Almond Journey

Highlights from July's Global Update, from the Global, Technical and Regulatory Affairs team at the Almond Board of California, in today's Almond Byte.

ABC Visit to DC Coincides with India Tariff Reductions

The annual Almond Board of California (ABC) industry delegation visit to Washington DC coincided this year with the first State Visit of India’s Prime Minister Modi. During the week of June 19th, the delegation met with several U.S. government officials including Ambassador McKalip, the United States Trade Representative Chief Agricultural Negotiator, as well as with the United States Ambassador to India, Eric Garcetti. Discussions have been held with U.S. officials for many months/years about the importance of the almond trade with India and the negative impacts of retaliatory tariffs. This has been compounded by the favorable trade agreement recently concluded between India and Australia which benefits Australian almonds exported to the Indian market.

On June 22nd, Indian and U.S. Government officials announced that retaliatory tariffs (Section 232) applied to imports of U.S. almonds into India will be removed within the next 90 days. The tariffs will be dropped to India’s bound rates of 35 rps/kg for inshell and 100 rps/kg for shelled almonds. While this is great news, we are still at a competitive disadvantage with Australia – whose duty rate is 50% lower. ABC staff will monitor India’s implementation date, and advise when it is published. For more info, please contact [email protected].

UK PEC Update

Great Britain (GB) is in the process of revising regulations that it retained from the European Union (EU) post-Brexit. This includes EU regulation 2015/949, which governs the Pre-Export Check (PEC) program that recognizes California almonds for a reduced inspection rate upon arrival in the EU. Following discussions between AMS, ABC, and UK authorities, UK authorities indicated they will continue to recognize PEC but will require changes to the existing EU PEC certificate. The UK indicated its flexibility in certificate format, allowing us to leverage existing PEC procedures and database information to generate a GB/UK-specific PEC certificate when product is shipped to the UK.

Once the new format has been agreed between all parties, there will be a six-month transition period where shippers can continue using the EU PEC certificate. Once ready, ABC will conduct informational training for all shippers in generating the new UK-specific PEC certificate. For more information, contact [email protected].

Handlers Finalize China Facility Registrations

Around 65 almond processing facilities finalized their registrations with Chinese Customs (GACC) before the June 30 deadline. FDA provided great assistance in making sure that all handlers were able to upload and submit mandatory documents including last-minute, self-assessment checklists required by GACC to finalize the registrations. Handlers are advised to continue to monitor their accounts for final approvals from GACC. Registrations should be valid for the next 5 years. FDA also informed ABC that handlers will be required to keep their FDA biennial registrations and related Export Listing Module (ELM) information for China up to date. FDA will send out email reminders accordingly. For more information about your GACC account situation, please contact [email protected].

In this episode, we meet four impressive members of the California Future Farmers of America (FFA) who were awarded scholarships this year by The Almond Board of California (ABC). Since 2016, ABC’s fundraising efforts have been led by the Almond Leadership Program who has helped to raise more than $250,000 through donations, an annual golf tournament, and a live and silent auction during The Almond Conference every year. In 2023, sixteen FFA members were awarded these scholarships, including the four you will hear from in today’s episode: Olivia Bruns, Brennan Elszy, Christina Moitozo and Heather Hodges.

“These scholarships are really allowing people to get their foot in the door and have the opportunity to get that higher learning and really bring back more value than what's being put into them into the actual industry.” - Brennan Elszy

In Today’s episode:

• Meet the 2023 ABC Scholarship Recipients including Olivia Bruns from Woodland, Brennan Elszy from Hanford, Christina Moitozo from Gustine and Heather Hodges from Kerman.
• Discover their backgrounds and what the future holds for these up-and-coming industry leaders

Almond industry members interested in partnering with the Almond Board in donating to the California FAA Foundation can visit calaged.org/AlmondLeadershipProgram to learn more or to make a donation. To learn more about the Almond Leadership Program, please visit Almonds.com/AlmondLeadershipProgram or contact Rebecca Bailey at [email protected].

The Almond Journey Podcast is brought to you by the Almond Board of California. This show explores how growers, handlers, and other stakeholders are making things work in their operations to drive the almond industry forward. Host Tim Hammerich visits with leaders throughout the Central Valley of California and beyond who are finding innovative ways to improve their operations, connect with their communities, and advance the almond industry.

ABC recognizes the diverse makeup of the California almond industry and values contributions offered by its growers, handlers, and allied industry members. However, the opinions, services and products discussed in existing and future podcast episodes are by no means an endorsement or recommendation from ABC. The Almond Journey podcast is not an appropriate venue to express opinions on national, state, local or industry politics. As a Federal Marketing Order, the Almond Board of California is prohibited from lobbying or advocating on legislative issues, as well as setting field and market prices.

June's Marketing Bulletin from the Almond Board of California. 

Almonds Take Over Mexico City

During the first two months of 2023 and around National Almond Day efforts, California almonds took to the streets of Mexico by driving two mobile billboard trucks, covered with almond advertising creative, to top locations in Mexico City. The billboard trucks visited nine shopping malls, 20 supermarkets and 15 gyms. And at each stop, ABC hosted interactive events like snack workshops, giveaways, and yoga and meditation classes.

ABC partnered with popular influencers for the special events – which included podcast host Romina Sacre, Lifestyle and foodie influencer Soulfood Luz Colsa, and fitness trainer Ceci Aguilera. Colsa held a snack workshop showing how to add almonds to cultural Mexican foods, Aquilera hosted a fitness boot camp and Sacre hosted a meditation workshop. Sacre also invited a select few lucky consumers to her podcast recording studio where she recorded an episode about almonds. Through the different activities and mobile advertising, the campaign reached over 360 million impressions in the Mexico market.

Almond Health Ads Running on Facebook and Instagram

During the month of July, the Almond Board will run ads featuring the positive gut health attributes associated with eating almonds. Ads will run on Facebook and Instagram encouraging consumers to learn more about this area of nutrition research funded by the Almond Board. Ads seek to reach people interested in health. They are people that express interest in topics such as specific diet trends (e.g., paleo, keto), nutrients, or visit health websites like WebMD, Eating Well, and more. The ads will run in the U.S., India, Mexico, France, Italy, Germany, Japan and South Korea.

LA Times Features Almonds as Climate Change “First Responders”

The Los Angeles Times, in partnership with the Almond Board of California, published an article and video that explores the growing trend of sustainable farming practices in modern agriculture, and how that helps with climate change. The article highlights two key approaches: precision agriculture and regenerative agriculture, as well as Mallvinder Kahal, a second-generation Madera-based almond farmer and his family. California Secretary of Agriculture Karen Ross is also featured in the article.

With the increasing frequency of drought and other extreme weather, something that ABC's target audiences and farmers are both experiencing, the article emphasizes the importance of collaboration among farmers to drive the adoption of sustainable practices. To amplify this partnership, the LA Times promoted the article and video through display banners on their website and Apple News as well as paid social media running across their extensive digital network. In addition, the partnership took over the LA Times homepage on Tuesday, June, 27. The combined outreach helped showcase how farmers are actively working towards a more resilient and environmentally conscious agricultural industry for a brighter future.

Tanya Gemperle-Goncalves of Gemperle Farms has taken a particular interest in finding ways to improve their almond operation over time. She joined the Journey to share some of her experiments including cover crops, compost, whole orchard recycling and more.

“There are these practices that we want to implement, and what I'm trying to figure out is where can I reduce the risk? Where can I reduce the amount of effort on our part and make it as practical on our farm and as efficient as possible?” - Tanya Gemperle-Goncalves

In Today’s episode:

• Meet Tanya Gemperle-Goncalves of Gemperle Farms
• Explore how Gemperle-Goncalves defines sustainability and the role it plays on their operation
• Discover the progression of implementing new technologies and practices at Gemperle Farms

ABC Update:

Many almond growers have navigated the challenges of adopting new practices such as cover crops and have added flowering cover crops and monarch habitat around their ranches. A few years ago, the US Fish and Wildlife Service made the decision that it is warranted for the monarch butterfly to be listed as an endangered species. While this hasn’t officially happened yet, the timeline for doing so is by the end of 2023.

An endangered listing for any pollinator creates concern for almond growers who have planted pollinator habitat in and around their orchards. Almond Board of California Chief Scientific Officer Josette Lewis talks about those concerns for growers and protections being put into place with Industry Communications Senior Specialist Taylor Hillman.

“We've seen a really great response in terms of the number of farmers who've registered as bee friendly farms who are putting in flowering cover crops and have worked with organizations like Monarch Joint Venture to specifically put in Monarch habitat around their ranches. And so for those growers, we wanna make sure that they are protected if the monarch is listed as an endangered species.” - Josette Lewis

For more information regarding butterfly habitats visit the growers tools page at the ABC website or email the field outreach team at [email protected] with any questions.

The Almond Journey Podcast is brought to you by the Almond Board of California. This show explores how growers, handlers, and other stakeholders are making things work in their operations to drive the almond industry forward. Host Tim Hammerich visits with leaders throughout the Central Valley of California and beyond who are finding innovative ways to improve their operations, connect with their communities, and advance the almond industry.

ABC recognizes the diverse makeup of the California almond industry and values contributions offered by its growers, handlers, and allied industry members. However, the opinions, services and products discussed in existing and future podcast episodes are by no means an endorsement or recommendation from ABC. The Almond Journey podcast is not an appropriate venue to express opinions on national, state, local or industry politics. As a Federal Marketing Order, the Almond Board of California is prohibited from lobbying or advocating on legislative issues, as well as setting field and market prices.

After speaking at the recent Agri-Pulse Conference, ABC was able to arrange orchard visits for USTR Chief Ag Negotiator Doug McKalip. The almond and walnut orchards outside of Sacramento were the perfect venue to discuss the impact of tariffs and technical issues on the shipment of almonds. An important point that was highlighted was the fact that despite increases in shipments to several key markets, growers are operating at a considerable economic loss. Ambassador McKalip was keen to learn more about the impact on rural communities in the area, as well as the competitive situation with Australian and European production.

USTR is focusing on IPEF negotiations, which stands for the Indo-Pacific Economic Framework for Prosperity and involves India, Japan, South Korea, and the US. The U.S. is also in parallel discussions for a trade agreement with Kenya. ABC will be holding further discussions with USTR on specific market access issues during the industry delegation trip to DC taking place later this month.

Several GTRA staff attended the annual MRL seminar put on by the California Specialty Crop Council that was held this year in San Diego. Participation included attendees from overseas, regulatory agency staff, chemical registrant companies, and commodity and trade associations. A big focus was on EU Farm-to-Fork policies, specifically, Sustainable Pesticide Use Directive, applying environmental factors to MRL settings, which contravene existing WTO norms, and applying Mirror Clauses to imported products.

There was a growing understanding among attendees that in addition to building alliances with EU businesses and trade groups, stakeholders who rely on exports to the EU must also liaise with each other and respective government agencies to counter the EU’s growing ambitions and attempts to influence policies in international fora such as CODEX and the WTO, as these would have a far-reaching impact on international food trade. For more information, please contact [email protected].

Due to lower container freight volumes coming into the United States, some west coast ports have been dropping shifts and slowing productivity. Additionally, International l Longshore & Warehouse Union (ILWU) has continued to undertake sporadic “job actions” as a leverage mechanism in the ongoing labor negotiations. Previously, these had been limited to actions at the Ports of LA/Long Beach, however, this tactic spilled over to Oakland in early June leading to a closure for a shift. Negotiations between the two sides have continued to drag on, with some progress being reported despite the occasional disturbances at the port. For more information, please contact [email protected].

Michael Kelley is the president and CEO of the Central California Almond Growers Association. With four shellers in two locations, the association is the largest huller/sheller of almonds in the world. Kelley shares several insights about the current state of the industry, including economics, logistics, technology, supply chain, and drivers of past, present and future success.

“We're on track to have the largest return we've ever had to our members at a time that they really need it; so, it's a really nice way to celebrate the 60th anniversary.” - Michael Kelley

In Today’s episode:

• Meet Michael Kelley, the president and CEO of the Central California Almond Growers Association
• Discover how Kelley’s experience in the cotton industry has helped him in his role in the almond industry
• Explore the current state of the almond industry from Kelley’s perspective and the new technology he has implemented on their operations

The Almond Journey Podcast is brought to you by the Almond Board of California. This show explores how growers, handlers, and other stakeholders are making things work in their operations to drive the almond industry forward. Host Tim Hammerich visits with leaders throughout the Central Valley of California and beyond who are finding innovative ways to improve their operations, connect with their communities, and advance the almond industry.

ABC recognizes the diverse makeup of the California almond industry and values contributions offered by its growers, handlers, and allied industry members. However, the opinions, services and products discussed in existing and future podcast episodes are by no means an endorsement or recommendation from ABC. The Almond Journey podcast is not an appropriate venue to express opinions on national, state, local or industry politics. As a Federal Marketing Order, the Almond Board of California is prohibited from lobbying or advocating on legislative issues, as well as setting field and market prices.

May's Marketing Bulletin from the Global Market Development and Reputation Management teams at the Almond Board of California. 

The Almond Board is currently running ads on Facebook and Instagram encouraging consumers to learn more about the benefits of eating almonds before meals. Ads seek to reach people that express interest in topics such as specific diet trends (e.g., paleo, keto), nutrients, or visit health websites like WebMD, and more.

The ads just aren’t running in the U.S. but have been translated into local language and are running in seven other markets around the world. They will run through mid-May in an effort to support two new research studies that have been published in recent months and are featured in the press release Eating Almonds Before Meals Improved Blood Sugar Levels in Some People with Prediabetes.

The Almond Board of California has formed an editorial partnership with Brigitte, a popular German women’s lifestyle magazine, to educate Germans on how California almonds are grown sustainably and are nutritious. The partnership includes online and print articles, and videos emphasizing the industry's water and zero-waste practices.

In the messaging, almond grower Christine Gemperle discusses how almond farmers use water efficiently, reducing water consumption per pound of almonds by 33% between the 1990s and 2010s. The articles also cover the health attributes of almonds – which include 13 grams of unsaturated fat (only 1 gram of saturated fat) and 6 grams of protein pers serving – and include comments from German nutritionist Rebecca Kunz. The efforts are the first editorial partnership designed specifically for the German market.

The Almond Board of California attended the Natural Products Expo West, the world’s largest natural, organic, and health products trade show, to keep up with the latest trends and innovations in the food industry. ABC staff prioritized interacting with companies that include almonds in their products as part of their ongoing effort to support food makers who incorporate almonds in their recipes. Sustainability was a dominant theme at the event, with companies supporting regenerative and organic agriculture, upcycling food, and utilizing sustainable packaging.

Consumers expect brands to be transparent about their sustainability initiatives, and companies are including consumers on the journey to make informed purchasing decisions that align with their values. The Expo West also focused on the slogan "real food and local communities," and how brands add value to the local community. The event highlighted the health and wellness of food products, and how consumers want to know how foods and specific ingredients can benefit their personal health. Also at the conference, The Almond Project, a multi-year, farmer-led project by Treehouse California Almonds, was honored with the Regeneration & Sustainability Award for their sustainability program. ABC Board Member Joe Gardiner accepted the award on behalf of Treehouse California Almonds.

Highlights from the May 2023 Global Update from the Global Technical and Regulatory Affairs team at the Almond Board of California.

California almond exporters have been increasingly frustrated about favorable tariff conditions for Australian almonds while U.S almonds continue to suffer under retaliatory tariffs. Australia has a free trade agreement with China, reduced tariff treatment with India, and may soon have a zero tariff going into the E.U. Dr. Steinbach of UC Davis, using demand elasticity analysis, concluded that retaliatory tariffs cost the U.S. almond industry almost $875 million in exports or more than 325 million pounds of shipments between April 2018 and April 2022. He estimated that the withdrawal of retaliatory tariffs imposed by China, India, and Turkey could increase U.S. almond exports by about $175 million or 90 million pounds annually.

Recently, ABC analyzed trade data to determine the impacts of retaliatory tariffs in key markets combined with Australian trade advantages. Based on that analysis, it was determined that if US market share had stayed the same before the implementation of retaliatory tariffs in China, India, and Turkey in 2018, and Australia’s trade agreements with China and India, the value of US almond exports to those countries from 2018-2022 would have been higher by more than $550 million equating to an additional volume of 155 million pounds. This analysis will be summarized into a white paper that will be shared with policymakers for ABC’s annual trip to DC coming up in June. For more info, please contact Keith Schneller.

The International Longshore and Warehouse Union negotiations continue with the two sides announcing a tentative agreement on a number of significant issues. However, there are still issues that will need to be resolved before a deal is signed. Additionally, dock workers at the Ports of Los Angeles and Long Beach continue to undertake “job actions”, including those leading to a previous shutdown of the ports for a few shifts. There may also be separate negotiations underway with ILWU Local 13 (LA/LB) with the Local seeking to double the manning on container handling equipment. The uncertainty of the situation continues to cause consternation among importers as more and more shift operations to the East Coast. However, there is optimism that the sides are inching closer to a deal, and many of the imports are expected to return to West Coast ports.

The California Air Resources Board unanimously approved a new rule to phase out sales of diesel-powered medium- and heavy-duty vehicles by 2036. This is the first such combustion-truck sales ban in the world. Drayage vehicles with internal combustion engines (ICE) that are on the road now can continue to operate through their “useful life.” Those limits mean that when a drayage truck hits 800,000 miles, it can no longer be listed in the registry of drayage vehicles. The alternative is if it reaches 18 years after its model year, even if it has not reached 800,000 miles. The Advanced Clean Trucks rule aims to reduce California's GHG emissions by 40 percent and reduce petroleum use by 50 percent by 2030. Please contact Brock Densel.

On April 14, FDA resumed managing the General Administration of Customs China’s (GACC) CIFER portal for U.S. facility registrations and has helped clear the CIFER queue of several handlers’ change requests. These were waiting for FDA review before moving them on to GACC for final review and approval. An estimated 15 of the 70 handlers initially approved by GACC at the end of December 2021 still need to upload mandatory documents in CIFER in order to finalize their accounts. Firms have until the end of June 2023 or risk being delisted. ABC continues to explore ways to help those “new” companies waiting to register their facilities so they can also export products to China. Be sure to confirm that any products being shipped to China are included under your facility’s GACC account. If not, the shipments will not be cleared without the inclusion of the specific product under your account which can take days or weeks to finalize.

Please note GACC sent out a notice recently warning facilities from registering on “fake” online portals. It seems there are many companies offering assistance to register, but the only official portal is cifer.singlewindow.cn. USDA’s most recent update on Decree 248 is here. For more info, please contact Keith Schneller.

Mackey Violich is part of the ownership team at Capay Farms, a 13,000-acre almond and walnut farming operation. As sustainability manager, Violich has explored a variety of innovative solutions like solar, cover crops, composting, carbon credits, electric equipment, whole orchard recycling and more.

“There's a lot of green washing out there. But if you have the data and the numbers to back it up, it makes it easier because it's the whole industry. If we all make a change it's gonna make a big impact, not only in our environment, but as a marketing tool.” - Mackey Violich

In Today’s episode:

• Meet almond grower and sustainability manager Mackey Violich
• Explore the many factors Violich takes into consideration as she approaches her job as sustainability manager for their 13,000 acre orchard operation

ABC Update:

The California Almond Stewardship Platform (CASP) is an important education and marketing tool for the almond industry to tell its stewardship story to consumers. Now over a decade old, CASP has gone through a major update to be even easier to use for growers and more effective for handlers. Almond Board Senior Manager of Field Outreach and Education Tom Devol sat down with Industry Communications Senior Specialist Taylor Hillman to discuss these changes.

“When CASP was first envisioned, it was predominantly an education tool. Over time, there's been a lot more pressure from the market. How are you growing your crops? Are you exhibiting good stewardship? Are you using current practices? So for the handler, they're the ones that get faced with those questions...By completing your grower self-assessment, you're assisting your handler and marketing your product.” - Tom Devol

The Almond Journey Podcast is brought to you by the Almond Board of California. This show explores how growers, handlers, and other stakeholders are making things work in their operations to drive the almond industry forward. Host Tim Hammerich visits with leaders throughout the Central Valley of California and beyond who are finding innovative ways to improve their operations, connect with their communities, and advance the almond industry.

ABC recognizes the diverse makeup of the California almond industry and values contributions offered by its growers, handlers, and allied industry members. However, the opinions, services and products discussed in existing and future podcast episodes are by no means an endorsement or recommendation from ABC. The Almond Journey podcast is not an appropriate venue to express opinions on national, state, local or industry politics. As a Federal Marketing Order, the Almond Board of California is prohibited from lobbying or advocating on legislative issues, as well as setting field and market prices.

Almond grower Dennis Yotsuya has a small orchard in Cortez, California. Through winter sanitation and mass trapping, he has been able to avoid hull sprays for navel orangeworm in recent years. Yotsuya describes his approach and the benefits he has seen in reducing damage from the pest.

Elonce Peterson created a trap that monitors and traps navel orangeworm females during first flight. The idea came while counting eggs as a field scout for Integral Ag. Peterson wanted an easier way to monitor navel orangeworm activity while providing more accurate and reliable data to growers.

In today’s episode:

• Meet almond grower Dennis Yotsuya; and Elonce Peterson, creator of the female navel orangeworm trap
• Explore the experiences Yotsuya has had with managing navel orangeworm without having to spray
• Discover Peterson’s process in developing the female navel orangeworm trap and the advantages his system offers

The Almond Journey Podcast is brought to you by the Almond Board of California. This show explores how growers, handlers, and other stakeholders are making things work in their operations to drive the almond industry forward. Host Tim Hammerich visits with leaders throughout the Central Valley of California and beyond who are finding innovative ways to improve their operations, connect with their communities, and advance the almond industry.

ABC recognizes the diverse makeup of the California almond industry and values contributions offered by its growers, handlers, and allied industry members. However, the opinions, services and products discussed in existing and future podcast episodes are by no means an endorsement or recommendation from ABC. The Almond Journey podcast is not an appropriate venue to express opinions on national, state, local or industry politics. As a Federal Marketing Order, the Almond Board of California is prohibited from lobbying or advocating on legislative issues, as well as setting field and market prices.