 21, 2020, Cal/OSHA updated Guidance for the agriculture industry.  This provides:
    • COVID-19 Daily Checklist for Agricultural Employers
    • COVID-19 General Checklist for Agricultural Employers
    • Infection Prevention for Agricultural Employees and Employers
    1. Make Required Government Notifications

    Understand requirements for reporting employee cases to Cal/OSHA.  Any serious injury, illness, or death occurring in any place of employment or in connection with any employment must be reported by the employer to the local Cal/OSHA district office immediately.  For COVID-19, this includes inpatient hospitalizations and deaths among employees.

    On September 17, 2020, Governor Newsom also signed into law AB 685 which enhances reporting requirements to local health authorities in the event of a COVID-19 outbreak in the worksite.  The law takes effect on January 1, 2021.

    Employers should also check local guidance to determine if there are other investigation, reporting, or recording obligations triggered by a positive COVID-19 case.

    Finally, recognize that if an employee is out with COVID-19 or quarantined, other government obligations, like environmental reporting may fall by the wayside in their absence.  Develop a plan to ensure your ongoing government reporting obligations are being met, even those not COVID-19-related.  Having an employee out due to COVID-19 is likely not going to serve as an acceptable excuse for environmental noncompliance.

    1. Do the Investigation

    To comply with Cal/OSHA requirements, plant managers should ensure their companies are investigating positive COVID-19 determinations in a timely manner to identify any work-related factors and to identify close contacts.  This will protect employees, comply with Cal/OSHA requirements, and provide information that may be needed to in regards to the “disputable presumption” that exists in California for an employee who suffers illness or death resulting from COVID-19 on or after July 6, 2020 through January 1, 2023.

    COVID-19 related citations recently issued by Cal/OSHA included a failure to investigate about 20 COVID-19 illnesses and one death for a food manufacturer. Cal/OSHA’s news release highlighted that Cal/OSHA created guidance for many industries in multiple languages including videos, daily checklists and detailed guidelines on how to protect workers from the virus. This guidance is meant to provide a roadmap for employers on their existing obligations to protect workers from COVID-19.  If you don’t conduct required investigations, you will be placing your company at risk of being shut down through Cal/OSHA’s expanded authority to issue Orders Prohibiting Use for workplaces that pose a risks of an “imminent hazard” relating to COVID-19.

    1. Meet Requirements for Identifying and Notifying Potentially Affected Employees

    As part of the investigation, additional employee cases and close contacts (within six feet for fifteen minutes or more) should be identified in accordance with the regulations and guidance.  The facility will then need to conduct testing or alternative methods (e.g., contact tracing or quarantining) in consultation with the local health department to control the outbreak.

    All potentially exposed employees must be notified and employers must meet obligations regarding confidentiality of employees with suspected or confirmed COVID-19 infection as required by the Americans with Disabilities Act (“ADA”) and Health Insurance Portability and Accountability Act (“HIPAA”).

    1. Review and Update the Facility COVID-19 Plan to Apply Lessons Learned and Improve

    In the July 29, 2020 COVID-19 Guidance for agriculture and livestock, the state of California  recommended that each facility establish a written, workplace-specific COVID-19 prevention plan, perform a comprehensive risk assessment of all work areas and work tasks, and designate a person at each facility to implement the plan. The plan should include sanitation practices, physical distancing, individual control measures, screening, and other incidental practices to prevent the spread amongst workers. Upon completion of the incident investigation, the facility should update the plan as needed to prevent further cases.

    Conclusion

    COVID-19 presents unique challenges to processing plant managers responding to incidents because of the difficulty in determining the source of infection, agency notification and attention, contact tracing, employee notification, testing, control measures, and return to work. Like any incident, COVID-19 incident response should focus on:  (1) the immediate response by making required agency notifications and dealing with the immediate employee concerns including contact tracing; (2) the extended response by conducting an incident investigation; (3) compliance and prevention by conducting testing or implement isolation protocols; and (4) preparedness/lessons learned to improve by reviewing and updating the facility COVID-19 plan. Processing plant managers who work quickly and diligently to respond to a COVID-19 incident will reap the benefit of minimizing regulatory scrutiny protecting employees and comply with legal reporting and notification requirements. They should also regularly check local, state, and federal guidance to determine if there are new or revised investigation, reporting, or recording obligations triggered by a positive COVID-19.   – By Daniel J. Grucza & Shannon S. Broome

    Dan Grucza is Counsel with Hunton Andrews Kurth LLP. He regularly advises companies on health and safety issues and has been a speaker and author on COVID-19 response issues and is a lead member of the firm’s incident response practice.

    Shannon S. Broome is the Managing Partner of Hunton Andrews Kurth’s San Francisco office and leads its environmental practice in California.  She routinely advises clients on Cal/OSHA compliance issues and on major accident and other incident response for industrial facilities.

  • US Tree Nuts Dominate EU Market, Consumer Demand Surges

    In 2019, U.S. shipments of tree nuts to the EU-28 (EU-27+UK) reached $3.1 billion. The United States continues to be the largest supplier of tree nuts to Europe. While EU investment and production of tree nuts continue to increase, production is still far from meeting domestic demand. Confinement measures during the height of the COVID-19 pandemic changed EU consumer habits. As consumers spent more time at home, demand for tree nuts, as a healthy snack option and as a home baking ingredient, grew compared to previous years. The evolution of consumer demand in the fall, the annual peak for tree nut consumption, will determine the extent to which this new consumption level will remain in the long term. 

    Executive Summary

    The EU Market: A Key Trading Partner for U.S. Tree Nuts

    The European Union-28 (EU-27+UK) is the largest export market for U.S. tree nuts absorbing 34 percent of total U.S. tree nuts exports in 2019. East Asia followed importing 23 percent while the Middle East imported 13 percent.

    In 2019, U.S. shipments of tree nuts to the EU-28 reached $3.1 billion. Sales of U.S. almonds (both in- shell and shelled) totaled close to $1.8 billion, followed by pistachios with $609 million and walnuts with almost $328 million. Within the EU, the most significant importers of U.S. tree nuts (in order of importance) are Spain, Germany, and the Netherlands, accounting for 64 percent of total imports.

    The United States continues to be the largest supplier of tree nuts to Europe, with 41 percent of the market share (in value) in 2019. Turkey ranks second with a market share of 20 percent, followed by Vietnam, Chile, and China. Almonds continue to be the main imported tree nut with almost 24 percent of the total EU tree nuts imports. These numbers prove the importance of the United States as an agricultural trading partner to the EU.

    The Food Processing and the Snack Industry Remain the Most Significant Buyers

    The growing popularity of healthier snacking and eating habits among European consumers continues to encourage consumption of nuts, both tree nuts and ground nuts. The fight against cardiovascular diseases, the desire for general health and wellbeing, along with the publication of scientific studies highlighting the benefits of nut consumption, are likely to continue fueling demand for these products.

    In addition, the European food processing and snack industry are the largest users of tree nuts both as an ingredient (for traditional sweets and pastries), and for re-processing and re-export to third countries. Almonds are mainly used as an ingredient for the manufacturing of marzipan, nougat, turron (a Spanish traditional Christmas confection), and many other pastries and sweets. European food manufacturers also use walnuts and pistachio nuts as an ingredient for manufacturing ice cream and confectionaryproducts.

    The snacking industry is channeling its efforts to offer consumers new products and new ways to consume nuts. Thus, due to the mature nature of the European market, EU manufacturers are focusing their strategies on launching new value-added innovative products rather than focusing on volume sales. They continue to emphasize the health benefits of tree nuts, both through advertising campaigns and in packaging.

    Confinement measures in response to the COVID-19 pandemic slightly changed EU consumer habits. As consumers spent more time at home, traditional consumers increased their demand for tree nuts, as a healthy snack option but also as a home baking ingredient. In addition, a wave of new consumers also fueled the growth in household tree nut demand. With the end of confinement measures, it is reasonable to assume that some of these new consumers will continue purchasing tree nuts. The evolution of demand in the fall, the traditional annual peak for tree nut consumption, will also determine the extent to which this new consumption level will remain in the long term.

    Expanding business in the EU market

    Since the EU remains a key export market for U.S. tree nuts, exporters continue to explore ways to expand their overseas business. Trade shows are an excellent opportunity to get to know the market and to meet potential importers. Some of Europe’s leading trade shows are:

    USDA-Endorsed Trade Shows

    Anuga October 9-13, 2021 Cologne, Germany
    Trade fair for the international food industry. In 2019, 7,500 exhibitors from 167 countries and 170,000 visitors determined the success of this show.

    SIAL October 15-19, 2022 Paris, France
    One of the largest and most important international marketplace for foodservice professionals, with 7,200 exhibitors and 160,000 visitors.

    Fruit Logistica February 3-5, 2021 Berlin, Germany
    Europe’s main international fresh produce trade show with more than 3,000 exhibitors and 78,000 visitors.

    Biofach February 17-20, 2021 Nuremberg, Germany
    World’s leading trade fair for organic food covering food, drinks and non-food products, with 3,218 exhibitors and 50,000 trade visitors from 134 countries participating in the previous edition.

    Other Relevant (Non-Endorsed) Trade Shows

    Food Ingredients Health Ingredients PLMA
    Alimentaria Snackex

    December 1-3, 2020 December 1-3, 2020 December 2-3, 2020 May 17-20, 2021 June 16-17, 2021

    Frankfurt, Germany Frankfurt, Germany Amsterdam, Netherlands Barcelona, Spain Hamburg, Germany

    New-to-market exporters interested in getting a better understanding of EU food regulations and market opportunities are encouraged to reference the EU-28 Food and Agricultural Import Regulations and Standards (FAIRS) reports and Exporter Guides produced by various EU FAS Offices.

    U.S. Cooperators Active in the EU Market

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

    Almonds, Shelled Basis

    Production

    The European Union is one of the world’s leading producers and consumers of almonds. Furthermore, the EU is the single largest export market for California almonds with Spain as the leading European importer. Every year, California almond production is exported to more than 100 countries worldwide, and the EU-28 represents almons 40 percent of all California’s almond exports.

    Spanish almond production continues its upward trend. Currently, high almond prices are increasing the number of hectares dedicated to almond planting as an alternative to less profitable crops. In recent seasons, new almond varieties, more modern irrigation techniques, and good prices have made the almond crop more profitable for investors and improved industry expectations.

    For MY 2020/21, the latest official forecast published by the Ministry of Agriculture, Fisheries and Food (MAPA) estimates a production of 108,303 MT (shelled basis). This preliminary figure denotes an increase close to 8 percent compared to previous year’s crop due to favorable weather conditions during the flowering, lack of significant frosts and above average levels of rain in the winter and the beginning of the spring, in addition to the new production areas with integrated irrigation systems.

    Italy is the second largest EU-28 almond producer after Spain. Sicily and Puglia are the main almond- producing areas, collectively accounting for approximately 88 percent of total supply. Tuono, Pizzuta d’Avola, Fascionello, Filippo Ceo, Fragiulio Grande, Genco, Falsa Barese, Ferragnés are the leading varieties grown in the country. Italy’s marketing year (MY) 2020/21 almond production is forecast to significantly drop from the previous season as reduced volumes in Puglia (due to heavy frosts occurred at the end of March) were not compensated by increased quantities in Sicily. Quality is expected to be excellent in Puglia and good in Sicily.

    Table 1. Major EU Almond Producers by Volume in MT (Shelled Basis)

    Consumption

    Nuts consumption continue to grow, since they are considered a great alternative to healthy snacking. Due to the increasing awareness of healthy lifestyles, nuts are becoming increasingly popular all- around Europe. Nutritionists have included nuts in diets for weight control or the recommended consumption for pregnant women are just examples of benefits, supported scientific studies, which continue to encourage the consumption of nuts, both as snack and as ingredient.

    In addition, almonds represent an important component of the Mediterranean diet. In-shell almonds are mainly sold for fresh consumption. Shelled almonds are milled and generally used as a raw material for confectionary and bakery food companies. New eating habits are also affecting the demand for nuts. The increasing number of plant-based diets is also helping to drive demand for nuts, as consumers look for alternative forms of protein to meat and fish.

    Tree nuts imports are indispensable for EU consumers. Traditionally, consumers prefer locally grown products mainly due to consumer loyalty and habits, but in the EU, consumption of nuts is higher than production; this has caused an increase in both domestic production and in imports of nuts.

    Trade

    Imports

    In MY 2018/19, the United States was the main almond supplier for European importers. U.S. almonds face competition from Australia and locally grown almonds, mainly from Spain.

    By volume, the main EU destinations for U.S. almonds were Spain, Germany, and the Netherlands. Many countries import large quantities of almonds destined both for domestic consumption and re- export markets, as well as for the food and snack industry.

    Table 2. EU-28 Imports of Almonds by Origin in MT (Shelled Basis) 

    Exports

    The top destinations for EU-28 almonds in MY 2018/19 were the United States, the autonomous city of Ceuta and Switzerland. The largest EU almond exporter is Spain with Spanish exports destined mainly for other EU Member States.

    Table 3. EU-28 Exports of Almonds by Destination in MT (Shelled Basis)

    Walnuts, In-shell Basis

    Production

    The two main producing areas in France are:

    -Aquitaine in the South West (including “noix du Perigord” AOC)

    -Rhone-Alpes in the East (including “noix de Grenoble” AOC)

    In 2019, French walnut production decreased especially in the Grenoble area (with a drop of 35 percent). The sharp drop was the combined result of drought conditions in the summer, strong winds that caused fruits to fall prior to harvest, and heavy snow falls that broke many nut-bearing trees right before harvest. In the South West, the crop was slightly better than average. In 2020, total French production is expected to increase compared to last year. In South Eastern France (Rhone-Alpes), 2020 production is expected to increase slightly after the losses in 2019. In the South West, production is expected to be below average because of the drought and hot temperatures during the summer.

    Meanwhile, Romania’s estimated production for 2020 is lower that the last two years due to unfavorable rainfall.

    In Spain, the main walnut growing regions are Andalucia, Extremadura, Castilla-La Mancha, and the Valencia region. As of the date of this report, the Spanish Ministry of Agriculture, Fisheries and Food (MAPA) has not yet published the official walnut production data for MY2020/21. If weather conditions remain favorable, Post expects a slightly higher production of 15,500 MT for the current MY. Read the rest of the USDA Foreign Agricultural Service Report HERE.

  • CA Almonds: Global Shipments & Trends

    Almond Board of the California — As California almond growers consistently produce yields at record or near-record levels year after year, it is important that those nuts find a home. Increasingly, that means expanding existing export markets and continuing to grow demand in those regions, while always keeping an eye on new opportunities globally.

    In the past year, the COVID-19 pandemic has presented a temporary challenge in moving nuts from California ports to export markets, a challenge coupled by situations like China’s continued tariffs. Still, the Almond Board of California (ABC) continues to strongly support the California almond industry through key marketing initiatives, education and negotiation with foreign trade officials, and frequent discussions with regulators in the U.S. and abroad.

    Take a deeper dive into how last year’s crop performed in terms of global shipments and hear from ABC program leads on market and trade trends, as well as ways that Almond Board staff are continuing to grow demand and support trade worldwide.

    Production: 2.55 Billion Pounds

    The U.S. Department of Agriculture (USDA) National Agricultural Statistics Service (NASS) has a challenging task in forecasting California almond production. Each July, USDA-NASS releases the Objective Measurement Report, which is based on samples of orchards gathered from throughout the state and measuring/weighing of kernels in order to estimate that year’s production. The production forecast reflects a range, which USDA-NASS has been within nine points of in the last 13 years. However, the 2018 report was narrowly outside the range and the 2019 report missed the mark by quite a bit.

    To address this issue, in the fall of 2019 ABC convened an Almond Forecasting Task Force made up of industry members, USDA-NASS officials and ABC staff to review almond forecasting procedures and identify potential changes to sampling methodologies to improve future crop estimates. To help USDA-NASS refine its production estimates, the task force recommended leveraging almond acreage information from Land IQ, a Sacramento-based agricultural and environmental scientific research and consulting firm that developed and maintains a comprehensive living map of California almonds. Implementing that and other changes, USDA-NASS has improved its data collection process, and hopes remain high that future Objective Reports will be closer to actual crop yields.

    Total Shipments: Domestic and Export

    This past year, the industry saw nearly parallel growth between domestic shipments (which grew 4.5%) and exports (which grew 5.0%). This growth comes despite the current challenging trade environment. The California almond industry’s investment in nutrition research and global market development has helped lay a strong foundation for demand around the world that has helped the almond community navigate through tougher times.

    And the work continues. In the past year, the Almond Board expanded its areas of nutrition research with its first study in the area of beauty. To ensure consumers are keeping almonds top of mind, the Almond Board is also continuing its efforts to build demand through consumer marketing programs in 11 countries, from India and Japan to the U.S. and Mexico. The past year’s programs included launching new advertising campaigns in multiple markets, including in the United Kingdom and India to continue building demand globally for California almonds.

    “One of the things that I first noticed when I joined the Almond Board four years ago was the passion and pride staff have in helping grow this industry,” said Vice President of Global Market Development Emily Fleischmann, “and that fire continues. It’s what has helped our teams launch innovative new campaigns like ‘Do You Almond’ in the UK this past year and what helps almonds remain the number one nut in new product introductions for 10 years running.”

    Fleischmann said ABC’s marketing staff will continue to create additional ways to spread the nutritional and health message associated with almonds.

    “Our teams keep pushing harder to make our programs stronger year over year,” she said. “In the year ahead, stay tuned for more on our U.S. partnership with Olympian Kerri Walsh Jennings as she works toward the Tokyo Olympics, as well as a brand new campaign in France and our first digital program in India.”

    Export Shipments: Top 10 Destinations

    Global trade tensions with China have changed the landscape of priority markets.

    “Five years ago, China was our second-largest export destination. It stayed as the third-largest market for several years, surpassed only by the strong growth of the Indian market,” said Julie Adams, vice president of Global Technical and Regulatory Affairs for the Almond Board.

    With an increasing middle class and economic growth, China was on track to expand, and ABC’s marketing investments helped spur that growth. But retaliatory tariffs implemented two years ago changed that momentum.

    “Starting in April 2018, we saw the impact of the trade war, which took almonds from a 10% tariff to the current 55% tariff,” Adams said. “Over the last two years, shipments to China/Hong Kong dropped 25% in crop year 2018-19 and another 23% in crop year 2019-20, with Australia benefiting.”

    The situation has resulted in China dropping to fourth in the line of U.S. export destinations. Taking a long-term view, however, China still is key to building demand for expanded crop production.

    “Many of the trade issues we face in our markets – from import controls to food safety standards or pesticide MRLs – take a long time to resolve,” Adams explained. “It is essential that we build good relationships with trade and regulatory authorities in these markets so we can engage quickly to find a solution that will allow almonds to continue to flow freely into consumer channels.”

    ABC is widely respected by authorities worldwide for being proactive in understanding market needs and its ability to provide technical, fact-based information across a wide range of issues. 

    Export Shipments: Regional Breakdown

    Global appeal among customers and consumers worldwide is clearly reflected in the almond industry’s regional shipments. Being well diversified helps counteract trade disruptions that can unexpectedly come up in one market or another.

    “There are so many growth opportunities around the globe,” Adams said. “For years, the Middle East and Africa were a small share of exports, but now they represent almost 20%.”

    While acknowledging the many challenges facing California almonds, Adams also believes “the opportunities are limitless.”

    Export Shipments: Product Type

    India remains the number one export market for U.S. almonds and the largest importer of in-shell almonds. Historically, India and China have been the primary destination for in-shell markets, but given the recent trade situation with China, India has absorbed much of those shipments.

    U.S. Agricultural Exports by Value

    Value Breakdown:

    • European Union (EU-27 + UK): Almonds are the number two export, at $1.8 billion, behind soybeans at $1.95 billion.
    • India: Almonds are the number one ag export at $732 million, accounting for 40% of all U.S. ag exports to India.
    • China and Hong Kong: Almonds are the second-largest tree nut export at $374 million and the seventh-largest ag product, overall. 
    • Japan: Almonds are the ninth-largest ag export.
    • United Arab Emirates: Almonds are the number one ag export and account for around 23% of total U.S. ag exports. 
    • South Korea: Almonds are the ninth-largest ag export. 
    • Mexico: Tree nuts are a small-sector category for exports to Mexico at $342 million total and $99 million for almonds. 

    Do you want to learn more about ABC’s global marketing and trade and regulatory work in countries across the world? Mark your calendar for Dec. 8-10 to attend The Almond Conference 2020. Held virtually for the first time this year, this ABC-hosted event will allow maximum global participation while offering the same quality information and engagement as past conferences. Learn more at almondconference.com.

  • Pacific Nut Producer July Issue

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    Contents of the July Issue:

    Farming & Managing Walnuts in Tulare County
    Gary Hester is Fourth Generation Farmer
    Coronavirus Food Assistance Program for Growers
    FSA Accepting Applications Through August 28th
    Orchard Tasks
    Almonds, Hazelnuts, Macadamias, Pecans, Pistachios, Walnuts

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  • Covid-19, Climate, Challenge and Change

    The global pandemic has revealed in new ways how essential farmers and farmworkers are to the food supply chain. With this revelation has also come more widespread understanding of the challenges farmers and ranchers face while scrambling to adopt new workplace safety protocols in the fields and on packing lines, respond to dramatically altered markets, and seek relief funding so they can stay in business.

    The realities and vulnerabilities of farmworkers, too, have been laid bare. Their exposure in the workplace and at home to Covid-19 and the barriers to health care and economic relief make us all vulnerable, dependent as we are on their labor and wellbeing.

    “Our main challenge right now is getting enough masks and suits to protect our workers. That’s what keeps me up at night. I’m also worried about harvest in August when we need 200 workers to pick grapes in 10 days—social distancing will be impossible.  As a new farmer taking over the business from my dad, I’m in this for the long game. It’s always been hard to make long-term decisions in farming, especially with the uncertainty of climate change. And now it’s challenging to make even short-term decisions about what to plant this year.” — Steven Cardoza, Cardoza Ranches (organic raisin grower, Fresno County)

    California agriculture is ramping up for its busiest time of year as hundreds of varieties of vegetable, fruit and nut crops are planted and harvested over the coming summer months. Even as shelter-in-place orders are easing, farmers have other looming challenges ahead in the form of seasonal climate change impacts. Wildfire season is predicted to start early this year in parts of the state because of a dry winter. Parts of the state will face another year of water scarcity given that the snow pack is only about half of normal.

    Despite these many challenges during the peak of the COVID-19 crisis, California farmers found time to apply for Climate Smart Agriculture grants for improving soil health and reducing methane emissions on dairies.

    In April, the California Department of Food and Agriculture (CDFA) announced that $50.8 million in grant requests had been submitted by 79 dairy producers for projects that reduce methane emissions by improving manure management—about five times more than the money available in the AMMP program.

    By mid-May, CDFA had received nearly 600 applications from farmers and ranchers for the Healthy Soils Program, a three-fold increase from the last round of applications to the program. CDFA recently announced program awards totaling $22 million to 316 farmers and ranchers carrying out healthy soils practices on more than 30,000 acres across the state.

    Clearly these programs are valued by California’s farmers, eager to do their part to curb greenhouse gas emissions, improve the resilience of their farms, and improve their bottom line with these important investments.

    “The milk industry was already being hit hard by an oversupply that drove down prices. It’s even harder now to find buyers even for powdered milk, and both dairy and meat processors are cutting contracts because they don’t have capacity right now. The pandemic has made it all the more real about our reliance on local farmers and it makes the case for curbing climate change to protect their livelihoods. We are getting in touch with what is really important, and food and farmers are core to our survival. It’s also clearer how important it is to maintain and shore up local economies and food systems.” — Rose Marie Burroughs, Burroughs Family Farms (organic dairy and almond grower, Merced County)

    Ed Seaman, Santa Barbara Blueberry Grower

    However, widespread support for the state’s Climate Smart Agriculture programs go beyond the state’s farms and ranches. This spring, more than 65 non-profits, food businesses and public health organizations sent in letters urging state legislators and Governor Newsom to invest in the climate solutions of our farms and ranches.

    “We expect a huge hit to our tourism business this year and really don’t know how many ‘u-pickers’ will visit our farm because of people just being afraid to go out. I worry about the small farm sector generally and how many will go out of business if the economy doesn’t open back up in time and they don’t get help. The pandemic has shown how fragile our food security is. Maybe the fear people are feeling can be leveraged to make widespread change and protect family farms and local food systems. If you want to fight climate change, you need an army of small farmers who focus on keeping carbon in the soil by increasing biodiversity in the soil and above ground.” — Ed Seaman, Santa Barbara Blueberries (blueberries, Santa Barbara County)

    California has been a global leader in setting ambitious, science-based climate goals and allocating funds to programs that achieve it, including the Climate Smart Agriculture programs. Continued progress and financial investments in these programs will not only help keep California on track with its climate goals but will also reduce air and water pollution, protect our food supply, and provide an engine for economic development to rebuild rural economies hit hard by the pandemic. – By Renata Brillinger, California Climate & Agriculture Network

  • California Walnuts Bright Spots During COVID-19

    California Walnut Board — Although it has been a challenging time in many ways since COVID-19 began, we want to draw your attention to some “bright spots” for California Walnuts. Over the last few months, we’ve seen significant growth in trends in baking, snacking, simple meals, and interest in plant-based eating. Walnuts are increasingly being recognized by consumers as one of the most versatile “pantry” staples, having stocked up on them during the initial weeks of COVID-19 especially. Nationwide stay-at-home orders have allowed more time for experimentation in the kitchen. Consumers are indulging, but also being mindful of nutrition and their consumption of nutritious, immune-boosting foods, and walnuts are well positioned to provide both.

    We have been monitoring the evolving landscape from a marketing perspective, and continue to pivot to ensure we are leaning into appropriate trends. Consumers have been searching for keywords such as “food”, “recipes”, and “simple cookie recipes” at higher-than-normal rates. With digital partner Allrecipes, recipes using walnuts as an ingredient grew to an all-time record in April, up by 169% compared to April 2019, even beating historic numbers typically seen around the Thanksgiving holiday season.

    Consumers also engaged at historic levels with promoted Baking, Meal Prep, and Kid Friendly recipes, our “How To” content series, and blog content, resulting in increases in website traffic, with users up by 40%, sessions up by 34% and pageviews up by 18% since this time last year. This performance confirms the shift in consumer online behavior due to COVID-19, and validates that our content is resonating in a very meaningful way.

    Leaning into On-trend Baking Inspiration

    With consumers spending more time at home, baking has made a resurgence as a way to pass time, and as a source of comfort. In turn, we highlighted some of the trending baked goods by featuring our own recipes, including homemade sourdough bread and banana bread.

    On walnuts.org, we curated a special recipe collection inspired by this nostalgia to include our top banana bread and baking inspired recipes, called “Bananas, Bread, and More” and promoted it on our home page and native advertising channels.

    Resharing Famous Recipes for Consumers to Make at Home

    Companies such as The DoubleTree Hilton have been sharing their beloved recipes for fans to make at home. We shared their famous DoubleTree Cookie recipe which includes walnuts, on California Walnut social media channels

    Blog Content Repurposed for Native Channels and Instagram Stories

    At the end of March, we went into the archives of our past blogs to reshare articles that we felt would make the lives of our audience easier right now. This included articles such as Meal Prep Ideas and How To Start Your Own Herb Garden. These articles were promoted on digital and social channels. Most notably, we utilized our newly-earned swipe up feature on Instagram to drive directly to our website.

    Major Media Hits featuring California Walnuts

    In the past few months, walnuts have been mentioned in a number of stories and recipes by major media outlets. This included Wendy Bazilian’s virtual appearance on Live with Kelly & Ryan where she discussed how to properly store walnuts. Walnuts were also mentioned in People Magazine’s article featuring Cat Cora’s favorite parfait recipe. This particular recipe was shared with the intent of providing a treat option for consumers to make without having to visit a grocery store.

    All of this buzz on social media resulted in an increase in impressions by 55.5%, audience growth by 3%, and engagements by 2.7% since March 15. From a public relations perspective, the stay-at-home mandates also provided an opportunity for the team to connect with many of our regular media contacts on a more personal level, by checking in and sending walnut samples to them at their homes.

    Food Professionals

    The Foodservice community is keeping the innovation pipeline alive during this time, from new menu ideas to improved take-out and delivery platforms, along with product development in the plant-based, nutrient dense space. Walnuts have a prime opportunity, as consumer interest in plant-based eating increases, and we see new issues with the meat supply chain. California Walnuts was recently featured in FSR Magazine with a strong plant-based center-of-the-plate message.

    In the Food Manufacturing space, the evolution toward healthful indulgence has rapidly advanced since the onset of COVID-19 as more consumers seek products that are indulgent, but made with whole ingredients. To take advantage of the banana bread trend, we recently published an article called Classic Pairing of Bananas, Walnuts Thrives Through Evolution in which we highlighted the trend and all of the interesting products being made with walnuts and bananas.

    Although new product launches have slowed for now, we anticipate a wave of innovation to occur later this year, with walnuts playing a key role in many of these products. We especially see potential in the growing number of consumers who are turning to plant-based foods due to nutritional preferences and shortages in the meat supply. Ready and primed to capture food manufacturers who are interested in including walnuts in their future products, this month we published a white paper 5 Reasons Food & Beverage Manufacturers Should Use California Walnuts.

    To put it simply, California walnuts are innovating and evolving to a new norm, while setting the tone for a more impactful food future with sustainability, menu efficiencies, and food safety measures in mind.

  • USDA Announces Details of Direct Assistance to Farmers

    U.S. Secretary of Agriculture Sonny Perdue today announced details of the Coronavirus Food Assistance Program (CFAP), which will provide up to $16 billion in direct payments to deliver relief to America’s farmers and ranchers impacted by the coronavirus pandemic. In addition to this direct support to farmers and ranchers, USDA’s Farmers to Families Food Box program is partnering with regional and local distributors, whose workforces have been significantly impacted by the closure of many restaurants, hotels, and other food service entities, to purchase $3 billion in fresh produce, dairy, and meat and deliver boxes to Americans in need.

    “America’s farming community is facing an unprecedented situation as our nation tackles the coronavirus. President Trump has authorized USDA to ensure our patriotic farmers, ranchers, and producers are supported and we are moving quickly to open applications to get payments out the door and into the pockets of farmers,” said Secretary Perdue. “These payments will help keep farmers afloat while market demand returns as our nation reopens and recovers. America’s farmers are resilient and will get through this challenge just like they always do with faith, hard work, and determination.”

    Beginning May 26, the U.S. Department of Agriculture (USDA), through the Farm Service Agency (FSA), will be accepting applications from agricultural producers who have suffered losses.

    Background:

    CFAP provides vital financial assistance to producers of agricultural commodities who have suffered a five-percent-or-greater price decline due to COVID-19 and face additional significant marketing costs as a result of lower demand, surplus production, and disruptions to shipping patterns and the orderly marketing of commodities.

    Farmers and ranchers will receive direct support, drawn from two possible funding sources. The first source of funding is $9.5 billion in appropriated funding provided in the Coronavirus Aid, Relief, and Economic Stability (CARES) Act to compensate farmers for losses due to price declines that occurred between mid-January 2020, and mid-April 2020 and provides support for specialty crops for product that had been shipped from the farm between the same time period but subsequently spoiled due to loss of marketing channels. The second funding source uses the Commodity Credit Corporation Charter Act to compensate producers for $6.5 billion in losses due to on-going market disruptions.

    Non-Specialty Crops and Wool

    Non-specialty crops eligible for CFAP payments include malting barley, canola, corn, upland cotton, millet, oats, soybeans, sorghum, sunflowers, durum wheat, and hard red spring wheat. Wool is also eligible. Producers will be paid based on inventory subject to price risk held as of January 15, 2020. A payment will be made based 50 percent of a producer’s 2019 total production or the 2019 inventory as of January 15, 2020, whichever is smaller, multiplied by the commodity’s applicable payment rates.

    Livestock

    Livestock eligible for CFAP include cattle, lambs, yearlings and hogs. The total payment will be calculated using the sum of the producer’s number of livestock sold between January 15 and April 15, 2020, multiplied by the payment rates per head, and the highest inventory number of livestock between April 16 and May 14, 2020, multiplied by the payment rate per head.

    Dairy

    For dairy, the total payment will be calculated based on a producer’s certification of milk production for the first quarter of calendar year 2020 multiplied by a national price decline during the same quarter. The second part of the payment is based a national adjustment to each producer’s production in the first quarter.

    Specialty Crops

    For eligible specialty crops, the total payment will be based on the volume of production sold between January 15 and April 15, 2020; the volume of production shipped, but unpaid; and the number of acres for which harvested production did not leave the farm or mature product destroyed or not harvested during that same time period, and which have not and will not be sold. Specialty crops include, but are not limited to, almonds, beans, broccoli, sweet corn, lemons, iceberg lettuce, spinach, squash, strawberries and tomatoes. A full list of eligible crops can be found on farmers.gov/cfap. Additional crops may be deemed eligible at a later date.

    Eligibility

    There is a payment limitation of $250,000 per person or entity for all commodities combined. Applicants who are corporations, limited liability companies or limited partnerships may qualify for additional payment limits where members actively provide personal labor or personal management for the farming operation. Producers will also have to certify they meet the Adjusted Gross Income limitation of $900,000 unless at least 75 percent or more of their income is derived from farming, ranching or forestry-related activities. Producers must also be in compliance with Highly Erodible Land and Wetland Conservation provisions.

    Applying for Assistance

    Producers can apply for assistance beginning on May 26, 2020. Additional information and application forms can be found at farmers.gov/cfap. Producers of all eligible commodities will apply through their local FSA office. Documentation to support the producer’s application and certification may be requested. FSA has streamlined the signup process to not require an acreage report at the time of application and a USDA farm number may not be immediately needed. Applications will be accepted through August 28, 2020.

    Payment Structure

    To ensure the availability of funding throughout the application period, producers will receive 80 percent of their maximum total payment upon approval of the application. The remaining portion of the payment, not to exceed the payment limit, will be paid at a later date as funds remain available.

    USDA Service Centers are open for business by phone appointment only, and field work will continue with appropriate social distancing. While program delivery staff will continue to come into the office, they will be working with producers by phone and using online tools whenever possible. All Service Center visitors wishing to conduct business with the FSA, Natural Resources Conservation Service, or any other Service Center agency are required to call their Service Center to schedule a phone appointment. More information can be found at farmers.gov/coronavirus.

  • PPE in Short Supply for Farm Work During the COVID-19 Crisis

    While most Californians are staying home to slow the spread of the novel coronavirus, California farmers, farmworkers and other agricultural professionals are out in the fields and packing houses working to produce food. With increased demand for personal protective equipment, or PPE, to protect against COVID-19, these essential workers are facing shortages. Agricultural commissioners in 28 counties are hearing from farmers who are having trouble getting PPE for their employees and farmers in another 11 counties who are worried about running out of PPE in the next month or two, according to a California Department of Pesticide Regulation survey.

    Gloves, N95 respirators, coveralls and other gear that workers wear to protect themselves from COVID-19, pesticides, dust and other health hazards are in short supply as priority is given to health care workers during the pandemic.

    To reduce the spread of COVID-19, workers may wear homemade face coverings, but for applying pesticides, they must wear respirators specified on the pesticide product label, said Whitney Brim-DeForest, UC Cooperative Extension rice advisor.

    Pesticide applicators may use gear that is more protective than required by the product label and regulations. 

    “Although this could change in the days ahead, half-mask and full-mask respirators are more available than disposable N95 respirators for now,” said Lisa Blecker, coordinator for the UC Pesticide Safety Education Program.

    Before the pandemic, 10% of N95 respirators from 3M went to health care, but that number is now 90%, the company said in a letter to distributors. This has led to significant backorders of PPE supplies for distributors.

    Carl Atwell, president of Gempler’s, an online distributor of worker supplies, said that before the crisis, normal lead times for PPE was up to 10 days. He estimated disposable respirators will become available in the fall and other PPE supplies in August.

    In the meantime, there is alternative PPE that agricultural professionals can use during the shortage.

    Atwell suggests looking for lesser known brands of PPE as opposed to the first tier of choice: “It’s sort of like searching for Purell hand sanitizer. Purell brand might be out of stock, but can you find a different disinfectant?”

    On Gempler’s website, the more recognizable Tyvek coverall from Dupont is sold out, however disposable protective clothing is available from other brands. Reusable chemical-resistant clothing is also available as opposed to their disposable counterparts. Supplies in high demand are reusable and disposable nitrile gloves, protective clothing, disposable respirators and certain protective eyewear, such as goggles and face shields.

    For workers who will be applying pesticides, Blecker and Brim-DeForest offered some guidelines on how to meet PPE requirements as the shortage continues.

    General PPE requirements: “Remember, the label is the law,” said Brim-DeForest. “PPE requirements for agriculture are not being loosened.” The UCCE advisor recommends purchasing only what you need for the season and choosing reusable PPE whenever possible. Growers who have excess supplies of PPE can coordinate with their county agricultural commissioner or UCCE advisor to help other producers in their area.

    Respirators: If you can’t find the respirator required on the label, Blecker said, “Use an alternative, more-protective respirator. For example, if an N95 is required, you can use a half-mask with N95 particulate filters; these can be stand-alone filters or ones that attach to an organic vapor cartridge. You could also use a different pesticide that doesn’t require a respirator. Consult with your PCA (pest control adviser) for options.”

    Gloves: Chemical-resistant gloves, usually 14 mil or more in thickness are required for most California pesticide applications and should be worn by mixers, handlers and applicators. If nitrile gloves are not available, viton and laminate gloves are universal chemical-resistant materials for most pesticide labels. If the glove material is specified on the label, that instruction must be followed.

    “Disposable gloves less than 14 mil can be worn, but not for more than 15 minutes at a time,” Blecker said. “Farmers should also note that thinner gloves cannot be layered on top of one another.”

    Coveralls: Coveralls should be worn when required by the pesticide label or when the signal word is “WARNING” or “DANGER,” or when applying by backpack or airblast. “Coveralls can be made out of high-density polyethylene fibers (Tyvek and other brands), which are disposable, or cotton, which are reusable,” Brim-DeForest said. “If reusable coveralls are worn, the employer must ensure employees are provided clean coveralls.”

    Goggles/face shields: Face shields are required for mixing and loading pesticides only if it’s stated on the label. “If a face shield is unavailable, a full-face respirator can be used,” Blecker said. “Goggles or protective eyewear should always be worn in California when handling pesticides, regardless of what the label says. The face shield, goggles or safety glasses must provide front, side and brow protection and meet the American National Standards Institute Z87.1 standard for impact resistance.

    The UC Integrated Pest Management Program also covers these topics in their pesticide safety webinar series at http://ipm.ucanr.edu/IPMPROJECT/workshops.html.

    For more information about PPE, contact your county agricultural commissioner or see the California Department of Pesticide Regulation’s posters at https://www.cdpr.ca.gov/docs/whs/pdf/gloves_for_pesticide_handling.pdfand https://www.cdpr.ca.gov/docs/whs/pdf/n95_alternatives_for_pesticide_handling.pdf. — By Katrina Hunter, UC Integrated Pest Management Program pesticide safety writer

  • COVID-19 Impacts on Food Supply Chain (May 12 Zoom Call)

    Why is milk being dumped and produce left to rot in fields while grocery store shelves go empty during the COVID-19 pandemic? Why are grocery stores running out of meat, and eggs becoming so expensive?

    The head of California’s Department of Food and Agriculture, researchers from the University of California, Davis, and food purveyors will tackle these and other questions in an online panel discussion at 5 p.m. Tuesday, May 12.

    UC Davis invites the public to attend “Food Shortages in a Pandemic” over the web through Zoom conferencing. To do so, register online at least 48 hours in advance.

    The 90-minute event, which will include a question-and-answer period with the Zoom audience, will feature:

    • Karen Ross, secretary of the California Department of Food and Agriculture since 2011
    • Dan Sumner, director of the UC Agricultural Issues Center, professor of agricultural and resource economics at UC Davis, and former assistant secretary for economics at the U.S. Department of Agriculture
    • Bu Nygrens, co-owner and director of purchasing at Veritable Vegetable of San Francisco, which distributes organic produce from more than 200 small and mid-size growers to restaurants, markets and co-ops across five states
    • Chelsea Minor, corporate director of public affairs for Raley’s Supermarkets of West Sacramento, a regional grocery chain in Northern California and Nevada

    Moderating the event will be Catherine Brinkley, who, as an assistant professor in the Department of Human Ecology at UC Davis, studies the architecture of food supply networks. 

    The panel will discuss how the food supply chain works, why the COVID-19 pandemic has been so disruptive, how distributors and supply chains are adapting to serve restaurants and grocery stores, and whether changes can or should be made to make food systems more resilient.

    The lecture is the third in the Savor series, which explores some of the biggest food and beverage topics being studied today at UC Davis — a world leader in the study of agriculture. The series is presented by the Robert Mondavi Institute for Wine and Food Science and the UC Davis Library.

    – By Jessica Nusbaum and Julia Ann Easley, UC Davis

  • Economic Injury Disaster Loans Now Available to Ag

    U.S. Small Business Administration Administrator Jovita Carranza announced today thatagricultural businesses are now eligible for SBA’s Economic Injury Disaster Loan (EIDL) and EIDL Advance programs. SBA’s EIDL portal will reopen today as a result of funding authorized by Congress through the Paycheck Protection Program and Healthcare Enhancement Act. The legislation, signed into law by the President one week ago, provided additional funding for farmers and ranchers and certain other agricultural businesses affected by the Coronavirus (COVID-19) pandemic.

    “For more than 30 years, SBA has been prohibited by law from providing disaster assistance to agricultural businesses; however, as a result of the unprecedented legislation enacted by President Trump, American farmers, ranchers and other agricultural businesses will now have access to emergency working capital,” said Administrator Carranza. “These low-interest, long-term loans will help keep agricultural businesses viable while bringing stability to the national’s vitally important food supply chains.”

    Agricultural businesses include businesses engaged in the legal production of food and fiber, ranching, and raising of livestock, aquaculture, and all other farming and agricultural related industries (as defined by section 18(b) of the Small Business Act (15 U.S.C. 647(b)). Eligible agricultural businesses must have 500 or fewer employees.

    The SBA will begin accepting new EIDL applications on a limited basis only, in order to provide unprecedented relief to U.S. agricultural businesses. For agricultural businesses that submitted an EIDL loan application through the streamlined application portal prior to the legislative change, SBA will move forward and process these applications without the need for re-applying. All other EIDL loan applications that were submitted before the portal stopped accepting new applications on April 15 will be processed on a first-in, first-out basis.

    For more information, please visit: https://www.sba.gov/funding-programs/disaster-assistance.  Also, visit the all-encompassing coronavirus business guide for small business owners, at: Coronavirus Small Business Issues and Solutions Guide