California Ag Network

Tag: USDA Foreign Agricultural Service

  • California Wine, Raisin & Table Grape Industry Well-Represented in Ag Trade Mission to Taiwan

    The U.S. Department of Agriculture will lead a trade mission to Taipei, Taiwan, to expand trade opportunities for U.S. companies and boost U.S. agricultural exports. The mission takes place from September 29 to October 1 and includes 39 agribusinesses, trade organizations, and representatives from three state departments of agriculture working to strengthen U.S.–Taiwan trade relations.

    “With strong economic growth and proven demand for high-quality U.S. food in Taiwan, now is the time for U.S. agribusinesses to expand their presence,” said USDA’s Under Secretary for Trade and Foreign Agricultural Affairs Luke J. Lindberg. “This trade mission will connect U.S. exporters with key buyers and help them forge partnerships to tap into this dynamic market.”

    Taiwan is the eighth largest market for U.S. agricultural exports, with trade growing by 16% between 2019 and 2024. The United States remains Taiwan’s top supplier, accounting for 25% of its agricultural import market, recording a $3.1 billion surplus in 2024. High-value products, such as fresh fruits, pet food, beef, poultry, and dairy products, make up more than half of all U.S. agricultural exports to Taiwan, exceeding $2 billion of the total $3.8 billion agricultural export value.

    Taiwan is a high-income economy of discerning consumers and a major market for U.S. agricultural exports. U.S. products such as soybeans, corn, wheat, fresh fruits, seafood, dairy products, tree nuts, beef, and pork have strong potential for growth in Taiwan. U.S. producers have a proven record as reliable business partners, with quality products, competitive prices, transparent business practices, and a strong record of mutually beneficial trade relationships.

    Participants will engage in business-to-business meetings with buyers from Taiwan, gaining market insights and fostering new partnerships. USDA’s Foreign Agricultural Service staff and regional experts will host market briefings, networking events and site visits to maximize trade opportunities.

    Officials from Idaho, Kansas, and Montana state departments of agriculture will join Under Secretary Lindberg as well as:

    1 Ag Partners Cooperative – Seneca, Kan.

    2 AJC International Inc. – Atlanta, Ga.

    3 Appellations Cellar Winery – St. Helena, Calif.

    4 Bear Fiber – Morganton, N.C.

    5 California Fresh Fruit Association – Fresno, Calif.

    6 Dairy Farmers of America – Mechanicsburg, Pa.

    7 De Lune Corp. – Springfield, Va.

    8 East-West International Group – Moreland Hills, Ohio

    9 Globex International – Atlanta, Ga.

    10 Grove Services – Atlanta, Ga.

    11 Heartland Essentials – Gilbert, Ariz.

    12 Intervision Foods – Atlanta, Ga.

    13 James Farrell & Co. – Bellevue, Wash.

    14 JM Grain – Garrison, N.D.

    15 Kennedy Rice Mill – Mer Rouge, La.

    16 Koch Foods – Park Ridge, Ill.

    17 Mariani Packing Co. Inc. – Vacaville, Calif.

    18 MEM Fairway Inc. – Irvine, Calif.

    19 Minnesota Soybean Research and Promotion Council – Mankato, Minn.

    20 Nestlé Purina PetCare – St. Louis, Mo.

    21 One Vine Wines – Poway, Calif.

    22 Organic Trade Association – Washington, D.C.

    23 Pet Food Institute – Washington, D.C.

    24 Raisin Administrative Committee – Fresno, Calif.

    25 Rumei Global & Co, LLC. – Roseburg, Ore.

    26 Specialty Soya and Grains Alliance – Mankato, Minn.

    27 TAG Enterprise Ltd. – Los Angeles, Calif.

    28 Tedford/Tellico, Inc. – Knoxville, Tenn.

    29 Trident Seafoods Corporation – Seattle, Wash.

    30 Triple Crown Organic BBQ Sauces – Minneapolis, Minn.

    31 United Dairy Ingredients Group, LLC. – Monterey Park, Calif.

    32 U.S. Dairy Export Council – Arlington, Va.

    33 U.S. Grains Council – Washington, D.C.

    34 USA Rice Federation – Arlington, Va.

    35 USA Poultry and Egg Export Council – Tucker, Ga.

    36 U.S. Soybean Export Council – Chesterfield, Mo.

    37 U.S. Wheat Associates – Arlington, Va.

    38 Valley Pride Ag Co – Fresno, Calif.

    39 Wonderful Citrus – Delano, Calif.

    USDA’s trade mission to Taiwan is part of USDA’s broader 2025 export promotion strategy. Recent trade missions to Hong Kong, Thailand, Peru, Guatemala, and the Dominican Republic led to projected 12-month sales of $64 million. USDA will lead an agricultural trade mission to Mexico in November and recently opened recruitment for a trade mission to Indonesia in February of 2026.

    For more information on USDA trade missions, visit https://www.fas.usda.gov/topics/trade-missions.

  • California Citrus, Table Grapes & Dairy Well-Represented in Upcoming Trade Mission to Dominican Republic

    The U.S. Department of Agriculture will lead a high-impact trade mission to Santo Domingo, Dominican Republic, from July 13–17 to expand market access and boost U.S. agricultural exports. The delegation includes 47 agribusinesses, trade organizations, and officials from Colorado, Montana, and Wisconsin departments of agriculture.

    “USDA is committed to growing export opportunities for American farmers, ranchers and agribusinesses,” said Deputy Under Secretary for Trade and Foreign Agricultural Affairs Michelle Bekkering, who will lead the mission. “This trade mission will connect U.S. exporters with key buyers, tapping into Latin America’s growing demand for high-quality American agricultural products, supporting rural prosperity and keeping American agricultural products globally competitive.”

    With an expanding middle class, economic growth and a burgeoning hotel and restaurant industry, the Dominican Republic offers U.S. producers a stable and sustainable market in the Caribbean Basin. The country is the fourth-largest market for U.S. agricultural exports in the Western Hemisphere and the top market within the Central America Free Trade Agreement-Dominican Republic (CAFTA-DR) region, which includes Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua.

    Thanks to CAFTA-DR, U.S. exports to the Dominican Republic have increased from $800 million in 2007 to $2.2 billion in 2024, with the U.S. currently supplying 44 percent of the country’s agricultural imports, supporting around 15,000 American jobs. Between 2023 and 2024 alone, exports increased 6 percent.

    Participants will meet with buyers from the Dominican Republic, Haiti, and Jamaica to gain market insights and forge new partnerships. USDA’s Foreign Agricultural Service staff and regional experts will provide in-depth market briefings, site visits and networking events to maximize trade opportunities.

    Other participants include:

    1 Alaska Seafood Marketing Institute – Juneau, Alaska

    2 Boston Agrex LLC – Norwell, Mass.

    3 California Dairies – Visalia, Calif.

    4 California Table Grape Commission – Fresno, Calif.

    5 Colorado Department of Agriculture – Broomfield, Colo.

    6 Darigold Inc – Seattle, Wash.

    7 DoVen Foods LLC – Miami, Fla.

    8 Foodlink Group Inc. – Miami, Fla.

    9 Globex International – New York, N.Y.

    10 Grand Napa Vineyards – Napa, Calif.

    11 Hoogwegt U.S. Inc. – Lake Forest, Ill.

    12 IslandJon North America LLC – Atlanta, Ga.

    13 James Farrell & Co. – Bellevue, Wash.

    14 Lamex Agrifoods Inc. – Miami, Fla.

    15 Lawrence Wholesale LLC – Vernon, Calif.

    16 Leprino – Denver, Colo.

    17 Little Toad Creek LLC – Silver City, N.M.

    18 MacDonald Meat Company – Seattle, Wash.

    19 Merus LLC – Minneapolis, Minn.

    20 Metafoods LLC – Atlanta, Ga.

    21 Old Fashioned Cheese – Mayville, Wis.

    22 Pangea Growers Group – Boca Raton, Fla.

    23 Portal Pacific US – Rocklin, Calif.

    24 Prime International LLC – Logan, Utah

    25 Riceland – Stuttgart, Ark.

    26 Salt River Sisters – Harrodsburg, Ky.

    27 Scout & Zoe’s – Anderson, Ind.

    28 Scratch Food Group – Atlanta, Ga.

    29 SMAA Food Exports LLC – Charlotte, N.C.

    30 Stewco Farms – Bloomfield, Mo.

    31 Supreme Rice – Crowley, La.

    32 Sure Good Foods USA – Atlanta, Ga.

    33 Talmera USA Inc. – Los Angeles, Calif.

    34 Tropical Foods LLC – Miami, Fla.

    35 Trutana Foods – Great Falls, Mont.

    36 U.S. Dairy Export Council – Arlington, Va.

    37 U.S. Grains Council – Washington, D.C.

    38 U.S. Soybean Export Council – Chesterfield, Mo

    39 US Agricom Inc. – Doral, Fla.

    40 US Commodity Food Sales LLC– Doral, Fla.

    41 US Dry Bean Council – Frankenmuth, Mich.

    42 US Rice Producers Association – Katy, Texas

    43 USA Rice – Arlington, Va.

    44 Washington Apple Commission – Wenatchee, Wash.

    45 Western United States Agriculture Trade Association – Vancouver, Wash.

    46 Wisoman Foods Inc. – Hayward, Calif.

    47 Wonderful Citrus – Delano, Calif.

    USDA’s trade mission to the Dominican Republic is part of USDA’s broader 2025 export promotion strategy. So far this year, USDA has led trade missions to Hong Kong, Thailand, Peru, and Guatemala. Missions to Taiwan and Mexico are planned in the coming months.

    For more information on USDA trade missions, visit https://www.fas.usda.gov/topics/trade-missions.

  • Japanese Consumers Crave California Almonds, Walnuts & Pistachios

    According to the USDA Foreign Agricultural Service, a strong demand for U.S. Tree Nut products continues in Japan, driven by the growing health-oriented trends among Japanese consumers. In 2021, fresh and dried nut imports to Japan totaled $491 million, of which 78.2 percent or approximately $384 million was from the United States. The key market sectors for U.S. Tree Nuts are in bakery and retail, valued at $215.1 million. Almonds and walnuts are almost exclusively supplied by the United States.

    General Information:

    Historically, walnuts and chestnuts were grown wild or cultivated on a very small scale for local consumption. Since Japan started importing nuts in the 1950’s, nuts such as almonds and mixed nuts have been used as a snack to eat with alcoholic drinks or as ingredients for cookies and chocolates. Except for certain walnut production areas, only in recent years have nuts been used for cooking. The Japan Nuts Association was established in 1993, with seventy-three importers and distributors.

    Market Trends:

    Japan has almost no production of nuts, except for very limited production of walnuts (approximately one hundred eighty tons per year). As a result, consumers of nut products rely heavily on imports. The market had been very limited, but stable, because nuts were mostly used as ingredients for the bakery and confectionary industry and the retail price for nuts was relatively higher. Over the past decade, consumption of almonds and walnuts has gradually increased, with imports reaching 42,489 metric tons (MT) (a record high) and 22,527 MT, respectively. Meanwhile, chestnuts have seen dramatic declines in import volumes over the past twenty years. Pistachio imports have been stable but has gradually increased in small amounts over the past couple of years.

    The key market sectors for tree nuts are bakery (55 percent) and retail (33 percent). For confectionary and baking industry, the following processed nut items have been most widely used:

    Walnuts: 1) Raw shelled light-color medium pieces, 2) Raw or roasted shelled light-color small pieces

    Almonds: 1) Blanched powder, 2) whole, 3) Roasted cuts, 4) Sliced

    Pistachios: 1) In-shell, 2) Raw shelled, 3) Praline rolled into paste, 4) Cuts (for topping)

    In the baking sector, walnuts are the most frequently utilized tree nuts, in a variety of bread items and Japanese sweets. In the retail sector, nuts in a 40-55g package or 100g package are popular at convenience stores and supermarkets, and 200g or 500g package are popular at specialty stores, and internet shops. At the retail stores, nuts are placed on the shelf for the baking ingredients and/or the shelf for the snacks. Salted mixed nuts for snacking or accompanied with alcoholic drinks are traditional methods of consumption and still popular in the retail sector. However, unsalted straight nuts are gaining in popularity due to the proliferation of information on the health benefits and versatility in usage for each type of nut. Snack nuts mixed with dry fruits, such as trail mix, are still not common but cereal snack bars, some sold with the Nutritional Supplement Foods label, with nuts and dry fruits have been popular in the Japanese market.

    In the retail sector, mixed nuts are sold best among nuts categories (including peanuts), followed by peanuts and chestnuts. In recent years, Japanese consumers have become more health-conscious and have become more educated on the nutritional benefits both almonds and walnuts provide. Strategic marketing and promotion of the health and beauty benefits have continued to be effective by major television stations as well as on internet and social media sites. Health-related messaging includes key words like omega-3, anti-oxydant, vitamin E, vitamin B, minerals, oleic acid, anti-aging, reducing cholesterol, zero cholesterol, healthy blood vessels, healthy brain, healthy skin, etc. This type of messaging has been key to promoting nuts and nut products to Japanese consumers.

    During the peak of the COVID-19 pandemic in 2020-2021, sales of nuts and dry fruits increased in the retail sector due to consumer dining changes, from dining-out to dining in the household. Some stores reported between 120-130 percent increased sales and the expansion of shelf space by 10 percent. Overall, snacking became one of the growing trends during the stay-at-home/teleworking environment. “New Snacking” included nuts, dry fruits, and vegetable chips. In addition to this, consumers made shifts to “unsalted” nuts, as a healthier alternative.

    Pistachio’s use as an ingredient is another in-demand product. Major snack/confectionary manufacturers created new snacks using more nuts including pistachios. Major manufacturers including Morinaga and Tirol have new ice cream and chocolate products utilizing pistachios. Major convenience stores such as 7-Eleven and Family Mart created desserts with pistachios, which have also been sold in cafes and at other specialty stores. In addition to this, one of the major specialty store chains KALDI started selling pistachio spread. A pistachio specialty store “Pista and Tokyo” recently opened at one of the premium locations near Tokyo Station, demonstrating the strong popularity pistachios have gained among Japanese consumers. Imports for U.S. pistachios have been flat but have been gradually increasing over time. Import data from December 2020 to November 2021, shows an increase of 146.3 percent compared to the previous year. Approximately 93 percent of total pistachio imports in 2020 were from the U.S., with the rest mostly originating from Iran and Italy.

    Imports of Tree Nuts:

    Each type of nut is imported mainly from a sole exporter because of specific production conditions such as climate, soil, and ability for mass production and quality control. That dependence can cause unstable supplies and prices; and Japanese importers are seeking a wider variety of potential suppliers to fulfill market demand. The United States dominates as supplier of almonds, walnuts, and pistachios, and ships in lesser quantities. Australia supplies the majority of macadamia nuts; chestnuts are imported primarily from China and Korea, while Turkey is the largest supplier of hazelnuts. Cashews and coconuts are sourced mostly from other countries.

    The U.S.-Japan Trade Agreement (USJTA) entered into force on January 1, 2020 and is in year three of enforcement. Following implementation of USJTA, nearly 90 percent of U.S. food and agricultural products imported into Japan are now duty free or receive preferential tariff access. In 2021, Japan imported $491 million in fresh or dried nuts from the world, of which 78.2 percent (approximately $384 million) was from the United States.

    Major Tree Nuts Importers, Processors and Distributors in Japan

    Japan is a very competitive market, and buyers in the food and beverage industry are inundated with meeting requests. Therefore, they often do not respond to “cold calls” or requests for meetings with individual companies. Instead, they prefer to find new products at large trade shows, or specially targeted trade showcases, where they can look at many products at once. Therefore, the best way to find buyers is to participate in one of the food related trade shows or showcases in Japan. The ATO organizes U.S. pavilions at the Supermarket Trade Show in February and FOODEX Japan in March, and many Japanese buyers are invited to stop by the U.S. pavilion to meet with exhibitors. The ATO also supports exhibitors at the shows by providing a market briefing, business meeting lounge, etc. Please contact the ATOs for more information about trade shows. The recommended trade shows featuring USA Pavilions in Japan are as follows:

    -FOODEX Japan in Kansai 2022, July 27-29, 2022, Intex Osaka, Osaka

    -FABEX Kansai 2022, September 7-9 2022, Intex Osaka, Osaka

    -Supermarket Trade Show 2023, February 15-17, 2023, Makuhari Messe, Chiba

    -FOODEX Japan 2023, March 7-10, 2023, Tokyo Big Sight, Tokyo

    Contact Information:

    The Japan Nuts Association represents the interests of wholesalers, processors, and trading firms. For their member list, please visit: http://www.jna-nut.org/?page_id=16

    FAS/USDA Offices in Japan

    URL: http://www.usdajapan.org/ Agricultural Trade Office, Tokyo ATOTokyo@ usda.gov

    Tel: + 81-3-3224-5118 Agricultural Trade Office, Osaka ATOOsaka@ usda.gov

    Tel: + 81-6-6315-5904 

    — By Juri Noguchi, USDA Foreign Agricultural Service

  • 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

  • China Market Opportunities for California Nectarines

    On March 4, 2020, China announced market access for fresh U.S. nectarines as part of the U.S.-China Economic and Trade Agreement (ETA). This report briefly mentions the market access conditions for U.S. nectarines, discusses several key factors of China’s nectarine market (including import competition), and offers market-entry recommendations to consider when exporting fresh U.S. nectarines to China.

    Product Description & Access Overview

    On March 4, 2020, in accordance with the U.S.-China Economic and Trade Agreement (ETA), China granted official market access for U.S. fresh nectarines from designated counties in California (specifically Fresno, Tulare, Kern, Kings and Madera counties). California nectarines account for 95 percent of U.S. production. The harvest season for U.S. nectarines runs from mid-summer to mid-autumn, partially overlapping with Chinese domestic supply, which runs from May to October. Read the full report from the USDA Foreign Agricultural Service HERE

  • USDA Foreign Agricultural Service to Host Farm Bill Listening Session

    WASHINGTON, March 2019– The U.S. Department of Agriculture’s Foreign Agricultural Service (FAS) will host a listening session Friday, March 22, to solicit input from stakeholders with an interest in FAS programs authorized under the Trade Title of the Agriculture Improvement Act of 2018.

    During the session, to be held in room 107-A of the USDA Whitten Building, stakeholders can offer comments on FAS food assistance and fellowship and exchange programs from 1 – 2:30 p.m., and on FAS international market development programs from 2:30 – 4 p.m. FAS will also accept written comments.Individuals interested in commenting on food assistance and fellowship and exchange programs should email ppded@fas.usda.gov to preregister to attend or to submit written comments to the FAS Office of Capacity Building and Development.

    Individuals interested in commenting on FAS export market development programs should email podadmin@fas.usda.gov to preregister to attend or to submit written comments to the FAS Office of Trade Programs.When registering or commenting, please list your name, affiliation and program(s) of interest. The registration deadline is 5 p.m. EDT on Wednesday, March 20, and written comments are due by 5 p.m. EDT on Friday, March 22.

    WHAT: Foreign Agricultural Service Farm Bill Listening Session

    WHEN: Friday, March 22, 2019

    1 p.m. – Food Assistance and Fellowship and Exchange Programs

    2:30 p.m. – Export Market Development Programs

    WHERE: USDA Whitten Building, Room 107-A, 1400 Independence Ave., S.W., Washington, D.C.

    USDA is an equal opportunity provider, employer, and lender

  • USDA Awards Agricultural Trade Promotion Program Funding

    Almond Industry Receives $6,900,690 in Funding Allocations

    U.S. Secretary of Agriculture Sonny Perdue announced today that the U.S. Department of Agriculture (USDA) has awarded $200 million to 57 organizations through the Agricultural Trade Promotion Program (ATP) to help U.S. farmers and ranchers identify and access new export markets. The ATP is one of three USDA programs created to mitigate the effects of unjustified trade retaliation against U.S. farmers and exporters. USDA’s Foreign Agricultural Service (FAS) accepted ATP applications between September 4 and November 2 – totaling nearly $600 million – from U.S. trade associations, cooperatives, and other industry-affiliated organizations. The Almond Board of California will receive $3,185,690 and Blue Diamond will receive $3,715,000.

    President Donald J. Trump authorized up to $12 billion in programs to provide assistance to U.S. agriculture through a trade mitigation package announced by Secretary Perdue on September 4, 2018. In addition to the $200 million allocated to the ATP, the package also included the Market Facilitation Program to provide payments to farmers harmed by retaliatory tariffs, and a food purchase and distribution program to assist producers of targeted commodities.

    “At USDA, we are always looking to expand existing markets or open new ones, so we are proud to make good on the third leg of the President’s promise to America’s farmers,” said Secretary Perdue. “This infusion will help us develop other markets and move us away from being dependent on one large customer for our agricultural products. This is seed money, leveraged by hundreds of millions of dollars from the private sector, that will help to increase our agricultural exports.”

    All sectors of U.S. agriculture, including fish and forest product producers, were eligible to apply for cost-share assistance under the ATP. FAS evaluated applications according to criteria that included the potential for export growth in the target market, direct injury from the imposed retaliatory tariffs, and the likelihood that the proposed project or activity will have a near-term impact on agricultural exports.

    “We were pleased to see the large demand for participation in the program, and truly got some out-of-the-box ideas that we are hopeful will expand our global footprint,” Perdue said. “We examined all applications carefully, considered our ranking criteria, and awarded the funds in order to make the best use of taxpayer dollars in growing agricultural trade.”

    The Almond Alliance of California plans to continue to advocate for the $63.3 M in retaliatory trade damages assigned to the almond industry by USDA.  We will keep you updated on our advocacy efforts and how you can be supportive.