Nut News with Select Harvest

Nearly every industry has been hit hard by the coronavirus pandemic, and almond growers are no exception.

While May’s numbers from the Almond Board of California, showing around 154 million pounds of almonds shipped, weren’t as good as Select Harvest USA CEO Bob Nunes hoped, he is pleased to see growers have an option to get some relief if they’re suffering during the economic downturn brought on by the pandemic.

Nunes is encouraging growers to sign up for the Coronavirus Food Assistance Program, which the U.S. Department of Agriculture started to provide help to growers and producers of commodities who suffered because of COVID-19-related supply chain disruptions.

“Almonds have been qualified for the program. You have to have a 5% drop or more in price for the program to qualify,” Nunes said. “Almonds have already qualified, and there is a 26-cent rate per pound for almonds sold during that time period for each grower. Then, they’d receive an 80% payment of that 26 cents and, assuming there are funds available, the final 20% would be paid at a later date.”

Because of both disruptions in the supply chain because of the coronavirus and an expected oversupply, prices have significantly dropped, hurting growers, Nunes said. Things may be difficult for a while as the U.S. and countries around the world keep struggling to cope with the global pandemic and other outside factors.

“It’s going to be tough sledding for a little while. Certainly for the 2020 crop, prices look pretty depressed at this point,” he said. “Hopefully COVID gets behind us, some of our trade issues with China and other countries get resolved, and we move a lot of almonds here in the next 12-14 months.”

Today’s consumers are making principled buying decisions and being careful to review a company’s experience, background and professionalism before purchasing a product. For Select Harvest USA, nut experts since 1982, these intentional buying habits work in the company's favor as they break into the consumer marketplace.

Alan Burwell, VP of Marketing and Innovation at Select Harvest USA, joins Nut News to discuss the company’s new direct-to-consumer products hitting the market this summer.

As consumers have gradually become more health-conscious, almonds have withstood the rise and fall of food trends thanks to their nutrient-dense profile. High in protein, fiber and healthy fats, almonds are found in some of our favorite products, from almond milk to protein bars.

In fact, consumers have long been eating Select Harvest USA almonds as ingredients in their favorite almond products, Burwell said. When consumers explore this new brand, they will discover that Select Harvest USA is a trustworthy, thought-leading, innovative company that has delivered high-quality nuts for over 30 years.

“We know almonds,” Burwell said, and that niche knowledge is exactly what consumers crave today.

Finding success in the consumer market can be a tough nut to crack, but the almond experts at Select Harvest Almond Snacks are confident they offer the value and excitement modern buyers love.

Natural Products Expo West is a premier annual event for the food and beverage industry. Expo West 2020 canceled due to the COVID-19 pandemic. Sharing their disappointment of this news were Alan Burwell, VP of Marketing and Innovation, and Bryn Garcia, VP of Retail Sales and Business Development, both from Select Harvest USA. For Garcia, the opportunities Expo West provides are the ability to get in front of 3,000 + retailers and share with them all of the exciting new products Select Harvest is launching. For Burwell, he looked forward to seeing what innovative products and solutions retailers were unveiling at the show. “That natural foods’ focus is what makes Expo West special, and why so many people come to it,” Burwell said.

Even though people will have to wait until 2021 for the next Expo West, Burwell and Garcia offered their insights on how Select Harvest is continuing to maintain relationships with the retailers they looked forward to interacting with at the show. Garcia said Select Harvest reached out to its entire retail network to lend assurance that Almond production operations continue unhampered by the pandemic. “For new retailers, we’ve been able to utilize platforms such as RangeMe as well as other social selling platforms to showcase the array of products that we have,” Garcia said.

Burwell said what makes Expo West so exciting is one never knew what the year’s hot new trends were until they arrived at the show. But Burwell did say Select Harvest was excited about revealing a new almond-based product that is indulgent and delicious but isn’t going to have all those extra calories, and carbs, and things like that. Perhaps there will be product unveiling on a future installment of nut news. For the latest news, videos, and podcasts in the Food & Beverage Industry, be sure to subscribe to our industry publication.

Alan Burwell, VP of Marketing and Innovation, Select Harvest USA, stopped by this episode of Nut News to provide his thoughts on the changes happening in consumer behavior regarding almonds and the innovations driving the industry as a whole.

Almond production has risen over the past 10 to 15 years, and Burwell sees a direct correlation to what is happening in the consumer segment.

“Almonds are showing up all across the consumer food landscape,” Burwell said. “A particular trend we’ve seen grow in normalization and adoption is the Keto diet. Keto speaks very specifically to the qualities of almonds.”

Burwell said Select Harvest USA experienced growth in both exports and the domestic markets, and he believes Select Harvest USA can provide innovation to many of the products utilizing almonds as an ingredient, especially in the snacking category.

While he wasn’t ready to get into specifics, Burwell teased some product innovations Select Harvest will announce in the future.

“If you’re someone who limits their intake of almond snacks due to too much salt or calories, I think you’re going to be excited about what we have in the pipeline for you,” he said.

Nut News: At 2018 Crop Year-End, Prices Are on the Rise

With global demand for almonds strong, prices are on the rise as 2018's crop year, which just ended July 31, saw record high numbers shipped out and record low numbers of carryout inventory. On today’s episode of Nut News, Bob Nunes, CEO for Select Harvest USA, one of the world’s largest almond distributors, lays out the market perspective for almonds at this crop year-end.

The 2018 crop year which ended July 31, 2019, set new records for shipping at 2.6 billion pounds, narrowly exceeding last year's record of 2.25 billion pounds. The final year-to-date shipment record resulted in a carryout inventory of approximately 319 million pounds, which is the smallest since the 2012 crop, and as a percentage of shipment, one of the smallest on record, Nunes says.

"With a small carryout, a later harvest than last year by about 10 days, and a comfortly sold industry, the market has responded with higher prices," Nunes says. "To complicate the situation, the industry is absorbing a lower than expected objective estimate. Both buyers and sellers are taking a very cautious approach to the forward sales for the 2019 crop."

The Objective Estimate came in at 2 billion pounds, down considerably from the expected 2.4 or 2.5 billion pound crop.

Nunes says SelectHarvest has invested "significant dollars" into plant equipment with continued emphasis on improving quality and service, while at the same time increasing productivity.

"I just want the growers, who are very busy this time of year, to know how much we thank them for putting their trust into SelectHarvest," Nunes says. "And we wish everyone a happy and dry harvest."

Tariffs and trade talks continue to be the biggest topic of conversation for those in the agricultural sector. According to the latest Almond Board of California’s Global Update, India imposed retaliatory tariffs on a list of 28 U.S. goods in response to the U.S. steel and aluminum tariffs which were implemented last year. This also came after the U.S. removed India’s trade privileges under the Generalized System of Preferences.

This is of particular interest for Almond farmers in California, who make up 80% of the world’s global supply. India is California’s number one almond market and almonds are the top U.S. agricultural export to India with a value of $657 million in 2017, according to Dan Wheat of the Capital Press.

Almond Board vice president Julie Adams says tariffs in China are responsible for the increased business in India. But the question now becomes, what happens to those gains in the wake of these tariffs put in place by India?

Michelle Connelly, executive director of the California Walnut Board, says quote, “The additional 20% tariff puts California at a disadvantage to other producers entering the market. We are extremely disappointed we could not reach a resolution on the ongoing tariff issues.”

Another month, another update on the world’s favorite nut: Almonds. On this episode of Nut News, brought to you by Select Harvest USA, we get the skinny on the international almond market after the release of the May Almond Position Report. Giving his perspective again on almonds in the global economy is Bob Nunes, CEO of Select Harvest USA. Nunes summarized May’s shipments, coming in at a staggering 178 million pounds, up 13% from last year.

In addition to May’s numbers, Nunes compared fiscal years and commented on how almond prices may fluctuate as we move between harvests. Mild spring weather affects harvest time and provides insight on when the fall crop will likely be ready for shipment. A July crop estimate leaves us hanging on the definitive calculations for future crops. Almonds remain high in demand with India and China as leading buyers.

Nunes gave his insider insight on how fluctuating international relations and the threat of tariffs may affect the almond industry, and what sort of back-up plan Select Harvest USA has in store during these tumultuous political times.

On this episode of Nut News with host Tyler Kern, Bob Nunes, CEO of Select Harvest USA, revealed good news for April 2019 almond shipments after the release of the month's Almond Position Report. Almonds set a new record high this month with 177 million pounds shipped, a 0.3 percent increase over the prior record of 176.4 million pounds.

Nunes said domestic shipments were off a little this month, but the numbers are still the second largest April on record. Also “very strong” commitment numbers for almonds sold but not yet shipped show a 16 percent increase over last year, Nunes said.

“We’re going to have a very tight transition into the new crop,” he said. “We’re going into the lowest carryout inventory ever.”

Nunes highlighed the National Agricultural Statistics Service’s subjective farmer-reported survey of monthly crop production, released on May 10. The report showed a moderate increase in seasonal almond production.

The National Agricultural Statistics Service’s Objective Yield forecast for almonds is coming in late June or early July, which is a more scientific report based on actual data of crop samples.

Nunes discussed the continued trade tariffs conflict with China and its effect on the U.S.

“It looks like for next few seasons we should continue seeing growing almond crop...with new products, and new markets,” Nunes said. “In the short term, it looks positive for almonds.”

While almond shipments in March 2019 did not top the record shipping month seen at the same time last year, Select Harvest USA CEO Bob Nunes says shipping and sales for almonds are healthy this month. He attributes this to strong demand from an Indian holiday and steadying European prices. On Nut News, Nunes highlighted March 2019 as the third largest shipping March on record and shared record new sales generated in the month.

According to the Almond Industry Position Report for March 2019:

Also in this episode, Nunes highlighted the Terranova Trading annual crop estimate-- one of the first to come out this year-- and when to expect the National Agriculture Statistic Service's subjective estimate, which helps determine current and new crop price.

The Select Harvest CEO also discussed supply and demand scenarios, and whether there will be price-spiking demand that exceeds the supply until the new crop arrives in September 2019.

To learn more about Select Harvest, visit selectharvestusa.com.

Five billion. That is how many almonds were estimated by the National Agriculture Service to be in last year’s harvest, but the number was actually more like 2.7 billion. This year, with 1.3 million acres of almonds planted, it’s a waiting game to see what the yield will be.

On today’s episode of Nut News, we discuss all things almonds with Bob Nunes, CEO for Select Harvest USA, one of the world’s largest almond distributors.

The monthly almond report has just come out, the industry has come through the bloom period, and now it is an anxious waiting game as the industry finds out what this year’s almond crop is going to look like. The crop typically blooms in March, when the bees will be distributed through the orchard for pollination to happen, so it is a critical time for forming next year’s crop.

Nunes says that they “experienced very challenging weather for the bloom period this year with excessive rain and cool and windy periods, so the outcome of this year’s crop has not been determined yet.”

There is still time to see how many of these flowers will be converted into almonds, just one of the factors that go into the success of this particular industry.