Industry Newsletter February 2014

February 2014
news
Another Big Crop . . . An Even Bigger Price.
The final crop number for 2013/14 was
490,554, just short of the California
Agricultural Statistic Service (CASS)
estimate of 495,000 short tons. It is the
third largest crop in history. Although
we will not have a field price until CASS
releases that number in the spring all
indications are that the record 2012/13
field price of $1.52 per pound in-shell
will no longer be the record.
Demand is strong worldwide! This is
the result of excellent quality delivered
by the growers, good service provided
by the handlers and marketing
activities funded by grower and handler
assessments through the California
Walnut Board and Commission.
entry and economic success in many
export markets.
Looking back to the late 1980’s the
names Chandler, Howard and Tulare
were not top of mind. Consumers did
not think of walnuts as a nutritious
food or a contemporary ingredient for
cooking. How did all that change? Good
research, both production and health,
was supported and communicated by the
Board and Commission. Growers were
provided better agricultural practices
through production research, from pest
management to blight control.
California walnuts became a “Superfood”
due to the scientific research showing
their heart health benefits.* Health
research in other important chronic
illnesses also drew the attention of
opinion leaders like Dr. Mehmet Oz, Dr.
Andrew Weil, Dr. Michael Roizen and
countless others. Walnuts are no longer
just for brownies and cookies. They are
appearing on salads, in rice and pasta
dishes and perhaps most importantly,
snacking on walnuts is on the rise.
In this issue…
New markets opened like Japan, Korea,
China and now India. It took about 6
years to gain access to Korea. Now it is
consistently one of our top three shelled
markets. Initial shipments to China were
modest and now it is our number one
market for California walnuts. Patience
paid off. It takes time and effort to
overcome trade barriers which block our
The trust you had in your industry working
together has paid off. There is more to do
to maintain strong demand. So when you
get that 2013/14 payment, remember the
effort that made it all happen. Remember
that 12 years ago farm gate receipts totaled
$250 million dollars for our industry. The
2012/13 farm gate receipts totaled $1.5
billion. Be proud of your success.
What New Markets Mean for
the California Walnut Industry 2
Export Update
3
Domestic Update
4
Getting to Know the Staff
5
The Staff’s Favorite Walnut
Recipes/Call for Recipes
5
Upcoming Events & Meetings
6
*Supportive but not conclusive research shows that eating 1.5 ounces of walnuts per day, as part of a low saturated fat and low cholesterol diet, and not resulting in increased caloric
intake may reduce the risk of coronary heart disease. U.S. Food and Drug Administration, March 2004.
One ounce of walnuts provides 18g of total fat, 2.5g of monounsaturated fat, 13g of polyunsaturated fat, including 2.5g of alpha-linolenic acid - the plant-based omega-3 fatty acid.
1
Export Update
export UpDate
Current Markets
Former Markets
What New Markets Mean for the California Walnut Industry
Demand for California walnuts in markets around the world has
elevated walnuts to the fourth leading export from the state, valued at
over $1 billion dollars. Since the Commission inception exports have
grown 492%, from 52,000 tons in 1985 to 310,000 tons in 2012
and now account for 62% of shipments.
Developing new markets has been fundamental to this
growth, and will continue to be, as the industry grows.
In the words of Henry Ford, “Coming together
is a beginning; keeping together is progress;
working together is success”. Working
together the California Walnut Board and
California Walnut Commission have built
and will continue to build new markets.
The Board evaluates phytosanitary
protocols and supports post-harvest
research that is essential to the process.
Simultaneously, the Commission petitions
overseas ministry’s for market access to
allow walnuts to be shipped. The CWC works
with colleagues at USDA’s Animal Plant Health
and Inspection Service (APHIS) and the Foreign
Agriculture Service (FAS) to facilitate the process. These early stages
to develop a market require patience and persistence, as the process
can take years and that is just the beginning.
In 1986 inshell market access was granted in Japan. However; it
was the introduction of the New Product Development Competition
promoting shelled walnuts to the bakery sector that forever changed
the Japanese market. California’s market share has grown from 40%
in 1989 to 96% today with over 60% of the volume being utilized by
the bakery sector currently.
Shelled market access was granted in Korea in 1994 with inshell access
taking another eleven years to be granted in 2006. The shelled walnut
duty was 50% when shipments began. Through the industry’s efforts
2
the duty gradually declined although real relief has only recently been
seen with the 2012 enactment of the U.S./Korea Free Trade Agreement
which will phase out the shelled walnut duty to zero in 2017. Korea
has become a significant shelled market for California walnuts
surpassing 20 million pounds just as recently as the
2011/2012 crop year.
Although our first shipments to China were on 1999,
it was 2008 that put China on the map as an
export market, reaching 27 million pounds
in shipments.
Today China (including
Hong Kong, Thailand and Vietnam) is the
industry’s largest export market accounting
for 22% the industry’s total shipments and
219 million inshell equivalent pounds.
The industry’s efforts educate Chinese
consumers to California walnuts quality,
taste, versatility and health benefits.
These efforts have resulted in 65% of
consumers now being aware of California
as a producer and purchase because walnuts are
nutritious, good for heart health.*
Most recently the opening of the Indian market occurred this past
summer. This process took over two years for the initial phytosanitary
protocols to be accepted. Initial shipments have begun, however the
market will take time to build distribution, consumer awareness and
resulting consumption.
As the industry looks to the future, continued expansion of export
markets will be critical to future production gains. Working together
the California Walnut Board and California Walnut Commission will
develop the industry’s future consumers. The industry will continue
to grow consumer awareness of walnuts many benefits, thereby
increasing global consumption and fully utilizing production gains.
Walnut Products from Around the World
USA
China
Strawberry Patch Trail Mix
Walnut Green Tea Soft Cake
Safeway Select
Almonds, Dried Cranberries,
Walnuts, Dried Strawberries, Raisins
The main ingredients are California
Walnuts, green tea and edible gelatin
Brand: Huangzu
Price: RMB13.5
Cranberry Apple Walnut Grilled Salad
California Walnut Date Soft Candy
Manufacturer: Carl’s Jr
Grilled Chicken, Dried Cranberries, Sliced
Apples, Glazed Walnuts, Feta Cheese, Spring
Mix, and Chopped Iceberg Lettuce, served with
Raspberry Vinaigrette Dressing.
The main ingredients are California Walnuts,
Chinese date and edible gelatin
Chobani Blueberry Power
Manufactured by Chobani
Walnuts, hemp seeds and chia in creamy
blueberry yogurt.
Korea
Paris Baguette’s Walnut Tart
Spain
Kaiku Greek Yogurt with Walnuts
Format: pack with 4 units/
125g per unit
Launch: Sept. 2013
Price: 2,19 €
Distribution: food retailers, hotels and bakeries in Spain
Manufacturer: Kaiku is a diary company which started in 2004.
It’s the second national brand of bifidus probiotics products
and they are distributed to over 15.000 sale points including
big food retailers, hotels and bakeries around Spain.
Germany
Shokomonk Chocolate Bar
with Walnuts
Weight: 45g
Price: US$ 1.30
Walnut content : 16.52%
Manufacturer: Paris Baguette “Walnut Tart”
available in 3,200 stores
Ashley’s Beverly Hills Square Pizza
with walnuts
Product description: Pizza with walnut topping
Walnut content: 4%
Served at casual buffet style restaurant chain
“Ashley” with 135 outlets
Binggrae’s Hae ssi Ho ssi
Manufactured by Korea’s major confectionery/
cream manufacturer
Ice popsicle which contains small pieces of
walnut and sunflower seeds
Baskin Robbins’ Walnut and Banana Shake
Product description: Walnut & Banana shake
Price: US$ 5
Walnut content : about 8%
Manufacturer: SHOKOMONK
Chocolate bar containing 13 % walnuts
1,49 € / 50 g per box
3
Domestic Update
Domestic UpDate
Foodservice Program Kicks Off in U.S.
The foodservice program in the U.S. market
started in 2013, with activities ramping up in
the last quarter of the year.
The Board launched a foodservice advertising
campaign in November with the focus on
showing how walnuts can fit into the current
trends in the foodservice industry. In
research conducted earlier in the year, we
found that chefs considered walnuts to be “old
fashioned,” so this ad campaign endeavors to
show that walnuts are contemporary.
Advertising
Trends that will be showcased are sustainable
seafood, ancient grains, savory desserts,
Asian street food, artisan ice cream,
and flatbread appetizers. Ads will run
in foodservice publications through the
remainder of the fiscal year (August 2014),
but this campaign should have a shelf life into
the next marketing year. Publications include
Food Arts, Plate, Restaurant Hospitality,
Catersouce and Hotel F & B magazines as well
as digital ads on their websites and on the
Restaurant Smartbrief newsletter.
Guckenheimer Promotion
As a result of the California Walnut Summit
we held at the Culinary Institute of America
in March of 2013, we were able to negotiate
a promotion with Guckenheimer Services.
Guckenheimer is a premier on-site corporate
restaurant management and catering company.
They serve an estimated 1.8 million
customers daily throughout 335 locations in
26 states throughout the country. The Board worked with them to make October, California
Walnut Month. This promotion included featured weekly recipes in their cafeterias that
were accompanied by recipe cards for a Cinnamon Apple Quinoa Salad with Toasted Walnuts
and a Pear and Walnut Dessert Pizza. Additionally, signage on the walls, TV monitors,
and at table tents on every table showed consumers why walnuts are a great choice. Staff
managing the promotion said that in many cases, the chefs created additional walnut recipes
to feature in their cafeterias throughout the promotional period. This was a very successful
promotion for the Board, and we hope to continue the partnership into 2014.
Conferences
Looking ahead, the California Walnut Board has plans to attend two industry shows – the
Research Chefs Association Annual Conference and the Culinary Institute of America’s
Menus of Change. The Research Chefs Association is made up of over 2,000 members in the
discipline of Culinology – a blend of culinary arts and food science. Their annual meeting
is in Portland March 11-14 and the Board is a gold sponsor, allowing California Walnuts
to be highlighted throughout the meeting. In June, the Board will be a Platinum Sponsor
at Menus of Change: The Business of Healthy, Sustainable, Delicious Food Choices in
Cambridge, MA. This conference is in partnership with the Harvard School of Public Health
who we have a good working relationship with through our Health Research Program. This
meeting is attended by foodservice professionals, but also leaders in nutrition research,
public health, environmental science, and sustainability as this conference tries to foster
collaboration between the groups to improve food choices on menus.
Between all of these programs, California Walnuts will have good visibility amongst many
decision-makers in the food service industry.
4
Nate Samelson
Assistant Marketing Director - Domestic
Nate comes to the California Walnut Board and California Walnut Commission from CBS Radio Sacramento, where
he spent the last seven years in promotions and marketing. For the past three years, Nate oversaw the promotions
department for 105.1 KNCI, the largest country music station in Sacramento.
Nate graduated from Linfield College, a small liberal arts college in Oregon, in 2005, where he majored in Communications and was the sports
editor for the school newspaper for two years. He also broadcast various sporting events on the school radio station and had a weekly sports TV
segment. Upon graduating he moved back home to California (because honestly, why would anyone not want to come back to California?!).
Nate loves to learn new things and expand his knowledge base. He is a huge sports nut and has played seven different sports competitively at
some point in his life. He is always eager to tackle a new challenge and will have fun doing it. Nate was born and raised in Sacramento and his
parents still live in the house he was born in. He currently resides in Carmichael with his wife Cara, and their one “child”, five year old pup Kona.
“
I have already learned so much about the walnut industry since I started
and am excited to continue to learn about this fascinating business.
Call for Recipes
The Staff’s Favorite
Walnut Recipes
”
Pam Arsondi – Accounting Assistant
Sugared Walnuts
Dennis Balint – Executive Director/CEO
Walnuts with Popcorn Salt & a Favorite Beverage
Carol Berg-Sloan, RD – Nutrition Consultant
Wild Rice with Walnuts and Cranberries
Heather Donoho – Accounting Manager
Walnut Brittle
Carl Eidsath – Technical Support Director
Spiced Rum Sugared Walnuts
Dana Hull – Administrative Assistant
California Walnut & Apricot Rugelach
Abhi Kulkarni – Assistant Director Technical Support
Candied Walnut, Cranberry & Feta Cheese Salad
Anne McConico – Administrative Assistant
Candied Orange Walnuts
Michelle McNeil – Senior Marketing Director, International
Walnut Pesto Pinwheels
Jennifer Olmstead – Marketing Director, Domestic
California Walnut Energy Bars
Now you know our favorite walnut recipes, what
are yours? Submit your recipe to info@walnuts.
org with “Grower recipe” in the subject and your
recipe could be featured in the next newsletter.
Nate Samelson – Assistant Marketing Director, Domestic
Spice Coated Maple Walnut Nuggets
Jennifer Williams – Assistant Marketing Director,
International
Walnut Crusted Salmon
5
California Walnut Commission
101 Parkshore Drive, Suite 250
Folsom, CA 95630
California Walnut Board &
Commission Annual Winter Meeting
Ag and Farm Shows
Friday, February 21, 2014
Tues-THurs, February 4-6, 2014
Silverado Spa & Resort
1600 Atlas Peak Road, Napa, CA
For more information, please contact
Dana at (916) 932-7070
Tues-THur, February 11-13, 2014
Colusa Farm Show, Colusa, CA
World Ag Expo, Tulare, CA
Contact Information
UC Extension Service Meetings
THursday, February 6, 2014
• Thursday, March 6, 2014
Quad-County Walnut Institute, Stockton, CA
California Walnut Commission
and California Walnut Board
Friday, February 7, 2014
THursday, MarcH 13, 2014
101 Parkshore Drive, Suite 250
Folsom, CA 95630
Wednesday, February 12, 2014
Tuesday, MarcH 18, 2014
Wednesday, February 26, 2014
• Date Change
Tri-County Walnut Day, Visalia, CA
Tehama Co. Walnut Day, Red Bluff, CA
Butte/Glenn Counties Walnut Day, Chico, CA
Sutter/Yuba/Colusa Walnut Day, Yuba City, CA
Hollister Walnut Institute, Hollister, CA
Lake County Walnut Day, Lakeport, CA
phone: (916) 932-7070
email: info@walnuts.org
fax: (916) 932-7071
www.walnuts.org
Non-Discrimination Statement
In accordance with USDA, the California Walnut Board and California Walnut Commission prohibit discrimination in all programs and activities on the basis of race, color, national
origin, age, disability, sex, marital status, familial status, parental status, religion, sexual orientation, genetic information, political beliefs, reprisal, or because all or part of an individual’s income is derived from any public assistance program.
To file a complaint of discrimination, write to USDA, Director, Office of Civil Rights, 1400 Independence Avenue, S.W., Washington, D.C. 20250-9410, or call (800) 795-3272 (voice) or
(202) 720-6382 (TDD). California Walnut Board and California Walnut Commission are equal opportunity employers and providers.
6