Almond Export Diversification Helps During Tariff War

Overseas Markets are Vast for Almond Industry

By Patrick Cavanaugh, Editor

Diversification is a strength, Richard Waycott, president of the Almond Board of California, told California Ag Today recently. The Almond Board of California is a nonprofit organization that administers a grower enacted federal marketing order under the supervision of the U.S. Department of Agriculture. When it comes to any losses due to a tariff war in China, the almonds can be redirected to other countries.

“It’s fortunate to be as diversified as we are. Always a strength of this industry is the diversification of our overseas markets,” Waycott said. “I think whatever volume we ultimately do lose—if we do lose volume to China—can be redirected and absorbed by other markets.”

The USDA has opened up a direct payment program to the almond industry if growers were to lose any money in a tariff war.

As those programs were announced, by far the largest piece of the pie, $6 billion, initially was directed to the soybean and corn growers and livestock, while the specialty crops were completely left out of it.

“We got together with the Almond Alliance of California and some of our industry members made a very concerted effort while there was still time to do so before the rules around these programs and those that got to participate were set in stone and were able to convince the powers that be … to open up to the direct payment program to almonds, and the sweet cherry industry did the same,” Waycott explained

Waycott also commented on the epic frost that hit almonds this past spring. And he is not sure of the impact on the crop.

“We realized that we don’t understand the impact of frost on almonds all that well because we saw one side of the street there was quite a bit of damage, while on the other side there was no damage. So I think there’s mother nature at work here that, you know, we don’t necessarily completely understand,” Waycott said.

USDA Helps Open and Expand Export Markets for U.S. Agriculture

By: Monique Bienvenue; Cal Ag Today Social Media Manager/Reporter

Agriculture Secretary Tom Vilsack today announced that the U.S. Department of Agriculture’s (USDA) Foreign Agricultural Service has awarded funding to more than 60 U.S. agricultural organizations to help expand commercial export markets for American products.

“The Market Access and Foreign Market Development Programs help agricultural organizations representing thousands of producers and businesses open and grow markets for American products around the world,” Vilsack said. “Exports create jobs and foster growth that is critically important for rural communities and our entire nation’s economy.”

Through the Market Access Program (MAP), Foreign Agricultural Service partners with U.S. agricultural trade associations, cooperatives, state regional trade groups and small businesses to share the costs of overseas marketing and promotional activities that help build commercial export markets for U.S. agricultural products and commodities. The program, which focuses on consumer promotion, including brand promotion for small companies and cooperatives, is used extensively by organizations promoting fruits, vegetables, nuts, processed products, and bulk and intermediate commodities. Through MAP, the Foreign Agricultural Service will provide $173.2 million to 62 nonprofit organizations and cooperatives. Participants contribute an average 214 percent match for generic marketing and promotion activities and a dollar-for-dollar match for promotion of branded products by small businesses and cooperatives.

The Foreign Market Development (FMD) Program focuses on trade servicing and trade capacity building by helping to create, expand and maintain long-term export markets for U.S. agricultural products. Under FMD, also known as the Cooperator Program, the Foreign Agricultural Service will allocate $26.7 million to 22 trade organizations that represent U.S. agricultural producers. USDA’s Foreign Agricultural Service partners with U.S. agricultural producers and processors, who are represented by non-profit commodity or trade associations called cooperators. The organizations, which on average contribute nearly triple the amount they receive in federal resources, will conduct activities that help maintain or increase the demand for U.S. agricultural commodities overseas.

USDA’s international market development programs have had a significant and positive impact on U.S. agricultural exports. An independent study released in 2010 found that trade promotion programs like MAP and FMD provide $35 in economic benefits for every dollar spent by government and industry on market development.

The past six years represent the strongest period for U.S. agricultural exports in the history of the United States. Farm exports in fiscal year 2014 reached a record $152.5 billion and supported 1 million jobs in the United States.