The California almond industry relies heavily on exports, and with a crop that continues to grow in volume every year, expanding those markets in the future will be critical. On the contrary, with the lack of resolution to the current international trade disputations, and now almond harvest well underway, the industry is naturally very concerned about how these issues will impact the marketing of this crop. Watch this brief interview with the Richard Waycott, President & CEO of the Almond Board for his insights on the topic. Read more about it in Pacific Nut Producer Magazine.
Category: Ag Economics
-
RBA Makes Record Price Offer on 2018 CA Raisin Crop
Raisin Bargaining Association Board Members gathered Monday evening (September 10th), and came up with a record high price offer for the 2018 California raisin crop. Watch this brief interview with RBA CEO Kalem Barserian as he shares the price and how they came to that number. Read more about it in American Vineyard Magazine.
Enjoy our Ag video news? Be sure to let our sponsor Duarte Nursery know & thank them for their industry support! -
CA Wine Market Trends & Thompson Green Price with Allied Grape Growers
Allied Grape Growers just held their 67th Annual Meetings in the Central Valley and North Coast, celebrated their success with Nat DiBuduo as President for the last 18 years, and welcomed Jeff Bitter stepping up as the new President & CEO of Allied. Watch this brief video with Jeff who shared the new leadership structure of Allied, discussed the current state of the wine grape industry & revealed the green price for Thompsons this year. Read more about it in American Vineyard Magazine.
Enjoy our Ag video news? Be sure to let our sponsor Duarte Nursery know & thank them for their industry support! -
USDA Estimates Record-Breaking 2018 Almond Crop
Forecast estimated at 2.45 billion pounds for the 2018 California almond crop
MODESTO, Calif. – Despite concerns earlier in the year about freezing weather during almond bloom, careful management by California farmers and newer orchards coming into production have resulted in a record-breaking crop according to the 2018 Almond Objective Measurement Report. This confirms earlier predictions from the 2018 Almond Subjective Forecast released in May.
Published today by the United States Department of Agriculture (USDA) National Agricultural Statistics Service – Pacific Regional Office (NASS/PRO), the Objective Report is the official industry crop estimate. The report finds that the 2018 crop estimate is up 7.9% from the 2017 crop production of 2.27 billion pounds.
“2018 looks to be a milestone year for California almonds with over one million almond-bearing acres now in California,” said Holly King, chair, Almond Board of California (ABC) and Kern County almond grower. “However, it is not just about the number of acres, it’s also about growing more almonds per acre. As we have grown in size, we have continued to find ways to grow almonds more efficiently, using fewer resources and leaving a smaller footprint per nut.”
The California almond community, through ABC, has invested nearly $70 million over more than 40 years to build a foundation of research on improving how almonds are grown, processed and consumed. This culture of continuous improvement brings benefits to local communities and the environment while helping farmers be responsible stewards of the land.
Today’s Objective Report follows the Subjective Forecast, which provides an early estimate of the coming crop after it has set on the trees. The Objective Report collects data later in the growing season, closer to harvest, and is based on an actual count of nuts on the trees. This year’s Objective Report projects an almond crop up 6.5% from the May forecast of 2.30 billion pounds.
“California is home to the world’s most efficient almond farmers, who produce more than 80 percent of the world’s supply,” said Richard Waycott, president and CEO, ABC. “The California almond community continues to meet the steadily growing demand for almonds, supporting healthy and diverse diets around the globe.”
Per the Objective Report, the average nut set per tree is 5,677, down 0.6% from the 2017 almond crop. The Nonpareil average nut set is 4,924, down 13.9% from last year’s set. The average kernel weight for all varieties sampled was 1.54 grams, down 1.9% compared to the 2017 average weight of 1.57 grams.
For More Information:
Ashley Bloemhof
(209) 531-7628
-
2018 CA Wine Grape Crop & Market Update with Nat DiBuduo
Special Thanks to This Video’s Sponsor! The 2018 California wine grape crop is well underway, and Nat DiBuduo, President of Allied Grape Growers, is predicting an average +4 million ton harvest this year. Watch this brief video with Nat as he explains more about the progress of the 2018 crop, as well as the current wine market trends the industry is experiencing across the state. Read more about it in American Vineyard Magazine. -
USDA Providing $8.89 Million for Risk Management Education
Applications Now Being Accepted
The U.S. Department of Agriculture’s (USDA) Risk Management Agency (RMA) today announced the availability of $8.89 million for risk management education and training programs. The funding will allow organizations such as universities, county cooperative extension offices, and nonprofit organizations to develop training and educational tools to help farmers and ranchers learn how to effectively manage long-term risks and challenges.Interested organizations may apply by submitting documentation required as part of the Risk Management Education Partnerships Request for Applications (RFA). The applications are then reviewed, and awardees enter into cooperative agreements that are managed by RMA’s Risk Management Education Division.
“Risk Management Education helps ensure that farmers and ranchers know and understand what tools are available to them and how to plan for unknown weather and financial situations. We work with private organizations to help us reach a wide range of producers, and connect them with resources from RMA, as well as from our partner agencies within USDA’s Farm Production and Conservation mission area, the Farm Service Agency and Natural Resources Conservation Service,” said RMA Administrator Martin Barbre.
Agriculture is an inherently risky business. The farm safety net provides producers and owners various methods to mitigate production and revenue risks and helps to maintain a healthy rural economy.
Available funding includes $4.73 million for the Crop Insurance Education in Targeted States Program for crop insurance education programs where there is a low level of Federal crop insurance participation and availability. The targeted states are Alaska, Connecticut, Delaware, Hawaii, Maine, Maryland, Massachusetts, Nevada, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Utah, Vermont, West Virginia, and Wyoming.
Additionally, $4.16 million in funding is available for the Risk Management Education Partnership Program, which provides funding for the development of general nationwide crop insurance education as well as other risk management training programs for producers.
A broad range of risk management training activities are eligible for funding consideration under these programs, including training on Federal crop insurance options, risk analysis, and changes to the crop insurance program. Partners also can train farmers at all levels on risk management options that help secure local food systems and strengthen rural communities.
Information about how to apply to these programs is available at Grants.gov (www.grants.gov). For information about the Risk Management Partnership program, search by catalog of federal domestic assistance (CFDA) for 10.460 and information on the Crop Insurance Education in Targeted States can be found by searching for 10.458.
Applications for both programs are due by 5:00 p.m. EDT on July 30, 2018. All applications must be submitted electronically through the Results Verification System website (rvs.umn.edu) and received by the deadline.
For the 2017 crop year the Federal crop insurance program insured 311.4 million acres, with 1.12 million policies and $106 billion worth of coverage as of May 4, 2018.
RMA works with private partners to assist producers, especially limited resource, socially disadvantaged and other traditionally underserved farmers and ranchers, in effectively managing long-term risks and challenges. For more information about RMA, its programs, or to volunteer to serve as a reviewer, visit www.rma.usda.gov.
-
CA Wine Sales Hit $35.2 Billion in U.S. Market
California wine shipments in the U.S. reached an estimated retail value of $35.2 billion in 2017, up 3% from the previous year. The state shipped 241 million nine-liter cases in the U.S. in 2017, up 1%.California wine sales to all markets, including shipments to the U.S. and exports worldwide, were 278 million cases in 2017.
“Consumers in the U.S. and worldwide continue to trade up to higher-priced premium wines,” said Robert P. (Bobby) Koch, Wine Institute President and CEO. “The quality, selection and commitment to sustainability make California wines well-positioned for growth.”
“California wine sales in the U.S. market have grown 15% in the past decade from 209 million cases shipped in 2008 to 241 million cases in 2017,” said Jon Moramarco, founder and managing partner of BW166, and editor of the Gomberg-Fredrikson Report. “Last year the growth mainly came from premium wines priced over $10.”
According to Moramarco, demographic trends play a significant role in wine sales. While per capita consumption has been flat over the last decade, wine sales have grown in line with the legal drinking age population, which increased roughly 10 percent over the same time period. Additional trends impacting sales included wineries focusing on tasting room and direct-to-consumer sales, which accounted for nearly $2.7 billion in retail value and 5.8 million cases in 2017. Wineries also found opportunities in independent, local restaurants with wine menus listing limited production wines to appeal to consumers shifting their spending to these smaller eating establishments.
“Wine is growing but in a more challenging environment, with rapid and broad retail and consumer changes,” said Danny Brager, Senior Vice President of Nielsen’s Beverage Alcohol Practice Area. “Wine selling locations in the U.S. are up 20% from a decade ago to 565,000 off- and on-premise locations, with a wide range of formats such as natural/gourmet grocery stores, no frills/value-based formats, theaters, premium bars and fast/casual on-premise outlets. There is also a diverse range of consumers, from Millennials who have less disposable income than a generation ago to Baby Boomers who are retiring and likely slowing their wine consumption as an increasing number of Americans are entering their golden years. Marketers need to find the right balance in attracting these diverse sets of consumers. E-commerce is increasingly having an impact on expanding consumer access to wine, and wineries are working on several digital platforms where wine is being sold,” he explained.
According to Nielsen-measured U.S. off-premise sales, top-selling varietals by volume are: Chardonnay, Cabernet Sauvignon, Red Blends, Pinot Grigio/Gris, Pinot Noir, Sauvignon Blanc, Merlot, Moscato/Muscat, Rosé and White Zinfandel/Blush. Rosé continues to be a phenomenal growth story, with sales volume jumping 60% compared to the previous year.
Total shipments of sparkling wine and champagne to the U.S. reached 26.3 million cases in 2017. Up 8% from the previous year, sparkling wines/champagnes accounted for a 7% share of the U.S. wine market.
The U.S. Wine Market
Wine shipments to the U.S. from all production sources — California, other states and foreign producers — grew 1% to 403.4 million cases in 2017, with an estimated retail value of $62.2 billion, up 2% from the previous year. The U.S. has remained the world’s largest wine market by volume since 2010. California’s 241 million cases shipped within the U.S. in 2017 represent a 60% share of the U.S. wine market.U.S. Wine Exports
U.S. wine exports, more than 90% from California, reached $1.53 billion in winery revenues in 2017. Volume shipments were 380 million liters or 42.2 million cases. The European Union’s 28-member countries were the top market for U.S. wine exports, accounting for $553 million; followed by Canada, $444 million; Hong Kong, $119 million; Japan, $94 million; China, $79 million; South Korea, $25 million; Mexico, $23 million; Singapore, $17 million; and Philippines, $14 million.CALIFORNIA WINE SHIPMENTS1
(In millions of 9-liter cases)Year California Wine Shipments to All Markets in the U.S. and Abroad2 California Wine Shipments to the U.S. Market2 Estimated Retail Value of CA Wine to U.S.3 2017 277.9 240.7 $35.2 billion 2016 279.7 239.1 $34.3 billion 2015 278.2 233.7 $32.6 billion 2014 273.0 229.7 $31.3 billion 2013 263.8 221.2 $29.7 billion 2012 250.4 210.8 $29.0 billion 2011 265.5 224.3 $28.5 billion 2010 246.1 206.3 $28.5 billion 2009 253.2 213.8 $27.6 billion 2008 255.3 208.8 $26.1 billion 2007 241.2 198.3 $24.8 billion 2006 235.8 196.9 $24.4 billion 2005 231.6 194.1 $23.0 billion 2004 226.3 182.4 $22.2 billion 2003 211.9 177.0 $20.8 billion 2002 195.4 168.3 $21.5 billion Sources: Wine Institute, BW166/Gomberg, Fredrikson & Associates and U.S. Dept. of Commerce. Preliminary. History revised.
1Includes table, champagne/sparkling, dessert, vermouth, other special natural, sake and others. Excludes cider.
2Excludes bulk imports bottled in U.S.
3Estimated retail value includes markups by wholesalers, retailers and restaurateurs.WINE SALES IN THE U.S
(Wine shipments in millions of 9-liter cases from California,
other states and foreign producers entering U.S. distribution)Year Table Wine1 Dessert Wine2 Sparkling Wine/
ChampagneTotal Wine Total Retail Value3 2017 336.3 40.8 26.3 403.4 $62.2 billion 2016 333.2 41.2 24.4 398.8 $61.1 billion 2015 325.6 40.2 21.7 387.5 $57.4 billion 2014 323.7 34.6 20.6 378.8 $55.5 billion 2013 327.0 31.6 18.9 377.5 $52.3 billion 2012 319.5 30.3 17.9 367.7 $50.8 billion 2011 308.1 31.4 17.5 357.0 $48.6 billion 2010 290.8 28.9 15.4 335.0 $46.5 billion 2009 282.4 27.2 14.0 323.5 $45.2 billion 2008 272.2 27.7 13.6 313.5 $45.0 billion 2007 272.5 26.7 13.9 313.0 $43.5 billion 2006 258.8 24.3 13.6 296.7 $41.5 billion 2005 255.4 22.5 13.1 290.9 $38.5 billion 2004 245.3 20.3 13.2 278.8 $36.2 billion 2003 237.0 17.6 12.0 266.6 $34.0 billion 2002 222.5 15.9 11.5 250.0 $33.0 billion Sources: Wine Institute, U.S. Dept. of Commerce, and Estimates by BW166/Gomberg, Fredrikson & Associates. Preliminary. History revised. Excludes exports. Excludes cider as of 2011 going forward. Totals may not add up exactly due to rounding.
1Includes all still wines not over 14 percent alcohol, including bulk imports bottled in the U.S.
2Includes all still wines over 14 percent alcohol and sake, including bulk imports bottled in the U.S.
3Estimated retail value includes markups by wholesalers, retailers and restaurateurs. Includes on- and off-premise expenditures. -
NEW STUDY REVEALS CA CITRUS ECONOMIC IMPACT
Citrus Research Board Quantifies Industry ImportanceThe total economic impact of California’s iconic citrus industry is $7.117 billion according to a new study commissioned by the Citrus Research Board (CRB).
Bruce Babcock, UC Riverside “In updating our economic analysis, we selected a well-known expert, Bruce Babcock, Ph.D., a professor in the School of Public Policy at the University of California, Riverside, to conduct the research. His findings quantified the significant impact of citrus on California’s economic well-being,” said CRB President Gary Schulz.
According to Babcock, the California citrus industry added $1.695 billion to the state’s Gross Domestic Product (GDP) in 2016. “California citrus is a major contributor to the economic value of the state’s agricultural sector and is much larger than just the value of its sales,” he said. “Estimated full-time equivalent California citrus jobs totaled 21,674 in 2016-17, and estimated wages paid by the industry during that same timeframe totaled $452 million.”
Babcock added, “The application of management skills and capital equipment to efficiently utilize land and water to produce high-quality citrus also generates upstream and downstream jobs and income that magnify the importance of citrus production beyond its farm value.”
In 2016-17, the most recent marketing year of data compilation, Babcock found that the total direct value of California citrus production was $3.389 billion. This value generated an additional $1.263 billion in economic activity from related businesses that supplied materials and services to the citrus industry. Layered on top was another $2.464 billion in economic activity generated by household spending income that they received from California’s industry, according to Babcock, thus rendering a total economic impact of $7.117 billion.The study revealed that 79 percent of California’s citrus was packed for the fresh market and 21 percent was processed in 2016-17, which is economically significant because fresh market fruit has a higher value than processed fruit.”
Of further note, California produced about 95 percent of all U.S. mandarins in the most recent reporting season.
Joel Nelsen, President of the California Citrus Mutual California Citrus Mutual President Joel Nelsen commented, “The “wow” factor in this report is something as it relates to gross revenues and positive impact for the state, people and local communities. This enthusiasm must be tempered by the fact that huanglongbing (HLB) can destroy all this in a matter of a year if the partnerships that exist between the industry and government cannot thwart the spread of this insidious disease. Just this week, coincidentally, Brazil authorities reported a 20% reduction in fruit volume. Reading how that would affect our family farmers, employees and the state is sobering.”
The CRB study also looked at the possible impact of a potential 20 percent reduction in California citrus acreage or yield or a combination of the two that could result from increased costs associated with meeting government regulations, combatting the Asian citrus psyllid (ACP) and warding off the invasion of HLB, a devastating disease that has decimated citrus production in many other growing regions such as Florida. Babcock calculated that such a reduction could cause a loss of 7,350 jobs and $127 million in associated employment income and could reduce California’s GDP by $501 million in direct, indirect and induced impacts. The CRB currently is devoting most of its resources to battling ACP and HLB to help ensure the sustainability of California citrus.
Babcock is a Fellow of the Agricultural and Applied Economics Association and has won numerous awards for his applied policy research. The economist received his Ph.D. in Agricultural and Resource Economics from the University of California, Berkeley and his Masters and Bachelors degrees from the University of California, Davis.
The CRB administers the California Citrus Research Program, the grower-funded and grower-directed program established in 1968 under the California Marketing Act as the mechanism enabling the State’s citrus producers to sponsor and support needed research. Read the full report on the “Economic Impact of California’s Citrus Industry” Here.