2013 Almond Almanac
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2013 TABLE OF CONTENTS 2 Board of Directors 3 Introduction from CEO + Board Chair 4 Strategic Priorities of ABC 5 ABC Programs + Budget 6 California Almond Industry Overview 7 Historical Shipments 8 Position Report of California Almonds 9 Destination Overview of California Almonds 10 World Destinations 12 World Almond Production 13 California Crop + Almond Acreage The California Almond Industry 14 Top Ten Exports by Value 15 California Almond Production by County 16 California Almond Receipts by County + Variety At Your Fingertips 17 Top Ten Almond Varieties + Acreage 18 California Almond Crop Estimates vs. Almond Board of California (ABC) promotes almonds through its research-based approach to all Actual Receipts aspects of farming, production and marketing on behalf of California Almond growers and handlers. 20 California Almond Acreage + Farm Value The Almond Almanac is ABC’s annual report, which outlines the programs and projects that power 22 California Almond Crop-Size History vs. the industry toward meeting its vision, and it provides a comprehensive analysis of the production Inedible Percentage and marketing of California Almonds. 23 Competing Nuts The Almond Almanac is prepared by ABC on a crop-year basis, spanning August 1 through July 31, 24 Research Program Introduction 25 Production + Environmental Research and includes comprehensive historical information about almond production, acreage and varieties, 27 Almond Quality + Food Safety as well as shipment and market information. The statistical content is compiled using various 28 Nutrition Research handler forms required by the industry’s Federal Marketing Order. Additional data, including crop 29 Global Market Development Overview estimates and farm price, are supplied by the USDA National Agricultural Statistics Service, Pacific 30 Marketing Overview Region Field Office (NASS/PRO). 31 Social Media Overview 32 Consumer Advertising Overview 34 Consumer Public Relations Overview 36 Trade Stewardship Program 38 Market Access 39 Industry Relations 40 California Almond Sustainability Program 1 Introduction from CEO + Board Chair Dear Almond Community Members and Allied Stakeholders, 2013 represented a bit of a break from our recent history. Over the past few years we have become used to ever-increasing crops and shipments, and this year struck a bit of a different tone. 2013 When the final numbers were tallied, the 2012/13 crop came up short by more than 200 million pounds Board of Directors and, as a result, shipments decreased slightly from record levels. The rapidly emerging Chinese and Middle Eastern markets took a hit due to new regulations and civil strife, and the all-important Western European Bill Harp Mark Jansen Bill Brush Scott Hunter market declined by 1%. The U.S. market, however, continued its rapid growth, advancing by more than 7%, Chair Vice Chair and other markets such as Mexico, Russia, Australia, Chile, Indonesia and Brazil expanded at historic rates. VISION: Once again, the diversity of our markets provided stability. And that stability, along with increased pricing throughout the year, produced the most robust grower returns per acre ever achieved by the industry. To bring great taste, health and vitality Stability and financial strength result in growth, and with fair returns on industry assets, almond growers and to people around the world through the enjoyment of California Almonds. handlers are poised to provide the world with ever-increasing amounts of what is arguably the best food on the planet—California Almonds. Tied to the very optimistic outlook for the almond community are the significant agricultural hurdles that MISSION: need to be surmounted for all to be well. The mind-bogglingly complex ground and surface water challenges To make California Almonds essential to facing the state are front and center as we enter another crop year with reservoirs and aquifers being overly customers and consumers worldwide taxed. Add to that the high cost and uncertainties of pollination services for almond growers, and it’s more Mike Mason Dexter Long John O’Shaughnessy through innovative research, market than evident that we have significant challenges in need of solutions. But that’s what almond industry development and industry support. stakeholders have always done—solve problems. There’s no course correction needed in the proactive attitude we take to problem solving, other than, perhaps, a greater sense of urgency. The ABC Board of Directors and staff look forward to working with the entire almond community throughout the year in finding remedies to ensure its growth and prosperity. Please avail yourselves of the abundant Almond Board resources to further the success of your business and the well-being of us all. Dave Phippen Dinesh Bajaj John Thoming Richard Waycott, President and CEO Bill Harp, Chair 2 2 013 3 Strategic Priorities of Almond Board of California Program Budget Allocation fiscal year 2012/13 Invest in programs and research that make almonds a Crop of Choice for California Almond Quality + Food Safety 2% ■ Promote sustainability of almond supply Environmental Research 2% Almond Board Technical + Regulatory Affairs 2% ■ Enhance the industry-wide food safety system Industry Services 1% of California Production Research 3% ■ Identify and support basic and applied research to enhance production efficiency Programs + Budget Scientific Affairs/Nutrition Research 3% Established Markets 43% Invest in programs and research that build market demand Key programs for ABC contribute to meeting our for almonds, making them the Nut of Choice Administration 14% — vision and mission. These areas include a ■ Continue to expand the understanding of the health benefits and quality of almonds in support of market development strategies comprehensive global marketing program in established, emerging and exploratory markets; ■ Implement programs to develop new markets and maintain existing ones nutrition, production, environmental and technical ■ Implement actions that mitigate trade barriers research; a sustainability program; industry ■ Improve market development resource allocation mechanisms and processes communications outreach; and more. Build an ABC organization that optimizes its effectiveness ABC programs are funded by a grower assessment in establishing and executing goals placed on each pound of almonds produced. Each ■ Ensure that ABC representatives understand and adhere to fiduciary responsibility standards year, the ABC Board of Directors, made up of Emerging Markets 30% ■ Implement Board of Director development initiatives, such as succession planning, formal both growers and almond handlers, approves the Source: Almond Board of California. orientation, board performance assessments and skills development and acquisition allocation given to each program area. ABC staff is ■ Optimize staff and committee structures and processes responsible for implementing the programs detailed ■ Articulate needs related to advocacy and seek out possible alternatives for meeting these needs on the following pages. 4 2 013 5 California Almond Industry Overview Carry-In as a Percentage of Prior Year Shipments crop years 2003/04–2013/14 California’s Central Valley has ideal conditions for growing almonds with its mild climate, rich soil and abundant sunshine. California Almonds make up about Historical 30% 80% of the global and virtually 100% of the domestic supply. According to the 2007 USDA Ag Census, there are around 6,500 California Almond farms. 30% Of those, 72% are family owned and 51% are less than 50 acres. Shipments 25% 22% 18% 18% During the 2012/13 crop year California Almonds produced the second largest crop on record at 1.88 billion pounds of almonds on 790,000 bearing acres. 20% 16% 17% 15% In the same year, 106 handlers shipped 1.87 billion pounds of almonds, a 1.7% decrease from the prior year. Crop year 2012/13 production was the second 15% 14% 15% 12% 13% largest crop on record at 1.88 billion pounds. The 2013/14 crop is forecasted at 1.85 billion 10% pounds and is based on an estimated 810,000 carry-in percentage 5% Almond Production by County 2012/13 Distribution of Crop by Handler Size 2012/13 bearing acres. 0% California Almond shipments decreased 1.7% in 03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13 13/14 Number of Percentage of 106 Handlers 2012/13 to 1.87 billion pounds. The U.S. remains estimated Handlers Crop Handled TEHAMA >100 million pounds the single largest market, up 8% to a new record of Source: Almond Board of California. GLENN 50–100 million pounds <1M pounds 24 <1% 588 million pounds and accounting for 32% of total .................................................. BUTTE shipments. For the fourth year, California shipped 1–49 million pounds 1 –24M pounds 58 23% Historical Crop Size + Shipments vs. Farm Price crop years 2003/04–2012/13 YUBA 25–49M pounds 15 28% more than 1 billion pounds to export destinations, ......................................................................................................... SUTTER Acreage making FY 2012/13 the second largest export year Crop size Shipments Farm price $3.25 .......................................... 50–74M pounds 5 17% 2,000 YOLO with 1.28 billion pounds shipped. ............................................. >75M pounds 4 33% 1,800 $3.00 ....................................... $2.81 COLUSA ............................................. STANISLAUS 1,600 MADERA $2.75 ......................... $2.58 SOLANO ...................................................