California's 2006 almond crop a bin buster

Elizabeth LarsonCapital Press Staff Writer

Almond production in California has hit an all-time high, the Almond Board of California reported today.The board's 2007 Position report states that California almond production through Jan. 31 of the 2006-07 crop year jumped 22 percent over the previous year, resulting in a record high 1.092 billion pounds.California leads the nation and the world in almond production, said Marsha Venable, the board's communications coordinator. Eighty percent of the world's almond production is located in California, said Venable. California in turn exports 70 percent of its crop, she said.The growth in production didn't come from increased acreage, Venable said, most of which hasn't come into production yet."It really was just a good year for the sets on the trees," she said.That, together with good weather conditions, resulted in this record-breaking crop, said Venable.Along with the record production, the board is reporting increased demand in domestic and foreign markets.January crop year-to-date shipments increased 27 percent versus the same time period last year, the board reported, resulting in record-breaking numbers for domestic and export markets.Domestic shipments are up 23 percent overall, with record monthly shipments in each of the last five months, the board reported. In addition, export shipments were up 29 percent from last year.The Almond Board reported that the top five export markets this crop year are Germany, Spain, India, Japan and China, representing 50 percent of all California almond exports.Increasing knowledge about the health benefits of almonds is one factor in the growing demand, Venable said."People have become aware of the nutritional value of almonds," she said, adding that the "heart healthy" message about almonds has gotten out.The Almond Board also has been marketing the nuts globally, she said, which includes working to expand the role of almonds in peoples' diets beyond desserts, pastries and confections.The production count is expected to go on for the next five months, Venable said, but more than 98 percent has already been recorded.

Jeanne N. writes: “What is the purpose of the red dye on pistachio nuts? They don’t add any flavor. The only thing that happens is your fingers stay red for a very long time.’’Not knowing any nut experts in Racine (a few nuts, though), we used Google to help with this question. And we found that Jeanne is right. The red dye on pistachios doesn’t add flavor. Growers started dying the nuts long ago to cover blemishes in the shells. Modern machines are much better at picking out quality nuts, but a lot of people are used to red pistachios so the dye remains (along with red fingers). A few interesting side notes: 1.) Pistachios grow on trees and audibly split as the fruit ripens. Legend goes that lovers who stand under the trees and hear the popping shells will have good luck. 2.) Not that anyone but us would wonder this, but the phrase ’’caught red handed’’ has nothing to do with pistachios. That old phrase comes from the grisly image of someone with blood on their hands.

Dear Friends:

Market remains firm and steady as we make record shipments for January at 85 million lbs—4 mil more than the prior record in 2002 crop and 20 mil more than a year ago. At the same time we have record 2006 crop receipts of 1.092 billion lbs. We expect another 10 million, bringing the total to about 1.1 billion lbs. This leaves us with an estimated 570 million lbs for the next 6 months and a carry over. The combined record shipment months from 2002 to 2005 crops for the next 6 months is 464 million lbs, an average of 77 mil/month. If we ship at that pace, we will have a carry out of 106 million lbs, and the total season shipments will be 1.074 billion lbs, 50 million more than the record 2003 crop. Accordingly, I would expect strong shipments to continue, giving us final shipments of 1.025 to 1.075 billion lbs and leaving a carry out of 105 to 130 million lbs. Unless there is a big change in this trend, the supply and demand are reasonably balanced at the current prices.

The market price from now on will react to the pollination conditions, which is expected to be later this year—starting week of 19 Feb. Current prices for 2007 crop reflect an expectation for a larger crop—potential 1.2 billion—at a discount of .30 to .40/lb. If pollination conditions are good, we could have a small softening of prices for both crop years then a transition during July to Sept from the higher current levels to the lower new crop levels. If pollination conditions are poor, current crop prices will increase slightly and 2007 crop will increase by a greater amount, bringing the two crops closer together in price.

Aflatoxin update: The EU is working on a proposal to increase sampling of arriving containers for aflatoxin and to standardize the process for all ports. Simultaneously, the Almond Board has developed a voluntary aflatoxin sampling plan (VASP) based upon extensive research that requires a 15kg representative sample to be ground and tested at a USDA certified lab. We expect the EU committee to propose testing 5% of arriving containers participating in the VASP program and 100% of those that are not. We don’t yet know when the program will begin but expect it between now and 2007 crop harvest. EU tolerance remains at 4ppb—lower than USA at 20 ppb and Japan at 10 ppb. Last year over 35 loads were rejected by EU customs for excess aflatoxin. The 5% sampling rate would actually mean an increase over current levels, and therefore expected to result in even more rejections. All considered, I would recommend that handlers prepare for participation in VASP and watch for news on the EU plans. Aflatoxin is a toxin produced by soil fungus and is most often associated with insect damage. Levels in almonds can be reduced by removing insect damaged kernels, blanching and avoiding high moisture during stockpiling and storage.

Salmonella update: The industry is awaiting USDA approval of the Almond Board’s proposed rule to require pasteurization of all North American shipments beginning with 2007 crop, unless purchased by a company certified to do its own pasteurization (the DV Program—Direct Verifiable). Pasteurization can be accomplished by Blanching, Oil Roasting, PPO (propylene oxide) fumigation or Thermal treatment (steam heat in chamber or continuous flow systems). We expect to have USDA news on this rule by end of March. There are several custom pasteurizing services in California available to handlers and buyers. Cost range is .05 to .07 per pound. Research has shown no significant physical or quality changes in PPO or thermal pasteurized almonds. I would expect a price differential between pasteurized and unpasteurized almonds, but that will be negotiated by each handler and buyer. Again I would recommend that handlers make pasteurization plans and that buyers discuss their pasteurization needs with their suppliers. If you are a buyer interested in participating in the DV program, start investigating now.

More information on both issues is available on the Almond Board website: http://www.almondboard.com/

Please send comments and questions. I’ll discuss bloom conditions, expected acreage and 2007 crop prospects in the next 2 to 4 weeks.

Best regards, Bentzy

India: Walnut exports from Jammu and Kashmir register quantum jump
Export of walnut from Jammu and Kashmir registered a quantum jump in the recent years, with a spurt in production.
The export from the state has touched 1.15 billion rupees in the year 2005-2006.
"Hundred and sixteen crore rupees have been collected as revenue from the export of the walnuts. Total revenue collected from it is 300 crore rupees. The export market of walnut is very good. We don't have that much production. Our production adjust to the demand with in three four months," said Akhtar Hussein, Deputy Director of Horticulture, Jammu and Kashmir Government.
According to traders, kashmiri walnut is superior in quality and thus in great demand in the export market. "As compared to foreign dry fruits Kashmiri dry fruit is more in demand. It is sweet, has more oil and is considered good for health," said Nisar Ahmed Beig, a trader.
The state had very sparse cultivation of walnuts in its wastelands until a few years ago. Long gestation period of walnut trees, sometimes as long as 50 years, was a dampener for farmers to take up its plantation.
But the state's horticulture department has introduced high-yielding varieties of plants with gestation period of four to six years. The Government has also initiated steps for propagation of walnut trees by budding grafting walnut plants and distributes material among farmers so as to reduce the gestation period of walnut trees from ten years (seedling origin) to 4-6 years.
It will also improve the quality of the nut and also promote the concept of uniformity in shape, size and texture. This has helped the farmers to take up plantation of walnut on a large scale, increasing production from 89,000 metric tonnes in 2004-05 to 109,000 metric tonnes in 2005-06.
The foreign exchange earned through export of dry fruits mainly walnuts has reached a level of Rs 115.95 crores in 2005-06. Around 30,000 people are associated with the walnut trade in the state.
The Himalayan state is also well known for its fruit and dry fruit range.
Fruits like apples, pears, cherries, plums, grapes, pomegranates, mulberry, peaches, apricots, walnuts and almonds require a cool climate, moderate rainfall and bright sunshine. (ANI)

Farmers scramble for dwindling numbers of bees to pollinate crops
OLIVIA MUNOZ
Associated Press
FRESNO, Calif. - As the cold slowly loosens its grip on California's Central Valley, the pink and white flowers on fruit and nut trees are just beginning to blossom and growers are scrambling for a dwindling supply of bees to pollinate their fields.
Harsh weather across the country, pesticides and mites are blamed for killing off billions of bees needed to pollinate just about every crop throughout the year - oranges in Florida, apples in Washington, blueberries in Maine and California's $1.4-billion-plus almond crop, according to some preliminary research by scientists with Pennsylvania State University and the U.S. Department of Agriculture.
"It's startling. We were just starting to get information through word-of-mouth from beekeepers in the east a couple months ago and we thought about what it was going to mean once it got time for them to travel to California," said Dennis vanEngelsdorp, a bee expert with the Pennsylvania Department of Agriculture.
The number of commercial honey bee colonies is less than half of what it was 25 years ago, said Maryann Frazier, a bee expert at Penn State's College of Agricultural Sciences. A colony is defined as a queen bee and thousands of her workers.
Scientists were in California this week gathering bee samples to study what's killing them off.
"We came to California because at this time of year there are bees from about 15 states represented here," vanEngelsdorp said.
At stake are crops, especially huge industries like California's almonds, which account for 80 percent of the world's almonds, according to the state Department of Food and Agriculture.
Soon, half of the commercial bees available nationwide will get busy in California, transporting pollen from flower to flower on their legs. The blooming season that paints large squares of the valley in warm pastels lasts through mid-March.
"I wish we had more answers than questions right now," said Jeff Pettis, a researcher at a USDA honey bee lab in Maryland who was in California this week. "This couldn't be happening at a worse time."
California farmers began to worry after a cold snap swept over the West earlier this year followed by plummeting temperatures in the Midwest because it takes more energy for bees to stay alive in the cold, said Steve Park, a second generation beekeeper in Northern California.
The frigid temperatures were compounded by droughts, which meant less food for bees, vanEngelsdorp said.
"One thing, like weather, will not kill them," he said. "But if there's already one thing making them weak, than the added stress of a mite or a chemical makes life harder for them."
The already feeble bees may not be strong enough to handle a cross-country trek, though beekeepers have made the annual migration to California for at least 60 years, vanEngelsdorp said.
Meanwhile, farmers stand by, hoping enough bees are available during the late winter window when pollination is possible.
"It's kind of wait-and-see right now," said farmer George Miller.

Russia temporary abolishes the import tariff rates for cashew, almond, hazel-nut and sesame
According to information provided by USDA, the Government of the Russian Federation made a decision to tentatively abolish the tariff rates for the import of such nuts as cashew, almond, hazel-nut in the shell and sesame. The import tariff rate for these types of nuts was 5% earlier.The governmental decision is motivated by the growing world prices for the mentioned types of nuts; this fact affects the rates of the confectionary industry development in Russia. As a result of the world price growth for the mentioned types of nuts, during the first 9 months of 2006 the import of the product to Russia has decreased 18% comparing to the same period of time in 2005 (down to 16,700 tons).
The cost of the imported nuts has grown nearly threefold during the same period of time. It is worth mentioning that almost all shipments of almond (98%) are supplied to Russia from the USA.
To the opinion of the specialists of "Agrooglyad: Vegetables and Fruits" journal, the decision of the Russian Federation will hardly solve all problems of the consumers of nuts; however, the volumes of nut shipments are likely to be somewhat increased. This fact will contribute to the trend of the persistent price growth for nuts in the world.

Vietnam cashew chairman nuts over position
amid oppositionIn February last year VINACAS held a congress and elected Doctor Pham Van Bien to be its chairman amid controversy. Bien at the time was not eligible for the post as he was not an official member of the association.
He was then director of the Agricultural Science Institute of Southern Vietnam which was only an honorary VINACAS member. The VINACAS charter not only requires its chairman to be an official member but also requires he/she to be leader of a company or an organization.



^^^Mr. Pham Van Bien, the head of the Vietnam Cashew Association (VINACAS) is vehemently defending his position, as members of the influential organization claim he is both incompetent and ineligible for the key post.
Thus, 20 days before he retired last December as director of the agriculture organization, meaning his membership and the prerequisite to be chairman was automatically gone, he had applied to VINACAS for an official membership. This would in effect legalize his position as VINACAS chairman.
Just some 10 days ago, his deputy Pham Van Cong ratified his membership request and issued a resolution, ruling he could continue as chairman. Many opposed, saying they need a congress to decide on that matter and not a resolution from a deputy. Others said he was incompetent and did not win members’ trust, causing them to “boycott” VINACAS by halting payment of membership fees.
He had never visited the members in person, they said further. Late last year when his chairmanship was in jeopardy, he asked the trade ministry to stop considering awarding titles of “prestigious exporters” to 12 cashew firms for failing to pay membership fees.
Self-defense
He told Thanh Nien angrily on Wednesday that he had been member of the VINACAS management board for 12 consecutive years. “That means I have already been an official member…when I retired, I applied for official membership as an individual and was granted it. So, I have met the requirements to continue as chairman. It is only a switch from official membership as a representative of an agriculture institute to official membership as an individual,” Bien said.
Last year VINACAS collected over VND300 million (US$18,750) in membership fees, less than half compared to the year before, when he was not chairman. Vietnam, which exported over 130,000 tons of cashew nuts worth US$520 million last year, is one of the largest cashew exporters worldwide.
VINACAS holds certain sway over the cashew market. It is instrumental in setting floor and ceiling prices, advising the government on cashew polices, and engages in international negotiation.

Iran remains world's leading pistachio producer in 2006

Following gas condensates and ironware, pistachio accounted for Iran's major non-oil exports in the past nine months of the current Iranian calendar year (started March 21, 2006).
As a commercial output, pistachio product has a special importance in the agricultural production of some countries like Iran and contains large portion of their non-petroleum exportation. "Iran's share of pistachio export quantity of its non-oil exports in the recent years has hit something around 66 percent," ILNA news agency on Wednesday, quoted an official with Iran's Trade Promotion Organization as saying. Pistachio figures prominently among other nuts due to its nutritious value. Because of its high food value and favorable taste, planting pistachio trees has become common in other parts of the world.
According to the latest statistics released by the World Food and Agriculture Organization (FAO) affiliated to the United Nations, the pistachio production in the world stood at 501,000 metric tons in 2005, Iran producing 38 percent of the world production ranked first during the year. The U.S. with a production of 28 percent, Syria with 12 percent, Turkey with 12 percent, China with seven percent, and Greece with two percent took other places after Iran.
Despite the fact that Iran ranks first in the world in terms of pistachio production, harvested area and exports, it does not enjoy such a high position in global marketing due to exporting challenges. Iranian pistachio is considered the best in the world in terms of its taste and flavor. Kerman Province is the main center of pistachio production in Iran.

Macadamia prices drop in wake of large world supply

Tuesday, 30/01/2007
A large amount of macadamia nuts on the world market is expected to hit prices for Australian growers this year.
Prices have almost halved since their peak two years ago, which high returns attracted a large amount of investor interest.
Andrew Heap from the Australian Macadamia Society says many investors in macadamia farms are suprised by the sharp drop.
But he says processors will be wary about offering higher prices.
"After unusually low prices last year, after our own grower prices had been set, that hurt some of our processors, there's no doubt about that," he said.
"They have every reason to be cautious about where the market, considering stock levels and so forth, should open.

Bentzy Klein January 30, 2007

WALNUT MARKET/CROP REPORT

CROP:

The California Walnut Marketing Board has announced the 2006 crop at 343,844 tons.

As expected, the 2006 walnut crop came in under the official estimate of 350,000 tons. However, what we don’t know is the final kernel yields. Most of the industry is reporting that yields are down about 2% from last year (40.7%), and if this is the case, it helps explain why the industry is short of inventory.

The Walnut Marketing Board announced the December shipments at 29,921 inshell equivalent tons, 2,800 tons more than last year. Inshell shipments were 5.8 million pounds, 0.4 million pounds more than last December. Shelled shipments were 23.3 million pounds, 3.3 million pounds more than last year. Total inshell equivalent year to date shipments were 196,450 tons; 19,186 tons less than last year.

Although the crop was exposed to record temperatures earlier in the year, it did not seem to affect the final quality of the crops. Early varieties (Serr’s, Payne's/Ashley's) appeared to have little damage as were the mid- varieties (Vina’s, Tulare’s, Howard’s). However, the Chandlers were darker than normal and the yields were off as well.

The WMB reported the December 31, 2006 inventory for Inshell* at 96.5 million pounds (39.1 million pounds more than last year) of which 9.0 million is certified. The Shelled* inventory is 127.1 million pounds (30.7 million pounds less than last year) of which 28.7 million is certified.

*Note: It appears that some handlers were confused on what material to report as inshell and what material to report as shelled. The WMB has sent a follow up notice advising the handler how to assign their tonnage to the correct category. In any event, the total inventory tonnage will not change and the majority of the inshell inventory noted above will be diverted to shelled.

The WMB is using a 42.9 percent yield factor (five year average) for the 2006 crop. However, most in the industry believe, the yields are closer to 40.0 percent. After taking the future inshell shipments into account and using a 40.0 percent yield factor, my numbers show that we will be completely out of walnuts shortly and a carry-over of less than 68,000 tons.





MARKET:

The Inshell market remains very firm with the latest trading taking place at $1.07 and higher. Also, it appears that all Inshell, including larges and mediums are basically sold out. Main reason……..the Hartley 2006 crop was only 59,521 tons, down 15 percent from last year (69,000 tons).

The Shelled market has also firmed with recent trading of LHP at $2.85 and higher and CHP trading in the $2.65 range. Again, most handlers have withdrawn from the market on Combo and Baker material and are offering only a limited amount of Light material.

One of the industries main concerns is that some walnut users may come up short and there will not be enough walnut material, (especially smaller product) to cover their requirements.

Please let me know if you have any questions or comments……

Will 2007 be a good year for Vietnam’s cashew nuts?
13:07' 04/01/2007 (GMT+7)
VietNamNet Bridge – Cashew nut processors and exporters believe that 2007 will be a good year for the industry after 5-6 years full of hardships.2005-2006: suffering losses, Vinacas Chairman resigned

In 2005, the US and EU members joined forces with each other in forcing the cashew nut prices down to $4-4.3/kg of peeled nuts. Meanwhile, Vietnamese exporters, encouraged by the 2004 successful export year, signed contracts with farmers to buy material cashew nuts at high levels of VND16-18,000/kg. As a result, cashew nut exporters incurred the severe loss of VND1tril ($62.5mil).The situation was so pessimistic that Chairman of the Vietnam Cashew Exporters and Processors (Vinacas) Ho Ngoc Cam, had to resign. Mr Cam said that Vinacas once warned its members that cashew nut prices may drop in 2005, but the warning was ignored by the exporters who were so happy with the successful crop.A paradox exists that when Vietnamese cashew producers and exporters are miserable with heavy losses, Vietnam-made cashew nut is favourite by millions consumers in the world. Vietnam’s cashew nut is very delicious with high content of oil, and Vietnam’s cashew nut exports rank the second in the world, just after India.The situation became even worse, when Vietnamese cashew nut exporters, who were in critical situation as partners tried to force the prices down, could not extend the time to pay bank debts. Cashew nut exporters had no other choice than bartering the products away to get money to pay the banks. All the cashew nut exporters incurred heavy losses in 2005. The situation has been improved a little in 2006, but remains gloomy.2007, time to regain cashew industry’s strengthEncouraged by high economic value, cashews has been developing very strongly in Vietnam. In 1995, Vietnam had 190,300 ha of cashews, and the figure rose to 433,000 ha after 10 years, which can provide 350,000 tonnes of cashew nuts. There are some 200 cashew nut processing workshops, which have the total capacity of 600,000 tonnes a year. Vietnam can export 115 tonnes of cashew nut a year, which can bring $500mil worth of products.Vinacas has learned that the cashew processing industry has the development period of 5-6 years, i.e, after 5-6 years of failure, there will be a new period of development. 2007 will be the time for the cashew processing industry to regain strength.Vinacas has called on cashew enterprises to give up the old way of doing business, and to compete with Indian exports.Vinacas plans to export $700mil worth of products in 2007, which, according to Phan Van Bien, Chairman of Vinacas, within reach if local banks agreed to give support.Several days ago, Vinacas has sent documents to local banks, asking for cooperation in support in raising cashew nut exports.Nguyen Thi Tam, Deputy Director General of the Vietnam Technological and Commercial Bank, known as Techcombank, and Director of Techcombank’s HCM City Branch, said that Techcombank loaned $350bil to cashew enterprises in the last year, and will lend another sum of VND600bil in this year. She said that if everything goes smoothly, the bank can provide the loans of up to VND1tril ($62.5mil). Techcombank has also cooperated with transport and forwarding companies in an effort to support cashew enterprises.Pham Van Cong, Deputy Chairman of Vinacas, said that the association would not set the fixed prices of purchasing materials for cashew enterprises. Vinacas will let enterprises to decide the prices themselves. Vinacas will only give the information about international and domestic prices to enterprises for reference only. The information will also be given to commercial banks, so that they can decide whether to make loans to enterprises.Ha Yen

Warmth a worry for fruit growers +
By Joan KernLancaster New Era
Published: Jan 06, 2007 11:27 AM EST
LANCASTER COUNTY, PA - It may feel like spring, but we aren’t about to send our winter coats back to storage.
Fruit trees, on the other hand, don’t have coats to put on and take off.Pictures of flowering cherry trees — due to that oxymoron in these parts: a warm winter — have been in the media lately.But orchard owners in Lancaster County seem to be staying calm so far.“We’re concerned,” said Ken Kauffman, owner of Kauffman Fruit Trees in Bird-in-Hand, “but there’s not a blessed thing we can do about it.”Richard Haas, former owner of Cherry Hill Orchards in Pequea, said he hasn’t “seen any evidence of buds pushing.”Nor has he had time to talk to other fruit growers about weather concerns.“I just haven’t given it a whole lot of consideration,” he said. “I have other irons in the fire.”At Barr’s fruit and vegetable stand at Lancaster’s Central Market, employee Frank Pennell said he is definitely concerned.“It’s a worry,” he said. “Peaches and apples are a big percent of our yearly income.”Everyone said the worst case scenario is a sudden drop in temperature, resulting in crop failure.Wild temperature swings hurt orchards because trees may not have hardened enough to weather the colder conditions.“If the temperature drops gradually, we’ll be fine,” Ruth Thomas said at her market stand this morning.Thomas said she has about nine apple trees and three pear trees on her farm in Lititz but hasn’t checked on them lately, although she has noticed that her rose bushes are pushing buds “just a little.”“I don’t think it’s a danger yet,” she said. “We had a couple of nights of heavy frost this week.”But what if temperatures never drop significantly? What if the El Nino weather continues right into spring?“Oh, that’s not going to happen,” Thomas said. “It will change tonight.”And everyone else who commented echoed her. They all believe winter will come, sooner or later.Haas, whose son owns Cherry Hill Orchard — 150 acres of fruit trees with about 40 of peaches, 40 of apples and the rest in cherries, apricots and plums — said a late spring would be to his advantage.He explained that the varieties of fruit trees grown in the area need about certain period of cold weather to set bud.“Our trees don’t normally bloom until the 15th of April,” he said. “We have a lot of time to get our (cold) days in.”Haas plans to attend the Mid-Atlantic Horticultural Show in Hershey at the end of the month.“I’m sure (the warm weather) will be a topic there,” he said.Kauffman works in his 90-acre orchard, primarily of apple and peach trees, all year long, weather permitting.Right now, he’s pruning.“It’s very nice,” he said of the warm weather, “too nice. It gets old. I don’t talk about it a lot.”The head of the family business, founded in 1915, said he has definitely seen a change in the color of bark, which means sap is starting to flow,.“It reminds me of March,” he said.

Iran: exports of dried fruits and nuts hit $770mln in eight months

Iran’s exports of dried fruits and nuts during the first eight months of the current year hit $770,391,000 mark which is indicative of 44.1 percent increase compared with the same period last year. The nation exported 289,201 tons of dried fruits and nuts in the current year, posting 25.4 percent growth as compared with the corresponding period in preceding year, the Persian service of official IRNA news agency on Sunday, quoted a statement issued by Iran’s Customs Administration as saying.
During the period, the share of the products in the country’s non-oil exports in terms of weight and value were 1.4 percent and 7.9 percent respectively. The report also announced that exports of dried fruits in the eight-month period hit $23,894,000. During the period, the United Arab Emirates, Hong Kong, Germany, Russia and Italy were the main importers of Iran’s dried fruits and nuts.
Source: mehrnews.ir

India: pistachio prices up on short supplies
Barring a rise in Pistachio irani and hairati, prices generally ruled steady on the the wholesale dry fruits market today in the absence of any worthwhile activity and closed around previous levels. Arrivals and offtake also remained negligible and volume of business was small.
Traders said restricted arrivals mainly pushed up pistachio prices. Pistachio irani and Hairati prices were up by Rs 10 each to trade at Rs 510-535 and 510-540 per kilo respectively.

U.S. peanut production down by almost a third

Dec 28, 2006 4:30 PM
By Paul L. Hollis
Farm Press Editorial Staff


U.S. peanut producers, responding this year to warnings of an over-supply, dropped production by almost a third, down to 3.37 billion pounds harvested from 1.21 million acres. This is down 31 percent from the 2005 crop.



The national average yield is forecast at 2,780 pounds per acre, down 209 pounds from last year’s peanut crop. Much of the yield drop is being blamed on drought conditions experienced throughout the U.S. Peanut Belt this year.

Production in the Southeast states, including Alabama, Florida, Georgia, Mississippi and South Carolina, is expected to total 2.36 billion pounds, down 30 percent from last year’s level. Expected acreage for harvest, at 924,000, is down 23 percent from 2005. Yields in the region are expected to average 2,550 pounds per acre or 258 pounds below 2005.

In Virginia-North Carolina, peanut production is forecast at 339 million pounds, down 4 percent from 2005. Expected acreage for harvest, at 101,000, is down 14 percent from last year. Yield is forecast at 3,352 pounds per acre, up 352 pounds from 2005.

U.S. corn production is forecast at 10.7 billion bushels in 2006. This is 3 percent lower than in 2005. Yields are expected to average 151.2 bushels per acre. This is 3.3 bushels higher than last year. If realized, the yield would be the second largest on record, behind 2004.

Yield forecasts are lower than earlier estimates across much of the western and central Corn Belt and Atlantic Coast states as producers reported that actual harvest yields were not as good as expected earlier due to lower grain weight per ear. Stalk quality and lodging problems also were reported in some areas.

Producers in the northern Great Plains, Delta states, and parts of the Southeast reported better than expected yields. Compared with last year, yields are higher in all Corn Belt states except Iowa and Minnesota.

Soybean production in the United States is forecast at 3.20 billion bushels this year. This is about 5 percent above 2005. If realized, this would be the largest U.S. soybean crop on record. Yields are expected to average 43 bushels per acre, equal to last year’s record-high yield.

Producers in the northern Great Lakes States, Delaware, New York, North Carolina and the Dakotas are realizing higher yields than earlier expectations, while yield prospects decreased slightly as harvest progressed in Illinois, Kentucky, Missouri and Pennsylvania. U.S. area for harvest is forecast at 74.5 million acres, up 5 percent from 2005.

Upland cotton harvested area, at 12.5 million acres, is down 8 percent from last year. American-Pima harvested acres are up 21 percent from last year.

Mac nut association's future in doubt

The Hawaii Macadamia Nut Association, which for years has represented growers and processors of mac nuts, is running low on cash and scaling back operations.
The board met Thursday to discuss the critical shortage of funding and decided to operate on a volunteer basis.
"Funding will be minimal, from those who still believe there is value in the organization," said MacFarms CEO David Rietow, the chairman of the association board. "The big loss is in the area of research and in the promotion of the Hawaiian nut as the world's finest."
Macadamia growers and manufacturers of mac nuts products do not always have the same economic interests. Growers benefit from higher prices. Processors don't. Growers want to aggressively market the Big Island mac nut brand. Processors don't, because most of them import a lot of the mac nuts they use from other places. (Rietow said, however, that foreign kernel is mixed only in products shipped to the Mainland.)
"The [association] has been struggling to find its identity for a long time," said one board member on condition his name not be used. "The funding of the organization was 99 percent from the generous donations of four or five of the larger processors and the rest from a token donation of $25 per year from the growers."
Association membership peaked years ago around 200 members. Four times as many farmers grow mac nuts. However, fewer than two dozen growers have 20 acres or more and it is these that have generally supported the association.
The board member and other sources said foreign competition sent prices lower while expenses kept climbing and growers became apathetic about supporting the association, and more recently one of the major processors decided to drop its support as well. The result has been insufficient cash to continue operating as usual.
"Hawaii macadamia growers need to take ownership of this organization or start a new one and fund it through assessments on their crops, to fund a full-time director who can assist in acquiring grants, funding important research projects and marketing 100 percent Hawaiian macadamia nuts," said Richard Schnitzler, president of Hamakua Macadamia Nut Co. and a former association board member. "Processors and manufacturers should not be allowed in the organization."
Schnitzler said this does not mean that the relationship between the processors and the growers should be adversarial.
"On the contrary," he said, "it would be important for both to share information and work together, but processors should not be left to manage or mismanage the Hawaii macadamia nut growers' future."
Members of the association include, among many others, Mac Farms Hawaii, Hawaiian Host Inc., Island Princess, ML Macadamia Orchards and Mauna Loa Macadamia Nut Co.

Universal to sell nonleaf units Universal to sell nonleaf units

Saturday, December 16, 2006
Richmond-based Universal Corp. said yesterday that it plans to sell its remaining nontobacco agricultural-products businesses in six to 12 months.

Universal, the world's largest tobacco leaf merchant, said selling the units will allow it to focus more management and financial resources on its core tobacco business. The company buys tobacco from farmers in the United States and other countries, processes the leaf and sells it to cigarette makers.
Universal plans to sell Red River Foods Inc. a Richmond-based trading subsidiary that imports nuts and dried fruits; Nestmink Ltd., a London-based company that sells nuts, dates and apricots; and Madera Quality Nut Inc., a California nut-processing company.
The companies employ fewer than 150 people worldwide.
In the fiscal year that ended March 31, the businesses reported combined revenue of about $325 million and a combined operating loss of about $6 million, Universal said. The company's tobacco revenue was $1.8 billion, with operating profit of about $156 million.
The company said it will use proceeds from the sales to strengthen its balance sheet. The businesses will be reported as discontinued operations for the third quarter that ends Dec. 31.
In September, Universal sold the non- tobacco businesses of a Dutch subsidiary, Deli Universal Inc., to a new company owned by Deli managers and a Netherlands-based investment group. That business included lumber and building-products distribution, and rubber, tea and sunflower seed trading. -- John Reid Blackwell
Richmond Times-Dispatch
Saturday, December 16, 2006
Richmond-based Universal Corp. said yesterday that it plans to sell its remaining nontobacco agricultural-products businesses in six to 12 months.

Universal, the world's largest tobacco leaf merchant, said selling the units will allow it to focus more management and financial resources on its core tobacco business. The company buys tobacco from farmers in the United States and other countries, processes the leaf and sells it to cigarette makers.
Universal plans to sell Red River Foods Inc. a Richmond-based trading subsidiary that imports nuts and dried fruits; Nestmink Ltd., a London-based company that sells nuts, dates and apricots; and Madera Quality Nut Inc., a California nut-processing company.
The companies employ fewer than 150 people worldwide.
In the fiscal year that ended March 31, the businesses reported combined revenue of about $325 million and a combined operating loss of about $6 million, Universal said. The company's tobacco revenue was $1.8 billion, with operating profit of about $156 million.
The company said it will use proceeds from the sales to strengthen its balance sheet. The businesses will be reported as discontinued operations for the third quarter that ends Dec. 31.
In September, Universal sold the non- tobacco businesses of a Dutch subsidiary, Deli Universal Inc., to a new company owned by Deli managers and a Netherlands-based investment group. That business included lumber and building-products distribution, and rubber, tea and sunflower seed trading. -- John Reid Blackwell

December 15, 2006

WALNUT MARKET/CROP REPORT

CROP:
The Walnut Marketing Board announced the November shipments at 47,004 inshell equivalent tons, 5,054 tons less than last year. Inshell shipments were 16.7 million pounds, 0.4 million pounds less that last October. Shelled shipments were 33.2 million pounds, 2.3 million pounds less than last year. Total inshell equivalent year to date shipments were 166,551 tons; 21,964 tons less than last year.

Please be aware that last year’s shipment numbers have been adjusted to reflect the lower shellout rates (40.7%) than the original 44.5% forecasted shellout rate. As an example, last years November shipments originally indicated we shipped 47,916 tons (inshell equivalent) about the same as this November, however, because of the lower yields; the November 2005 shipments were later adjusted to 52,058 tons.

This year (2006/07) the Walnut Marketing Board is forecasting a 42.9 shellout rate, the average for the last five years. This is 2.2% more than last years final 40.7% yield, however, most of the industry is reporting lower yields from the 2006 crop than last year. If this becomes the case, the shellout rates will once again be adjusted downward.

The final crop tonnage will be out in late January and the majority of the growers/packers believe it will be under the 350,000 ton estimate. This makes the shellout rate situation even more critical as it will also have an impact on the final crop tonnage.

The overall quality of the crop was above average. The expected heavy sunburn damage never happened and the crop yielded above average “lighter“kernel’s and lower than average “darker” kernels. This has been reflected in the market as most packers have withdrawn on both Combo and Baker type material. In addition, it appears that medium and small piece material will also be in short supply.

MARKET:
The Inshell market remains firm with Jumbo trading on both sides of $1.06. I do not see much change in the forward market. The Shelled market is also firm with Chandler LHP trading around the $2.70 levels and medium and smaller pieces five to ten cents higher.

Most packers have withdrawn from the market on Combo and Baker material and the few that still have inventories are asking $2.50 for Combo Halves and Pieces and $2.30 for Baker type products.

I still believe the crop will come up short of the forecast and firmly believe the market will continue to strengthen as we go forward.

Pecan production drops 33 percent in 2006

TULSA, Okla. The government is predicting a 33 percent drop in pecan production in Oklahoma this year, but some experts believe the crop could be even smaller.Oklahoma ranks fifth nationally in pecan production and recorded a record crop of 63 million pounds in 1999. Pecan growers harvested about 20 million pounds last year.
But the U-S Department of Agriculture says Oklahoma will produce 14 million pounds of pecans this year. The harvest could be as low as only 8 million to 10 million pounds.
Drought, bugs, animals and high fuel prices plagued producers, which means higher prices for shoppers.
The U-S-D-A says pecan production nationally will be 190 million pounds, down 5 percent from October's outlook and 32 percent below last year.

MACADAMIA FACTS
• The macadamia was discovered in Australia in 1858 and introduced to Hawaii in 1881.
• It is grown on a large scale only in Hawaii and Australia but also is produced in South Africa and Central America.
• There are approximately 40 described varieties, most of them in Australia.
• The trees grow in warm, subtropical conditions. Mature trees can withstand temperatures as low as 25-26 degrees Fahrenheit.
• They often are sold as salted nuts packed in glass jars. Their largest use is in confections.
• Hawaii produced 30,000 tons of macadamia nuts, with a farm value of $44.4 million, in 2005-06.
• In 2005-06, U.S. imports totaled 8.9 million tons; exports amounted to 784 tons.
• The edible kernel is enclosed in a thick, hard shell that is encased in a husk.
• The kernel is 72 percent to 78 percent oil.
SOURCES: University of Florida, U.S. Department of Commerce, U.S. Department of Agriculture