California Ag Network

Category: Ag Legislation

  • State Farm Service Agency Director named Almond Champion of the Year

    Connie Conway, Director of the USDA Farm Service Agency in California, has been honored as the Almond Alliance of California’s 2020 Almond Champion of the Year for the agency’s outstanding efforts in assisting almond growers with the Coronavirus Food Assistance Program (CFAP.)

    The Almond Champion of the Year Award is presented annually to those who have demonstrated extraordinary leadership in education, coalition building, partnerships and promoting legislation and policies that encourage the advancement and protection of California agriculture and the California almond industry.

    The CFAP consists of direct payments to almond growers for losses suffered as a result of COVID-19 as well as disruptions to the supply chain. The Almond Alliance advocated for federal funding for the original program and the subsequent program known as CFAP 2. To date, the California almond community has received over $125 million through the programs.

    The Farm Service Agency (FSA) administers the funding and provides technical assistance to potential applicants. Almond Alliance Chair Mike Curry praised Conway for her leadership in providing access to the program. “Some of these programs can be incredibly technical and complex. Connie and her team have been very attentive and worked with our industry members above and beyond what would normally be expected,” he explained. “Her team has conducted numerous educational webinars for our members and addressed literally hundreds of questions about the program and how it works. Her leadership and commitment to excellence in providing this assistance during these unprecedented times is truly appreciated.”

    Prior to her appointment, Conway ran her own consulting business, focusing on strategic planning, business development, and government relations services. She also served as an assemblywoman for the California State Legislature where she served as Minority Leader and on the Agriculture, Transportation, Labor and Health Committees. She also served as a member of the Tulare County Board of Supervisors.

    About the Almond Alliance of California

    The Almond Alliance of California (AAC) is a trusted non-profit organization dedicated to advocating on behalf of the California almond community. California almonds generate more than $21 billion in economic revenue and directly contribute more than $11 billion to the state’s total economy. California’s top agricultural export, almonds create approximately 104,000 jobs statewide, over 97,000 in the Central Valley, which suffers from chronic unemployment. The AAC is dedicated to educating state legislators, policy makers and regulatory officials about the California almond community. As a membership-based organization, our members include almond processors, hullers/shellers, growers and allied businesses. Through workshops, newsletters, conferences, social media and personal meetings, AAC works to raise awareness, knowledge and provide a better understanding about the scope, size, value and sustainability of the California almond community.


    For more information on the Almond Alliance, visit https://almondalliance.org/ or check out the Almond Alliance on Facebook, Twitter and Instagram.

  • Referendum on CA Dairy Quota Reform Proposal Recommended by Administrative Judge

    United Dairy Families of California — Judge Timothy Aspinwall issued a recommended decision today that United Dairy Families of California’s petition to sunset the Quota Implementation Plan (QIP) and equalize Regional Quota Adjusters (RQAs) must move forward to a referendum.

    The judge’s decision confirmed that the petition submitted to the California Department of Food and Agriculture (CDFA) met all legal and procedural requirements. The Order of Decision is now before CDFA Secretary Karen Ross, who will make the final determination on whether or not a referendum will be held.

    The petition was born out of a multi-year effort led by United Dairy Families, a volunteer organization of dairy farmers seeking to unite the California dairy industry. United Dairy Families held over twenty meetings around the state and solicited input from hundreds of producers to determine a fair process to resolve the current dispute over the QIP.

    Economists Dr. Marin Bozic and Matt Gould provided expert analyses of multiple plans that aided dairy producers in their decision to move forward with the sunset plan to the QIP.

    United Dairy Families submitted over 300 signed petitions from dairy producers to CDFA in June, which initiated the referendum process. A hearing on the petition was held on September 30, 2020, during which Judge Aspinwall heard testimony and arguments from United Dairy Families, interested organizations SAVE QIP and STOP QIP, and additional testimony from various producers.

    United Dairy Families is pleased with Judge Aspinwall’s decision, and hopes Secretary Ross will affirm the recommended decision and direct that the petition proceed to a referendum.

  • $6.3 Million to Help UC Riverside Save Avocado Orchards

    New grants totaling $6.3 million will help UC Riverside solve problems facing American avocado orchards, including a lethal fungal disease called Laurel Wilt.

    Laurel Wilt can destroy an entire avocado orchard in a couple of weeks once symptoms develop. It is already present in Florida. Without effective treatments, it will inevitably spread to California, which is the nation’s leading producer of avocados.

    Laurel Wilt is caused by a fungus, Raffaelea lauricola, that the non-native redbay ambrosia beetle introduces in trees of the Laurel family, which includes avocado.

    The non-native redbay ambrosia beetle, which carries the fungus causing deadly Laurel Wilt. (UCR)

    “When the beetle attacks, the fungus enters and colonizes the tree’s vascular system, and within weeks, the tree wilts and dies if not managed properly,” said Patricia Manosalva, director of this project as well as UCR’s Avocado Rootstock Breeding Program.

    In addition to Laurel Wilt, avocado growers face numerous production challenges including devastating diseases such as Phytophthora root rot, or, PRR, and soil salinity, which in combination cause severe reduction in fruit yield and quality. This combination can also completely destroy avocado orchards.

    Avocado roots darkened and killed by Phytophthora root rot. (David Rosen/UCR)

    Avocado is also highly sensitive to salinity. Increasing levels of salinity in water and soil due to drought and the use of reclaimed water for crop irrigation purposes threatens avocado production worldwide.

    To combat the threats, the USDA’s National Institute of Food and Agriculture Specialty Crop Research Initiative has awarded UC Riverside $4.4 million. The grant will enable the development of next-generation technological solutions to these problems over the next four years in partnership with scientists at the universities of Hawaii, Florida, Texas, and Milan.

    The same grant will enable research on both short- and long-term solutions for managing avocado PRR, the major hindrance for avocado production worldwide, Manosalva said.

    “Under this grant we will select rootstocks harboring resistance to the current pathogen population and we will register new fungicides with different modes of actions to reduce avocado losses to this destructive oomycete pathogen,” Manosalva said.

    The UCR rootstock breeding program has already identified advanced rootstock lines that are tolerant to salinity and P. cinnamomi, the pathogen that causes PRR. These rootstocks may also confer resistance or tolerance to Laurel Wilt when grafted with different varieties. Field trials of these rootstocks will be conducted in California, Florida, Texas, Hawaii and Puerto Rico and will be screened for resistance at University of Florida.

    Another approach to mitigating avocado threats will be the further development of remote field sensors that can detect and differentiate drought from high salinity and Phytophthora root rot. UCR initially developed prototypes of these sensors and tested them in greenhouses. This grant will enable researchers to improve the sensors and test them in fields.

    Manosalva notes that UC Riverside is unique in having a highly recognized avocado breeding program first developed 70 years ago.

    “We’ve been developing agricultural science for a long time,” she said. “This grant will allow us to keep moving the UCR rootstock breeding program forward and continue developing hearty avocado rootstocks.”

    Through the Office of Technology Partnerships, UCR currently has three rootstocks available for licensing in the U.S. and may have up to five new rootstocks available in the next few years. The new rootstocks could provide increased tolerance to diseases, drought, heat, and soil salinity.

    In a related grant, the USDA’s National Institute of Food and Agriculture, Organic Agriculture Research and Extension Initiative awarded $1.9 million to a team of 15 scientists from five universities and the USDA Agricultural Research Service, or USDA-ARS. The grant will allow the researchers to study whether essential oils can help suppress certain pathogens and pests.

    Researchers from the University of Florida, Clemson University, the University of Georgia, the University of Hawaii at Manoa and the USDA-ARS as well as UC Riverside will collaborate on the project.

    Producers of essential oils claim their products may be able to treat plant pathogens such as gray mold, powdery mildew, algal stem blotch and brown rot as well as insects including mites, thrips and scales. This grant will enable the team to evaluate those claims.

    Manosalva said both grants underscore the importance of funding basic research in agricultural science. “California’s produce feeds the nation, and the world,” she said. “Our science will help feed people and empower growers everywhere.” — By Jules Bernstein, UC Riverside

    About UC Riverside

    The University of California, Riverside (www.ucr.edu) is a doctoral research university, a living laboratory for groundbreaking exploration of issues critical to Inland Southern California, the state and communities around the world. Reflecting California’s diverse culture, UCR’s enrollment is more than 24,000 students. The campus opened a medical school in 2013 and has reached the heart of the Coachella Valley by way of the UCR Palm Desert Center. The campus has an annual statewide economic impact of almost $2 billion. To learn more, email news@ucr.edu.

  • Tom Vilsack to Return as Secretary of Agriculture

    President-elect Joe Biden has nominated Tom Vilsack to serve as Secretary of Agriculture. Former U.S. Agriculture Secretary, Tom Vilsack currently serves as president and CEO of the U.S. Dairy Export Council. He took the position in February 2017 after serving eight years as the nation’s 30th Secretary of Agriculture.

    According to the U.S. Dairy Export Council, “Vilsack worked hard to strengthen the American agricultural economy, build vibrant rural communities and create new markets for the tremendous innovation of rural America. In eight years at the Department, Vilsack fought to put Americans back to work and create an economy built to last. Under his leadership, USDA supported America’s farmers, ranchers and growers who are driving the rural economy forward, provided food assistance to millions of Americans, carried out record conservation efforts, made record investments in our rural communities and helped provide a safe, sufficient and nutritious food supply for the American people.”

    “Vilsack was the longest-serving member of President Obama’s original Cabinet. Prior to his appointment, he served two terms as the Governor of Iowa, in the Iowa State Senate and as the mayor of Mt. Pleasant, Iowa. Vilsack received his bachelor’s degree from Hamilton College and his law degree from Albany Law School in New York.”

    “Vilsack has been honored for his public service and work to advance American agriculture by the Congressional Hunger Center, Global Child Nutrition Foundation, U.S. Global Leadership Coalition, National Corn Growers Association, American Farm Bureau, and National Farmers Union. A native of Pittsburgh, Pennsylvania, Vilsack was born into an orphanage and adopted in 1951. After graduating from law school, Vilsack moved to Mt. Pleasant Iowa, his wife Christie’s hometown, where he practiced law. The Vilsacks have two adult sons and two daughters-in-law-Doug, married to Janet; and Jess, married to Kate. They also have four grandchildren.”

    Regarding Vilsack’s nomination, American Farm Bureau President Zippy Duvall shared, “The American Farm Bureau Federation welcomes the news that Tom Vilsack will be nominated to be Secretary of Agriculture. His leadership as the 30th Secretary of Agriculture and as Governor of a state reliant on agriculture is evidence of his qualification to serve in this role. Tom Vilsack understands that the agriculture sector is far more complex than most people understand. He believes in a ‘big tent’ philosophy that supports all types of production and understands the importance of respecting farmers and ranchers as partners worthy of support in the race to achieve sustainability goals.”

    “Tom and I built a good relationship during his first term as Ag Secretary and we’ve built on that relationship in his current role with the U.S. Dairy Export Council. I look forward to sitting down with him again to continue our conversation on how to address the opportunities and challenges facing agriculture and rural communities. The pandemic revealed both the strengths and weaknesses of our food system, which Tom has had a front row seat to witness.”

    “Together, we must prepare to tackle a new farm bill and build on efforts to create a fair marketplace for U.S. agriculture to compete globally. It is essential we ensure climate policies respect farmers and remain market-based and voluntary. And, we must end the digital divide that puts rural America at a disadvantage.”

    “Tom Vilsack earned a reputation for rising above partisanship to serve farmers and ranchers and I’m confident he’ll continue to do so. The American Farm Bureau stands ready to support Tom and work closely with him knowing his success as Ag Secretary correlates directly with America’s farmers and ranchers, as well as our rural communities, having the support they need to flourish.”

    National Milk Producers Federation President and CEO Jim Mulhern added, “Tom Vilsack has dedicated his life to service. While we will miss him as a colleague and friend, all of us in the dairy community who have had the opportunity to work with him over the past four years know his deep passion and commitment to rural America and his understanding of its interdependence with our urban and suburban communities. The challenges that lie ahead are many – from a battered farm economy to climate change, the environment and sustainability, to nutrition and the importance of addressing the nation’s growing food insecurity, as well as the need for better trade policy and expanded markets abroad, and much more. No one is better suited to tackle these challenges than Tom Vilsack. We applaud President-elect Biden’s decision, and we look forward to Secretary Vilsack’s next chapter of leadership in American agriculture.”

    Michael Dykes, president and CEO of the International Dairy Foods Association shared, “The International Dairy Foods Association is pleased to see news of Mr. Vilsack’s expected nomination to lead USDA by President-Elect Biden. As Mr. Vilsack knows well, one-fifth of the nation’s economy is linked, either directly or indirectly, to the food and agriculture sectors, supporting more than 45 million jobs and trillions in wages. An experienced mayor, governor and two-term Agriculture Secretary in a previous administration, Mr. Vilsack has the knowledge and understanding to hit the ground running and make immediate progress on pressing issues facing food, agriculture and the rural economy. He has seen first-hand the pandemic’s impact on health and jobs, and we’re hopeful that with his guidance, we can continue to protect our essential workforce so they can feed our nation. To that point, the nation’s food security will be his top priority upon taking office, and IDFA offers our partnership in finding creative ways to reduce hunger and improve access to nutritious foods including dairy. On behalf of the men and women working across the dairy industry—from farms to processing facilities to retail and distribution hubs—IDFA looks forward to working with Mr. Vilsack and his team to make dairy central to solutions. Together, we can enhance economic progress for food producing communities and strengthen export opportunities, unleash innovation to safeguard our food and advance nutrition solutions, and create a more sustainable footprint for our food and agriculture sector.”

    John Piotti, President and CEO of the American Farmland Trust shared, “American Farmland Trust congratulates Tom Vilsack on being nominated as Secretary of Agriculture by President-elect Joe Biden. At a time when farmers are struggling in the face of a global pandemic, his experience will help USDA tackle these challenges on day one of the new administration. We especially look forward to working with him to advance farmland protection, provide farmers the tools to address climate change, create a more inclusive agricultural system, and widen the doors of participation to a new, diverse generation of producers.”

    Julie Anna Potts, president and CEO of the North American Meat Institute also sustained the nomination, and said, “Secretary Vilsack brings experience and leadership to the Department of Agriculture at a critical time when the meat and poultry industry works to put food on American’s tables and to keep the farm economy working in a pandemic. We look forward to working closely with Secretary Vilsack in his new role to ensure our industry remains a valuable partner to livestock producers, an efficient supplier to consumers and competitive in the international marketplace.”

  • California Horticulture Sales Reach $2.63 Billion in 2019

    On Tuesday, December 8, the U.S. Department of Agriculture’s National Agricultural Statistics Service (NASS) released the 2019 Census of Horticultural Specialties report, the only source of detailed production and sales data for floriculture, nursery, and specialty crops for the entire United States. The data show that horticulture operations in California sold a total of $2.63 billion in floriculture, nursery and specialty crops in 2019, down 9% from the sales in 2014. California sold 19% of the total U.S. horticulture sales of $13.8 billion in 2019, more than any other state. In addition to sales, the number of horticulture operations in California decreased 22% during this time to 1,331, and the number of operations in the United States decreased 11% during this time to 20,655.

    “The horticulture census is a vital tool that highlights the contribution horticulture growers bring to our local, state, and national economies,” said Pacific Region Director Gary R. Keough. “It shows changes and trends in the industry over the past five years and beyond.”

    Horticulture production occurred primarily in 10 states, which accounted for 66% of all U.S. horticulture sales in 2019. California ($2.63 billion), Florida ($1.93 billion) and Oregon ($1.02 billion) led the nation in sales.

    The top five commodities in California horticulture sales in 2019, and compared to 2014, were:

    ·         Nursery stock, $831 million, down 13%
    ·         Potted flowering plants, $322 million, up 7%
    ·         Transplants for Commercial Vegetable and Strawberry, $266 million, up 4%
    ·         Cut flowers & cut lei flowers, $249 million, down 26%
    ·         Annual bedding/garden plants, $232 million, up 6%
     
    Other key findings for California from the 2019 Census of Horticultural Specialties report include:

    ·         Family- or individually-owned operations made up the largest number of operations, accounting for 48%, but corporately-owned operations accounted for 80% of sales ($2.11 billion).

    ·         Total industry expenses were at $2.21 billion in 2019, with hired labor being the largest cost, accounting for 36% of total expenses.

    The Census of Horticultural Specialties is part of the larger Census of Agriculture program. It provides information on the number and types of establishments engaged in horticultural production, value of sales, varieties of products, production expenses and more. All operations that reported producing and selling $10,000 or more of horticultural crops on the 2017 Census of Agriculture were included in this special study.

    For more information and to access the full report, visit www.nass.usda.gov/AgCensus.

    CA.Census_of_Hort_press_release_12092020

  • 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.