California Ag Network

Category: Non-Video

  • US Tree Nuts Dominate EU Market, Consumer Demand Surges

    In 2019, U.S. shipments of tree nuts to the EU-28 (EU-27+UK) reached $3.1 billion. The United States continues to be the largest supplier of tree nuts to Europe. While EU investment and production of tree nuts continue to increase, production is still far from meeting domestic demand. Confinement measures during the height of the COVID-19 pandemic changed EU consumer habits. As consumers spent more time at home, demand for tree nuts, as a healthy snack option and as a home baking ingredient, grew compared to previous years. The evolution of consumer demand in the fall, the annual peak for tree nut consumption, will determine the extent to which this new consumption level will remain in the long term. 

    Executive Summary

    The EU Market: A Key Trading Partner for U.S. Tree Nuts

    The European Union-28 (EU-27+UK) is the largest export market for U.S. tree nuts absorbing 34 percent of total U.S. tree nuts exports in 2019. East Asia followed importing 23 percent while the Middle East imported 13 percent.

    In 2019, U.S. shipments of tree nuts to the EU-28 reached $3.1 billion. Sales of U.S. almonds (both in- shell and shelled) totaled close to $1.8 billion, followed by pistachios with $609 million and walnuts with almost $328 million. Within the EU, the most significant importers of U.S. tree nuts (in order of importance) are Spain, Germany, and the Netherlands, accounting for 64 percent of total imports.

    The United States continues to be the largest supplier of tree nuts to Europe, with 41 percent of the market share (in value) in 2019. Turkey ranks second with a market share of 20 percent, followed by Vietnam, Chile, and China. Almonds continue to be the main imported tree nut with almost 24 percent of the total EU tree nuts imports. These numbers prove the importance of the United States as an agricultural trading partner to the EU.

    The Food Processing and the Snack Industry Remain the Most Significant Buyers

    The growing popularity of healthier snacking and eating habits among European consumers continues to encourage consumption of nuts, both tree nuts and ground nuts. The fight against cardiovascular diseases, the desire for general health and wellbeing, along with the publication of scientific studies highlighting the benefits of nut consumption, are likely to continue fueling demand for these products.

    In addition, the European food processing and snack industry are the largest users of tree nuts both as an ingredient (for traditional sweets and pastries), and for re-processing and re-export to third countries. Almonds are mainly used as an ingredient for the manufacturing of marzipan, nougat, turron (a Spanish traditional Christmas confection), and many other pastries and sweets. European food manufacturers also use walnuts and pistachio nuts as an ingredient for manufacturing ice cream and confectionaryproducts.

    The snacking industry is channeling its efforts to offer consumers new products and new ways to consume nuts. Thus, due to the mature nature of the European market, EU manufacturers are focusing their strategies on launching new value-added innovative products rather than focusing on volume sales. They continue to emphasize the health benefits of tree nuts, both through advertising campaigns and in packaging.

    Confinement measures in response to the COVID-19 pandemic slightly changed EU consumer habits. As consumers spent more time at home, traditional consumers increased their demand for tree nuts, as a healthy snack option but also as a home baking ingredient. In addition, a wave of new consumers also fueled the growth in household tree nut demand. With the end of confinement measures, it is reasonable to assume that some of these new consumers will continue purchasing tree nuts. The evolution of demand in the fall, the traditional annual peak for tree nut consumption, will also determine the extent to which this new consumption level will remain in the long term.

    Expanding business in the EU market

    Since the EU remains a key export market for U.S. tree nuts, exporters continue to explore ways to expand their overseas business. Trade shows are an excellent opportunity to get to know the market and to meet potential importers. Some of Europe’s leading trade shows are:

    USDA-Endorsed Trade Shows

    Anuga October 9-13, 2021 Cologne, Germany
    Trade fair for the international food industry. In 2019, 7,500 exhibitors from 167 countries and 170,000 visitors determined the success of this show.

    SIAL October 15-19, 2022 Paris, France
    One of the largest and most important international marketplace for foodservice professionals, with 7,200 exhibitors and 160,000 visitors.

    Fruit Logistica February 3-5, 2021 Berlin, Germany
    Europe’s main international fresh produce trade show with more than 3,000 exhibitors and 78,000 visitors.

    Biofach February 17-20, 2021 Nuremberg, Germany
    World’s leading trade fair for organic food covering food, drinks and non-food products, with 3,218 exhibitors and 50,000 trade visitors from 134 countries participating in the previous edition.

    Other Relevant (Non-Endorsed) Trade Shows

    Food Ingredients Health Ingredients PLMA
    Alimentaria Snackex

    December 1-3, 2020 December 1-3, 2020 December 2-3, 2020 May 17-20, 2021 June 16-17, 2021

    Frankfurt, Germany Frankfurt, Germany Amsterdam, Netherlands Barcelona, Spain Hamburg, Germany

    New-to-market exporters interested in getting a better understanding of EU food regulations and market opportunities are encouraged to reference the EU-28 Food and Agricultural Import Regulations and Standards (FAIRS) reports and Exporter Guides produced by various EU FAS Offices.

    U.S. Cooperators Active in the EU Market

    Trade associations like the Almond Board of California, American Pistachio Growers and the California Walnut Commission continue to develop strategies for the EU market. These trade associations, in cooperation with FAS offices, work actively to further develop the market for U.S. tree nuts. 

    Almonds, Shelled Basis

    Production

    The European Union is one of the world’s leading producers and consumers of almonds. Furthermore, the EU is the single largest export market for California almonds with Spain as the leading European importer. Every year, California almond production is exported to more than 100 countries worldwide, and the EU-28 represents almons 40 percent of all California’s almond exports.

    Spanish almond production continues its upward trend. Currently, high almond prices are increasing the number of hectares dedicated to almond planting as an alternative to less profitable crops. In recent seasons, new almond varieties, more modern irrigation techniques, and good prices have made the almond crop more profitable for investors and improved industry expectations.

    For MY 2020/21, the latest official forecast published by the Ministry of Agriculture, Fisheries and Food (MAPA) estimates a production of 108,303 MT (shelled basis). This preliminary figure denotes an increase close to 8 percent compared to previous year’s crop due to favorable weather conditions during the flowering, lack of significant frosts and above average levels of rain in the winter and the beginning of the spring, in addition to the new production areas with integrated irrigation systems.

    Italy is the second largest EU-28 almond producer after Spain. Sicily and Puglia are the main almond- producing areas, collectively accounting for approximately 88 percent of total supply. Tuono, Pizzuta d’Avola, Fascionello, Filippo Ceo, Fragiulio Grande, Genco, Falsa Barese, Ferragnés are the leading varieties grown in the country. Italy’s marketing year (MY) 2020/21 almond production is forecast to significantly drop from the previous season as reduced volumes in Puglia (due to heavy frosts occurred at the end of March) were not compensated by increased quantities in Sicily. Quality is expected to be excellent in Puglia and good in Sicily.

    Table 1. Major EU Almond Producers by Volume in MT (Shelled Basis)

    Consumption

    Nuts consumption continue to grow, since they are considered a great alternative to healthy snacking. Due to the increasing awareness of healthy lifestyles, nuts are becoming increasingly popular all- around Europe. Nutritionists have included nuts in diets for weight control or the recommended consumption for pregnant women are just examples of benefits, supported scientific studies, which continue to encourage the consumption of nuts, both as snack and as ingredient.

    In addition, almonds represent an important component of the Mediterranean diet. In-shell almonds are mainly sold for fresh consumption. Shelled almonds are milled and generally used as a raw material for confectionary and bakery food companies. New eating habits are also affecting the demand for nuts. The increasing number of plant-based diets is also helping to drive demand for nuts, as consumers look for alternative forms of protein to meat and fish.

    Tree nuts imports are indispensable for EU consumers. Traditionally, consumers prefer locally grown products mainly due to consumer loyalty and habits, but in the EU, consumption of nuts is higher than production; this has caused an increase in both domestic production and in imports of nuts.

    Trade

    Imports

    In MY 2018/19, the United States was the main almond supplier for European importers. U.S. almonds face competition from Australia and locally grown almonds, mainly from Spain.

    By volume, the main EU destinations for U.S. almonds were Spain, Germany, and the Netherlands. Many countries import large quantities of almonds destined both for domestic consumption and re- export markets, as well as for the food and snack industry.

    Table 2. EU-28 Imports of Almonds by Origin in MT (Shelled Basis) 

    Exports

    The top destinations for EU-28 almonds in MY 2018/19 were the United States, the autonomous city of Ceuta and Switzerland. The largest EU almond exporter is Spain with Spanish exports destined mainly for other EU Member States.

    Table 3. EU-28 Exports of Almonds by Destination in MT (Shelled Basis)

    Walnuts, In-shell Basis

    Production

    The two main producing areas in France are:

    -Aquitaine in the South West (including “noix du Perigord” AOC)

    -Rhone-Alpes in the East (including “noix de Grenoble” AOC)

    In 2019, French walnut production decreased especially in the Grenoble area (with a drop of 35 percent). The sharp drop was the combined result of drought conditions in the summer, strong winds that caused fruits to fall prior to harvest, and heavy snow falls that broke many nut-bearing trees right before harvest. In the South West, the crop was slightly better than average. In 2020, total French production is expected to increase compared to last year. In South Eastern France (Rhone-Alpes), 2020 production is expected to increase slightly after the losses in 2019. In the South West, production is expected to be below average because of the drought and hot temperatures during the summer.

    Meanwhile, Romania’s estimated production for 2020 is lower that the last two years due to unfavorable rainfall.

    In Spain, the main walnut growing regions are Andalucia, Extremadura, Castilla-La Mancha, and the Valencia region. As of the date of this report, the Spanish Ministry of Agriculture, Fisheries and Food (MAPA) has not yet published the official walnut production data for MY2020/21. If weather conditions remain favorable, Post expects a slightly higher production of 15,500 MT for the current MY. Read the rest of the USDA Foreign Agricultural Service Report HERE.

  • Growers who Contact PG&E Before Planting can Prevent Loss of Trees – and Lives

    When orchard trees meet power lines, disaster can result. Whether it’s a power outage affecting millions or the accidental death of a line worker, such scenarios can have devastating and far-reaching consequences:

    Ø  In 2003, sagging power lines contacted untrimmed walnut trees in Ohio and caused a massive cascading outage – costing millions and leaving entire cities without power throughout parts of the Northeastern and Midwestern United States, and the Canadian province of Ontario. The incident left millions without power – and came at a great cost to state coffers.

    Ø  In Fresno several years ago, a grower used a boom lift to prune his orchard. When wires from the power line became entangled in the lift, he was electrocuted.

    Ø  In another California orchard, a fast-growing nut tree grounded to a high-voltage power line, causing widespread chaos and power loss throughout the region.

    Unfortunately, these events are far too common. The good news? When Pacific Gas and Electric Company (PG&E) and growers work together, we can prevent these losses and tragedies.

    Growers need only contact PG&E at 1-800743-5000 or at planbeforeplanting@pge.com early in their planning phase – before they plant new trees. One call or email is all it takes to eliminate the risk of tree removal and gain some valuable peace of mind.

    PG&E also offers a Mature Orchard Incentive Program for Transmission Lines, which encourages orchard growers to remove nut-bearing trees under transmission lines. Growers can use the incentive to replant crops that are compatible with electric transmission lines or reinvest the funds according to their needs. 

    Public Safety, our Priority

    As a utility provider, our most important responsibility is to ensure public safety and provide a reliable supply of electricity. To meet those obligations and state and federal regulations, we must maintain safety clearances between trees and other vegetation and our high-voltage power lines.

    The electrical charge carried by high-voltage lines is many times more powerful than the current that flows through standard power lines. Naturally, the potential for life-threatening injuries is commensurate with that power.

    For those reasons, we take great care to regularly inspect our transmission lines for potential hazards, using ground patrols as well as aerial remote sensing.

    Each year, PG&E is required to inspect all electric transmission and distribution lines across our 70,000-square mile service area. Our inspections are audited, and we will be fined if we fail to comply with required standards for vegetation clearance.

    Multiple Risks at Play
    Electricity from power lines finds its way to the ground using nearby objects. Like lightning, it can jump to a building, a person or a tall tree. Electrical storms and lightning strikes can also lead to a voltage surge, which may create an electrical arc that travels to nearby objects like trees, vegetation and people.

    When trees or vegetation are located near high-voltage power lines, they pose serious fire and electrical hazards. Anyone on the ground is at risk – whether they are in contact with the power line or just standing near the tree.

    And when a tree trimmer or a child climbs or shakes that tree – or when the tree contacts a power line – the risk to lives and property is multiplied, often with tragic consequences.

    Reasons for Generous Clearance
    We understand that growers need to plant every possible acre, and that some consider our clearance requirements excessive. But our requirements are based on many decades of field experience – and the fact that a variety of conditions can create dramatic material changes in towers and power lines.

    High-voltage power lines also require more clearance than other power lines because of their current strength and potential hazards. In addition, clearance requirements must account for the real possibility of line sag, which depends on weather, line design and electrical load.

    Metal transmission conductors can expand in hot conditions, sometimes causing wires to sag. Wind and ice storms can also wreak havoc, loosening normally taut wires and causing branches or trees to fall into electrical lines.

    During hot weather, power lines carrying heavy electrical loads can become heated, causing them to stretch out. These elongated lines can sag near the ground or near trees and other objects.

    As a result, what appears to be generous clearance in winter months may not be enough in the heat of summer.

    Tree Growth Exceeds Expectations
    Our mantra – “plan before you plant” – is not a new message. Yet it isn’t accepted by some growers, despite its potential to benefit their operation and their community.

    Some growers question whether their young trees could ever interfere with power lines that soar 40 or 50 feet – especially when tree purveyors provide assurance that their stock will top out at 20 or 25 feet.

    But plantings routinely exceed their expected growth rate and height. We’ve experienced trees that have grown 12 feet in a single growing season.

    Other growers fail to notify PG&E because they misunderstand the nature of our easement on their property. They may believe the electric easement right-of-way for vegetation applies only to our wires in the air, when it actually extends across a grower’s physical property.

    It’s also human nature to hope for the best – or to think “it can’t happen to me.” In fact, one of the state’s largest nut producers learned through trial and error that power lines and orchard trees don’t mix. Today, he contacts us regularly before planting.

    Every orchard is vital to the economic health of our state. By working together, we can prevent injuries and power outages, and preserve more trees.

    Contact PG&E at 1-800-743-5000 or at planbeforeplanting@pge.com so we can identify power-line friendly planting locations that avoid transmission lines. We’ll be out to your orchard within days, at no cost to you. — By John Bolling, Orchard Vegetation Program Manager, PG&E

  • Rural Energy for America Program Grant

    The Propane Education & Research Council encourages producers to apply for the United States Department of Ag (USDA) Rural Energy for America Program (REAP) Grant, which offers funding for renewable energy systems or to make energy efficiency improvements. Through the program, producers or small business owners can receive a 25 percent grant for replacing a diesel irrigation engine with a propane-powered engine.

    The USDA REAP recently announced Nov. 2 as its fall deadline for the Renewable Energy systems and Energy Efficiency Improvement Grant, so PERC encourages interested applicants to act quickly to save even more on propane-powered engines.

    “With lower purchase costs and savings of up to 50 percent compared to diesel engines doing the same job, farmers are already saving big by switching to propane irrigation engines,” said Michael Newland, director of agriculture business development at PERC. “For anyone considering making these energy efficiency upgrades to their operation, now is the time to act and take advantage of additional savings with the USDA REAP program.”

    Funds can be used for the purchase and installation of a new propane-powered irrigation engine, and any agricultural producer who makes over 50 percent of gross income from agriculture is eligible to apply. The grant is good for up to 25 percent of the total upgrade cost, with a $1,500 minimum and $250,000 maximum.

    “There’s never been a better time to replace a diesel irrigation engine with a cleaner, more cost-effective propane alternative,” said Newland. “On top of cost savings, propane engines help meet strict emissions goals and can keep your ag operation running no matter where you live or what happens with the electric grid.”

    Grant applications will be accepted at local USDA offices through Nov. 2. Find your nearest USDA office, andget full program details.

    For more information about the USDA REAP Grant Program, visit https://propane.com/for-my-business/agriculture/usda-grant-information/.

  • Why Aren’t My Beans Drying Down?

    We cut our blackeye bean (cowpea) research plots at UC Davis almost 3 weeks ago and they’re still too green to harvest. If we tried now, the vines would get wrapped around the threshing cylinder.  Several growers in the Sacramento Valley have mentioned that their corn has sat at the same moisture level for weeks and is not drying down either, as one would normally expect for this time of year. But, nothing is normal this year!

    Why aren’t our crops drying down?

    Tragic fires throughout the West have pushed a lot of smoke and ash into the sky, creating fog-like conditions that reduce the intensity of the sun, shade crops, and lower temperatures. The blanket of smoke is like stepping into the shade under an awning on a 90oF day. This reduced sun intensity has affected the ability of crops to dry down in a timely manner. Increased humidity levels this past weeks haven’t helped either.

    While shading may be good for protecting tomatoes from sunburn with harvests running late due to COVID-related challenges, it is not good for drying down field crops.

    With the smoke finally dissipating, drying conditions are improving. We ended up turning our blackeye bean crop over to increase aeration and help it dry down.  Dry beans are sometimes turned to help dry the crop down, especially if they’re rained on, but the challenge is to be careful to prevent shattering.

    In corn, there aren’t any easy solutions.  One grower said their corn sat at 16.5% moisture for several weeks and finally they had to harvest it anyway. Dryers are available for drying corn and other crops to the proper storage moisture, but as we all know it’s expensive and with low grain prices this affects the bottom line.  — By Sarah Light & Rachael Freeman Long, UC Cooperative Extension

  • Coronavirus Food Assistance Program Round II Begins Sept. 21 (What’s Included)

    President Donald J. Trump and U.S. Secretary of Agriculture Sonny Perdue today announced up to an additional $14 billion for agricultural producers who continue to face market disruptions and associated costs because of COVID-19. Signup for the Coronavirus Food Assistance Program (CFAP 2) will begin September 21 and run through December 11, 2020.

    “America’s agriculture communities are resilient, but still face many challenges due to the COVID-19 pandemic. President Trump is once again demonstrating his commitment to ensure America’s farmers and ranchers remain in business to produce the food, fuel, and fiber America needs to thrive,” said Secretary Perdue. “We listened to feedback received from farmers, ranchers and agricultural organizations about the impact of the pandemic on our nations’ farms and ranches, and we developed a program to better meet the needs of those impacted.”

    Background:

    The U.S. Department of Agriculture (USDA) will use funds being made available from the Commodity Credit Corporation (CCC) Charter Act and CARES Act to support row crops, livestock, specialty crops, dairy, aquaculture and many additional commodities. USDA has incorporated improvements in CFAP 2 based from stakeholder engagement and public feedback to better meet the needs of impacted farmers and ranchers.

    Producers can apply for CFAP 2 at USDA’s Farm Service Agency (FSA) county offices. This program provides financial assistance that gives producers the ability to absorb increased marketing costs associated with the COVID-19 pandemic. Producers will be compensated for ongoing market disruptions and assisted with the associated marketing costs.

    CFAP 2 payments will be made for three categories of commodities – Price Trigger Commodities, Flat-rate Crops and Sales Commodities.

    Price Trigger Commodities

    Price trigger commodities are major commodities that meet a minimum 5-percent price decline over a specified period of time. Eligible price trigger crops include barley, corn, sorghum, soybeans, sunflowers, upland cotton, and all classes of wheat. Payments will be based on 2020 planted acres of the crop, excluding prevented planting and experimental acres. Payments for price trigger crops will be the greater of: 1) the eligible acres multiplied by a payment rate of $15 per acre; or 2) the eligible acres multiplied by a nationwide crop marketing percentage, multiplied by a crop-specific payment rate, and then by the producer’s weighted 2020 Actual Production History (APH) approved yield. If the APH is not available, 85 percent of the 2019 Agriculture Risk Coverage-County Option (ARC-CO) benchmark yield for that crop will be used.

    For broilers and eggs, payments will be based on 75 percent of the producers’ 2019 production.

    Dairy (cow’s milk) payments will be based on actual milk production from April 1 to Aug. 31, 2020. The milk production for Sept. 1, 2020, to Dec. 31, 2020, will be estimated by FSA.

    Eligible beef cattle, hogs and pigs, and lambs and sheep payments will be based on the maximum owned inventory of eligible livestock, excluding breeding stock, on a date selected by the producer, between Apr. 16, 2020, and Aug. 31, 2020.

    Flat-rate Crops

    Crops that either do not meet the 5-percent price decline trigger or do not have data available to calculate a price change will have payments calculated based on eligible 2020 acres multiplied by $15 per acre. These crops include alfalfa, extra long staple (ELS) cotton, oats, peanuts, rice, hemp, millet, mustard, safflower, sesame, triticale, rapeseed, and several others.

    Sales Commodities

    Sales commodities include specialty crops; aquaculture; nursery crops and floriculture; other commodities not included in the price trigger and flat-rate categories, including tobacco; goat milk; mink (including pelts); mohair; wool; and other livestock (excluding breeding stock) not included under the price trigger category that were grown for food, fiber, fur, or feathers. Payment calculations will use a sales-based approach, where producers are paid based on five payment gradations associated with their 2019 sales.

    Additional commodities are eligible in CFAP 2 that weren’t eligible in the first iteration of the program. If your agricultural operation has been impacted by the pandemic since April 2020, we encourage you to apply for CFAP 2. A complete list of eligible commodities, payment rates and calculations can be found on farmers.gov/cfap.

    Eligibility

    There is a payment limitation of $250,000 per person or entity for all commodities combined. Applicants who are corporations, limited liability companies, limited partnerships may qualify for additional payment limits when members actively provide personal labor or personal management for the farming operation. In addition, this special payment limitation provision has been expanded to include trusts and estates for both CFAP 1 and 2.

    Producers will also have to certify they meet the Adjusted Gross Income limitation of $900,000 unless at least 75 percent or more of their income is derived from farming, ranching or forestry-related activities. Producers must also be in compliance with Highly Erodible Land and Wetland Conservation provisions.

    Applying for Assistance

    Producers can apply for assistance beginning Sept. 21, 2020. Applications will be accepted through Dec. 11, 2020.

    Additional information and application forms can be found at farmers.gov/cfap. Documentation to support the producer’s application and certification may be requested. All other eligibility forms, such as those related to adjusted gross income and payment information, can be downloaded from farmers.gov/cfap/apply. For existing FSA customers, including those who participated in CFAP 1, many documents are likely already on file. Producers should check with FSA county office to see if any of the forms need to be updated.

    Customers seeking one-on-one support with the CFAP 2 application process can call 877-508-8364 to speak directly with a USDA employee ready to offer assistance. This is a recommended first step before a producer engages with the team at the FSA county office.

    All USDA Service Centers are open for business, including some that are open to visitors to conduct business in person by appointment only. All Service Center visitors wishing to conduct business with FSA, Natural Resources Conservation Service or any other Service Center agency should call ahead and schedule an appointment. Service Centers that are open for appointments will pre-screen visitors based on health concerns or recent travel, and visitors must adhere to social distancing guidelines. Visitors are also required to wear a face covering during their appointment. Our program delivery staff will be in the office, and they will be working with our producers in the office, by phone and using online tools. More information can be found at farmers.gov/coronavirus.  

  • USDA Announces Contracts for Round 3 of the Farmers to Families Food Box Program

    Following President Donald Trump’s approval to include up to an additional $1 billion in the Farmers to Families Food Box Program, U.S. Secretary of Agriculture Sonny Perdue announced the U.S. Department of Agriculture (USDA) has approved up to $1 billion in contracts to support American producers and communities in need through the USDA Farmers to Families Food Box Program. Earlier this week, USDA reached a milestone of having distributed more than 90 million food boxes in support of American farmers and families affected by the COVID-19 pandemic.

    “These contract awards will go to vendors who submitted the strongest proposals in support of American agriculture and the American people. The high level of interest and quality of proposals are a testament that the program is accomplishing what we intended – supporting U.S. farmers and distributors and getting food to those who need it most. It’s a real trifecta, which is why we call it a win-win-win,” said Secretary Perdue. “Thanks to President Trump and his commitment to the program with the announcement of an additional $1 billion in funding, more farmers will be supported, and more families will receive the nutritious food they need during these difficult times.”

    The International Dairy Foods Association (IDFA) has worked closely with USDA to ensure dairy remains a key part of the Farmers to Families Food Box program so that dairy companies can deliver nutritious dairy products to food insecure Americans via non-profits, food banks, and faith and community organizations. To date, USDA has purchased more than $400 million in dairy products since mid-May, including fresh fluid milk, various cheeses, yogurt, sour cream and more. IDFA engaged directly with USDA during Round 2 of the program to make changes to the program, including expanding the requested products to include hard, semi-firm or semi-soft cheeses.

    “With over 90 million Farmers to Families food boxes delivered, we continue to leverage and support our great American farmers and food distributors to feed those most vulnerable. Thanks to the President’s commitment of $1 billion in additional funding, I’m proud to see that we are well on our way to the third round of USDA Farmers to Families food box program purchases which focus on boxes containing fresh and nutritious fruit, vegetables, meat and dairy,” said Advisor to the President Ivanka Trump.

    These contract awards are a result of the third round of Farmers to Families Food Box program announced on July 24, 2020, and President Trump’s announcement on August 24 that up to an additional $1 billion was being made available for deliveries through October 31, 2020. A full list of approved suppliers is available on the Farmers to Families Food Box Program webpage.

    Background:

    In this third round of purchases, USDA announced plans to purchase combination boxes to ensure all recipient organizations have access to fresh produce, dairy products, fluid milk and meat products. These boxes will be distributed to every county in America.

    USDA solicited new proposals for the third round. Proposals were required to illustrate how coverage would be provided to areas identified as opportunity zones, detail subcontracting agreements, and address the “last mile” delivery of product into the hands of the food insecure population.

    Entities who met the government’s requirements and specifications were issued agreements and submitted pricing through a competitive acquisition process. Agreements were awarded based on the pricing submitted for the delivery locations proposed, box content, last mile delivery plans, means testing compliance, and support of small and local/regional food systems.

    In the ongoing second round of purchasing and distribution, which began July 1 and will conclude Sep. 18, 2020, USDA has purchased more than $1.113 billion of food through extended contracts of select vendors from the first round of the program as well as new contracts focused on Opportunity Zones in order to direct food to reach underserved areas, places where either no boxes have yet been delivered, or where boxes are being delivered but where there is additional need.

    The first round of purchases occurred from May 15 through June 30, 2020 and saw more than 35.5 million boxes delivered in the first 45 days.

    Updates to the number of food boxes verified as delivered will continue to be displayed on the USDA’s Agricultural Marketing Service (AMS) website, with breakdowns by performance period on the Farmers to Families Food Box Program page.

  • American Pistachio Growers Employs Robust Campaign to Meet Record Harvest

    With the high likelihood that U.S. pistachio growers will shake a record crop from their trees this fall, American Pistachio Growers (APG) is pulling out all of the stops to keep its wave of marketing success rolling in 2021 and well beyond.  APG’s marketing team has just put the final touches on a new advertising campaign that combines extensive television advertising in major markets across the U.S. as well as additional print and digital media advertising in all key export markets.

    APG’s strategy is to keep consumer demand running strong ahead of what appears to be a large 2020 crop. According to APG President Richard Matoian the U.S. pistachio crop that growers are currently harvesting could hit the 1-billion pound mark — setting a new production record.

    “We are investing in our biggest advertising and marketing campaign ever to capitalize on this expansion in U.S. pistachio production,” said Judy Hirigoyen, APG Vice President, Global Marketing. “We have great synergy from all of the work we have done in recent years collaborating with great partners in professional sports, the research community, and with some of the world’s leading nutritionists and researchers.”

    For the first time ever APG is employing an advertising and marketing push that combines television, print and digital advertising in major export countries as well as in major television markets in the U.S. Beginning in mid-November and continuing through next summer, ads extolling the virtues of U.S. pistachios will appear in 44 U.S. television markets — from Honolulu to Washington, D.C.  Included in the U.S. advertising effort is APG’s sponsorship of New Year’s Eve countdown celebrations in Las Vegas, Nevada and Dallas, Texas — covering 26 key television markets.

    “Consumers here in the U.S. as well as abroad are embracing the powerful stories of pistachios — that they are packed with important nutrients and have been recognized as being a “complete” protein source, putting pistachios in the company of other plant-based complete proteins, such as quinoa and soy,” Hirigoyen said. “We think these stories will really resonate with TV viewers across the nation.”

    As a California commodity, pistachios have been on a tear in recent years and now occupy sixth place on the state’s list of more than 350 commodities with a value of $1.94 billion, according to California Department of Food and Agriculture 2019 data. Pistachios rank as the state’s second leading export with a value of $1.1 billion. As interest in pistachios has grown in California as well as in Arizona and New Mexico, so has the need to market larger crops.

    “On top of the expected record harvest this year, with the expansion of new acreage comes into bearing, we know that will present greater marketing challenges in the years ahead,” said Alison Nagatani, Chair of the APG Marketing Committee and a pistachio grower from Earlimart. “The Rabobank report projects bearing acreage could reach 372,000 acres by 2024/25 — about 30 percent greater than in 2019/20. Clearly, we have our marching orders to keep blazing the marketing trail, both here at home and in our key international markets.”

    U.S. growers are keenly aware that their success depends on keeping export channels open in major countries around the world. Prior to the COVID-19 pandemic, pistachio exports were running strong. In the 2018/19 marketing year, U.S. pistachio shipments set a record in spite of stiff retaliatory tariffs imposed by China, according to the Rabobank report.

    Even with the effects of the pandemic and ongoing trade tensions with China, Rabobank analysts state that market demand for pistachios remains strong in both domestic and international markets.  Although total demand could be affected by a global economic downturn due to the COVID-19 pandemic, they state that the demand outlook is still “favorable” and is set to keep pace with the anticipated expansion in U.S. pistachio production in the years ahead, citing the nutrition research and promotional efforts as contributing factors to their prediction.

    There is also heartening news contained in the pages of APG’s April 2020 consumption/share of market report. The report’s data found that total consumption and market share from 2016-2019 are on an upward trajectory in several key markets. In China, for example, total consumption is up 573 percent and market share has surged to 57.5 percent. In Germany the report found total consumption had risen 288.5 percent and market share was 65.7 percent. In India, total consumption and market share were up 74.3 percent and 58.6 percent respectively.

    “Marketing ahead of production and capitalizing on the contributions of our industry partners and the incredible array of research that touts the unique and powerful health attributes of pistachios will all play a role in continuing our marketing success,” Nagatani said.

    For more information, read the September issue of Pacific Nut Producer Magazine featuring the current state of the pistachio industry and the continued efforts of APG to promote pistachios globally.

    APG is a non-profit trade association representing more than 800 growers and member processors in California, Arizona, and New Mexico.

  • Almond Alliance of California Strongly Opposes Proposition 15 – “Split Roll” Proposal

    The Almond Alliance of California strongly opposes the Proposition 15 “split roll” proposal on the November 3, 2020 ballot. California Proposition 15 is the Tax on Commercial and Industrial Properties for Education and Local Government Funding Initiative. We believe a split roll proposal will hurt the business community as well as employees and consumers, thereby having a negative impact on our entire economy.

    • A “yes” vote supports this constitutional amendment to require commercial and industrial properties to be taxed based on their market value, rather than their purchase price.
    • A “no” vote opposes this constitutional amendment, thus continuing to tax commercial and industrial properties based on a property’s purchase price, with annual increases equal to the rate of inflation or 2 percent, whichever is lower.

    “Split Roll” Will Hurt California’s Economy

    An almost $11 billion split roll tax increase will prevent businesses from hiring new employees and, potentially, from keeping existing ones. The stability and predictability brought by Proposition 13 has allowed California businesses to compete nationally despite the high cost of doing business in this state.

    What Is “Split Roll”?

    A tax roll is the official list of all the properties to be taxed. “Split roll” means applying a different tax formula, either tax rate, reassessment frequency, or vote requirement, to commercial and industrial properties than that applied to residential properties. Proponents of a split roll would remove some of the protections of Proposition 13 (from 1978) from nonresidential properties in order to raise taxes.

    How Will This Impact California Agriculture?

    Although the revised initiative includes a small business and agricultural land exemption, the “split roll” still would be crippling to a significant portion of businesses. The agricultural exemption language only applies to the “land.”  The current tax law defines “real property” as land, improvements, and fixtures, which for farmers means that real agricultural property is defined as not only the land, but also fixtures such as irrigation systems, and improvements — barns, processing facilities, nut and fruit trees and vineyards once they reach maturity.

    Under the California Constitution, vineyards are only exempt for the first three years after the season in which they are planted, and orchards are only exempt for the first four years after the season they are planted.  Other improvements would be subject to reassessment and would also require all food and agricultural processing facilities to be reassessed at their highest and best use.

    The initiative would not require row crops, such vegetables and cotton, to be reassessed, as those are exempt under the California Constitution, but they will face higher property taxes when the crops go to packing facilities and processing areas.

    Call To Action

    Proposition 15 would expose California’s farmers and ranchers to steep property tax hikes on “all fixtures and improvements.” You would face tax increases on a wide range of farm and ranch property.

    We ask you to:

    1. Vote No on Proposition 15;
    2. Please consider supporting our efforts financially with a donation to the fund to fight back against this initiative.

    For more information on how you can help, please contact the Almond Alliance at (209) 300-7140 or email staff@almondalliance.org.

  • San Francisco 49ers Announce Partnership With Clover Sonoma

    The San Francisco 49ers and Clover Sonoma, a third-generation family-owned and operated dairy, today announced an exclusive partnership to bring together the two beloved Bay Area brands. As part of the partnership, Clover Sonoma will become the “Preferred Milk of the San Francisco 49ers,” which will include packaging, promotions, a holiday eggnog sweepstakes, advertising, and in-stadium and digital media.

    PARTNERSHIP LAUNCH MASCOT VIDEO

    “We always appreciate the opportunity to partner with a local, family-owned brand that carries strong name recognition among the Faithful so we couldn’t be happier to welcome Clover Sonoma to our team,” said Kevin Hilton, 49ers Vice President of Corporate Partnerships. “For generations, they’ve been a high-standing and charitable brand and we look forward to working with them to find innovative ways to entertain and benefit our fans.”

    Key assets of the campaign include Clover Sonoma’s inclusion in the 49ers Safeway Shopper program, where they will be releasing a 49ers-branded holiday organic eggnog with in-store marketing through the end of the year. Additionally, the 49ers Facebook channel will conduct a fan caption contest where winners will see their caption featured on a co-branded billboard and receive two club seats to one future 49ers home game.

    Clover Sonoma will also become the entitlement partner of Los 49ers, the team’s official Spanish Radio Channel where games are broadcast via web stream. Cal-Hi Sports Report, the largest high school sports show in California and a 49ers enterprise, will feature a Clover Sonoma branded event titled “Milk & Cookies with the Rookies.”

    “As a 49ers fan, I have always admired the organization’s focus on authenticity, philanthropy, diversity and community,” said Kristel Corson, Clover Sonoma Vice President of Sales & Marketing. “Aligning with the 49ers allows us the opportunity to make a bigger impact in the Bay Area and we’re excited to bring Sourdough Sam and Clo the Cow together for some laughable moments that will inevitably bring cheer to our dedicated fans.”

    About The San Francisco 49ers:

    The San Francisco 49ers, owned by Denise and John York, currently play in the NFC West division and have won five Super Bowl trophies including Super Bowl XVI, XIX, XXIII, XXIV and XXIX. The franchise also has seven conference championships and 20 divisional championships and was the first major league professional sports team to be based in San Francisco more than 70 years ago. Please visit www.49ers.com and follow the 49ers on Facebook and Twitter @49ers.

    About Clover Sonoma:

    Third-generation family owned and operated, Clover Sonoma is recognized as a leader at the forefront of the dairy industry. The Petaluma-based company in Northern California’s beautiful Sonoma County was the first dairy in the United States to become American Humane Certified, and hold its partnership of family-owned dairy farms to a higher standard by developing its own unique Clover Promise of Excellence. Clover Sonoma is proud to bring conscious dairy products direct from its farms to consumers. As a Certified B Corporation®, the company uses its business as a power to do good, and its passionate support of animal welfare, sustainable business practices, and local community have always been hallmarks of the business. Each year the company gives back at least five percent of its profits to support these passions under its Clover Cares program. For more information, please visit www.cloversonoma.com and join the conversation on Facebook, Instagram, Twitter, Pinterest and YouTube.

  • Plant, Insect Viruses Work Together to Spread Disease

    In what may be a first for science, researchers with the Agricultural Research Service (ARS) have found an example of plant and insect viruses working together to increase their spread.

    Molecular biologist Michelle Heck, of the ARS Emerging Pests and Pathogens Research Lab in Ithaca, NY, scouts for aphids (Photo by Jennifer Wilson, Cornell University).

    Michelle Heck, an ARS research molecular biologist, was leading research into poleroviruses, a type of plant virus spread by aphids, when she and Cornell University graduate students Jenny Wilson and Patricia Pinheiro made the surprising discovery. Heck is in ARS’s Emerging Pests and Pathogens Research Unit at the Boyce Thompson Institute, on the campus of Cornell University, in Ithaca, NY.

    “Poleroviruses produce a molecule, called P Zero (P0), which dampens the aphid’s immune system,” Heck said. “When the aphid immune’s system is turned down, it allows an aphid virus called a densovirus to infect the insect at very high levels.”

    Densoviruses have a curious effect on aphids: Aphids usually develop wings when the weather begins to cool, but densoviruses can induce the insects to sprout wings. When poleroviruses and densoviruses interact in this way, it allows them to carry the polerovirus farther and faster.

    “We think this is the result of evolution,” Heck said. “Both the plant virus and the insect virus have evolved to manipulate the aphid. Our work shows they are in cahoots to promote virus spread, though possibly at the aphid’s expense.”

    The research is vital to crop producers because aphids transmit more than 100 different viruses to peaches, tomatoes, potatoes, apples, cotton, cabbage, corn, and other plants. In particular, the potato leafroll virus can reduce the worldwide potato yield by more than 50 percent, causing the loss of 20 million tons of crop each year. There is a new and emerging polerovirus infecting cotton, cotton leafroll dwarf virus, that Heck and her team are now studying.

    “Aphids are resistant to many commonly used insecticides, so chemical treatment is not effective in killing them and blocking the spread of viruses,” Heck said. “By the time a farmer notices aphids in the field, it is too late to block the spread of these viruses by aphids.”

    Follow-on research includes a quest to understand how the polerovirus protein, P0, suppresses the aphid’s immune system at the molecular level. Heck is also looking at exactly how the densovirus triggers the aphid to grow wings.

    “We now know that poleroviruses can interfere with the aphid’s immune response to densoviruses,” she said. The question Heck hopes to answer is, can the densovirus infection be made so severe that it kills the aphids, and if so, could it be used as a biological control tool? – By Scott Elliott, ARS Office of Communications