Generic Pistachio Marketing Has Big Value

Analysis: Export Markets Shows Nearly $3 billion Post-Tariff Shipment Increase Resulting From U.S. Pistachio Industry’s Generic Program.

American Pistachio Growers’ (APG) efforts to reduce or eliminate trade barriers in several key overseas markets have been a significant boon to pistachio exports and to growers’ bottom-line. A new study, “An Analysis of the Effects of the American Pistachio Growers’ Program to Reduce/Eliminate Tariffs on U.S. Pistachios,” has quantified, for the first time, the direct benefit to the U.S. pistachio industry from APG’s strategic program to vanquish trade barriers.

The analysis from Dr. Dennis H. Tootelian, an emeritus Professor of Marketing, sought to determine what shipments of U.S. pistachios would have been if tariffs had not been lowered or eliminated in Israel, Mexico, China and Hong Kong, and the European Union which are the export markets prioritized for focus by APG. Many of his analyses centered on the period from 2009 through 2017 — the period in which tariffs were reduced in all five geographic areas.

Tootelian’s study showed that actual shipments of U.S. pistachios after the tariffs were reduced or eliminated for each export market were more than 2.3 billion pounds greater than what would have been expected had the tariffs remained in place. Equated in economic terms, the boost in export volume after the trade barriers had been removed amounted to nearly $3 billion greater value than what would have been expected had the tariffs remained in effect.

While Tootelian did not have any prior expectations of what his study would show, he was surprised by the findings.

“To see this kind of an increase in shipments on a before and after basis with the tariffs did surprise me. I did not expect this kind of result in the marketplace. These are not small numbers,” Tootelian said.   “What the data tell me is that there is latent demand for U.S. pistachios and once the tariffs come down, foreign markets want to buy them.”

Tootelian said the projected economic boon to U.S. growers is even more profound if the fluctuations in prices in China and Hong Kong were eliminated from the analysis.

“If you take the price fluctuations in China and Hong Kong out, the increase in value of pistachio shipments amounts to nearly $355 million more dollars per year — nearly $4.5 billion in total from the time when tariffs were in effect to after they were reduced or eliminated,” said Tootelian.

Data from the analysis estimated that more than 1.7 billion pounds of U.S. pistachios in total, or an average of more than 192 million pounds annually, may  have gone into storage if they were not diverted to other markets. While the effect of the projected added supply on the world market is unknown in terms of lower prices, Tootelian said that it would surely have had a detrimental impact on U.S. growers.

“It is unknown what that would have done to the price,” he said. “In order to divert from storage and into other markets, prices probably would have had to come down considerably and whether they would have been able to market that much supply is an unknown.”

Underlying Tootelian’s analysis is the fact that price is not the sole determinant of the volume of U.S. pistachio exports. He said when tariffs are lowered or eliminated, traditional economics would dictate that increased shipments would lead to lower prices, but his data show demand for U.S. pistachios in some key markets remained high in the post-tariff era.  Several factors, he said, appear to be in play.

“One is the reputation of U.S. pistachios, which carries a very positive market image with consumers and importers. Second, it could be the quality of the product is better or more consistent, or both, for what consumers can buy from other countries,” said Tootelian. “And third, there are a lot of reputable health studies that show nuts are healthy and nutritious.  APG has invested considerable resources raising consumer awareness of the healthful attributes of pistachios, and consumers appear to be willing to pay a higher price. That is pretty clear from the data.”

APG has aggressively worked in the halls of Congress, with U.S. trade officials and with foreign governmental bodies to alleviate burdensome trade barriers and create a more open market for U.S-grown pistachios.

“Quantifying the value of APG’s efforts to growers has been difficult up to now, but this new study gives us some tangible answers to the importance of the work we are doing on behalf of the U.S. pistachio industry,” said Richard Matoian, APG’s executive director. “Frankly, we were quite surprised at the magnitude of these numbers.  It’s our strong belief that whenever and wherever trade barriers exist to the free flow of American-grown pistachios around the world, we will confront them vigorously.”

In a postscript to his analysis, Tootelian added, “If I were a grower, I would be encouraging APG to be doing this more in other markets because the greater the demand there is for the product, the less goes into storage and that helps boost the price.”

2019-08-10T09:33:07-07:00August 10th, 2019|

Almond Harvest Underway

A Whole Lot of Almond Shaking is Going On Throughout California

By Patrick Cavanaugh, Editor

It’s a busy time of year for the almond industry as harvest is going strong. It starts in Kern county and moves all the way north or Chico. It will take nearly two months to get across 1.4 million acres, and it’s going to be about a 2.2 billion pound crop, which is down 3.5% from 2018 where the production was about 2.28 billion pounds. It was less than ideal weather conditions in the spring, which caused us dip in production.

However California remains the best place in the world to grow almonds. It’s all about the Mediterranean climate in California— long hot summers with the rain and cold in the winter, ideal for almond trees.

Navel Orangeworm is a critical pest in almonds, pistachios and in a lesser way for walnuts. And they continue to be a significant pest during  almond harvest season as the adult moths can lay eggs, which can pupate later in almonds turning them off-grade. Once shaking is done and the almonds are picked up out of the field, it’s important to get that crop out of the orchard as soon as possible to minimize navel orange worm infestation.

Almonds are the first tree nut to be harvested. Later on, pistachios will start, following that we’ll be walnuts.

 

2019-08-08T10:54:00-07:00August 7th, 2019|

Elaine Trevino Given USDA Appointment

Almond Alliance President Appointed to USDA Agricultural Trade Policy Advisory Committee 

News Release

USDA Secretary Sonny Perdue and United States Trade Representative Robert Lighthizer have appointed Almond Alliance President Elaine Trevino to the USDA Agricultural Policy Advisory Committee for Trade.

The Agricultural Policy Advisory Committee provides advice and information to the Secretary of Agriculture and the U.S. Trade Representative on the administration of trade policy, including enforcement of existing trade agreements and negotiating objectives for new trade agreements.almond crop

“I am honored to be appointed to this prestigious agricultural trade policy committee,” Trevino said. “Given the almond industry’s dependence on global trade health, this position is an important one to ensure there is a continued strong presence at the table for California almonds.”

Congress established the advisory committee system in 1974 to ensure a private-sector voice in establishing U.S. agricultural trade policy objectives to reflect U.S. commercial and economic interests. USDA and the Office of the U.S. Trade Representative jointly manage the committee.

2019-06-19T22:50:19-07:00June 18th, 2019|

Almond Growers Helped In Trade Dispute

Almond Grower and Board Chair Holly King Attends White House Briefing with President

News Release

U.S. Secretary of Agriculture Sonny Perdue announced almonds will be included in the administration’s new trade mitigation package. This package aims to continue the support of farmers and ranchers impacted by delayed negotiations and trade disruption with China.

Almond Board Chair Holly A. King attended a briefing at the White House recently with President Donald J. Trump and representatives from other major farm groups to discuss the trade mitigation package.trade

“It is an honor to represent the California almond industry at the White House briefing with President Trump and express appreciation for his efforts to ease the burden of the trade tariffs on California almond growers,” King said. “We have invested heavily in developing the market for California almonds in China for more than 20 years and hope the Administration is successful in negotiating a new trade deal soon so we can get back to business as usual.”

The $16 billion package includes $14.5 billion for the Market Facilitation Program, $1.4 billion in surplus commodity purchases through the Food Purchase and Distribution Program and $100 million in Agricultural Trade Promotion funding. Almonds will be included in the Marketing Facilitation Program. According to the USDA release, “Tree nut producers, fresh sweet cherry producers, cranberry producers and fresh grape producers will receive a payment based on 2019 acres of production.”

The Almond Board has worked closely with the Almond Alliance of California throughout the developing tariff situation to ensure the voice of the California almond industry is heard.

“The Almond Board and Almond Alliance have been actively engaged with USDA, the US Trade Representative and Congress regarding the impact of this trade disruption on almonds. The Alliance has led efforts ensuring almonds are included in the second mitigation package,” said Julie Adams, Vice President of Global, Technical and Regulatory Affairs at the Almond Board. “We look forward to working with USDA in leveraging these funds to best benefit the entire almond industry and our grower communities.”

Overall, trade disputes have underscored the importance of having diverse, healthy export markets, a position of strength that the California almond industry has long enjoyed. For decades, ABC has supported the industry by making significant investments in foreign market development and expansion. Recently, the Almond Board started marketing programs in Italy, Mexico, Germany and re-entered Japan. ABC also ramped up marketing activity in Germany and India. 

“While we appreciate almonds’ inclusion in the second package, almonds continue to be impacted by the increase in tariffs, and we’ve seen a significant decline in shipments to China, our third-largest export market,” said Adams. “Getting back to normal trade is critical.”

2019-06-03T16:53:20-07:00June 3rd, 2019|

NASS Predicts Another Record-Breaking Almond Crop

2019 Crop Predicted to be 2.50 Billion Pounds

News Release

For the second year in a row, the U.S. Department of Agriculture (USDA) National Agricultural Statistics Service (NASS) is predicting a record California almond crop for the upcoming production year. According to the NASS 2019 California Almond Subjective Forecast issued recently, California almond orchards are expected to produce 2.50 billion pounds of nuts this year, up 8.69% from last year’s 2.30 billion-pound crop.  (1)

This forecast comes just weeks after NASS released the 2018 California Almond Acreage Report, which estimated total almond acres for 2018 were up 2% from 2017 at 1.39 million acres. Bearing acres—orchards mature enough to produce a crop—were reported at 1.09 million acres, up 6% from the previous year. Looking ahead, NASS reported preliminary bearing acreage for 2019 at 1.17 million acres, up 7.3% from 2018.  (2)

Richard Waycott, Almond Board President, and CEO

The first of two reports for the upcoming crop, the Subjective Forecast is based on opinions obtained from randomly selected almond growers located throughout the state via a phone survey conducted in April and May. NASS asked growers to indicate their total almond yield per acre from last year and expected yield for the current year based on field observations. The sample of growers interviewed is grouped by size of operation, and different individuals are interviewed each year, allowing all growers to be represented. NASS then combines the yield estimates obtained from each grower and extrapolates the information to arrive at the numbers reported in the Subjective Forecast.

While the Subjective Forecast provides early estimates of the upcoming crop after it is set, NASS’s 2019 California Almond Objective Report will provide a more precise estimate as it uses a more statistically rigorous methodology to determine yield. The report’s data is based on actual almond counts and measurements gathered from over 850 orchards throughout the state and includes the weight, size, and grade of the average almond sample broken down by both growing district and variety.

The California Almond Objective Report will be released on July 3 at 11:50 a.m. PDT. NASS conducts the Objective Report—the Subjective Forecast and the Acreage Report—in order to provide the California almond industry with the data needed to make informed business decisions.

1 USDA-NASS. 2019 California Almond Subjective Forecast. May 2019.

2 USDA-NASS. 2018 California Almond Acreage Report. April 2019. 

2019-05-20T15:08:50-07:00May 20th, 2019|

Madera County Ag Economy is Booming

Madera County Has Big Ag Job Base

By Jessica Theisman, Associate Editor

Madera County’s financial future is booming. David Rogers, a Madera County supervisor, is excited to know that Madera County is the fastest and number one growing ag economy in the United States.

“I represent most of the farming, and Madera County, which is the fastest growing our economy in the U.S. and has been for the last three and a half, four years,” Rogers said.

Madera County

David Rogers, Madera County Supervisor

Madera  is a business-friendly county.

“We’ve been number one in small jobs, manufacturing growth for the last nine years in a row, and all of that is ancillary to agriculture,” he said.

Pistachios and almonds have aided in Madera County’s financial growth.

“Some of those orchards that were planted five years ago are going to mean big revenue,” Rogers said.

Expansions to the Triangle T System have aided in the conveyance.

“The expansions were in wide areas, and conveyance is so critical to that,” Rogers explained.

There is also a new tunnel system that goes under the river for delivery.

“There was a lot of money that went into developing their system, and it’s paying off big time. I believe it’s almost 50,000 acres. It was 30,000 originally, I think, and it’s expanding more all the time,” Rogers said.

He also commented on the need for proper forest management that will allow more water into the system.

“One of the most important things that we can do right now is continue to emphasize forest management because that is a source of more water,” he said. The better the management, the faster the forests can return to a healthy state. With a healthier forest, that means more water in the system and more water in our ground.

2019-03-21T15:46:01-07:00March 21st, 2019|

Big Exports Numbers Mean Big Responsibilities for California

California Exported $20 Billion in Food Products in 2016

By Mikenzi Meyers, Associate Editor

It’s no secret that California’s agricultural exports are a huge part of the state’s economy—but to put it in perspective, over $20 billion worth of food and agricultural products were exported in 2016 alone (the latest figures). With numbers like these, people like Glen Roberts of the U.S. Department of Commerce and International Trade Administration are kept busy.

Roberts, who is part of the Global Markets sector and based in Fresno, not only works with what he calls “easy” exports like Mexico and Canada, but other places across the globe, shipping anything and everything from food to machinery.

exports

Glen Roberts

When it comes to his role in California, Roberts explained, “Our office covers from the top of the Grapevine, Kern County, all the way up to Stanislaus County from San Louis Obispo over to Nevada.”

His sector, which handles more of the commercial side of things, acts as a gateway to other government programs that help out with international trade.

Although Roberts’ main focus is commercial, he’s still one of the go-to guys in agriculture exports.

“What happened when the almond prices dropped? I got the calls because Foreign Ag Service doesn’t handle contractual disputes,” he said.

Roberts further added, “I had to help out our local almond growers because the buyers didn’t want to pay the higher contracted price. They wanted to buy the new lower market price.”

2019-03-19T16:41:17-07:00March 19th, 2019|

Cover Crops in Almonds Can Displace Annual Winter Weeds

Steve Haring Working With UC Davis on Cover Crops

By Mikenzi Meyers, Associate Editor

Depending on your location, cover crops can have a big impact on your fields. Steve Haring, second-year Ph.D. student in the Department of Plant Sciences at UC Davis, has been collecting research on how different climates influence the effectiveness of cover crops.

Almond Cover Crop Displacing Weeds

“As we try to design cover crops, there are a lot of different paths we can take, and it’s important to test these different things out and see what is best for the specific things we can use cover crops for in the Central Valley,” Haring said.

He further mentioned that for optimum weed control in the Valley, growers should plant in the early winter months in order to prevent annual winter weeds.

Haring worked with the UC Davis Cooperative Extension on three different sites across both the Central Valley and northern Sacramento Valley collecting data on growth rates for cover crops. He found that because the northern valley had more direct sunlight hit the ground, cover crops thrived, and as a result, weeds were minimized.

The research will not stop there, though, Haring ensured. “The study I’m working on is funded by the Almond Board, and it’s continuing for a second year and maybe a third, so we’re trying to repeat it and validate and then also sort and synthesize information because there are people working on weeds but also working on water, insect pests, pollinator health, nematodes, and call sorts of ecosystem services,” he concluded.

2021-05-12T11:05:06-07:00February 20th, 2019|

Almond Board of California Election Under Way

Almond Industry Is Urged to Vote for Grower Positions on Almond Board of California

News Release

Voting began Jan. 31 to select two independent grower member and alternate positions and one independent handler member and alternate position on the Almond Board of California (ABC) Board of Directors. These positions will serve terms beginning on March 1.

Candidates for the independent grower position are:

 

Position One, Member (One-year term):

Brad Klump, Escalon (petitioner)

 

Position One, Alternate:

Mike Mason, Wasco (petitioner)

Position Two, Member (Three-year term):

Brian Wahlbrink, Waterford (incumbent)

Dave DeFrank, Fresno (petitioner)

 

Position Two, Alternate:

Bill Harp, Bakersfield (incumbent)

Candidates for the independent handler positions are:

 

Position Three, Member (One-year term):

Micah Zeff, Modesto (incumbent)

Position Three, Alternate:

Jonathan Hoff, Denair (petitioner)

Ballots and instructions have been mailed to all independent growers whose names are on file with ABC. The Almond Board must receive ballots by Feb. 16, for them to be counted. If any independent grower or handler does not receive a ballot, one may be obtained by contacting Bunnie Ibrahim, senior analyst, Government Affairs, ABC, at (209) 343-3228.

As a governing body for the industry, the ABC Board of Directors is composed of five handler and five grower representatives who set policy and recommend budgets in several major areas, including production research, public relations and advertising, nutrition research, statistical reporting, quality control, and food safety.

2019-02-05T16:31:52-08:00February 5th, 2019|

California Crop Values for 2017 Released by CDFA

Full Statistics Now Available For the Crop Year 2017

News Release

The California Agricultural Statistics Review for crop year 2017 has been released. It reports that California’s farms and ranches received more than $50 billion in cash receipts for their output. This represents an increase of almost 6 percent in crop values compared to 2016.

California’s agricultural abundance includes more than 400 commodities. Over a third of the country’s vegetables and two-thirds of the country’s fruits and nuts are grown in California. California is the leading U.S. state for cash farm receipts, accounting for over 13 percent of the nation’s total agricultural value. The top producing commodities for 2017 include:

Dairy Products, Milk — $6.56 billion

Grapes— $5.79 billion

Almonds— $5.60 billion

Strawberries— $3.10 billion

Cattle and Calves — $2.53 billion

Lettuce— $2.41 billion

Walnuts— $1.59 billion

Tomatoes— $1.05 billion

Pistachios— $1.01 billion

Broilers— $939 million

Complete Report at this Link:

https://www.cdfa.ca.gov/Statistics/PDFs/2017-18AgReport.pdf

2019-01-10T15:52:42-08:00January 10th, 2019|
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