Garlic and Onions will not be planted in Federal Water Districts

Central Valley Farmers Cannot Commit to Planting Garlic or Onions

By Patrick Cavanaugh, Editor

Bob Ehn

Bob Ehn, CEO and Technical Manager for the Clovis-based California Garlic and Onion Research Advisor Board, noted that the 2013-2014 season is shaping up to be a major production challenge.

“As expected, growers on the West Side are not committing to planting garlic or onions this winter, and processors and handlers are scrambling trying to find growers who can contract with them on land not effected by a possible zero Federal water allocation,” said Ehn.

“We traditionally plant between 18,000 and 20,000 acres of garlic in the central valley usually in Fresno, Kings with a smaller amount of acreage in Kern,” said Ehn.

“Processed onions are planted on 25,000 acres in a wider geographic area from Parker, Arizona all the to Tule Lake in Northern California. Again, most of that crop is grown in the central valley,” Ehn noted.

“The industry is having to expand the growing areas outside the usual acreage in Fresno and Kings county,” said Ehn. “Those processors need growers.”

“It’s going to be a real tough year,” said Ehn. He noted that he has heard that

many of the vegetable operations in the Salinas valley are having a very difficult time finding growers willing to plant winter crops in the central valley.

Patrick Cavanaugh2016-05-31T19:44:28-07:00September 25th, 2013|

TREE NUTS, EXCEPT PECANS, REMAIN STRONG IN EXPORTS

Tree Nuts, Still the 800-Pound Gorilla

Crash of the U.S. Pecan Market a Cautionary Tale, Says Rabobank

The export market for U.S. almonds, walnuts, pistachios and pecans continued to grow in 2012, reaching $6 billion dollars and accounting for over 60 percent of U.S. production. In its most recent report, “Riding The Growth Curve – Can U.S. Tree Nut Exports Continue to Defy Gravity?,” Rabobank questions whether this growth will continue. The author of the report, Karen Halliburton Barber, senior analyst, Produce for the Rabobank Food & Agribusiness Research and Advisory Group, says that it should, but that the industry shouldn’t rest on its laurels. “Assuming water limitations will not significantly restrict U.S. production, the U.S. tree nut sector still faces the fundamental uncertainty of when supply and demand will stabilize,” said Barber. “That said, the U.S. tree nut sector is in a good competitive position given its leadership in production and trading history.”In the report, Barber examines the main commodities making up the U.S. tree nut sector:

Almonds – “Here, the U.S. is the 800-pound gorilla and accounts for over 78 percent of total global production. This is where the U.S. is clearly in a good competitive position but needs to beware of the oversupply spiral.”

Pistachios – “Iran is slowing down, but they are not out. Water scarcity and weather have caused declines in production in recent years. However, new growth areas are cropping up and competition may heat up in the medium term.”

Walnuts – “This is the only sector where the U.S. is not the predominant global supplier. Although China is a net importer because of its large domestic demand, its share of global production is greater than that of the U.S., providing competition for U.S. walnuts in the Chinese market. An added risk factor is that Chile has begun to compete with the U.S. on quality in key growth markets.”

Pecans – “This segment is the cautionary tale of the report, warning of what could happen if the right factors line up at the same time. In 2012, the U.S. pecan market crashed. Now largely dependent on the global export market, U.S. pecans were hit with competitive pressures from South Africa, while at the same time dealing with lower yields because of weather challenges. The result of these factors was a 50 percent reduction in grower prices for pecans from July 2011 to January 2013.”

The report concludes by noting that the U.S. tree nut sector’s overdependence on the Chinese market poses the greatest challenge. Yet, U.S. producers are poised for growth over the longer term—both in China and globally. The strategy employed by the almond, walnut and pistachio industries of a more balanced buyer/supplier parity approach can help continue to moderate the risk.

Patrick Cavanaugh2016-08-12T18:04:52-07:00September 25th, 2013|

CALIF. AG LEADS THE NATION IN FUNDING FOR SPECIALTY CROPS

$18 Million Comes to Calif.

For Specialty Crops Promotion

The United States Department of Agriculture announced funding TODAY for the 2013 Specialty Crop Block Grant Program (SCBGP). California received more than $18 million out of the total $52 million awarded nationwide.

The SCBGP provides grants to states to enhance the competitiveness of Specialty Crops, which are defined as fruits, vegetables, tree nuts, dried fruits, horticulture, and nursery crops (including floriculture).

“We are grateful for this partnership with the USDA and our stakeholders,” said CDFA Secretary Karen Ross. “This program, which is made possible by the Farm Bill, provides investment in California agriculture at a time when there are tremendous opportunities to meet the demands of local and international markets for new products, while continually improving our food safety and environmental stewardship practices.”

Market enhancement, agriculture education, nutrition, and research proposals were solicited and selected through a competitive process. The 64 projects funded under the 2013 SCBGP reflect the diversity of California’s specialty crops across the state. This year they include, but are not limited to: creating economic opportunities for specialty crop producers through market development activities that focus on local, regional, or international markets; development of effective agritourism associations to enhance rural tourism and promote specialty crops; food safety benefits and training programs; growing community food systems in underserved neighborhoods; online irrigation nitrogen management tool for cool season vegetables; and research to mitigate impacts of invasive pests.

In addition, CDFA partnered with the Center for Produce Safety in the evaluation and recommendation of food safety related projects. These projects represent an ongoing effort to minimize outbreaks by proactive research.

Patrick Cavanaugh2016-05-31T19:44:28-07:00September 25th, 2013|

CDFA UPDATE: ACP QUARANTINE EXPANDS IN CA

BREAKING NEWS
Asian Citrus Psyllid Quarantine Expansion in Tulare and Kern Counties

Today, an additional portion of Tulare County and a portion of Kern County have been placed under quarantine for the Asian citrus psyllid (ACP) following the detections of psyllids in Dinuba, Tulare County, and Wasco, Kern County.

In Tulare County, the quarantine zone measures 90 square miles, bordered on the north by E. South Avenue; on the east by Road 128; on the south by Avenue 368; and on the west by Road 48. This area is in addition to an existing quarantine in the Porterville area.

In Kern County, the quarantine zone measures 88 square miles, bordered on the north by Hanawalt Avenue; on the east by Beech Avenue; on the south by Fresno Avenue and W. Lerdo Highway; and on the west by Wildwood Road.

Maps of these new quarantine zones may be found at: www.cdfa.ca.gov/plant/pe/interiorexclusion/acp_quarantine_sjv.html

The quarantine prohibits the movement of host nursery stock out of the quarantine area and requires that all commercial citrus fruit be cleaned of leaves and stems prior to moving out of the area. A permit may be obtained to move nursery stock and budwood out of the area if grown in USDA-approved structures designed to keep ACP out. Residents with backyard citrus trees in the quarantine area are asked not to remove fruit from the area.

In addition to Kern and Tulare Counties, ACP quarantines are now in place in Ventura, Santa Barbara, San Diego, Imperial, Orange, Los Angeles, San Bernardino and Riverside Counties.

The ACP is of grave concern because it can carry the disease huanglongbing (HLB), also known as citrus greening. All citrus and closely related species are susceptible hosts for both the insect and the disease. There is no cure once a tree becomes infected. The diseased tree will decline in health until it dies. HLB has been detected just once in California – last year on a single residential property in Hacienda Heights, Los Angeles County.

HLB is known to be present in Mexico and in parts of the southern U.S. Florida first detected the pest in 1998 and the disease in 2005, and the two have been detected in all 30 citrus-producing counties in that state. The University of Florida estimates the disease has tallied more than 6,600 lost jobs, $1.3 billion in lost revenue to growers and $3.6 billion in lost economic activity. The disease is present in Texas, Louisiana, Georgia and South Carolina. The states of Hawaii, Arizona, Mississippi and Alabama have detected the pest but not the disease.

Residents in the area who think they may have seen the Asian citrus psyllid are urged to call CDFA’s Pest Hotline at 1-800-491-1899. For more information on the Asian citrus psyllid and huanglongbing disease please visit: www.cdfa.ca.gov/go/acp.

Patrick Cavanaugh2016-05-31T19:44:28-07:00September 24th, 2013|

ACP FOUND NEAR EXETER

Another ACP is Trapped in Tulare County

The Tulare County Agricultural Commissioner’s office is announced TODAY that one additional Asian citrus psyllid (ACP) has been detected on a trap south of the city of Exeter. The latest interception was confirmed by the California Department of Agriculture (CDFA). Maps and current information are available on the Agricultural Commissioner’s website by visiting: http://agcomm.co.tulare.ca.us/default/.

CDFA has already begun to survey the affected area in order to determine the extent of any infestation. The United States Department of Agriculture’s Animal and Plant Health Inspection Service (USDA-APHIS) and CDFA will work collaboratively to determine what steps are taken next.

“CDFA is already considering a five-mile radius quarantine,” said Gavin Iacono, Tulare County Deputy Ag Commissioner. “There is also a discussion on the table whether or not to quarantine the entire county, following detection of ACP in traps in Porterville, trapped and live ACP adults and nymphs in Dinuba, and now a find in Exeter,” noted Iacono.

“This latest find is in the heart of our citrus belt, so it is very disappointing to hear that psyllids are being moved into a new part of our county,” said Tulare County Agricultural Commissioner Marilyn Kinoshita.

The Asian citrus psyllid is an invasive species of grave concern because it can carry the disease huanglongbing (HLB), also known as citrus greening. All citrus and closely related species are susceptible hosts for both the insect and the disease. There is no cure once a tree becomes infected. The diseased tree will decline in health, producing bitter, misshaped fruit until it dies. To date, HLB has been detected on just one residential property in the Hacienda Heights neighborhood of Los Angeles.

Kinoshita points out that her staff will support the efforts of our $750 million citrus industry, as well as our residential citrus owners. “I want to emphasize that every citizen of our county plays a role in assuring that ACP is not spread from other parts of the state”.

Residents in the area who think they may have seen the pest are urged to call CDFA’s Pest Hotline at 1-800-491-1899 or the Tulare County Agricultural Commissioner. Media inquiries related to technical questions about Asian citrus psyllid and huanglongbing disease are encouraged to contact Katie Rowland, Account Coordinator for Nuffer, Smith, Tucker Inc. at (661)817-3638.

Patrick Cavanaugh2016-05-31T19:44:28-07:00September 24th, 2013|

CDFA’S TRADE MISSION FINDS VIETNAM EAGER TO COOPERATE

Vietnam Holds Great Prospects for California

TODAY, CDFA Secretary Karen Ross issued the following summary of the Vietnam segment of CDFA’s Asian trade mission:

In returning to California after three days in Vietnam, I’m greatly impressed by the potential the market has for California as well as the commitment of the Vietnamese government to farmers; trade; and climate change, mitigation and adaptation.

During my short visit, I had the opportunity to visit the nation’s largest dairy processor – Vinamilk – whose state-of-the-art facility in Binh Duong Province underscores the market potential that Vietnam holds. Not only is Vinamilk committed to product innovation and environmental sustainability, the new facility is a world-class operation dedicated to meeting the future growth of the country. In addition, Vinamilk’s management is very eager to learn and partner with California to improve the prospects and potential for the dairy industry in both countries.

CDFA Secretary Karen Ross (fourth from right) at a trade meeting in Vietnam. Richard Matoian of the American Pistachio Growers is two spots to her right

The eagerness for cooperation was consistent in all my interactions with the Vietnamese people – business and government alike. In my governmental meetings with the ministries of agriculture and trade, I underscored our commitment to trade and our appreciation for the continued progress on the Trans-Pacific Partnership (TPP) negotiations. California and the United States can benefit significantly from increased market access and a reduction in tariff barriers to region. Vietnam is a $200 million market for California agricultural products – our 12th largest export destination – and it increased 43 percent from the previous year.

I was very thankful to be joined on this trip by a great group of small businesses that are eager to expand their business and California exports. Of the 11 companies that participated, we had trading companies, winery exporters, growers and a even a small seasoning company from Calaveras County. I was pleased to have Richard Matoian of American Pistachio Growers join me on my governmental meetings and visits.

Trade missions like this are an excellent opportunity for companies to expand business relationships and the Fresno Center for International Trade Development is a great partner in making activities like this possible.

I look forward to visiting more markets in the future to promote the California brand and support our farmers and ranchers.

Secretary Ross was in Asia as part of a trade mission facilitated by the Fresno Center for International Trade Development and funded by a grant from the U.S. Small Business Administration.

Patrick Cavanaugh2016-05-31T19:44:28-07:00September 24th, 2013|

SHANGHAI "CALIFORNIA WEEK" PROMOTES AG

California Dreaming in Shanghai

from Shanghai Daily.com

CDFA’s Office of Public Affairs issued an announcement today, that California Week was opened in Shanghai last week at which there is an exhibit at the city’s downtown Yandang Road of the best agricultural and lifestyle products from the state.

As reported on Shanghai Daily.com, to further bolster business ties between China and California in the United States, the event was planned when California Governor Jerry Brown visited Shanghai in April as he joined a celebration of setting up a trade and investment office in the city to enhance economic cooperation.

“We hope to bring Shanghai people a real taste of California,” said Karen Ross, secretary of California Department of Food and Agriculture.

CDFA Secretary Karen Ross chats with an exhibitor at the first

California Week. The US Consul General in Shanghai Robert Griffiths

(behind Secretary Ross) was also present.

California is a gateway of the United States to the Asia Pacific. It is home to 53 companies in the Fortune Global 500 list and also a major producer of agricultural products.

Last year, more than 584,000 Chinese tourists visited California, where over 25,000 Chinese students studied.

The four-day event, which showcased many things California — from wine, soft drinks, fruit and snacks to culture and attractions, aimed at building up a “California brand.”

As a major exporter in the US to Asia, California sold US$13.6 billion in goods to China last year.

In June, Chinese President Xi Jinping and his American counterpart Barack Obama had a summit in California, which was an historic meeting to build up a closer bilateral relationship between the world’s two biggest economies.

Last month, China’s National Development and Reform Commission signed an agreement with California to strengthen collaboration in the areas of climate change and low-carbon development.

Patrick Cavanaugh2016-05-31T19:44:28-07:00September 24th, 2013|

WINE LEADERS ENTHUSIASTIC ABOUT INDUSTRY’S FUTURE

California Wine Industry:

Strong and Getting Stronger

It was announced TODAY that despite long-term concerns about climate change and regulatory pressures, California wine industry leaders are once again quite bullish about the wine business, according to two new surveys conducted by the University of California, Davis.

“The wine industry, by and large, has weathered the worst of the economic downturn of this decade,” said Robert Smiley, professor and dean emeritus of the UC Davis Graduate School of Management.

“The CEOs and professionals who participated in these surveys expressed a growing confidence in the future of traditional brands and optimism for the expanding global market,” he said. “And, to varying degrees, they are interested in exploring new products to meet the demands of the millennial generation and increasing their use of social media in their marketing strategies.”

Smiley has surveyed wine executives for each of the last 12 years and winemakers for 22 years. The surveys examine global and national trends in the wine industry. They complement other wine research and teaching at UC Davis, home for more than 100 years to the most comprehensive university wine program in the United States.

Survey of wine executives

In this 12th annual wine executives survey, Smiley gathered the opinions and projections from the heads of 28 leading wineries.

Now that the economy is rebounding, brand and quality are having more of an impact than price on consumer purchases, the respondents reported. They noted that even during the more difficult economic years, many consumers who were accustomed to the more expensive, higher-quality brands continued to purchase those wines; they simply bought less of them.

As the economy recovers, consumers will continue to make luxury wine purchases, but those will be well reasoned, rather than “frivolous luxury” purchases, one executive predicted.

Asked how firms are vying for the attention of the millennial generation, in light of competition from craft beers and craft cocktails, the executives offered mixed responses. Some reported that they or their competitors are developing new products by adding flavors, carbonation or even spirits to regular wine.

“It’s a great opportunity to experiment with the millennials because they are focused on things like authenticity and some integrity,” said one respondent. “They love to discover things.”

Others respondents said they are not creating such “pop products,” but rather are continuing to innovate in terms of how they source grapes and make wine, with an emphasis on quality.

Most respondents voiced keen interest in international market expansion in a variety of regions including Asia, South and Central America, Europe, Canada, Russia and even Africa.

Several respondents reported that their firms are cautiously eyeing the massive Chinese market, but with significant concerns about its stability. One executive found Japan to be a far stronger market than China, noting that Japanese wine consumers “have been buying Napa Valley wines for a long time and have a preference for those luxury items… .”

In the area of social media, the executives reported that their businesses use a variety of services, including Twitter, Facebook, Yelp, Instagram, Pinterest and Trip Advisor. Special online offerings include live tastings and streaming video. And, they are training their employees on the importance of product quality and customer service, especially in an era when consumers’ likes and dislikes are so quickly and broadly shared with the online community.

Identifying hot topics for the next five to 10 years, the survey respondents said they are most concerned about the effects of climate change; environment-related regulatory pressures; and the availability and cost of labor, land and water.

Survey of wine professionals

Smiley’s survey of California wine professionals, now in its 22nd year, gathered the opinions of 110 wine industry leaders. Most of the survey respondents represent wine companies; others are from operations that range from wineries to grape-growing and wine-distribution firms to financial institutions.

The survey respondents overwhelmingly predicted that the greatest opportunities for the wine industry will be found in increasing direct sales to consumers; followed by consumers “trading up” in terms of the price and quality of their purchases, increased wine sales, and the new market that is evolving as the millennial generation comes of age.

They project that during the next three years, California wine sales will receive their greatest boost from an improved economy and increased consumer confidence, followed by rising direct sales to consumers, improvements in value for price, and large or above-average wine-grape crops.

On the other hand, they anticipate that the greatest hurdles for the California wine industry during the next three years will be higher input costs and slow economic recovery, followed by limited water availability and “margin compression” — a decline in the margin of revenues compared to costs.

The respondents predict that over the next three years, the strongest white wine varietals will be chardonnay, sauvignon blanc and pinot grigio, while the strongest red wines will be cabernet sauvignon, pinot noir and red blends.

They anticipate the strongest growth in sales will be among wines in the $10-$14 per-bottle range, followed closely by the $14-$20 range.

Patrick Cavanaugh2016-05-31T19:44:28-07:00September 24th, 2013|

DWR ISSUES IWM PROCEEDINGS: “WATER 360” LAUNCHED

“Water 360” to Strengthen Integrated Water Management

TODAY, DWR issued “A Commitment to Action,” proceedings from California’s first integrated water management (IWM) summit held recently. “Water 360,” a campaign designed to use IWM to strengthen the efforts of California’s water management community, was launched at the summit

“Water 360” will help refocus and strengthen the water management community by advancing integrated water management, a framework for planning and implementation that melds the objectives of improving public safety, fostering environmental stewardship and supporting economic stability to lead to sustainable water resource management.

Integrated water management is not a new concept in California, and great strides have been made in the last decade to utilize the approach, particularly at the regional level. The Water 360 Campaign builds on these early successes and calls for broader application across the entire state.

DWR is prepared and committed to lead this effort in close partnership with other water leaders, particularly State, federal, and local agencies; and in collaboration with all stakeholders.

Patrick Cavanaugh2016-05-31T19:44:29-07:00September 23rd, 2013|