Pacific Nut Producer Magazine

Tag: USDA

  • Turkey Both Competes with and Relies on US Tree Nuts

    It is an “off–year” for pistachios in Turkey, and consequently, the USDA Foreign Agricultural Service forecasts a low production level for MY 2021/22. However, Turkey has carried over significant stocks from the previous year, so there is no shortage of pistachios in the market. In addition, Turkey relies on imports of almonds and walnuts to meet domestic demand for tree nuts. U.S. walnuts and almonds are still subject to retaliatory tariffs, resulting in a 10 percent higher customs tax than other tree nut-exporting countries. Turkey is the top producer of hazelnuts in the world and the largest exporter. The MY 2021/22 yield for hazelnuts is higher than last year because of good weather conditions.

    I. PISTACHIOS

    a. PRODUCTION

    Pistachio production is cyclical in Turkey. There are “on–years” during which harvests are significantly larger than during “off–years.” Therefore, yields can vary dramatically from year to year and also between regions and orchards in Turkey.

    Post estimates Turkey’s pistachio production to be 87,000 MT for MY 2021/22. MY 2021/22 is an off– year and the yields are not expected to be very good. Pistachios are grown mostly without irrigation in Turkey. Therefore, spring rains are important for the orchards. The drought that affected the Southeast part of Turkey during the spring and summer has caused pistachio yields to be extraordinarily low this year. Market sources report that the lack of rain caused the fruits to be smaller and fewer and some branches of the trees have died from the lack of the water. A disease called phytoplasma also affected pistachio trees, which market sources think was due to the drought that caused trees to become weak. In addition, some of the nests for next season’s (MY 2022/23) pistachios that would have normally started to form this summer have died and dropped off the trees because of the drought. Consequently, this year’s production is low (even for an-off year) and farmers anticipate that the following MY (2022/23) will also be affected by this drought. The lost branches and nests this season will cause yield decreases in MY 2022/23, even though it should be an on-year.

    There are an estimated 54 million bearing trees and about 22 million non-bearing trees in Turkey, according to the Turkish Statistical Institute (TurkStat) as of the beginning of MY 2021/22. Bearing trees increased 4.7 percent compared to the previous marketing year and non-bearing trees increased about 8.2 percent. This increase in the number of bearing trees explains the increase in production compared to earlier off- years. Although MY 2021/22 is a low yield off-year, production is still higher than many of the earlier off-years. Also, younger bearing trees are known to be more productive than older ones. Southeast Turkey is known to have many trees over 50 years old, so increasing the number of younger trees is expected to increase the yield. In addition, farmers are now better trained to understand the importance of male trees as they were seen as almost redundant a generation ago and not widely planted. Market sources indicate that farmers have stopped planting lentils and barley (even wheat in some cases) in order to plant pistachio trees in lands that cannot be irrigated. Many farmers believe they can make more money on pistachios.

    Currently, the average pistachio yield is around four kilograms (kg) per tree in on-years and two kg per tree in off-years. MY 2020/21 was especially a good yield on-year with a yield of over four and a half kg per tree. The southeastern part of Turkey is the traditional production area for pistachios. The provinces in this region (Gaziantep, Sanliurfa, Adiyaman, Siirt, Kilis, Kahramanmaras, Mardin, and Diyarbakir) are the most significant locations for commercial pistachio production and represent 95 percent of the total production, with around 80 percent coming from Gaziantep and Sanliurfa provinces. The remaining five percent of the pistachio production is in the Aegean, Mediterranean, and Marmara regions. Around 56 out of 81 provinces in Turkey produce pistachios, according to the Gaziantep Commodity Exchange (GCE). During the last decade, production in regions outside of Southeastern Anatolia has also increased.

    There are two main types of pistachios grown in Turkey, which are both unique to Turkey and different from the Iranian and Californian pistachio varieties. Most Turkish pistachios are the Gaziantep (Antep) variety, which are thinner and smaller than the typical Iranian variety. The Siirt variety accounts for about 15 percent of total production. It is a high yielding variety with less production fluctuation than the Gaziantep variety. The size and shape of Siirt nuts are in between the Gaziantep and Iranian pistachios. Quality is directly related to size in Turkey: 90 nuts or fewer per 100 grams is considered first quality, 90-100 nuts are second quality, 100-120 nuts are third quality, and more than 120 nuts are fourth quality. With the increasing number of new saplings planted in the Sanliurfa and Siirt regions, the production of high-quality pistachios is predicted to increase in the future.

    In recent years, to mitigate the natural “off year/on year” production cycle, producers and traders have been expanding implementation of good agricultural practices, especially in parts of Southeastern Anatolia. Pistachios are mostly grown in dry conditions, as irrigation for pistachios is not common in Turkey. The common perception about pistachio trees is that they can grow naturally in marginal soil and conditions. While this may be correct, yields have proven to be much better with “good” soil conditions, sufficient maintenance, and irrigation. More orchards are being irrigated to protect against the abnormal drought conditions in recent years. Research activities have been conducted by the universities located in the Southeastern and Eastern Anatolia Regions to develop better production methods and plant protection measures for pistachio orchards. However, the “off year/on year” production cycle still plays a prominent role in the amount of pistachio production.

    Since 2011, The Turkish Foundation for Combating Soil Erosion, Forestation, and Protection of Natural Habitats (TEMA), with contributions from private companies, has undertaken a project to increase the yield of pistachios in Gaziantep and Sanliurfa provinces. The “May you have abundant pistachios” project trains the pistachio farmers about how to maintain the trees, which contributes to a significantly higher yield. Education about pruning and trimming techniques and training about using pesticides and fertilizers improved the orchards of the farmers who were trained, tripling yields and even producing fruit from about 1/3 of newly planted saplings.

    b. CONSUMPTION

    MY 2021/22 consumption is forecasted as 130,000 MT. Market sources indicate that there are still stocks in warehouses carried from the last marketing year because of the excellent harvest in the previous year. In addition, according to market sources the retail price of the pistachios has not increased much compared to the previous year. These factors should help make up for the low production this year, and thus consumption should be at normal levels.

    Pistachio prices currently remain relatively stable as the new harvest of MY 2021/22 starts, despite the off-year harvest and the overall food inflation in Turkey. The price of bulk shelled early harvest pistachios (generally used for baklava and other traditional desserts) is about 160 – 165 TL/kg (~19.13 – 19.73 USD/kg) as of August 2021: this represents a 10 to 15 percent annual increase in prices in terms of TL and about the same amount in U.S. dollars. Pistachio farmers are disappointed in these prices as fertilizer prices have increased about 100 percent and pesticide prices have increased about 70 percent. Consequently, farmers indicate that the cost of producing pistachios increased about 80 percent this year. This will cause some pistachio producers/traders to sell as slow as possible and keep stocks in the hope that prices might go up in following months or the next marketing year.

    Current retail prices of in-shell pistachios for snacking in Istanbul are between 107 to 160 TL/kg (~12.80 – 19.13 USD/kg) as of August 2021, depending on the retailer and location. TL retail prices have remained about the same as last year (see our Retail Food Report for more information on economic conditions). Pistachio prices vary depending on where and how the pistachios are bought (i.e., in bulk or small packages in convenience stores or specialty markets).

    Most of Turkey’s pistachio crop is consumed domestically and consumption varies from year to year, according to availability of pistachios in the market. Traditionally, Turkish people consume 35 percent of total domestic consumption as a snacking nut and the rest is used in the production of confectionery products, especially in traditional desserts and bakery products like baklava. During the last decade or so, the use of pistachios in chocolate making and ice cream has increased as well.

    Packaging of tree nuts, including pistachios, has doubled over the last few years throughout the country, especially in the coastal regions (Aegean, Mediterranean and Marmara). Purchasing of pre-packaged nuts from supermarkets is becoming more popular in larger cities as opposed to buying them in bulk from nut stores, as is the traditional sales method in Turkey. Post observes that this change of consumer behavior is increasing throughout the country as the availability of discount market chains all over Turkey also increases. Please refer to our Retail Food Report for more information. Currently, 35 percent of total production is being packaged. The increased amount of nut packaging, versus selling in bulk, will have a positive influence on per capita consumption over time. Current per capita consumption is around 1.5 kg/year in Turkey.

    c. TRADE

    Turkey generally consumes most of its domestic pistachio production, and a minor amount of total production is exported. Some production is stored to plan for an upcoming off-year if it is an on-year. We see that more pistachios have been exported recently compared to previous years, as the harvest was a record high in MY 2020/21 and the Turkish lira lost a lot of value, making Turkish pistachios relatively cheap in international markets. As MY 2020/21 was a record high yield on-year, Turkey exported a record level of 35,000 MT pistachios, mostly shelled. Important export destinations were Italy, Germany, Israel, Saudi Arabia and Morocco.

    Although MY 2021/22 is expected to be an off-year with a lower-than-average yield there will still be some exports. The carried over stocks from the record high yield MY 2020/21 and the weakening of the TL should contribute to additional exports from Turkey. Post forecasts a relatively high level of exports for an off-year at 17,000 MT for MY 2021/22.

    Pistachios can normally be imported to Turkey at a 43.2 percent tariff rate. However, the Turkish government implemented a 20 percent additional tariff from the summer 2018 until spring 2019 for U.S.-originated pistachios due to the implementation of additional steel tariffs on Turkish exports to the United States. On May 17 2019, the additional tariffs on nuts were halved (reduced to 10 percent). The total tariff rate on pistachios from the United States to Turkey is now 53.2 percent, compared to 43.2 percent for all other countries.

    As the trade prices of alternative products such as walnuts and almonds are also tied to the U.S. dollar when importing, Turkey will continue importing some pistachios, especially from Iran as they expect a good off-year this season. Post estimates that the imports for MY 2021/22 will be 15,000 MT.

    d. STOCKS

    As discussed earlier in the report, MY 2021/22 was a record high harvest year with higher than average yields. However, pistachios were not consumed as much in Turkey due to the pandemic since restaurants, cafes and patisseries that would serve baklavas and similar traditional pistachio-based desserts were closed for a good amount of time during the winter 2021. This means that record high stocks are being carried over to MY 2021/22. The stock for MY 2020/21 is now estimated at 65,000 MT, in line with market expectations. We also forecast that year-end stocks for MY 2021/22 will be 20,000 MT, exceptionally high for an off-year.

    Pistachio stocks vary considerably from year to year in line with cyclical production. Moreover, pistachio production, trade, and stock statistics are not maintained by the Government of Turkey (GoT), nor related associations in the sector. According to tree nut producers, better data would help prevent price fluctuations, especially in low production years, as fluctuations have a negative impact on consumption and food industry usage. For these reasons, the GCE has taken steps to increase the trade and storage of the commodity under safe conditions after harvest. The GCE received a GoT grant to establish a 10,000 MT capacity licensed warehouse in Gaziantep. Scientists from various universities are supporting improvement of storage conditions since the cyclical nature of pistachio production in Turkey elevates the importance of stocks. Good storage conditions also minimize food safety concerns such as aflatoxin. The GCE aims to prevent price fluctuations using the licensed warehouse system so producers, consumers, and traders will all benefit. They also aim for transparency in stock numbers, using this warehouse system to improve the supply-demand pricing mechanism. This licensed warehouse is a good start but not sufficient for Turkey’s storage needs or to create market transparency. The licensed warehouse opened and started accepting pistachios for storage in June 2021, after more than a year delay. There is also a laboratory working with the licensed warehouse to assess the quality of the pistachio stocks.

    e. POLICY

    The GoT does not provide direct supports specifically to pistachio farmers but supports the pistachio farmers with the general agriculture subsidies if they are registered in the Farmers Registration System. Supports are announced by the GoT in the beginning of each calendar year.

    The GoT offered farmers the following support for the year 2021. Most of the following has not been changed from last year, although the TL has depreciated, so in terms of U.S. dollars the support has decreased compared to previous marketing year. Only fuel and fertilizer and good agricultural practices supports have been increased compared to last marketing year. Note that a decare (da) is equivalent to 0.1 hectares.

      •   100 TL/da (11.96 USD2/da) and 400TL/da (47.84 USD/da) respectively for the establishment of orchards that are planted with standard seedlings and certified seedlings

      •   50 TL to 100 TL /da (5.98 USD/da to 11.96 USD/da) for organic agriculture;

      •   40 TL/da (4.78 USD/da) for Good Agricultural Practices;

      •   23 TL/da (2.75 USD/da) for fuel and fertilizer. 

    II. ALMONDS

    a. PRODUCTION

    Almond production in Turkey is forecast to increase to 18,000 MT in MY 2021/22, up from 16,500 MT in MY 2010/21. An increased number of bearing trees accounts for this increase.

    Very similar to last the last marketing year, the almond trees started to bloom in the second half of January this year, instead of the usual mid-February, due to warm weather in Datca Peninsula, the region of the earliest production in Turkey. Although Datca Peninsula is famous for its almonds among Turkish consumers, the amount of almonds harvested from the region is minor in the overall almond production of Turkey. According to market sources, in a good year the Datca Peninsula only produces 1,500 MT. This year’s harvest in the region is expected as normal.

    Producers from the Adiyaman province, the largest growing area in Turkey for almonds, report that despite challenges such as heavy rains and draught earlier in the season, a good harvest is expected for MY 2021/22. Several other smaller production areas in the Southeastern Anatolia Region, such as Mardin and Batman, will also have regular levels of harvest despite the drought conditions in the Southeast of Turkey.

    The rest of the Aegean and Mediterranean regions, such as Antalya, Mersin, Manisa and Mugla, have also had a good year, in line with long term averages. Warm weather came at the right time, contributing to a good harvest. There are also almond orchards in the province of Manisa, where the climate is very suitable for cultivating almond trees. The market for domestically produced almonds is usually strong, and new orchards have been established to meet the demand.

    As in previous years, the Adiyaman and Kahta Chambers of Agriculture are asking for higher purchasing prices to be set by the Agricultural Credit Cooperative Union (ACCU) for the 2021/22 harvest. The costs of inputs such as fertilizer and herbicides, and labor costs have increased from last year due to the depreciation of the Turkish lira and inflation. The price offered by the ACCU affects the prices offered by commercial buyers, effectively setting a limit to the price. The two chambers report that these low prices would discourage farmers from continuing to grow almonds or at least enlarging orchards.

    Although almonds are grown in most parts of the country, they typically have been considered a minor crop and are not widely cultivated commercially in Turkey. Despite the increase in the number of planted almond trees as a result of special afforestation projects administered by Ministry of Agriculture and Forestry (MinAF) in years, almond production has not increased significantly, likely because the trees are planted in less-than-ideal conditions and are not carefully tended. In fact, these projects have contributed to increasing forests but not much on increasing almond production.

    The GoT also encourages producers to establish new orchards by allocating free land for 49 years, providing some interest-free financial support, and financially supporting farmers registered in the “Farmers Registration System” for using certified seedlings in these orchards.

    As a result of these incentives and government support, the establishment of almond orchards has become popular in Turkey and the private sector has concentrated on establishing new almond orchards for commercial production in Izmir, Manisa, Mugla, Denizli, Sanliurfa, Canakkale, Adiyaman and Karaman Provinces. In 2020, MinAF published a guide booklet for investment in almond orchards (the study was removed from the website after a year of distribution, likely due to changing costs). The study takes a sample 100 hectares (ha) orchard establishment, presents the financial analysis (net present value analysis), and explains technical details of establishing an almond orchard giving information on different steps. Commentators say that it will be helpful, although the facts in the rural areas could be a bit different than this desktop study. The guide reports the investment as profitable, a return on investment in seven years. It is believed that these initiatives will increase the production of almonds in the future.

    The district of Kahta within Adiyaman Province has been the leader in almond production in Turkey since 2016, according to the Kahta Union of Hard Shelled Fruit Producers. The expectation for the province is to have 100,000 ha of almond orchards by 2023/24, with the goal of producing enough almonds to meet domestic demand in Turkey. Kahta Chamber of Agriculture reports that as of 2021/22 MY they now have 74,000 he of almond orchards (not all bearing) in the district. To assist with this goal, the GoT established the Adiyaman Hard Shelled Fruits Research Institute in 2017 which will work in cooperation with the University of Adiyaman. An almond and pistachio processing facility has also been established by the Agricultural Credit Cooperative Union with the support of the GoT and opened in the spring of 2018. In September 2019, the ‘1st Adiyaman Almond Summit’ was organized by the Adiyaman Agriculture and Forestry Directorate and Ipekyolu Development Agency, a governmental agency that stimulates regional development. The GoT is encouraging farmers in the region to invest in almond orchards by increasing awareness of the potential benefits in various ways. However, reaching enough production to meet Turkey’s almond demand, with 50 percent produced in the Adiyaman/Kahta region by 2023/24, does not seem feasible given the current economic conditions.

    b. CONSUMPTION

    Post forecasts that there will be an increase in almond consumption to 40,000 MT in MY 2021/22 because of increased vaccinations for COVID-19 in Turkey and the opening of hotels, cafes, and bars. Although TL has not gained back value since last year, it has been more stable that benefits consumers. Almonds are mainly consumed as a snack food and limited amounts are used in the confectionary and cosmetics industries in Turkey. As with pistachios, the packaging of tree nuts, including almonds, has increased and about 1/3 of tree nuts are sold pre-packaged.

    Almond retail prices in Istanbul, Turkey are about 100 – 165 TL/kg (11.96 – 19.73 USD3/kg) for both shelled roasted almonds and raw almonds. Prices vary by neighborhood and according to retailer. Prices increased in terms of the Turkish lira but decreased in U.S. dollar terms due to the depreciation of the lira against the U.S. dollar.

    TRADE

    Imports of almonds are expected to be around 31,000 MT for MY 2021/22, the same number as in MY 2020/21 because of stable consumption.

    Turkey is a net importer of almonds. The United States was the major supplier of high-quality almonds in MY 2020/21 and is expected to be the major supplier for MY 2021/22 as well. Australia, Spain, Uzbekistan, and Iran are other suppliers of almonds to Turkey.

    After January 1, 2018, import tariffs on almonds imported from all countries decreased to 15 percent. However, there have been an additional 20 percent tariffs on U.S.-originated tree nuts since August 2018 as retaliation to the U.S. Government increasing the tariffs on Turkish steel and aluminum. On May 17 2019, the additional tariffs on nuts were halved (reduced to 10 percent).

    In total, the final import tax on almonds from the United States is now 25 percent of the cost, insurance and freight (CIF) value of the shipment and is 15 percent for almonds from all other origins. There is still a demand for high quality almonds in the Turkish market and according to the sector, domestic production will not be able to meet this demand with domestic production in MY 2021/22.

    Turkish customs also has a minimum reference (oversight) price for nuts. If the CIF invoice value of the in-shell almond is at or below 4,400 USD the tariff will be applied at 4,400 USD per ton. If the per ton CIF invoice value is greater than 4,400 USD, the tariff will be applied at the actual CIF invoice value. The tariff for shelled almonds is based on a minimum CIF per ton value of 6,900 USD or greater.

    If almonds are imported in the scope of the Inward Processing Regime (IPR), importers do not pay tax if the almonds will be exported after being processed, such as being shelled or packaged. Turkey’s main almond export destinations are Middle Eastern and North African countries (such as Iraq, Saudi Arabia, Libya, Tunisia, and Algeria).

    As of May 2020, a new regulation is in effect for suppliers of almonds to Turkey, along with suppliers of many other items such as, but not limited to, walnuts and cashews. All suppliers of almonds, i.e. exporters, to Turkey should register themselves in an online system entering company information and filing verified documents via Turkish buyers. You may consult to our report on the New Regulation Requires Registration for Exporters of Tree Nuts and Other Products to Turkey if you need to register your company in the new system. This regulation is intended to be a surveillance system to discourage the illegal flow of these nuts into the country.

    c. POLICY

    As with other tree nuts, the GoT supports almond farmers who are registered in the “Farmers Registration System.” Supports are announced by the GoT in the middle of each calendar year. These supports are available to all farmers regardless of what they are planting.

    GoT offered almond farmers the following supports for the year 2021:

    •   100 TL/da (11.96 USD/da) and 400TL/da (47.84 USD/da) respectively for the establishment of orchards that are planted with standard seedlings and certified seedlings

    •   50 TL to 100 TL /da (5.98 USD/da to 11.96 USD/da) for organic agriculture;

    •   40 TL/da (4.78 USD/da) for Good Agricultural Practices;

    •   23 TL/da (2.75 USD/da) for fuel and fertilizer.

      III. WALNUTS

      a. PRODUCTION

      In MY 2021/22, Post expects production of walnuts to reach 68,000 MT. Drought conditions affected Turkey during spring and summer 2021. The lack of spring rains will affect the yields of the walnut trees throughout Turkey, especially the ones that have not been irrigated. There was also some hail and frost damage in the inner Anatolian region that will have small effect on the total production. Since many newly (in the last decade or so) established commercial orchards are being irrigated, drought will not affect those orchards as much. Weather conditions were normal for pollination.

      Walnut trees, like almonds, are scattered throughout the country. They grow in almost every province of the country, but commercial plantations of walnuts are relatively new to Turkey. The GoT has implemented programs to encourage increasing the production of walnuts. Commercial orchards have been established in the last 10 – 15 years in the Thrace region, in the Sakarya and Kocaeli provinces (in the Marmara Region) and in the Adiyaman province in the Southeastern Region of the country. However, these are insufficient to meet the demand for high-quality walnuts among Turkish consumers. The GoT encourages producers to establish new walnut orchards by allocating free land for a term of 49 years and some interest-free financial support programs. The government also supports farmers who are registered in the “Farmers Registration System” for using certified seedling in these orchards. New orchards are being established in many provinces by the private sector due to these government incentives and high market prices. These new orchards are in the Aegean, Marmara, Southeastern Anatolia, and Mediterranean regions. Chandler is becoming the most popular variety of tree to plant due to consumer preference. However, some issues remain in terms of the suitability of varieties to local conditions and the reliability of certified seedlings.

      Although MinAF tried to increase production of walnuts with special afforestation projects in the last decade, this did not help much since these were not commercial walnut farms. Many trees were planted in soils or locations which were not ideal for walnut production. Irrigation is mostly not available in these lands and delivering the water to the plots is costly. As a result, production of walnuts in Turkey did not increase significantly because of these various projects.

      Until 1970, walnuts had been propagated only by seeds and therefore, until the last decade, it was very difficult to find established orchards of standard cultivars in Turkey. However, the importance of propagation by grafting and budding is now understood and as a result, orchards of standard cultivars are becoming increasingly widespread. Currently the major problem for walnut producers in Turkey is low yields. There is also great need for improved varieties. The Yalova Horticulture Research Institute, which is located in the Marmara Region, is Turkey’s leading walnut research facility and the developer of new varieties. Commercial production of the improved varieties developed by this institute has begun in Balikesir, Denizli, Bursa, and Kahramanmaras provinces.

      As of 2021 the Turkish Walnut Producers’ Association has been established and their first general assembly has been gathered in summer of 2021. The association has 30 members who are all large size (in Turkish scale of orchards) commercial walnut producers (as opposed to traditional farmers with some trees planted here and there). Members have 35,000 da of orchards altogether and 900,000 trees as of 2021. They use modern agriculture techniques and use more mechanization than traditional producers in Turkey. The association have declared that they aim to reach an amount of 20,000 MT harvest in two to three years.

      b. CONSUMPTION

      The walnut consumption estimate for Turkey is 150,000 MT for MY 2021/22, a slight increase from last year.

      In Turkey, walnuts are commonly used in desserts, just like pistachios. Turkish desserts such as pestil and köme are made by combining walnuts with mulberries and grapes. Walnuts are also used in baklava, ice cream, halva production, cookies/cakes, breads/bakery, pastries, and in the dried fruit industry as well. The leaves and green shells are used as a pigment in Turkey. Walnut wood has been used for the furniture industry for many years.

      Walnuts are the second most-purchased nut in Turkey after hazelnuts. Walnut consumption has increased significantly in recent years due to consumers understanding the health benefits of the nut and the increased availability of packaged tree nuts, including walnuts. Most walnuts in the market are sold in bulk, in-shell. Turkish consumers purchase walnuts regularly and use them as an ingredient in everyday foods.

      Currently walnut retail prices have been stable since last year in terms of TL prices. The U.S. dollar prices have dropped slightly due to TL losing value in the past year. Shelled walnuts are priced from 85 to 185 TL/kg (10.17 – 22.12 USD5/kg). The prices of shelled walnuts, in the cheapest outlets are similar to those of the last year but more luxury/premium outlets’ prices are higher in terms of TL and USD compared to last year. The inflation in the country has affected price levels more in more premium outlets, since consumers with more purchasing power shop there and the outlets can afford to increase prices without losing customers. Nevertheless, because of the availably of cheaper outlets, consumption levels have not dropped. In-shell walnuts are from 35 to 50 TL/kg (4.20 – 5.98 USD/kg) varying by production and retail outlet, the TL prices are as same as last year and again the USD prices have fallen due to value loss of the TL.

      c. TRADE

      94,000 MT of imports is projected for MY 2021/22. It is an off-year for pistachios, therefore more walnuts might be used in traditional deserts etc. In addition, due to popular availability of COVID-19 vaccine in Turkey people will be going to cafes, bars, hotels and restaurants a bit more compared to last year. There will be increased demand for imported walnuts even though production increases are also expected.

      The United States continues to be the major in-shell walnut supplier in MY 2021/22. After the United States, Chile, Ukraine, China, Uzbekistan, and Moldova are the other significant walnut suppliers, largely due to price and seasonality considerations. Due to retaliatory taxes on U.S.-originated walnuts, traders have purchased imports as much as possible from other sources. Traders agree that Turkey will continue to be an importer of walnuts due to the demand for high-quality product by Turkish consumers. Depending on the year, around 30 to 50 percent of total walnut consumption is supplied through domestic production. Due to the strong demand for high quality walnuts in the Turkish market, the remaining amount is imported to meet the demand.

      On December 31, 2020, GoT published a Presidential Decision Decree (PDD) that raised the import tariff for in-shell and shelled walnuts to 15 percent for all origins, except for countries that have a free trade agreement (FTA) with Turkey. The government abolished the Housing Development Fund Fee (HDFF) of 320 USD/MT that were being paid for importing walnuts to Turkey.

      The following oversight (or reference) price system was re-introduced in the PDD.

      An oversight price is a minimum price that the GoT will use for tax purposes. For example, even if a Turkish trader has purchased a metric ton of in-shell walnuts for 2,500 USD, which is below the oversight price, the tariff will be calculated using 3,500 USD. However, if the actual price is more than 3,500 USD then the GoT will use the real invoice price in calculating taxes.

      In addition to the 15 percent tariff rate for all origins as explained above, there is also a 10 percent additional tax on U.S. originated tree nuts as a countermeasure for U.S. increasing tariffs on Turkish steel and aluminum. You can read about these additional taxes on some U.S. originated products in our previous reports. As a result of the recent tax change and the continuing retaliatory tariffs, the customs duty rate on U.S. originated walnuts is 25 percent (15 + 10), as it was before August 2020.

      Since May 2020, all exporters of walnuts to Turkey must register in an online system with certain required company information and additionally file verification documents via Turkish buyers. This is intended to be a surveillance system to discourage the illegal trade of walnuts. You may consult our report on the New Regulation Requires Registration for Exporters of Tree Nuts and Other Products to Turkey if you need to register your company to the system for exporting to Turkey.

      Turkey’s processing industry has grown in recent years. Imports of both in-shell and shelled walnuts, and exports of shelled walnuts have increased substantially. Importers can utilize the Inward Processing Regime (IPR) for walnuts that are imported to be further processed and exported to third countries.
      With the IPR, importers do not pay import tariffs if they export a value-added end product. U.S. walnuts imported under IPR tend to be processed and exported to Middle Eastern and African countries (Egypt, Saudi Arabia, Tunisia, and Libya).

      d. POLICY

      The GoT supports walnut farmers who are registered in the “Farmers Registration System.” Supports are announced by GoT in the middle of each calendar year. They are mostly the same as last marketing year in terms of TL (and decreased in terms of USD since TL lost value in a year).

      GoT offered farmers the following supports for the year 2021:

    •   100 TL/da (11.96 USD6/da) and 400TL/da (47.84 USD/da) respectively for the establishment of orchards that are planted with standard seedlings and certified seedlings

    •   20 TL to 40 TL /da (2.39 USD/da to 4.78 USD/da) for organic agriculture;

    •   40 TL/da (4.78 USD/da) for Good Agricultural Practices;

    •   23 TL/da (2.75 USD/da) for fuel and fertilizer.

      IV. HAZELNUTS

      Turkey is the largest producer and exporter of hazelnuts in the world, accounting for about 70 percent of world production and around 75 percent of world exports. Hazelnuts are generally grown in the Black Sea region of Turkey.

      Post forecasts hazelnut production will be 625,000 MT for MY 2021/22 in Turkey because of better yields that the previous marketing year.

      The Black Sea region has not been affected by the drought in Turkey. Rains in the spring were at good levels, and fewer rainy days meant more sunshine during the summer while the hazelnuts were forming and growing. This meant early harvest in some lower-altitude orchards. There have not been any major frost or hail problems in the Black Sea region this year to affect pollination, and there were no pest issues. Therefore, we forecast a good crop in MY 2021/22.

      MinAF has not announced their official production estimates, although they have done two studies. Market sources report that these studies indicated about 650,000 MT in production. However, other sources have indicated to us that the MinAF studies have unrealistically high yield estimates.

      The president of Turkey himself declared the official Turkish Grains Board (TMO) purchasing prices for hazelnuts in a late August speech. Giresun quality hazelnuts will be purchased at 27.00 TL/kg and Levant quality will be purchased at 26.50 TL/kg. The Minister of Agriculture and Forestry announced that TMO will purchase all the hazelnuts brought to them, given that the quality standards are met, and pay farmers within 20 days.

      Turkish hazelnuts usually ripen between early and late August, depending on the altitude of the orchard and weather conditions. Hazelnuts are hand-picked from the trees and dried in the sun. Harvesting takes place during several weeks in August and September. Turkey produces around 600,000 MT of hazelnuts under normal weather conditions. Although hazelnuts are grown in more than 48 provinces around Turkey, production is primarily concentrated along Turkey’s Black Sea coast. Hazelnut orchards are typically located within 30 km of the coast. In the western Black Sea region, the growing region starts at Zonguldak (east of Istanbul) and extends east along the entire Black Sea and the mountains until close to the Georgian border. There are approximately 500,000 producers and 4,000,000 people directly or indirectly employed by hazelnut production in Turkey on an area of around 725,000 hectares.

      The Black Sea region is divided into three distinct growing areas: (1) The hilly region from Ordu to Trabzon, centered around Giresun, and east of Trabzon (including Rize) which in a normal year produces about 55 percent of the crop; (2) The flatter, mixed farming region west of Ordu to Samsun, which produces about 15 percent of the crop; and (3) The area west of Samsun, which produces the remaining 30 percent of the crop. Hazelnuts require relatively little effort to cultivate and input requirements are low. However, with better maintenance, the yield efficiency of Turkish hazelnut orchards could easily be improved. Due to socio-economic reasons, Turkish hazelnut orchards are not well maintained, and the trees are aged with some orchards dating back 70 years.

      Both the GoT and private companies purchase hazelnuts from producers. About one third of the exports are bought by Italian-owned Ferrero Hazelnut Company, which also owns the brand Nutella. The company purchased the largest Turkish trader and its Italian competitor in 2015 and became the largest hazelnut trader in Turkey. Approximately half of all exports are carried out by international companies. Most years, TMO purchases and stocks hazelnuts on behalf of the GoT. In addition, the Union of Hazelnut Agriculture Sales Cooperatives (FISKOBIRLIK) in some years purchases and stocks nuts to keep prices stable. Note that USDA does not maintain a Production, Supply and Distribution table for hazelnuts. — By Caglar Eerdogan, USDA Foreign Agricultural Service

  • CA Walnut Board Votes To Modernize Federal Marketing Order And Suspend Enforcement Of Mandatory Inspections Of Walnuts

    Cultivating industry prosperity for the long term is at the core of the California walnut industry’s strategic plan.  A year ago, the Grades & Standards Committee began working with US Department of Agriculture (USDA) looking into ways to update the outbound inspection process in order to remove redundancies and duplicative costs to bring more efficiency to the industry. As part of this process, the California Walnut Board (CWB) voted to suspend enforcement of mandatory USDA outbound inspections of California walnuts.

    This action resulted in USDA issuing a preliminary six-month moratorium on the enforcement of the mandatory inspection requirement, effective September 1, 2021.  The Board’s vote to suspend inspections stands to benefit the industry by mitigating market disruptions (i.e. labor shortages, shipping constraints) during the season. The Federal Marketing Order rules governing inspection, which date back to the Order’s inception in 1948, are obsolete as market and customer quality demands have since surpassed USDA grading standards.

    In addition to USDA programs, many handlers have already invested in state-of-the-art equipment to comply with food safety, quality, and traceability requirements set by the U.S. Food & Drug Administration (FDA), while also employing qualified staff to oversee rigorous programs to meet additional market-driven quality standards.

    “All handlers should know that despite non-enforcement of mandated outgoing inspections, the Dried Fruit Association (DFA) remains available for voluntary inspections and business needs,” said Eric Heidman, CWB Chair of the Grades & Standards Committee.

    The market already demands quality that well exceeds USDA grade standards and handlers will continue to inspect product to the specifications as contracted with their customers.

    “This moratorium will be extended when the CWB goes through the formal rulemaking process to modernize the Federal Marketing Order,” said Joshua Rahm, CWB Director of Regulatory & Technical Affairs. “As part of this process, CWB will establish a new method of assessing walnut handlers. We are hopeful the new authority will be available for the 2022-2023 crop year and expect assessments to be collected following the formal rulemaking process.”

    California walnut grower Donald Norene, stated, “I support the Board’s initiative to streamline and update the inspection process to keep up with current market demands and make it more efficient to save resources, ultimately working harder for the industry.”

    While the CWB works through the rulemaking process, it will continue essential operations by tapping budget reserves to offset the temporary non-collection of assessments.  The Board will be evaluating its spending to determine how to best operate until the formal rulemaking process is complete.

    About the California Walnut Board

    The California Walnut Board (CWB) was established in 1948 to represent the walnut growers and handlers of California. The CWB is funded by mandatory assessments of the handlers. The CWB is governed by a Federal Walnut Marketing Order. The CWB promotes usage of walnuts in the United States through publicity and educational programs. The CWB also provides funding for walnut production, food safety and post-harvest research.

  • Almond Alliance’s Elaine Trevino Nominated as US Chief Agricultural Negotiator

    On September 13th, President Biden announced his intent to nominate several individuals to serve as key economic and trade representatives, including the Elaine Trevino to serve as Chief Agricultural Negotiator at the United States Trade Representative.

    Elaine Trevino is the President of the Almond Alliance of California (AAC), a member-based trade association that advocates on regulatory and legislative issues in areas of international trade, food safety, water quality and availability, crop protection, air quality, worker safety, supply chain and feed quality. As the leader of an organization that advocates for California’s leading agricultural export, Elaine understands tariff and nontariff barriers to trade and the importance of maintaining America’s strong trade agreements and global positioning. Elaine has worked on advocating for funding for COVID-19 relief, addressing retaliatory tariffs, climate smart farming, public private partnerships for opening new markets and strengthening existing markets and addressing technical sanitary and phytosanitary barriers. Elaine works at the local and federal levels on addressing port congestion, supply chain disruptions and excessive costs.

    Elaine served as a Deputy Secretary at the California Department of Food and Agriculture for Governor Arnold Schwarzenegger and Governor Gray Davis. She was responsible for the oversight of the international export and trade programs, specialty crop block grant funding, division of marketing services, plant health and pest prevention and the statewide county fair network. Elaine serves on USDA’s Agricultural Policy Advisory Committee (APAC). Born and raised in the Central Valley of California, Elaine has a long history of community service and has a great respect for agriculture and the value of the industry to the overall economy. She received her undergraduate degree from the University of California Berkeley and attended the John F. Kennedy School of Government. Elaine and her family currently reside in Sacramento, California.

    Almond Alliance Chairman Mike Curry shared, “We are thrilled to see Elaine nominated for this position and know that her experience with us at the Almond Alliance will carry over into her new role – working first for farmers and ranchers, their families and the workers and businesses in the rural communities where we live. Her new position is responsible for conducting and overseeing international negotiations related to trade of the nation’s agricultural products – all of them including California almonds. Elaine’s nomination requires U.S. Senate confirmation (which will take time) and be assured that the Board of Directors of the Almond Alliance will lead a smooth transition in partnership with Elaine to identify and hire her successor. While we’re transitioning, the Board, Elaine and the Almond Alliance team will not skip a beat in our advocacy work on behalf of California almonds, both on the state and federal levels. Although we will miss Elaine’s leadership and energy, we are excited for the almond industry, the Central Valley (where she grew up) and California agriculture to have such a passionate and committed person serving in the Chief Agricultural Negotiator role.”

    Of Trevino, Matthew Malcolm, Editor of Pacific Nut Producer Magazine shared, “While faithfully serving the California almond industry in her role as President of the Almond Alliance of California, Elaine has also demonstrated time and time again her commitment to the greater agricultural community in her tireless efforts and involvement in addressing issues such as food supply chain disruptions, international trade disputes, securing funding for agricultural burn alternatives, and much more.  While she will be missed in her role at the Almond Alliance, we are thrilled with the opportunity she will have to represent the interests of farmers at such a critical time as this. We are confident that she will continue to do great things, as she has done for the almond industry.”

    Richard Waycott, President & CEO of the Almond Board of California concurred, “We are thrilled to see Elaine nominated for this critical position, in recognition of the importance of California agriculture and the role of specialty crops like almonds.  We’ve worked closely with Elaine and the Almond Alliance over the years in addressing global trade issues, and look forward to supporting her in her new role as chief ag negotiator.”

    Manuel Cunha President of the Nisei Farmers League added, “I believe Elaine will do a great job representing our agricultural industries. She knows the commodities and markets very well. She is bright and bold.  She understands the politics and knows how to communicate well with both farmers and legislators.”

    Of the nomination, United States Trade Representative Katherine Tai shared, “Elaine Trevino understands the importance of America’s farmers and farming communities to the vitality of our economy. Her experience will help the Biden Administration craft durable trade policy that creates broad-based prosperity. Throughout her impressive career serving in leadership positions at the state and federal level, Elaine has developed strong relationships with key stakeholders and demonstrated a keen understanding of trade and agriculture policy. If confirmed as Chief Agriculture Negotiator, Elaine would be the first woman of color and the first Latina in this critical position that will help USTR advance President Biden’s vision to increase American competitiveness. I hope the U.S. Senate can quickly confirm her to fill this important role so she can get to work on behalf of the American people.”

    Michael Dykes, D.V.M., president and CEO of the International Dairy Foods Association added, “Having had the pleasure of serving on the USDA Agricultural Policy Advisory Committee for Trade with Ms. Trevino in recent years, I’m confident she will position U.S. agriculture interests competitively, remain vigilant to protect U.S. businesses from myriad barriers to trade, and embrace diplomacy and relationship-building. As a resident Californian and former deputy secretary of the California Department of Food and Agriculture, Elaine Trevino is well aware of the importance of trade to California—the state exported $2 billion worth of dairy products in 2020— and to U.S. dairy. IDFA is eager to get to work with Ms. Trevino to continue the growth of our dairy exports and the global competitiveness of the dairy industry. We encourage the U.S. Senate to confirm her quickly.”

    “The role of Chief Agricultural Negotiator is essential in pursuing positive trade policy results for U.S. dairy farmers and in expanding overseas markets for dairy products,” said Jim Mulhern, president and CEO of National Milk Producers Federation (NMPF). “NMPF is pleased that in choosing Ms. Trevino to nominate for this position, President Biden has selected someone with the right background and clear understanding of trade’s importance to American agriculture, both of which are vital to success in this position. I’ve been fortunate to serve on the president’s Agricultural Policy Advisory Committee with Ms. Trevino and hope to see swift confirmation of her nomination by the Senate so she can commence the work that’s so key for farmers across the country.”

    “U.S. dairy farmers, exporters and manufacturers have been eagerly awaiting the nomination of a Chief Agricultural Negotiator given the sizable role that trade plays in providing a home for the equivalent of more than a day’s worth of U.S. milk production each week,” said Krysta Harden, president and CEO of US Dairy Export Council. “The world needs U.S. dairy and U.S. dairy needs the world. Our industry is eager for additional market opportunities to help us create more jobs here in America as we meet that demand with our high-quality, sustainably produced products. We urge the Senate to move swiftly to confirm Ms. Trevino and look forward to working closely with her to expand markets around the world.”

    Doug Palmer in the Politico Pro shared, “Biden has been under pressure from farm-state senators to fill the position, which Congress created 20 years ago to elevate the importance of agricultural issues in U.S. trade negotiations. Depending on the year, anywhere from 18 percent to 40 percent of the income U.S. farmers earn is derived from goods transported to other countries… By selecting Trevino, Biden helps fulfill his goal of bringing diversity into his administration, while also giving a key position to someone from the largest U.S. agricultural exporting state.”

    Palmer continued, “The Senate Finance Committee will schedule a hearing on Trevino’s nomination sometime after it has received her official paperwork from the White House. Her nomination is the last of six Senate-confirmed positions in the Office of the U.S. Trade Representative that Biden needs to fill. Of those, only U.S. Trade Representative Katherine Tai is already on the job.”

  • Dairy and Almond Groups Partner on Healthy Soils Research

    UC Davis researchers are evaluating the use of pelletized compost made from dairy manure and almond tree twigs, to create safe, pathogen-free, value-added amendments to boost soil health.

    Building healthy soils has tremendous benefits. Increasing the amount of organic matter within the soil can improve water retention and protection, reduce erosion, sequester carbon, and improve crop yields. Increasing water scarcity and severe drought conditions make boosting soil resilience an even greater priority for California. Researchers are exploring how the environmental benefits of healthy soils initiatives can extend even further when readily available agricultural resources are used in regenerative ways.

    A team of UC Davis researchers, led by Dr. Ruihong Zhang, has recycled dairy manure and almond twig waste into a nutrient-rich, safe, organic soil amendment. The new product was created and applied, and its effects continue to be studied. The idea is that the woody material can capture nutrients in the manure and slowly release them, as needed, into the soil. Because the product is also pelletized, it can be applied to croplands and orchards with standard farm equipment. Ultimately, the researchers hope to create a new model for using recycled agricultural resources to sequester carbon and provide benefits to the soil, crops, and the environment.

    The partnership was a natural fit, as the Central Valley is home to many neighboring dairy farms and almond orchards, which have a long history of collaboration. Dairies are already major consumers of almond co-products, including hulls (used as a highly nutritious feed ingredient) and shells (used as a bedding material). With a goal of achieving zero waste by 2025, the California almond community has been actively investigating a wide variety of ways to utilize woody biomass, including twigs, pruned branches, and tree removals. Meanwhile, the dairy community has been exploring ways to expand use of manure nutrients across California’s diverse agricultural landscape.

    “Creating valuable manure-based soil amendments is an area that the dairy sector has been focusing on, but there are some challenges,” said Denise Mullinax, Executive Director of the California Dairy Research Foundation (CDRF). “We know that farmers want a soil amendment with a consistent and reliable nutrient profile. It also needs to be easy to transport and apply. That’s why we are thrilled to support this team of esteemed researchers and to partner with the almond industry on this project. Together, we’re piloting a new avenue to enhance the benefits of both manure and woody biomass.”

    The initial project was funded by the California Department of Food and Agriculture (CDFA)’s Healthy Soils Program. As the project scope grew, the researchers were awarded additional funding from the demonstration category of CDFA’s Alternative Manure Management Program. With supplemental support from the CDRF and the Almond Board of California, the research project developed to include a team of more than 20 individuals—including researchers, farmers, and industry collaborators—contributing throughout a three-year timeframe. The project includes two seasons of creating soil amendments and applying them to the orchard, and three years of studying effects on soil health, emissions, tree health, and crop yield, while ensuring food safety.

    Using composted manure from Wickstrom Dairies, the study will shine a light for future research on expanding and improving manure utilization. Like many California dairies, the farm uses a separator system to remove solids from liquid manure streams. The solids are then sun dried in rows that are turned over periodically, as a form of composting. Dried manure solids are traditionally used for bedding or are applied to dairy forage fields. For this study, a portion of the finer manure solids were co-composted with twigs from almond production and then ran through a pelletizer. Pelletizing the compost is intended to provide a more consistent blend, while creating an easy-to-use product. The pelletized compost product has now been applied to the pilot orchard for two consecutive seasons. Four treatments were used to examine differences in manure-only verses manure-twig and pelletized versus non-pelletized compost products.

    “We look forward to seeing the final results,” said Mullinax. “Dr. Zhang and her team are demonstrating that it’s possible to make a pelletized product that is safe and easy to use, while fully assessing the environmental benefits. It’s projects like this that will pave the way for implementing advanced nutrient management on a larger scale, greatly enhancing soil health and further improving water conservation and protection.”

    The research team highlighted the project by providing a virtual field day, and they plan to host another outreach event this fall. Research is scheduled to conclude in March 2022. However, longer-term effects on soil health will continue to be studied. And the final report will only be the beginning of more learnings to come.

    Potential research areas to be explored next include applications on different kinds of crops, comparing a pelletized versus granulated product, and using varying types of dairy manure solids (from different types of separators, settling basins, and lagoon solids). Additionally, the use of infrared technology versus composting will be explored prior to pelletization or granulation. All options will also need to be assessed for cost-effectiveness and potential scalability.

    The manure-twig project is part of a broader, collaborative effort to expand manure’s role in healthy soils. California dairy farmers will continue to work with researchers, state officials, and other agricultural professionals to find more ways to maximize manure’s role in building healthy soils and protecting our air, water, and climate. The possibilities for sustainable solutions are bright when farmers and scientists come together to make new use of existing resources and technologies.

    California dairy farmers will continue partnering to help make an underutilized resource an important part of a healthy-soil future.

    — By Dairy Cares

  • California Walnut Crop Forecast Down 15%

    USDA National Agricultural Statistics Service — The 2021 California walnut production is forecast at 670,000 tons, down 15% from 2020’s record production of 785,000 tons. The forecast is based on 385,000 bearing acres, up 1% from 2020’s estimated bearing acreage of 380,000.

    Widespread freezing temperatures in late fall of 2020 resulted in frost damage to walnut orchards across the state. Growers reported the frost damage delayed leaf out and reduced nut set in affected orchards. Additionally, because of the state’s drought conditions, orchards experienced a higher degree of freeze injury. Walnut growers throughout the state struggled with drought conditions and water availability, as most of the state is in a drought emergency. Chilling hours were up from last year.

    Survey data indicated an average nut set per tree of 992, down 17% from 2020’s average of 1,197. Percent of sound kernels in- shell was 99.5% statewide. In-shell weight per nut was 22.2 grams, while the average in-shell suture measurement was 32.4 millimeters. The in-shell cross-width measurement was 33.4 and the average length in-shell was 37.9 millimeters.

    Estimated nut sets, sizing measurements, average number of trees per acre, and estimated bearing acreage were used in the statistical models.

    SURVEY HISTORY

    The Walnut O.M. Survey began in 1958 to fulfill industry needs for an accurate walnut production forecast prior to harvest. The original sample was chosen proportionally to county and variety of bearing acreage. With each succeeding year, additions and deletions have been made in the sample to adjust for acreage removed, new bearing acreage, and operations that choose not to participate in the survey.

    SAMPLING PROCEDURES

    The 2021 Walnut Objective Measurement (O.M.) Survey was officially conducted from July 25 through August 26, 2021. There were a few samples completed before July 25th for training and scheduling purposes. There were 1,402 trees sampled from 701 orchards.

    Once a block is randomly selected and permission is granted by the operation for enumerators to enter the block, two trees are randomly selected. An accessible branch is chosen which is 5- 15 percent of the total cross-sectional area of the primary limbs and reachable with a twelve-foot ladder. Measurements are made on the trunk, each primary, and each split leading to and including the accessible branch. The sample tree and accessible branch are marked by a single tag, so that the same trees are sampled the following year if that orchard is selected. On the accessible branch, every nut is counted and the first of every five nuts is picked for use in size and grade determinations. If available, at least ten nuts are harvested from the accessible branch for this purpose.

    The following measurements are made on nuts selected for sizing:

    1. Weight of nut including hull
    2. Width of shell at suture
    3. Width of shell 90 degrees to suture line (cross-suture) 4. Length of shell
    5. Kernel grade
    6. Weight of nut in-shell

    The Objective Measurement Survey is funded by the California Walnut Board.

    DATA RELIABILITY

    The 80 percent confidence interval is from 610,000 tons to 730,000 tons.

  • American Farmland Trust Shares Soil Health Economic Calculator with Customized Almond Version

    Today, American Farmland Trust, the organization that for 40 years has been saving the land that sustains us and advancing the principles of regenerative agriculture shares an updated AFT’s Retrospective Soil Health Economic Calculator (R-SHEC) Tool, providing farmers and the conservation community a means of evaluating the return on investment (ROI) of soil health conservation practices with 2020 price and crop data. The previous version of the tool used 2019 information. This updated pricing allows farmers to obtain a more accurate picture of the costs and benefits of their investments in soil health.

    Impacts of climate change on agriculture and the need for farms to become more resilient to extreme weather are more obvious than ever before. In addition, society is asking farmers to improve environmental outcomes of agriculture, including impacts to water quality and wildlife habitat and to sequester carbon in their soils to mitigate climate change.  Soil health practices like cover crops, no-till, nutrient management and conservation crop rotation can help address these challenges. However, despite farmers’ belief in the science underpinning the practices, they are often reluctant to change management techniques without knowing how much the practices will cost and what the financial benefits will be.

    The R-SHEC Tool is part of a comprehensive set of resources available online and free of charge from AFT on the Soil Health Case Study Methods and Took Kit webpage. The methods, tools and training resources provided are those used by AFT in developing case studies featuring soil health successful farmers in its Quantifying the Economic and Environmental Benefits of Soil Health project funded by a USDA Natural Resource Conservation Service Conservation Innovation Grant. The Tool Kit materials have all been updated for this re-release. The R-SHEC Tool allows evaluation of soil health practices adopted by row crop farmers (corn, soybeans, wheat and hay) for more than four years and within the last 15 years. The tool presents the net economic benefits in a partial budget analysis table and includes an estimate of the ROI in the soil health practices.

    In addition to updating price and cost data in the tool, AFT is releasing a customized almond version to estimate the economic effects of almond-specific soil health practices such as conservation cover, nutrient management, mulching and compost application. AFT believes the Almond R-SHEC Tool is very relevant at this time given the water struggles in California, a key almond producing region and almonds being a high-water use crop.  In 2018, AFT worked with Almond Farmers Tom and Dan Rogers and found they experienced a 25 percent reduction in irrigation water use which they attribute to the increased water holding capacity from the soil health practices used on their farm.

    The next phase of this work, a Predictive Soil Health Economic Calculator (P-SHEC) Tool will enable conservationists to partner with farmers who are “on the fence” about soil health practices to estimate the potential short and long-term economic effects of an investment in practices, hopefully giving the farmers the information they need. This tool will be previewed at the Soil and Water Conservation Society Annual Conference to be held virtually on July 26-28, 2021. Interested parties should sign up for Workshop 2 to learn about P-SHEC. The tool will not be released publicly until the fall.

    “AFT encourages our fellow conservationists to use this suite of resources and the new R-SHEC Tools released today to produce their own case studies demonstrating the economic and environmental benefits of soil health,” said Michelle Perez, AFT Water Director. “Our hope is that farmers who have been considering adopting soil health practices will find the economic evidence quantified for a farmer in their area sufficiently compelling to get them to ‘say yes’ to trying soil health practices themselves.”

    American Farmland Trust is the only national organization that takes a holistic approach to agriculture, focusing on the land itself, the agricultural practices used on that land, and the farmers and ranchers who do the work. AFT launched the conservation agriculture movement and continues to raise public awareness through our No Farms, No Food message. Since our founding in 1980, AFT has helped permanently protect over 6.8 million acres of agricultural lands, advanced environmentally-sound farming practices on millions of additional acres and supported thousands of farm families.

  • Study Shows Amygdalin in Almond Nectar can Reduce Viruses & Gut Parasites in Honey Bees

    Researchers at the U.S. Department of Agriculture’s (USDA) Agricultural Research Service (ARS) have found that a component in almond nectar and pollen can reduce honey bee viruses and gut parasites, which are some of the leading threats to bee health and colonies.

    The study, published in the journal Insects, showed amygdalin – a naturally-occurring chemical compound found in the nectar and pollen of almond trees – decreased levels of chronic bee paralysis virus, black queen cell virus and deformed wing virus. The bees also showed increased levels of beneficial gut bacteria and lower levels of the gut parasite Lotmaria passim.

    “We have found nectar chemicals can work as an antibiotic in bees, even against important viruses,” said Jay Evans, USDA-ARS research entomologist. “We were interested in amygdalin as a possible inhibitor of bee disease, because it is so important to the diet of honey bees.”

    The bees were fed natural concentrations of amygdalin over a two-month period as part of the study conducted in a bee yard at the Bee Research Laboratory in Beltsville, MD. In the treatment group, bees received a sugar solution supplemented with dissolved amygdalin from a supplier. The control group just received sugar water.

    The findings showed that amygdalin, which was previously reported to cause malaise in bees when fed sugar syrup, did not cause any negative effects to bee behavior.

    Amygdalin is not only found in the nectar and pollen of almond trees, but in a variety of other crops, such as cherries, nectarines and apples. During almond pollination season, western honey bees inevitably consume the natural compound since almond crops are almost exclusively pollinated by honey bees.

    The Agricultural Research Service is the U.S. Department of Agriculture’s chief scientific in-house research agency. Daily, ARS focuses on solutions to agricultural problems affecting America. Each dollar invested in agricultural research results in $17 of economic impact.

  • US Japan Trade Agreement for Nuts 2021

    The U.S.-Japan Trade Agreement (USJTA) has been in effect for 16 months, however the timing of Japan’s fiscal year meant that the agreement entered “Year 3” of implementation on April 1, 2021. This report is one in a series of product briefs highlighting the tariff benefits for specific commodities and products from Year 3 (2021) to Year 5 (2023) of the agreement. Additional information is available at www.usdajapan.org/usjta/.

    In 2020, the United States exported $411 million of nuts to Japan, making Japan the #7 overseas market for U.S. nuts. Almonds and walnuts are Japan’s top nut imports from the United States, accounting for over half of Japan’s total nut and nut product imports in 2019. The years below correspond to Japan’s fiscal year beginning April 1.

    Market Considerations: Japan relies on imports for most of its nut consumption. Almonds and walnuts are supplied almost exclusively by the United States. Salted mixed nuts remain a popular snack item in the retail sector while unsalted nuts are gaining in popularity due to perceived health benefits. The United States is the second largest supplier of peanuts to Japan, after China. Under this agreement, U.S peanuts gained an immediate tariff advantage over Chinese peanuts.

    Additional Resources: Further information is available at www.usdajapan.org. For additional questions, please contact the USDA Agricultural Trade Office at atotokyo@usda.gov, Tel: 81-3-3224-5115. — By Tomohiro Kurai and Akiko Satake, USDA Foreign Agricultural Service

  • Pistachios Included in New $159.4 Million USDA Food Assistance Purchases

    The U.S. Department of Agriculture (USDA) today announced it will purchase up to $159.4 million in domestically produced seafood, fruits, legumes, and nuts for distribution to a variety of domestic food assistance programs, including charitable institutions. These purchases are being made utilizing funds under the authority of Section 32 of the Agricultural Adjustment Act (Pub. L. 74-320), as amended (Section 32). This is one of many actions USDA is taking to address the disruptions in the food system supply chain and worsened food insecurity resulting from the COVID-19 pandemic.

    “The impacts of COVID-19 reverberated from our farms to our oceans,” said Agriculture Secretary Tom Vilsack. “U.S. fisheries and the American seafood industry were dealt a heavy blow. Today, USDA is pleased to make the largest single seafood purchase in the Department’s history. These healthy, nutritious food purchases will benefit food banks and non-profits helping those struggling with food hardship as the Biden Administration works to get the economy back on track for American families.”

    Selected commodities include: Alaska pollock, apricots (canned, dried, and frozen), chickpeas, dry peas, Gulf of Mexico and South Atlantic wild-caught shrimp, lentils, navy beans, Pacific pink shrimp, Pacific rockfish fillets, Pacific whiting fillets, pistachios, prepared peaches, and sockeye (red) salmon. The inventories of these commodities are in high oversupply due to a decrease in demand because of the COVID-19 pandemic and disruption in the supply chain, as restaurants and other outlets closed during the pandemic. This is the largest purchase of U.S. raised seafood by the USDA to date.

    Within a few days of approval, USDA’s Food and Nutrition Service will offer these commodities to their networks. Orders should be received during the first week of June with solicitations being issued mid-June and awards occurring near the end of the month. Deliveries should start to occur by mid-August.

    Solicitations will be available electronically through the Web-Based Supply Chain Management (WBSCM) system and on the Agricultural Marketing Service’s website at www.ams.usda.gov/selling-food. To be eligible to submit offers, potential contractors must meet the AMS vendor qualification requirements and be domestic operations.

    The purchase amounts are as follows:

    USDA also announced today a policy change that makes food fish and other aquatic species eligible for the Emergency Assistance for Livestock, Honey Bees and Farm-raised Fish Program (ELAP) under the USDA Farm Service Agency (FSA). Previously, only farm-raised game and bait fish were eligible for death loss ELAP benefits. Beginning June 1, eligible aquaculture producers can request ELAP assistance for 2021 losses. This policy change is for the 2021 and subsequent program years. You can learn more here.

  • Trials of New Almond Varieties Pay Dividends

    In the 1970s, the Almond Board of California began supporting Regional Variety Trials (RVTs) to provide a mechanism to test the performance of new varieties across the diverse almond growing regions in the State of California and to extend that information to local growers. Previous and current RVTs have been designed to evaluate new varieties or selections in a semi-commercial (20 to 40 trees per variety) manner and compare them to standard varieties such as Nonpareil, Mission, and currently accepted pollinizer varieties.

    One of the main outputs of the first two generations of RVTs was to fully document the performance of the top 14 out of 15 varieties most currently adopted in California. These first two RVTs identified good pollinizers for Nonpareil, collected key horticulture and almond quality data, and discarded many undesirable pollinizers before they were widely adopted.

    The third, and current generation of RVTs started in 2014 and is already in the process of identifying top performers. For instance, the USDA breeder recently released selection Y116-161-99, as the new variety ‘Yorizane’ variety due to the consistent novelties of the variety, including self-fertility, high yields and good kernel quality recorded in the current RVT. The current RVT brings key novelties in comparison to the previous generations such as the fact that all the trees were planted in the same year (2014), in multiple locations (Butte, Stanislaus & Madera Counties) and with statistical repetitions.

    For nearly 50 years the Almond Board has partnered with the University of California (UC) to conduct Regional Variety Trails (RVTs) that provide a mechanism by which ABC, researchers and industry members can evaluate new varieties across the diverse almond-growing regions in the state.

    Due to the contribution of these RVTs, our industry has been able to adopt a wide range of varieties that offer a versatile supply of almond kernel and confer competitive advantage to growing almonds in California. Thanks to the outputs of these RVTs, our industry counts on multiple pollen compatible varieties (i.e. Fritz, Price, Aldrich, Wood Colony, Monterey, etc) that adequately cover Nonpareil bloom. The RVTs have identified varieties that are more resistant to pests and diseases such as NOW (i.e. Price and Butte) and Hull Rot (i.e. Monterey, Carmel, and Fritz), respectively. RVT outputs have expanded our harvesting and processing operations by identifying the Sonora group (harvested 7-13 days after Nonpareil), the Price group (harvested 15-21 days after Nonpareil), and the Carmel group (harvested 29-34 days after Nonpareil), among others. Also, the data collection in these RVTs have served to group varieties by their ease of nut removal (i.e. Butte, and Price fall in the easy category while Merced falls in the difficult category), hull split date, vigor, etc.

    This investment in varietal research has resulted in the commercialization of new UC varieties in the past 20 years such as: Kester, Sonora, Sweetheart and Winters. And thanks to the RVTs and the ongoing collaboration with the USDA breeder Craig Ledbetter, we can now add Yorizane – another self-compatible variety with many intriguing characteristics — to the mix. It is the latest example of ABC research and collaboration with the UC coming to fruition, with many other new varietals potentially still in the pipeline from the current RVT.

    Understanding the benefits, trade-offs

    At The Almond Conference (TAC) 2020 breakout session in December, ABC Associate Director of Agricultural Research Sebastian Saa told growers that evaluating more self-compatible varieties like Yorizane remains a priority. Self-compatible varieties potentially require fewer pollinators in the orchard because the pollen only has to move a short distance – from one blossom to another blossom of the same tree – rather than from one blossom to another blossom a tree row or more away.

    There are other advantages, Saa said: “Self-compatible trees can be grown in blocks of the same variety, allowing for more efficiency at harvest time. ‘One shake, one harvest,’” he said.

    Many of the most recent new varieties created in California and around the world are also are self-compatible. Saa said that CA new varieties typically bloom about the same time as Nonpareil but are harvested a couple of weeks later and therefore could be viable options for growers seeking to transition to off-ground harvesting.

    During the online discussion at the breakout session, a grower asked Saa if there is an increased risk of resiliency to diseases or pests with self-compatible varieties, especially if there is less genetic diversity within an orchard.

    “If we adopt one self-compatible variety, then there is a potential risk,” Saa acknowledged, “but if we adopt multiple self-compatible varieties from different genetic background, then the risk remains low, and our resilience is improved. Our goal is to enhance variety diversification for the California almond industry by adopting better almond varieties that respond to different market demands as well as provide enhanced traits such as self-compatibility.”

    In addition to learnings around self-compatible varieties, TAC attendees also had an opportunity to hear from Phoebe Gordon, a UC Cooperative Extension orchard crops farm advisor in Merced County. Gordon manages one of the RVT sites in Madera County (others are located in Butte and Stanislaus counties). Since 2017, she and her peers have tested various pollinator varieties paired with alternating rows of Nonpareil trees.

    “We test all varieties for bloom timing, bloom profusion, hullsplit timing, yields, defects and insect damage, and observe any disease issues,” Gordon explained.

    She said early results in the RVT indicate that some of the pollinator varieties may have higher yields than Nonpareil, but cautioned that “we need to look at entire lifespan of these varieties.”

    Research requires patience

    Developing a new variety can take many years, if not decades. Craig Ledbetter, a research geneticist with the Agricultural Research Service, based at the San Joaquin Valley Agricultural Sciences Center in Parlier, was directly involved with the development of Yorizane.

    He said the first seedling was planted in 1999. Its kernel attractiveness and ease of cracking – combined with self-fertilization — quickly separated it from other alternatives, Ledbetter said. Annual tests on roller crackers also showed its kernels damage less often than Nonpareil. Then, the RVT that began in 2014 revealed Yorizane’s heavy yield potential.

    “Yorizane provides a varietal option to growers to establish a more efficient single-variety orchard,” Ledbetter explained. “As a part of the RVT, it has been evaluated in blind tests by industry personnel for kernel attributes and has been found to have excellent kernel appearance and marketing potential.”

    Limited quantities of Yorizane already are available at many of California’s leading tree nurseries.

    Partners key to long-term success

    Yorizane is just one example of the ongoing value and importance of the Almond Board’s long-term investment in research, development and real-word, in-the-orchard testing of new varietals. It is a critical partnership between the industry and the U.S. Department of Agriculture’s Agricultural Research Service (USDA/ARS), the University of California system, and private breeders and nurseries in California.

    Chuck Fleck, director of horticulture research at Sierra Gold Nurseries near Yuba City, said there are many other exciting scientific advances on the horizon. Although Sierra Gold’s variety development program is relatively young, he said its team plans to eventually release almond varieties and rootstocks that provide growers with many advantageous genetic characteristics.

    Fleck pointed to the work of two researchers – Malli Aradhya of the USDA and Tom Gradziel of UC Davis – as being especially promising. Aradhya’s has focused on helping growers overcome abiotic (atmosphere, chemical elements, sunlight/temperature, wind and water) as well as biotic (soil, floom, leaves and wood) challenges in their orchards. Gradziel is working to bring new germplasm into almonds’ fairly narrow genetic base as well as exploring alternative rootstock options to more effectively deal with abiotic and biotic issues.

    “Perennial crop breeding takes years to see successes and breakthroughs,” Fleck explained. “Because it can take decades before such successes come to light, the resulting varieties — and therefore the breeding program’s true value — is not easily discerned until long after their inception.”

    Factsheets will inform growers

    It hasn’t always been easy to efficiently communicate breakthroughs in the genetic world or promising results from RVTs to growers. That’s why so many industry officials are excited about the rollout of varietal fact sheets co-created by the Almond Board, UC-ANR, and the Fruit and Nut Center (FNC) at UC Davis.. These factsheets  are housed on a new website that will launch later this year at the FNC center. The first fact sheet debuted is on Yorizane and can be viewed here.

    “The data that is being generated is important and frequently actionable, but to date there has not been a particularly convenient way to access the results from these research projects,” said Julia Stover-Blackburn, director of Fruit and Nut Center. “ABC and UC-ANR do a great job of communicating findings at The Almond Conference and other meetings throughout the year, but we anticipate that making these results findable in the same place will help extend the reach.”

    She said the website will have an overview of various almond-breeding resources but primarily will serve as a repository for the findings of the most recent Regional Variety Trial. A second site is under construction to serve as a repository for almond rootstock trial findings. The hope, Stover-Blackburn explained, is that the sites “will be a resource for both researchers and growers looking to see how various varieties and rootstocks compare in these extensive trials.”

    “These data are valuable for growers making decisions about new plantings and for researchers making decisions about what varieties to include in other projects,” she said.

    The importance of RVTs cannot be overstated. Saa said 14 of the 15 most popular almond varieties in California are the product of trials. Initiation is already under way for the next RVT, which Saa expects to plant on the ground late in 2022 or early in 2023 and continue for a decade or more. He said the next trial likely will include many novelties in comparison to the current regional trial and that ABC is already working to identify the ad hoc research team.

    “Having third-party data collection about how that variety performs in different regions of the state is very valuable to growers, nurseries and handlers,” Saa said. “We need to know the weaknesses and strengths of varieties. There is no perfect variety. Some growers are looking for different things, like harvest times or kernel characteristics. There is no doubt that we need a diverse supply of almonds varieties.”

    Gordon said RVTs allow horticultural characteristics like yield, bloom overlap and harvest timing to be compared in an unbiased setting.

    “If there are conditions that are conducive to disease development, they can also be a way to compare relative susceptibilities to diseases,” she said. “They also allow growers and PCAs to see new varieties in person before committing.”

    Industry members interested to learn more about ongoing research should stay tuned for a report that will be issued this spring summarizing the RVT data collected in the past four years.

    In addition, industry members are encouraged to check out this session from The Almond Conference 2020 during which Gordon and other experts provide information on the latest varieties and selections under evaluation, in addition to discussing ABC’s overall breeding strategy.

    Finally, in 2020, the Almond Board published a comprehensive breeding report that provides an evaluation of national and international varieties and selections currently under evaluation or available in the market. Those interested in sinking their teeth into this topic are welcome to review this report. —     Almond Board of California