California Ag Network

Category: Ag Economics

  • US Maintains Position as India’s Top Tree Nut Importer as Demand Surges

    India’s tree nut imports continue to surge, with demand growing despite a tariff stranglehold. Consumption is growing as a result of the expanded perception of the health benefits of almonds and walnuts among middle- class consumers. FAS New Delhi forecasts in marketing year 2020/2021 Indian almond imports to reach 115,000 metric tons (MT). While walnut imports are forecast to reach 32,000 metric tons. Trade volumes can potentially be higher if it were not for Government of India imposed trade barriers (both tariff and non-tariff). 

    ALMONDS, SHELLED BASIS

    PRODUCTION:

    FAS New Delhi (Post) forecasts marketing year (MY) 2020/2021 (August-July) Indian almond production at 4,500 metric tons (MT) (kernel-weight basis), up seven percent on a year-on-year basis. More favorable weather conditions and new tree varieties are helping to increase production. Almond production is concentrated in the union territories of Jammu and Kashmir and in Himachal Pradesh. Shelling rates range between 20 and 30 percent for hard-shell varieties, and 40 percent for thin-shelled varieties.

    Post revises downward to 4,200 MT the MY 2019/2020 production estimate, down 300 MT compared to the U.S. Department of Agriculture (USDA) official figure of 4,500 metric tons. The lower number is due to an increase in the number of non-bearing trees observed, despite there being no changes in the area planted. The union territory government of Jammu and Kashmir through its Almond Development program aims to increase by 12,000 hectares the almond cultivation area, and in the process, phase in new higher yielding cultivars.

    CONSUMPTION:

    FAS New Delhi forecasts MY 2020/2021 Indian almond consumption at 125,000 MT, up nine percent from the MY 2019/2020 volume of 114,500 metric tons. The increase is due to strong, steady growth in household consumption of almonds, perceived as a healthy and immunity building snack nut at a time of expanded health concerns. A key factor facilitating driving greater consumption, notwithstanding the novel coronavirus (COVID-19) lockdown, is the rise of e-commerce platforms. With growing numbers of consumers shopping now online for groceries, almonds are making their way onto online shopping carts in greater quantities.

    With India’s middle-class (300-350 million) expansion, there is growing awareness of, and demand for healthy foods. The COVID-19 pandemic accelerated almond consumption in this country of 1.3 billion (Central Intelligence Agency – July 2020 estimate). Perceived nutritional benefits of almonds as a food ‘good for the brain’ and its ‘immunity building characteristics’ are being used to tackle the pandemic. This is resulting in fundamental changes in consumer behavior that will last even after a COVID-19 vaccine is developed. Almonds are today displacing cashews as health-conscious consumers’ nut of choice. A reliable, steady supply combined with growing consumer awareness of the health benefits of almonds, is leading to almonds expanded use as a food ingredient by the Indian food processing industry. Almonds are making their way in greater numbers into breakfast cereal bars, snack foods, beverages, and confectionaries manufactures, as well as the in personal care industry (utilizing almond oil).

    PRICES:

    India is price-sensitive consumer market. Consumers favor affordably priced almonds, and in particular, quintessential California non-pareil almonds that are uniform in size and ‘eye’ shaped and count with the sweetness desired. Australia-origin non-pareil almonds and Carmel (often used for blanching and roasting) varieties account for a growing segment of the market. Iranian Mamra and Oumi varieties are popular in India’s western and northwestern regions (i.e., the National Capital Region – New Delhi, Rajasthan, and Gujarat) and often command price-premiums.

    Favorable Californian crop production and ample supply along with COVID-19 containment measures are driving down almond average prices compared to MY 2019/2020. Almonds will command higher pricing once the Indian hotel-restaurant-institutional (HRI) sector’s own demand for almonds picks up in 2021/2022.

    TRADE:

    FAS New Delhi forecasts MY 2020/2021 Indian almond imports at 115,000 MT, up nearly 10 percent from the USDA official MY 2019/2020 estimate of 105,000 metric tons. Post’s earlier MY 2019/2020 estimate is six percent higher compared to the previous year despite an increase in the basic-customs-duty (see PIB and GAIN-INDIA (IN2019) Government of India – GOI Raises Tariffs on Specific U.S. Ag Products (June 16, 2019). Although shipments of almonds to India increased between January and August 2020, the post-Diwali festive season (when demand for tree nuts normally peaks) will be a bit leaner this year compared to 2019.

    U.S.-origin almonds account for 81 percent of India’s total import volume in MY 2019/2020; Australian almonds come in second with seven percent of the import volume. Almond imports from the United States and Australia are in shell, non-pareil or Carmel varieties, and are shelled locally (machine cracked and hand sorted); other origins supply shelled almonds. Packaged almonds only account for 10 percent of retail sales.

    FAS New Delhi forecasts MY 2020/2021 Indian almond exports at 200 MT, down by 20 MT or nine percent lower compared to the MY 2019/2020 estimate. India’s exports of almonds remain negligible. Exports in MY 2019/2020 are estimated at 220 MT; with the United Kingdom (28 percent), Nepal (14 percent), and the United Arab Emirates (13 percent) being the main export destinations by volume.

    POLICY:

    India does not set quantitative restrictions on almond imports. U.S.-origin almonds, however, face retaliatory tariffs of India rupees (INR) 41/kilogram (kg) (in shell basis) and INR 120/kg (shelled basis). (FOREX: INR 73.92 to $1.00).

    On May 23, 2018, the Indian government issued notifications announcing an increase in the basic-common-duty on several imported agricultural products, including shelled almonds. The tariff increases are applicable to all third-country suppliers. The tariff on shelled almonds increased from INR 65/Kg to INR 100/kg, and significantly restricts trade (see GAIN-INDIA (IN2018-8067) Government of India Increases Tariffs on Certain Agricultural Imports (June 7, 2018). 

    Non-tariff barriers include a third amendment to the Almond Kernel Standards, published by the Food Safety and Standards Authority of India (FSSAI) on August 14, 2020. The standards’ implementation date is set for July 1, 2021 (see GAIN-INDIA (2020-0103) Almond Kernel Standards and Other Various Food Products Published in the Indian Gazette (August 24, 2020).

    Industry sources indicate that the proposed almond kernels standards are too prescriptive to be widely applied across multiple commercial grades. Proposed quality/grade factors pertain to commercial contracts and should not form the basis for import or retail controls. Traders sustain that there is a need for flexibility in grades to account for varying commercial situations, including varietal differences, crop quality variability, and pricing differentials. For these, physical parameters such as damage and the presence of foreign material should not form the basis of import controls.

    Despite these challenges, FAS New Delhi continues to identify market development opportunities, particularly among markets serving children, young adults, and the growing urban work force. Additional opportunities exist with medium- and large-scale bakeries, boutique/artisan patisseries, food processors, such as cookie manufacturers and breakfast cereal companies, consumer packaged goods, and institutional end users. Regions in southern and eastern India offer new, worthwhile marketing opportunities.

    WALNUTS, IN SHELL BASIS
    PRODUCTION:

    FAS New Delhi forecasts MY 2020/2021 (September-August) Indian walnut production at 35,000 MT (in shell basis), a volume largely unchanged from the previous marketing year’s estimate. Indian walnut production is cyclical in nature and yields can vary by as much as 20 percent, depending on weather conditions at the time of blossom and harvest.

    India’s walnut harvest runs from late August through September, with market arrivals peaking in late October. Walnut production is concentrated in Jammu and Kashmir, Himachal Pradesh, and Uttarakhand. Lack of adequate infrastructure in the production areas, long gestation periods, poor orchard management, and uneven yields limit India’s walnut production. India produces hard, medium, or thin shell (kaghazi) walnut types, with an average shelling rate of about 40 percent.

    CONSUMPTION:

    FAS New Delhi forecasts MY 2020/2021 Indian walnut consumption at 60,000 MT, roughly 20 percent above its MY 2019/2020 estimate of 50,000 metric tons. Increases in consumption levels is attributable to greater at home consumption of walnuts during the COVID-19 pandemic outbreak in pursuit of health-related benefits.

    Higher walnut consumption stems from the growing perception among Indian middle-class consumers that walnuts help to reduce cholesterol, improve brain health, and lower risks of diabetes, among other health benefits. The Indian government’s FSSAI issued the public guidance document titled “Eating Right during COVID-19” encouraging the intake of walnuts for their nutritional benefits (especially as it pertains to Omega- 3 fatty acids, Vitamin B-9, Protein, Zinc, and Selenium concentrations). With people confined to their homes during the lockdown, consumption of walnuts increased significantly in 2020. 

    Indian walnut consumption is growing steady since MY 2015/2016 through MY 2019/2020, by almost 15 percent. Strong growth is indicative of the presence of a consistent supply to meet strong domestic demand. Packaging innovations (e.g., vacuum-packed bags, combined with attractive product packaging) is improving the shelf life and quality of walnuts, while encouraging year-round consumption. The rise of new distribution channels such as e-commerce websites are driving consumption and availability of walnuts. Between 70 and 75 percent of Indian walnuts are consumed domestically, and more than half of Indian walnuts are consumed during the holiday, festive, and winter seasons. Industry sources estimate that roughly 17 percent of walnuts go into food processing, with another four percent crushed for the personal care industry.

    PRICES:

    Domestic walnut prices were weak from January 2019 to September 2019. Prices saw improvement during the peak 2019 demand period towards the end of the year, with the upward trend in prices running through 2020. In the wholesale market, imported walnut (in shell) prices in 2020 range INR 52,500 ($710) to INR 60,000 ($812) per 100 kilograms. (FOREX: INR 73.92 to $1.00).

    TRADE:

    FAS New Delhi forecasts MY 2020/2021 Indian walnuts imports at 32,000 MT, up nearly seven percent or 2,000 MT greater than the USDA official 2019/2020 estimate of 30,000 metric tons. The United States will remain the dominant supplier with a 54 percent market share, followed by Chile at 40 percent.

    India is primarily an in shell walnuts market. Trade sources indicate that Indian imports of in shell walnuts grew 46 percent between January and August 2020, while shelled walnuts imports rose by an astonishing 329 percent during that same period.

    FAS New Delhi forecasts MY 2020/2021 Indian walnuts exports at 4,000 MT, up 800 MT or 25 percent higher than the USDA official MY 2019/2020 estimate of 3,200 metric tons. Indian walnuts exports declined in MY 2019/2020 due to high domestic demand for product, which will ease somewhat this year. Walnuts from India will make their way again to the traditional export destinations of France, the United Kingdom, and Germany. 

    Over 95 percent of Indian walnut exports go out as kernels in vacuum packs (35-40 percent light halves, 35-40 percent amber halves/light broken, and the remaining balance as amber halves). Market sources report that Indian walnuts compete with those from the United States, Mexico, Chile, Turkey, China, and Ukraine.

    TRADE POLICY: 

    India’s Open License program permits the import of walnuts without quantitative restrictions. In shell walnut imports, however, are subject to a 100 percent tariff, and shelled walnuts are similarly subject to a 100 percent tariff (effective February 2020). Afghanistan-origin import shipments face a lower, 50 percent tariff due to the enactment of the Indo-Afghan Preferential Trade Agreement.

    India is implementing a retaliatory tariff on U.S.-origin walnuts at 20 percent above the applied basic-common-duty of 100 percent. U.S. shipments of walnuts suffered from this measure in MY 2018/2019. However, California walnuts remain in the Indian market, counting with high consumer demand to help drive volumes.

    Post identified non-tariff barriers to trade include the Walnut Kernel Regulation published by the Indian government’s FSSAI on September 3, 2020 (see GAIN-INDIA (2020-0121) FSSAI Proposes Draft Standards for Walnut Kernels and Other Various Food Products). The effective implementation date is either January 1, 2021, or alternatively July 1, 2021, depending on when the amendment is published in the official gazette. The published standards are non-transparent, ambiguous, and likely difficult to adhere to; particularly as it pertains to moisture levels, foreign matter, damaged units, acidity, color, acid-insoluble ash, and extraneous vegetable matter. These standards deviate from globally established practices.

    India, given its huge market size, and despite the challenges, remains an attractive market especially as it relates to the Indian sweets and snacks industry. — By Ankit Chandra & Mariano J. Beillard, USDA Foreign Agricultural Service

  • Navel Orangeworm Winter Sanitation Considerations

    Winter sanitation is a critical step in your Navel Orangeworm IPM programs. But when should you start and is it enough just to shake those mummy nuts off of the trees? Watch this interview with Bob Klein from the California Pistachio Research Board as he shares some key insights growers should consider when approaching winter sanitation and read about it in Pacific Nut Producer Magazine.

  • Veronique Lagrange Appointed Director Of California Dairy Innovation Center

    The California Milk Advisory Board (CMAB), the marketing order representing California dairy producers, today announced the addition of Veronique Lagrange as the Director of the California Dairy Innovation Center (CDIC). The CDIC was recently created to further product-oriented innovation and enhance productivity for the California dairy industry. Working closely with the CMAB and the California Dairy Research Foundation (CDRF), Lagrange will act as a liaison for researchers, educators, business development representatives, and processors interested in innovation efforts.

    Most recently Lagrange held the position of Director of Business Development for the American Dairy Products Institute (ADPI), where she also chaired the Center of Excellence; as well as several industry taskforces. She also spearheaded The Strong Inside campaign, and served as a subject matter expert for business strategies, nutrition and scientific matters; in addition to the organizer of technical programs and conferences.

    Lagrange previously held roles at the US Dairy Export Council (USDEC), which included Senior Vice President of Business Development, Strategies and Insights, and Director of International Marketing. Furthermore, she has conducted food technology programs for the California Raisin Advisory Board, Almond Board of California, and National Honey Board.

    “Veronique will be a tremendous asset to California dairy innovation, as she brings a breadth of experience and skills to our team”, said John Talbot, CEO of the CMAB. “At both ADPI and USDEC, Veronique has had valuable experience with the research and development of dairy products and ingredients. She is extremely knowledgeable of their applications and functionality in manufacturing, as well as their vital role in the export business, which is very important to us.”

    “It is truly an honor to have this opportunity for leadership of this unique program, which will be guided by the goals and priorities established by a cross-industry committee. I look forward to being an active partner and advocate within the dairy community to promote innovation and also to support the development of the workforce which will, in turn, ensure the global competitiveness of the California dairy industry in the future,” said Lagrange.

    CDRF is pleased to welcome Veronique as the new director of the CDIC,” said Denise Mullinax, Executive Director of CDRF. “We look forward to collaborating with her in the expansion of research in the areas of innovation and development on behalf of the California dairy industry.”

    Lagrange received her BS and MS degrees in Food Science from the University of Wisconsin, Madison. She also holds a degree in Nutrition from Ecole de Medecine, Paris, France, and a Doctorate degree in Engineering Management from George Washington University, Washington D.C. In addition to these accolades, Lagrange completed the Executive Program on Managing Technical Professionals and Organizations at the Massachusetts Institute of Technology, Sloan School of Management, as well as the Digital Marketing Program at the Yale University School of Management.

    California is the nation’s leading milk producer. It also produces more butter, ice cream and nonfat dry milk than any other state. The state is the second-largest producer of cheese and yogurt. California milk and dairy foods can be identified by the Real California Milk seal, which certifies they are made exclusively with milk from the state’s dairy farm families.

    About Real California Milk/the California Milk Advisory Board
    The California Milk Advisory Board (CMAB), an instrumentality of the California Department of Food and Agriculture, is funded by the state’s dairy families and is one of the largest agricultural marketing boards in the United States. With a mission to increase demand for products made with Real California Milk, the CMAB is celebrating 50 years promoting California’s sustainable dairy products in the state, across the U.S. and around the world through advertising, public relations, research, and retail and foodservice promotional programs. For more information and to connect with the CMAB, visit RealCaliforniaMilk.com, Facebook, YouTube, Twitter, Instagram and Pinterest.

    About the California Dairy Research Foundation (CDRF)
    CDRF is an independent nonprofit public benefit foundation whose mission is to lead and deliver the best research and science-based programs to support an innovative and sustainable California dairy industry. For more information about CDRF and the research it supports, visit cdrf.org.

  • First-Ever USMCA Enforcement Action on Behalf of Dairy Farmers to Hold Canada Accountable for Undermining Value

    United States Trade Representative Robert E. Lighthizer announced today that the United States is exercising its rights under the United States-Mexico-Canada Agreement (USMCA) to address measures adopted by the Government of Canada that are contrary to the provisions of the agreement and harm U.S. dairy farmers.  Specifically, the United States is challenging Canada’s allocation of dairy tariff-rate quotas (TRQs).  By setting aside and reserving a percentage of each dairy TRQ exclusively for processors, Canada has undermined the ability of American dairy farmers and producers to utilize the agreed-upon TRQs and sell a wide range of dairy products to Canadian consumers.    

    “President Trump successfully renegotiated the USMCA to replace the failed NAFTA, and a key improvement was to give U.S. dairy producers fairer access to Canada’s highly protected dairy market,” said Ambassador Lighthizer.  “Canada’s measures violate its commitments and harm U.S dairy farmers and producers.  We are disappointed that Canada’s policies have made this first ever enforcement action under the USMCA necessary to ensure compliance with the agreement.  This action demonstrates that the United States will not hesitate to use all tools available to guarantee American workers, farmers, ranchers, and businesses enjoy the benefits we bargained for.”

    Ambassador Lighthizer provided official notice to Canada that it was exercising its rights to enforce the USMCA in a letter to Canada’s Minister of Small Business, Export Promotion and International Trade Mary Ng.  If the United States and Canada are not able to resolve the United States’ concerns through consultations, the United States may request the establishment of a USMCA dispute settlement panel to examine the matter.

    Background

    As defined in the USMCA, a TRQ is “a mechanism that provides for the application of a preferential rate of customs duty to imports of a particular originating good up to a specified quantity (in-quota quantity), and at a different rate to imports of that good that exceed that quantity”.  Under the USMCA, Canada has the right to maintain 14 TRQs on dairy products, including milk, cream, skim milk powder, butter and cream powder, industrial cheeses, cheeses of all types, milk powders, concentrated or condensed milk, yogurt and buttermilk, powdered buttermilk, whey powder, products consisting of natural milk constituents, ice cream and ice cream mixes, and other dairy.

    In notices to importers that Canada published in June and October for dairy TRQs, Canada sets aside and reserves a percentage of the quota for processors and for so-called “further processors”, contrary to Canada’s USMCA commitments.  This restriction undermines the value of Canada’s TRQs for U.S. producers and exporters by limiting their access to in-quota quantities negotiated under the USMCA.

    A copy of the consultation request can be found here.

  • Animal Agriculture Alliance Virtual Summit to Help Turn “Obstacles to Opportunities”

    Today, the Animal Agriculture Alliance announced that its 2021 Stakeholders Summit, set primarily for May 5-6, will be hosted virtually and themed “Obstacles to Opportunities.” The annual Summit brings top thought leaders in the industry together to discuss hot-button issues and out-of-the-box ideas. In addition to announcing the theme and virtual format for 2021, the Alliance also issued a call for proposals to speak at the event.

    The Summit is a one-of-a-kind conference attended by a diverse group of decision makers, including representatives from farms, ranches, allied industries, food processors, restaurants, grocery stores, legislatures, universities, government agencies and media. The 2020 event (also hosted virtually) was the largest yet, attracting 515 attendees from around the world.

    “I think we are all ready to turn the page on the obstacles of 2020 and seek opportunities to ensure a bright future for animal agriculture in 2021 and beyond,” said Kay Johnson Smith, Alliance president and CEO. “Our Virtual 2021 Summit will help everyone in the food chain work together toward that goal. We’re excited about building on the smashing success of our 2020 Virtual Summit to host another top-notch virtual event and hopefully set another attendance record.”

    Challenging times. Unprecedented times. Uncertain times. We’re all over the clichés. But we’re far from over the impact COVID-19 and 2020 in general have had on agriculture and the food industry. However, there is hope. With the right tools we can ensure the food chain is stronger than ever. We can use this time to hone our messages, fine-tune our strategies and connect, engage and protect like never before. Now is the time to turn the obstacles of 2020 into opportunities for the decades to come, and 2021 Virtual Summit attendees will leave with the right tools and ideas to do just that.

    “Hosting our Summit virtually is a perfect example of turning an obstacle into an opportunity,” said Hannah Thompson-Weeman, Alliance vice president of communications. “We deeply wish we could host our traditional in-person Summit. Nothing beats the energy of being in a room together sharing our passion for animal agriculture. However, the ongoing public health situation is making that look like an impossibility for May 2021, as the health and safety of our attendees will always be our top priority. While it isn’t our first choice, the virtual setting will allow us to be safe while also making our Summit content accessible to a broader audience.”

    The Alliance is seeking proposals for keynote presentations and panel discussions that fit this theme. Proposals to speak at the event are being accepted through December 31, 2020. For more information, visit the proposal guidelines and form at https://animalagalliance.org/resource/request-for-speakers-2021-stakeholders-summit/. For questions about the speaker proposal process, contact Hannah Thompson-Weeman at hthompson@animalagalliance.org.

    Registration for the Virtual Summit will open in early 2021 and a tentative schedule will be shared at that time. Check the Summit website for the most up-to-date information. You can also follow the hashtag #AAA21 for periodic updates about the event on social media. For general questions about the Summit please email summit@animalagalliance.org or call (703) 562-5160.

    About the Alliance:

    The Animal Agriculture Alliance is an industry-united, nonprofit organization that helps bridge the communication gap between farm and fork. We connect key food industry stakeholders to arm them with responses to emerging issues. Weengage food chain influencers and promote consumer choice by helping them better understand modern animal agriculture. We protect by exposing those who threaten our nation’s food security with damaging misinformation.
    Find the Alliance on Facebook, Twitter, and Instagram.

  • CDFA Issue Stop Use Notice & Statewide Quarantine On Organic Fertilizer Agro Gold WS

    Agro Gold WS was found  adulterated with glyphosate and diquat and CDFGA has issue a stop order for use on organic farms in the state of California. The press release is shown below:

    CDFA ISSUES STOP USE NOTICE AND STATEWIDE QUARANTINE ON ORGANIC FERTILIZER AGRO GOLD WS

    The California Department of Food and Agriculture (CDFA) today announced that a Stop Use notice and statewide quarantine have been issued for the organic fertilizer product AGRO GOLD WS to all organic operations registered in California. CDFA lab analysis of the product detected the presence of Diquat and Glyphosate, which are substances prohibited by the U.S. Department of Agriculture (USDA) National Organic Program for use in organic production. Continued use of this product in organic production may jeopardize an operation’s organic status.
     
    Pursuant to authority under the California Food and Agricultural Code (FAC), Division 17, Chapter 10, CDFA’s State Organic Program (SOP) in coordination with the Fertilizer Materials Inspection Program (FMIP) issued a Stop Use notice today for AGRO GOLD WS to all organic operations in California registered with the SOP. CDFA’s FMIP also announced today that all California operations registered as organic in possession of AGRO GOLD WS must hold the product and contact CDFA for quarantine instructions on how to handle it.
     
    AGRO GOLD WS is manufactured by Agro Research International, LLC. It has been distributed in a co-packaged box that also contains the product WEED SLAYER. CDFA continues to provide follow up to this investigation and is working with state and federal agencies. CDFA received a complaint about the AGRO GOLD WS product and program staff collected product samples from various locations to conduct lab analysis in CDFA’s Center for Analytical Chemistry. FMIP is an industry-funded program that ensures consumers receive fertilizing materials that meet the quality and quantity guaranteed on the product label. Investigators located throughout the state conduct routine sampling and inspections, respond to consumer complaints, and enforce the laws and regulations that govern the manufacturing and distribution of fertilizing materials in California. CDFA’s State Organic Program protects the organic label through enforcement, education and outreach.
     
    If you are in possession of AGRO GOLD WS and seek additional information, please contact the Fertilizing Materials Inspection Program at FMIP@cdfa.ca.gov. Any appeal of the determination that this product violates the Food and Agricultural Code must be filed with the Fertilizing Materials Inspection Program no later than 15 days from receipt of the Stop Use notice and statewide quarantine. See Food and Agricultural Code section 14659.

  • CA Dairy Organizations Host 900+ in Successful Virtual Summit

    Dairy Cares — California’s dairy farmers are leading change and making significant progress in reducing greenhouse gas (GHG) emissions and advancing planet-smart, sustainable farming practices. Ongoing partnerships remain critical to this progress. On November 5-6, the virtual California Dairy Sustainability Summit welcomed 900+ registrants, with more than 600 tuning in live throughout the two-day online event.

    The virtual summit hosted conversations among dairy farmers, industry leaders, government officials, leading researchers, technology providers, and sustainable food, consumer, and nutrition experts. The program recognized true sustainability includes economic and social considerations, in addition to environmental—ultimately aiming to ensure the ongoing availability of affordable, nutrient-rich foods. Given the current economic challenges, this effort is paramount as more than 54 million Americans currently face food insecurity. Through panel discussions and keynotes, speakers recognized accomplishments and opportunities to further improve the sustainability of family dairy farms and the entire supply chain.

    World-renowned researchers provided important perspective and scientific basis for discussing strategies and policies to drive change. Dr. Ermias Kebreab of the University of California, Davis shared research demonstrating significant reductions acheived in the water and GHG footprints of California dairy farm production. He noted that global GHG emissions could be reduced by 1.73% if all regions could produce milk as efficiently as California. Dr. Frank Mitloehner of UC Davis explained how methane has a relatively short atmospheric lifetime, and that the state’s efforts to reduce dairy methane can lead to global cooling. Dr. Myles Allen of the University of Oxford further highlighted the differences between methane and carbon dioxide and why they should be treated differently in strategies to reduce global warming.
     
    California’s state officials also contributed important insights. Richard Corey, Executive Officer of the California Air Resources Board explained how the state’s policies are helping to reduce GHGs, noting that incentive-based approaches funded through public-private partnership—such as the state’s dairy digester program—are critical to that effort. Carlos Suarez, California State Conservationist highlighted the great history and ongoing conservation efforts taking place through partnership between the USDA Natural Resource Conservation Service and dairy farmers—helping improve the protection of air quality, water resources, soil health, and wildlife habitat. Jenny Lester Moffitt, Undersecretary of the California Department of Food and Agriculture led a discussion among dairy farmers, as they shared their personal experiences with adopting new farming practices to improve soil health and water conservation.
     
    Leaders of the nation’s largest dairy cooperatives and the US Dairy Export Council also shared their visions for sustainability, focusing on employees (both on farms and within processing facilities), animal welfare, the environment, economic viability, and nutrition. The national dairy industry is committed to reducing GHGs, working toward a net zero climate impact by 2050. Leaders noted that strong partnerships and advancements in technology—as well as rural connectivity—will all be critical to achieving this goal.
     

    More than 50 speakers participated throughout the two-day virtual event—sharing unique insights on a wide variety topics. Sessions highlighted important efforts to improve the protection of environmental resources and further the adoption of renewable energy. Dairy farmers also discussed participating in community efforts to ensure clean drinking water for all, and working in partnership with researchers, technical experts, and government agencies to improve how groundwater resources are protected. Tremendous opportunities are currently being explored, including avenues for maximizing the use of manure nutrients on crops across California’s rich and diverse agricultural landscape.

    Despite economic challenges and uncertainty, speakers expressed optimism and an ongoing willingness to work together. “I think we’re just about to hit our stride,” said Lyle Schlyer, President of Calgren Dairy Fuels, a company that partners with dairy farmers to create renewable, carbon-negative transportation fuel. Schlyer participated in a panel discussion about opportunities and strategies to ensure dairy biogas continues to help fuel California’s clean energy and climate goals.
     
    Overall, the virtual California Dairy Sustainability Summit took a meaningful look at complex sustainability issues and the bigger picture. Digital consumer expert, Steve Lerch said that while consumers value sustainability, it’s difficult to fully understand, measure, and compare what brands and companies are doing to be sustainable. For this reason, it’s important to communicate a clear and compelling sustainability story. It was also noted that the ongoing global pandemic has further highlighted the importance of nutrition, as well as our overall health and well-being. Milk and dairy foods play an important role in nourishing people of all ages, to help create healthier communities in California and beyond.
     
    The California Dairy Sustainability Summit is hosted by Dairy Cares, California Dairy Research Foundation, California Milk Advisory Board, California Dairy Quality Assurance Program, and Dairy Council of California. The summit would not be possible without the generous support of its sponsors. Organizers look forward to future opportunities to host ongoing collaborative efforts.
    2020 has been a year of many challenges, but also of creativity, compassion, and perseverance. The Virtual California Dairy Sustainability Summit is an example of that spirit and a milestone in the ongoing efforts to advance planet-smart dairy farm practices.

  • The Essential Pieces of Protecting Ag Workers, Preventing COVID-19 Spread

    Christopher Valadez — As president of the Grower Shipper Association of Central California (GSA), I talk to farmers, farming companies, farm labor contractors and farm workers about the challenges faced when protecting essential employees from COVID-19 exposure. These conversations and hearing the needs firsthand formed the impetus for many of the programs established by GSA over the last few months to lessen or prevent the spread of COVID-19 among the farm worker community.

    But I also speak regularly with county health officials, local hospitals and health clinics, farm labor advocates, academics, state regulators, elected officials and local community leaders about COVID-19 and its impact on farm workers. Many have become important partners and have worked with GSA and the local ag community to develop on-farm prevention training programs led by health professionals, provide daily health checks for farm workers in GSA’s quarantined housing program, acquire additional PPE and establish expedited testing programs to provide faster results for farm workers.

    As we end the harvest season in our region, we have an opportunity to reflect and learn before workers return in the spring. What can we do better to enhance efforts to prevent the spread of this virus on the job and within our communities to keep our workforce healthy? At GSA, we hope to see more emphasis on contact tracing as well as a prioritization of farm workers to receive vaccinations against this virus. But let’s start with contact tracing.

    After a positive test is confirmed, contact tracing is the process of identification of persons who may have come into contact with an infected person and subsequent collection of further information about these contacts. It is vitally important that public health officials have the resources to conduct more extensive contact tracing once a positive test is obtained so we are effectively targeting prevention strategies with a focus on where the virus is spread – work, transit to work, at home or within our community. Otherwise we may be enacting rules and regulations in one area when better information on where the virus is being spread may indicate they are actually needed in another. Or, the solution may not address the real problem.

    While public health officials are integral to effective contact tracing, employers are also required to conduct their own tracing to determine if a COVID-positive employee may have exposed others and where – work or home. Once an employer learns of an employee potentially exposed or sick, they can then provide options and information about quarantined housing. GSA’s quarantined housing program provides COVID-positive or exposed farm workers with daily meal deliveries and health checks to ensure they can isolate or recover in a safe and comfortable environment.  And, California mandates that essential workers receive two weeks paid sick leave if they test positive or are sickened by the virus.

    Farmers and farming companies are spending significant time and monetary resources to protect workers through both regulatory compliance and their own best practices. And, as we learn more about the virus, prevention practices in agriculture are continually improving. But, we are not experts in public health and we are reliant on public health guidance. Adequate testing and effective contact tracing combined with isolation alternatives through quarantined housing is the best way to yield real results and target the spread of this virus at its source.

    While GSA will work collaboratively to ensure these crucial prevention strategies are improved and ready in 2021, it is the prioritization of providing vaccines to essential workers that will ultimately protect our workforce from this persistent and relentless virus. GSA will join with industry, local elected officials, labor groups and community leaders to advocate for vaccine prioritization so farm workers are among the first groups to receive them.

    We have learned a significant amount since the early days of the pandemic when farmers and farming companies had to quickly learn and implement prevention strategies while striving to provide healthy fruits and vegetables to consumers. I look back over these last few months and ponder what was accomplished, what has changed and what we could have done better. But one thing is clear: Our work to protect farm workers at the workplace as well as educate this community about prevention practices at home must continue to evolve and improve. The 2021 harvest season will be here before we know it. We must be ready.

  • Broccoli Rotations Lower Pathogen Populations and Reduce Disease Incidence of Verticillium Wilt

    In 1999, several UC researchers published foundational research in a paper titled, “Evaluation of broccoli residue incorporation into field soil for Verticillium wilt control in cauliflower.” Since this publication more than 20 years ago, many studies have further investigated this concept and many coastal growers, especially organic producers, have adopted broccoli rotations as a strategy for Verticillium wilt control. Today, typical implementation of this strategy is two broccoli plantings back to back prior to the crop for which Verticillium wilt suppression is desired. While California coastal vegetable production has been the framework for much of this work, the adaptability of this practice to the Sacramento Valley is very promising for management of Verticillium wilt in warm and cool season crops.

    Verticillium wilt is caused by the soilborne fungal pathogen Verticillium dahliae. Microsclerotia, the fungal inoculum that causes infection, dwell in the soil until root exudates stimulate germination and direct the fungal hyphae towards the root. In susceptible plants, infection occurs when hyphae enter the roots right behind the root tip, and continue growth into the water-conducting vascular tissue, the xylem. Once in the xylem, hyphal growth and sporulation can move the fungus into the upper plant tissue. Plant death triggers the fungus to a reproductive stage, prompting microsclerotia formation. When infected crop residue is incorporated into the soil, microsclerotia in the crop residue are incorporated, too. Management is particularly challenging because the pathogen host range is over 300 crops and the inoculum survive upwards of 13 years. To establish control of the pathogen, the key is to reduce inoculum—the number of microsclerotia, below levels damaging to susceptible crops.

    BROCCOLI SUPPRESSES VERTICILLIUM WILT AND DECREASES PATHOGEN PROPAGULES

    Broccoli is one of the few non-host vegetables and member of the Brassicaceae family. Bok choy, broccoli raab, Brussels sprouts, cabbage, cauliflower, Chinese cabbage, and rapini are susceptible to V. dahliae, as are black mustard, Indian mustard, oilseed rape, and turnip. In broccoli, no infection to minor infection from V. dahliae has been observed. In the case of minor infections, the pathogen does not progress beyond the roots and microsclerotia formation in the roots is repressed. Apart from the importance of selecting a non-host as a rotation crop, the glucosinolate profile of broccoli, the secondary compounds responsible for the toxic effect, differs from other brassicaceous crops

    Following broccoli residue incorporation, research out of Japan demonstrated Verticillium wilt incidence of eggplant decreased by 53% compared to eggplant without broccoli rotation. In California Cauliflower production, disease incidence and severity were both reduced approximately 50% following broccoli residue treatments.

    Broccoli did not just decrease disease incidence, but decreased the amount of pathogen inoculum, showing promise for longer term management. In a California study, overall reduction in the number of propagules in V. dahliae-infested plots after two broccoli crops was approximately 94%, in contrast to the five-fold increase in the number of propagules after two cauliflower crops. These findings corroborate earlier studies showing reductions in the numbers of soilborne microsclerotia of V. dahliae and incidence of wilt on cauliflower that were comparable to reductions caused by chloropicrin and metham sodium treatments. Importantly, following broccoli rotations, microsclerotia continue to decline through-out the following cropping season and remain low during the following season. In contrast, propagules in soil fumigated with chloropicrin and metham sodium declined initially but later returned to pre-treatment levels by the end of the cropping season.

    MECHANISM OF SUPPRESSION

    Shetty et al. (2000) reported that the effects of broccoli in reducing microsclerotia and suppressing disease may be associated with the following mechanisms: production of volatile antifungal substances such as allyl-isothiocyanate (ITC) by broccoli residue, increase in antagonistic microorganisms, and degradation of microsclerotia melanin by ligninase/melaninase produced by soil microorganisms in the presence of broccoli lignin. ITCs are chemically similar to methylisothiocyanate, the active agent from the chemical fumigant metam sodium. Likely associated with the ability to generate these conditions, fresh broccoli residue was shown to be more suppressive than dry residue. During tissue decomposition, the glucosinolates in crucifer crops, the characteristic sulfur-containing constituents of the members of Brassicaceae responsible for their inherent pungent odor, break down to produce sulfides, isothiocyanates, thiocyanates, and nitriles that have either fungistatic or fungicidal properties. In addition to release of toxic compounds and microbial activity provided by broccoli residue, the plant may be serving as a ‘decoy’, ‘trap crop’ or ‘dead end host’, further driving population numbers down. As described earlier, some V. dahliae infection is observed in broccoli roots, but it does not result in microsclerotia formation. By stimulating inoculum germination and preventing fungal reproduction, the number of viable microsclerotia decrease in the soil.

    GROWER IMPLEMENTATION OF RESEARCH FINDINGS

    To facilitate greater adaptation of rotations with broccoli in other crops susceptible to V. dahliae, Bhat and Subbarao asked the question whether isolates of V. dahliae originating from different susceptible hosts could cause wilt on broccoli. They evaluated 15 different host isolates against multiple broccoli varieties. This included tomato, eggplant, bell pepper, lettuce, potato, watermelon and strawberry, and found that only isolates from cabbage and cauliflower were weakly pathogenic. Broccoli cultivars Baccus, Greenbelt, Parasol, Patriot, and Symphony showed resistance to Verticillium infection. This provides some evidence for the usefulness of this method in other cropping systems.

    Implementation of broccoli rotations for Verticillium wilt management is optimized when two successive broccoli crops are grown immediately prior to desired Verticillium wilt reduction. Higher amounts of glucosinolates, specifically glucobrassicin, are found in older plants. Research has reported a complete absence of glucobrassicin in broccoli seedlings, 50% of the total in immature heads (5-10 cm diameter) and the highest levels at fully developed Packman broccoli heads (15-20 cm diameter). These results suggest that glucobrassicin synthesis is active during later stages of broccoli development. Plants should be mowed and finely chopped in order to disrupt the plant cells as much as possible. The greatest reductions in microsclerotia occur at soil temperatures above 68°F, and most of this reduction occurs within 15-30 days of incorporation. Variation in efficacy of this method is attributed to multiple factors: fluctuation in climate and cultivation conditions, physical and chemical properties of the soil, soil microbial properties, the type of broccoli cultivar used, differences in pathogen density, and variance in the susceptibility of the following crop host. The types and amounts of glucosinolates vary with the crucifer species and determine the level of plant pathogen growth reduction.

    This practice could also have other potential benefits and drawbacks. Growers in California have observed for many years that where broccoli residues from processing plants are dumped onto a field, weed populations are reduced the following year. Thus, rotations with broccoli may have multiple pest management benefits. However, in recent years in the Sacramento Valley, crop damage from bagrada bug has been significant. Although these outbreaks have largely occurred in fall, outbreaks have occurred in the spring in this region. Members of the Brassicaceae family are the host plants for bagrada and under favorable environmental conditions would support this pest population.

    This management strategy is specific to Verticillium dahliae and is not transferrable to other soilborne pathogens such as Fusarium spp.. Because these two pathogens are common in the Sacramento Valley and above ground symptoms are similar, diagnosis is important. Contact me at any time for disease diagnostic support. All visits and sample analyses are provided free of charge.

    Thousands of microsclerotia, small, black propagules of V. dahliae, formed on susceptible crop residue and remained intact post residue incorporation (Photo by M. Lloyd).

    SUMMARY

    • Two broccoli plantings immediately prior to growing the verticillium-susceptible crop is recommended for best protection
    • Fresh broccoli residue has greater reduction in V. wilt than dry residue
    • Field tarping following fresh residue incorporation did not increase (or decrease) efficacy
    • Suppression of V. dahliae is specific to broccoli and not provided by other Brassicaceae crops.
    • V. dahliae isolates from 15 host crops, including tomato, eggplant, bell pepper, lettuce, potato, watermelon and strawberry, were effectively suppressed by 5 broccoli cultivars
    • The most significant reduction in V. dahliae occurs 15 days post-incorporation, and continues to decline over the season.
    • More mature broccoli plants have higher levels of volatile antifungal substances
    • The mechanisms of action are hypothesized to include: volatile antifungal compounds, changes in the soil microbial communities and serving as a ‘dead-end host’.
    • Broccoli has been shown to reduce pathogens causing Verticillium wilt and lettuce drop, but not other soilborne pathogens such as Fusarium spp. — By Margaret Gullette Lloyd, UCCE Small Farms Advisor

    SUGGESTED READING

    Koike S, Subbarao K. 2000. Broccoli residues can control Verticillium wilt of cauliflower. Calif Agr 54(3):30-33. https://doi.org/10.3733/ca.v054n03p30.

    http://calag.ucanr.edu/archive/?type=pdf&article=ca.v054n03p30

  • Transform (sulfoxaflor) Full Label Could be a Major Benefit for Alfalfa IPM

    The California Department of Pesticide Regulation is currently reviewing the use of Transform (sulfoxaflor) for insect pest management in alfalfa hay production. A decision on whether to register Transform with a label for use in California alfalfa is expected to occur by the end of 2020. The registration of Transform has been so far deferred due to concerns of potential impacts on pollinators. Transform currently has a full EPA label for use in alfalfa hay in all other states, but not in California. 

    This is something California alfalfa growers and PCAs should pay attention to, and consider weighing in.

    Why is this of interest? California, with its mild climate, supports a wide range of sucking insects, including an array of alfalfa pests including blue alfalfa aphid (BAA), pea aphid (PA), spotted alfalfa aphid (SAA), cowpea aphid (CPA), as well as whitefly and leafhoppers.

    Figure 1. Blue Alfalfa Aphid Damage, Nevada, 2020. Growers in other states are able to use Transform to control this damaging pest.

    There have been major insect pest outbreaks in alfalfa in recent years (see article “The Blue Alfalfa Aphid: A continuing problem” ). Growers have struggled to control these devastating pests, unfortunately often spraying multiple times with broad-spectrum insecticides in attempts to control their damage. The BAA especially has become more difficult to control.

    This is a problem for several reasons: 1) These hard-to-control infestations have been economically devastating to California growers, 2) growers often use broad-spectrum insecticides which have the unfortunate effect of damaging beneficial predator populations (which help to control remaining pests) – see ‘Natural Enemies are Important”, and 3) over-use of the same insecticides can lead to insecticide resistance (see blog). These lead to environmental problems (excessive pesticide use), insecticide resistance, as well as high costs and low production.

    Diverse Tools Needed. Targeted and effective, aphid-specific tools for alfalfa are critically needed by this industry, which is losing insecticides (e.g. see ‘The End of Chlorpyrifos’) and has seen pests become increasingly difficult to control. Transform would be a useful tool to address this need.

    Figure 2. Blue alfalfa aphid (left) and Cowpea aphid (right) are commonly seen in alfalfa fields. The blue aphid is particularly difficult to control.

    Our data suggest that Transform works well for managing serious sucking insects like aphids, whiteflies, and leafhoppers that cause significant yield and quality losses in alfalfa. BAA continues to be challenging to control with significant yield and quality losses occurring statewide (See Blog ‘I’ll be Back’ from April, 2020). Stubble fields that are just breaking dormancy late winter are the most at risk of stand and yield losses. Small, growing plants are vulnerable to the toxins that BAA inject during feeding.

    Statewide Label Needed. Transform currently has a Section 24c Special Local Needs (SLN) in California for Siskiyou, Lassen, Modoc, and Shasta Counties for helping to manage BAA and other aphid pests, with restrictions (applications must occur between 7pm and 7am OR when the temperature is below 50 F at the site of application).

    Alfalfa growers would greatly benefit from a statewide label for Transform in alfalfa, similar to what is in place in other states, especially for southern regions which have seen devastating aphid infestations. Transform would be a good tool to have in alfalfa because UC Cooperative Extension (UCCE) research has shown that:

    1)      In UCCE low desert trials, Transform can have better efficacy controlling BAA than Sivanto (flupyradifurone), another aphicide registered for use in alfalfa.

    2)      Transform is softer on beneficial insects than currently registered pyrethroids, organophosphates, and carbamate insecticides, helping to prevent secondary pest outbreaks and resurgence of pests.

    3)      Transform provides growers with a much-needed tool to control multiple pests during a single growing season, including whiteflies, aphids, and leafhoppers, which unfortunately may take multiple insecticide applications otherwise.

    Restrictions.  CA-DPR also needs to address the restrictions in the current 24c SLN because they are problematic for several reasons:

    1)      UCCE research shows that night time or early morning dew on the alfalfa foliage may interfere with the efficacy of Transform, resulting in a 30% reduction in efficacy. This is important since yield damage can occur from blue alfalfa in just a few days.

    2)      For warmer regions of the Central Valley and the Low Desert regions (Palo Verde and Imperial Valley), restricting applications to < 50oF is nearly impossible to meet because BAA is most problematic in March when temperatures are often above this.

    3)      Keep in mind that forage alfalfa harvested in spring (when aphids are most damaging) is largely harvested in the bud stage, not flowering, lessening the risk to pollinators, especially given a 7-day pre-harvest interval, which is typically well before flowering.

    4)      Night-time applications are more dangerous for applicators. Worker health and safety is improved for daytime applications.

    Summary

    A full label for Transform would be of benefit to farmers and would help reduce the over-use of broad spectrum insecticides that we have observed taking place in attempts to control large aphid infestations. We have observed farmers unfortunately spraying multiple times (e.g. a pesticide treadmill), when a more focused aphid control measure would be more effective, and protect beneficial insects. UCCE research has shown that Transform provides excellent control of piercing-sucking insects like aphids, whiteflies, and leafhoppers, and would contribute to a diversity of tools to manage insect pests in an integrated way. Transform (sulfoxaflor) is a selective insecticide that is relatively safe for important aphid predators such as lady beetles and lacewings and thus contributes to goals of IPM. — By Dan Putnam, Rachael Long, Michael Rethwisch & Ian Grettenberger, UC Cooperative Extension