2003 Almond Crop Forecast Announced

The June 26, 2003 objective almond forecast for the 2003-2004 crop year is one billion meat pounds, according to the California Agricultural Statistics Service (CASS). This forecast is based on 530,000 bearing acres.

Gary Nelson of CASS said the forecast is up 9 percent from the May 9, 2003 subjective forecast of 920 million meat pounds and down 8 percent from this year’s crop to date. The official announcement was made today at the Modesto office of the Almond Board of California, which funds the forecast.

The average nut set per tree is 7,002, down 14 percent from the 2002 almond crop. The Nonpareil average nut set of 6,110 represents a 24 percent decrease from last year’s set. The average kernel weight for all varieties sampled was 1.67 grams, up18 percent from last year.

Over 300 Growers Attend Gold Hills Open House And Annual Meeting

On April 17th approximately 300 almond growers attended the annual open house and grower meeting at Gold Hills Nut Company in Ballico. Statistics quoted in the Annual Report to Growers revealed the successes of the company and the almond industry as a whole.

As of March 2003, the industry reported receipts of over one BILLION pounds of almonds from the 2002 crop. The crop size increased 31% over the previous year. Shipments increased 16% over the previous year and have broken all shipment records every month. "The record is almost unbelievable and the season could not have gone better even if we had provided a written script," reported Rick Kindle, Vice President of Marketing and Operations at Gold Hills Nut Company.

Approximately 71% of total almond shipments go overseas. Spain, although they grow their own almonds, but with a dwindling supply, have become a very large importer, receiving over 14% of the total exports. Germany is second with over 13%, Japan and India at 9% and the fastest growing market China at 5%. All these markets grew fairly evenly this last year with true consumption.

What has pushed for this large growth? There are many factors. Some can be easily recognized and others are more subtle. The management at Gold Hills believes that the efforts of the grower supported California Almond Board nutritional research and advertising programs are paying off. Last year at this time there was a swelling discussion about reduction of this assessment. As some other agricultural industries are eliminating their marketing administrative boards, this discussion has taken a back burner amongst almond handlers. No other industry, agriculture or non-ag related, could tell the story and show the results the almond industry has produced this last year.

"Pat yourselves on the back. You have paid your dues and are reaping the benefits. Should we become complacent now? Of course not. The health benefits of almonds need continued study and verification." Mr. Kindle told the growers attending the annual meeting.

Another factor that has helped to increase consumption, price, and the eventual grower return is the decreased value of the US dollar as compared to the Euro, the Japanese Yen, and other foreign currencies.

Despite the bountiful year, the industry will remain vigilant in their efforts to increase consumption worldwide. If the stock market firms, the dollar may also firm. The war in Iraq has affected shipments and market promotion efforts. The slowdown in the economy in Japan has reduced shipments in the last several months. Hong Kong and China shipments have slowed slightly because of the SARS epidemic.

On the optimistic side, the market for both 2002 crop and 2003 crop has remained firm. The consensus or average estimate of most producers in California for the next crop is in the 875-900 million pound range. The CASS (California Agricultural Statistic Service) first subjective estimate is May 9 and the Objective Estimate, based on a physical survey, will be released on June 29. We expect a carry-in position, the unsold balance from the previous year, of about 150 million pounds, which is minimal. This, combined with a new crop of around 900 million pounds, will provide a total supply less than last year.

Almond growers today produce on average over 2000 pounds per acre which in 2002 provided an average gross return of $2300-2500 per acre, again a new record. "Last year at this time, we were projecting average grower payment for the 2001 crop at less than $1.00 per pound. Today, we are looking at grower prices on the 2002 crop, on average of $1.22 on Nonpareil and $1.02 on California varieties," Kindle reports.

The year 2002 was also a year of progress for the Ballico company who invested in the latest technology for almond sorting. "We purchased an Argus Best laser sorter which increases our sorting capacity and efficiency and improves our overall out-put quality. The justification to our growers is that this machine allows us to be more efficient and cost effective which translates into very competitive grower returns," reported Cathy Phipps, owner and largest grower in the company.

Last year Gold Hills also committed to processing and marketing of Organic Almonds. "This is the fastest growing segment in the food industry and we wanted to be part of it," commented Ms. Phipps. The natural almond processing plant is certified as an Organic Processor by Certified Organic Farmers of California (CCOF), the USDA and the State of California. Gold Hills intends to also have their manufacturing plant certified this year.

Recently Gold Hills also expanded their Grower Relations team, hiring Jon Murphy from Escalon and Greg Bickell from Turlock. Jon and Greg join the veteran Stan Fail in servicing the needs of growers. They are all doing a great job of spreading the Gold Hills story of success.

Plant Manager Rich Barella, continues to provide an efficient operating team that produces both high grades of natural and manufactured almonds to customers worldwide. Gold Hills Nut Company processes between 20-25 million pounds of almonds annually. They have planned to add another 24,000 square feet of storage space for this coming year. It will be divided into 3 bays of each 8,000 square feet and one bay will be dedicated to the storage of Organic almonds.

The open house and annual meeting also featured a barbecue and displays by Garton Tractor, Flory Industries, Trade-Way Chevrolet and Westec Industries. "The almond industry has enjoyed a great year. All of us at Gold Hills appreciate you growers and enjoy the opportunity to share this day with you and look forward to another great year," ended Rick Kindle as presentation day came to a close. For more information about Gold Hills Nut Company call 634-2022 or visit the web site at goldhills.com.

California Almond Shipments Hit Record Level - 20% Increase in Shipments for State’s #1 Agricultural Export

For the fourth consecutive year, worldwide shipments of California almonds achieved record numbers. Today’s release of the Almond Board of California’s year-end position report, an account of all almond receipts and shipments transacted by handlers from the previous twelve months, showed significant growth in both established and emerging markets for the 2002/03 crop year ending July 31.

Domestic shipments rose 21.89% during 2002/03 compared with the same twelve-month period a year ago to reach 291,737,233 pounds – an increase of over 52 million pounds. Almond shipments to overseas markets exceeded the previous record set last crop year, increasing by 18.71% in 2002/03 to reach a new high of 690,635,141 pounds. Overall, exports accounted for 70% of total shipments, versus 30% shipped within the US, the single largest market for California almonds.

The record shipments accompany the industry’s largest crop ever, 1.084 billion pounds of almonds, received by 115 processors throughout California. That amount exceeded the California Agricultural Statistics Service objective production estimate of 980 million pounds by more than 100 million pounds.

“For years there was trepidation about the impending billion pound crop. The industry recognized the potential and began to focus on working diligently to increase demand throughout the world for almonds,” said Craig Duerr, director, global marketing communications. “Recently the Board has been looking to the future again, setting their mission and vision for the next five years -- to be the healthiest specialty crop in the world. The ability of the industry to move this volume of product indicates we’re off to a good start.”

The following are also highlights of the year-end report:
· Spain became the top export market, growing 25% over a year ago to overtake Germany, the long-time number one export shipment destination. Exports to Spain totaled 106 million pounds, compared with 93 million pounds for Germany, which grew 3%.

·For the second consecutive year, shipments to Japan, the third largest export destination and the leading importer in Asia, achieved a new record. The crop year saw a 9% increase over the previous year bringing exports to Japan to 63 million pounds.

·Shipments to two important emerging markets in Asia – India and China – also attained record levels. India, the industry’s fourth largest export market, grew 10% to 53 million pounds. China also reached a new shipment high of 28 million pounds.