Anticipating Key Political Issues for 2015

52 Pages·2015·11.41 MB·English

JANUARY | FEBRUARY 2015
News, Views & Industry Insights
Anticipating Key
Political Issues for 2015
Almond Flour Seminar Coverage:
Ready for Pest Management,
Ingredients Water Outlook and
Launch Regulatory Concerns

CONTENTS
JANUARY | FEBRUARY 2015
P. 40
Features
18 Key Issues 22 Almond Flour 08 FIELD SUPERVISORS
10 GROWER LIAISON
Learn about the key issues facing Global Ingredients introduces three
growers in 2015 from Agricultural new almond flour products perfect 12 NEWS IN A NUTSHELL
Council of California President Emily for boosting the nutritional value
Rooney and Blue Diamond’s long-time of everything from baked goods to 40 THE BEE BOX
lobbyist Julian Heron. pancakes to sauces.
44 TIME TO CONSIDER
24 Sriracha Almonds 28 Seminar Coverage
50 CLASSIFIED ADS
North American Retail is kicking up the Three key cultural seminars presented at
heat with the launch of Sriracha Snack the 2014 Annual Meeting are recapped,
Almonds, a new addition to the BOLD offering advice on pest management,
product line. regulatory issues and the water outlook
for 2015.
Cover Photo:
An almond grower’s best friend, the honey bee, about to pollinate the crop.
Photo by Mel Machado, Director, Member Relations.
JANUARY | FEBRUARY 2015 Almond Facts 3
Board of Directors
Dan Cummings
Chairman of the Board | Chico
Dale Van Groningen
Vice Chairman | Ripon
Clinton Shick | McFarland
Charles Crivelli III | Turlock
Kevin Fondse | Ripon
Elaine Rominger | Arbuckle
George Goshgarian | Fresno
Stephen Van Duyn | Modesto
Robert Weimer | Atwater
Don Yee | El Dorado Hills
Officers
Mark Jansen, President and CEO
Dean LaVallee, Chief Financial Officer
Almond Facts Staff
Alicia Rockwell, Corporate Communications Director
Cassandra Montgomery, Managing Editor
Mel Machado, Contributing Photographer
Gray Allen, Advertising Sales
916.783.4334 & 916.765.3234
Creative • Print • Mail
DOMEPRINTING.COM
AlmondFacts.com BlueDiamond.com
Blue Diamond, the world’s largest processor and marketer of almonds, exports to 90
countries. The cooperative marketing corporation also markets hazelnuts.
Almond Facts, established in 1922, is published bimonthly by Blue Diamond Growers,
1802 C Street, Sacramento, California 95811, phone: [phone]. Address all
correspondence to the Editor, Almond Facts, P.O. Box 1768, Sacramento, California
95812 Advertising subscription rates provided upon request.
Blue Diamond is a registered trademark and marketing brand of Blue Diamond Growers.
Other registered trademarks are The Almond People, Smokehouse, Golden State, Celebration,
From the Valleys of California, Confetti and Almond Facts.
Advertising carried in this magazine does not necessarily reflect the beliefs, opinions,
or attitudes of Blue Diamond and does not imply product or service endorsement. Blue
Diamond reserves the right to refuse advertising. All rights reserved. Reproduction in
whole or in part without written permission is prohibited. © Blue Diamond Growers 2015.
For quality that matters on many levels
Today, how you protect your crops is just as important as the protection itself.
Count on DuPont™ Altacor® insect control powered by Rynaxypyr® to deliver at
every level. It offers fast, long-lasting control of key pests in tree nuts. Plus, with
minimal impact on beneficials and flexibility means Altacor® is always ready to
help take quality and your operation to new heights. altacor.dupont.com
Always read and follow all label directions and precautions for use.
Th e DuPont Oval Logo, DuPont™, Altacor® and Rynaxypyr®
are trademarks or registered trademarks of DuPont or its affi liates.
Copyright © 2015 E.I. du Pont de Nemours and Company. All Rights Reserved. DUPCWS14006_020115_AF
DUPCWS14006_020115_AF.indd 1 1/9/15 10:52 AM
R
E
N
R
O
C President’s Corner

S
’
T
N Mark Jansen
E
President and CEO
D
I
S
E Almond Prices: A New Normal
R
P
The spectacular and extended rise in almond prices has the industry concerned that we have reached the
peak. Many of you have lived through rising and falling prices. You may even recall there has been a five-year
pattern to almonds prices. As we enter the fifth year of rising prices, rather than avoid the elephant in the
room, it is important the industry understand why this time is different.
The pricing cycles of previous decades were based primarily upon changes in supply. Bad blooms led to high prices, and
increases in bearing acres, coupled
with good blooms, led to declining
Global Almond Pricing
prices. The last five years have been
$4.00 different. Demand has been the
primary driver of pricing. While
$3.50
supply expectations influenced prices
$3.00 in the short term, the trend was
consistently upward. Even the record
$2.50
2 billion pound crops of 2011 and
$2.00 2013 resulted in higher prices. Rising
demand for almonds and new forms
$1.50
of almonds, driven by Blue Diamond
$1.00 marketing activities, have fully
consumed even these large increases
$0.50
in supply. Demand, not supply, has
$0.00 driven prices for most of this decade.
94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14
If demand is the key driver of this
Est.
Price / Lb market, the question is whether
almonds are still a value. Three years
ago I shared the Warren Buffet quote,
California Almond Crop “Price is what you pay, value is what
you get.” In looking at the other tree
nuts, almonds are now much more
NASS
Estimate appropriately priced, but they are still
2.0 2.0 2.1 a value. As the healthiest, best tasting
s and most versatile tree nut, almonds
d
n 1.9 have a uniquely strong demand.
u
o 1.85
P With the 2014 harvest, shortage of
n
o supply took over as the primary driver
i
ill 1.6 of market pricing. The yield on the
B
2014 crop was 12 percent below the
National Agricultural Statistic Service
1.4
expectation and was a statistical
outlier from any forecasts based upon
history. A convincingly good bloom
2009 2010 2011 2012 2013 2014
and an apparently good crop in the
6 Almond Facts JANUARY | FEBRUARY 2015
Premium Tree Nut Pricing
$6.25
Hazelnuts
$5.75
Pistachios
$5.25
$4.75
Almonds
Walnuts
$4.25
Cashews
$3.75
$3.25
$2.75
$2.25
2012 2013 2014 2015
trees translated into a harvest that caught the industry by surprise. The reason? This California drought is unprecedented. Most
concerning is that the foreseeable future does not instill confidence in additional supply. I am writing this report in the middle of the
driest January on record. Even if we are blessed with rain and snow in February and March, the 2015 crop will once again be small.
UC Davis research indicates the greatest drought impact occurs in the year after the drought. If we are water constrained
again this summer, we should similarly expect the 2016 crop to be small. The promise of greater groundwater
regulation indicates water challenges and corresponding tight almond supply will dominate
the industry expectations for the foreseeable future.
I trust almond growers will agree we are in unique times. There was
an extraordinary rise in demand driven by Blue Diamond product
innovation, brand-building advertising, and health messaging
from the industry-funded Almond Board of California
research programs. In appreciating the uniqueness of
California’s current drought and water challenges,
our future almond yield outlook is different.
Tight supply will now dominate prices.
Given that almonds still remain a value
relative to other tree nuts, we are
experiencing the new normal
for almond prices.
JANUARY | FEBRUARY 2015 Almond Facts 7
g
r
e
o b
d r n
a e ei
h h M
c c
Ma Ket nis
RS Mel Bob Den
O
Director, Member Relations Field Receiving Manager, Westside Tehama, Butte and
S 209.531.6352 Cell Stanislaus and Merced Counties Eastern Glenn
I
V 209.545.6222 Salida 209.761.2289 Cell 530.864.0619 Cell
R 209.545.6218 Salida 530.674.4724 Home
E 209.742.2089 Home
P
U
S

D
L m
E y m
FI hrist Fro e
C e n
n m Sto
ya re C
R e K
J
Western Glenn, Colusa, Yolo, San Joaquin County West of Jack Tone Rd, Stanislaus County South of Tuolomne River,
Solano, Yuba and Sutter Counties Stanislaus County, North of the Tuolomne West of Hwy 99 and East of San Joaquin
530.518.9109 Cell River; Stanislaus County West of the San River; Merced County, North of Merced
530.458.2669 Home Joaquin River and North of Patterson River, West of Highway 99; San Joaquin
209.596.9520 Cell County East of Jack Tone Rd
209.596.5375 Cell
h
t
u
er m n
oell eich riffi
N R G
n e e
ria rni Mik
B E
Stanislaus County, South of the Northern Madera and Northern Fresno and
Tuolomne River, East of Highway 99 Southern Merced Counties Southern Madera Counties
and Merced County, North of the 559.474.2996 Cell 559.779.6400 Cell
Merced River, East of Highway 99 559.645.4708 Home 559.449.9751 Home
209.417.2010 Cell
g
r
e
b
n n
e o
h s
ot ill
R W
e t
v t
e a
t M
S
Fresno, Kings and Kern and Southern
Northern Tulare Counties Tulare Counties
559.269.6809 Cell 559.554.4118 Cell
559.561.4508 Home 559.897.0304 Home
Other Inquiries
Salida Membership Department | P 209.545.6225 F 209.545.6215
Sacramento Membership Department | P 916.446.8368
8 Almond Facts JANUARY | FEBRUARY 2015
Low branches?
Sensitive Crops?
Narrow Rows?
That’s our specialty.
There’s a reason they’re called specialty crops. Whether they’re hard to tend, extra
sensitive, or just tough to get to… sometimes a regular tractor just won’t cut it. That’s
why John Deere offers a full assortment of hi-crop, low-proƟle, and narrow specialty
tractors to help you get the most from your specialty harvest.
Service your low-canopied tree crops or easily move in and out of your poultry house
with a low-proƟle tractor. Glide over sensitive fruit and vegetable crops with a hi-crop
tractor. Or work between the rows of your nursery or vineyard with a narrow specialty
tractor.
But just because they’re specialty tractors doesn’t mean they’re light on the stuff that
matters. Choose a new John Deere specialty tractor and choose from a wide range of
conƟgurations with impressive standard features. All with the reliability and uptime
you expect from a John Deere. See your dealer today. www.JohnDeere.com/Ag
53686-6_Specialty Tractor_1p.indd 1 10/26/12 2:33 PM
District 1 District 4
Eric Behring [phone] Dustin Wagner [phone] Legend
Bruce [phone] Phil Mohler [phone] VC Chairman C
McClintock
Greg Overton [phone] VC Matt Visser [phone] C Vice-Chairman VC
Hank Wallace [phone] ! Will Drost [phone] ! 1 Ex-Officio *
P. Samantha [phone] Joseph Due [phone] Director **
Lewis
Dan Lagier [phone]
Appointed !
Doug Bentz [phone]
Richard Johns [phone] (Member-at-large)
Darren Rice [phone] C
Joey Adrian [phone] ! 2 Almond Board ABA
Greg Watts [phone] ! Alternate
N Jake Sonke [phone]
O Kevin Borror [phone]
David Costa [phone]
S Fred [phone]
AI MMoatntt gVeormnoergya (53) 624-4153 HDoeromrnaenn bal [phone] 3 45
I
L Larry Bradley [phone] ! Donovan Adrian [phone] ! 6 7
R Dan Cummings [phone] ** 8
ABA Kevin Fondse [phone] **
E
W W. Howard [phone] * Kenneth Roos [phone] *
Isom
O
R
G District 5 9
District 2

4 Matt Cotter [phone] Merlyn Garber [phone]
1
0 Jim Manhart [phone] C GHeoirndroicnh [phone]
2
Joe Martinez [phone] Ron Harding [phone]
Ryan Romness [phone] ! Sid Miller [phone] 2014
Leo LaGrande [phone]
Mike Verdegaal [phone]
Halbert W. [phone] VC
Charter Brum DeVisser [phone] C
Kyle Green [phone] Pete Van Nes [phone]
David Swartz [phone] ! Joe Martins [phone] !
JMoohnnr oWe. [phone] HJoahrrnys H II.I [phone] VC District 7 District 8
Jim Peart [phone] Dennis Bowers [phone] Ralf Sauter [phone] George [phone] VC
Bill Weller [phone] Jake Verberg [phone] Joseph S. Enos [phone] C Goshgarian (Jr.)
Mary Ann [phone] ! Jerad Heinrich [phone] ! Leo Lamb [phone] Duane Cunha [phone]
Warmerdam Stephen [phone] ** Pete Bandoni [phone] ! Norman Pretzer [phone]
Van Duyn
Elaine [phone] ** Dennis De [phone] !
Rominger Neil Van Duyn [phone] * ALinttdlerejowh n [phone] Freitas
Gerald [phone] * David Tolmosoff [phone]
Rominger Douglas Hoyt [phone]
Riley Chaney [phone]
Douglas D. [phone] * Greg Vierra [phone] VC
Mathews District 6 Scott Abraham [phone] ! John Chandler [phone] C
Rich Gemperle [phone] C Dan Clendenin [phone] Ken Basila [phone] !
District 3 Lisa Giannini [phone] Don Harcksen [phone] G. Peter Fry [phone]
Randy Bergman [phone] Michael Ohki [phone] R.J. Maan [phone]
Paul Voortman [phone] C
Gerry Costa [phone] ! Dr. S.S. [phone] ! Kyle Rodrigues [phone]
Kathy Thomsen [phone] ! "Toki" Takhar
Greg Nunes [phone] VC Richard [phone] !
Joe Rishwain [phone] Robert J. [phone] ** Markarian
Gary Crowell [phone] Weimer
Joe Molina [phone] George [phone] **
Jeff Cederlind [phone] David L. [phone] * Goshgarian
Rita E. Low [phone] Zollinger
Jeff Abraham [phone] ! Aldo Sansoni [phone] *
Stephen [phone] VC
Schmeidt Jeff Lee [phone]
Lloyd Van [phone] Aaron Piazza [phone]
Dyken
Darrell Cordova [phone]
Nick Alta [phone] District 9
Rod Vilas [phone] !
Bill Koster [phone] Jeff Noble [phone] Vince Balakian [phone] !
Brian Ramos [phone] *
Allen Sipma [phone] (Re. Elwood Don Davis [phone] VC Dominic Fino [phone]
Swanson)
Bruce [phone] John Allen [phone] Ernie Spencer [phone]
Oosterkamp Charles [phone] **
Crivelli III Sean Shick [phone] ! Ben Wilson [phone]
Craig Miller [phone] !
Steve Vilas [phone] * Raymond [phone] C Diana Clark [phone] !
Bert Van Ryn [phone] ! Bill Brush [phone] ABA Van Beek Clinton Shick [phone] **
Dale Van [phone] ** Jason Dhillon [phone]
Groningen Kent Stenderup [phone] ABA
Robert Larson [phone]
John Thoming [phone] ABA
10 Almond Facts JANUARY | FEBRUARY 2015