2009/10 Grower 2009/10 Grower CommunicationCommunicationCommunicationCommunication

The State of the The State of the Walnut IndustryWalnut IndustryWalnut IndustryWalnut Industry

Food SafetyFood Safetyyy

The Main FocusThe Main FocusThe Main FocusThe Main Focus

PathogensPathogensPathogensPathogensMonitor from Farm to FamilyMonitor from Farm to FamilyN F d l O i htN F d l O i htNew Federal OversightNew Federal OversightThe LawThe Law

July 2009July 2009February 2010 (?)February 2010 (?)y ( )y ( )

GAP and GMP GAP and GMP

The Unanswered QuestionsThe Unanswered QuestionsThe Unanswered QuestionsThe Unanswered Questions

Where does it beginWhere does it beginAre walnuts susceptibleAre walnuts susceptibleAre walnuts susceptibleAre walnuts susceptibleWhat can reduce riskWhat can reduce risk

DryingDryingDryingDryingNatural CompoundsNatural CompoundsBut . . .But . . .

The Answer BeginsThe Answer Begins. . . The Answer Begins. . . The Answer Begins

With You . . .With You . . .

And theAnd the. . . And the. . . And theHandlers!Handlers!

Current ActivitiesCurrent ActivitiesCurrent ActivitiesCurrent Activities

Adopt GMA HandbookAdopt GMA HandbookFood Safety WorkshopFood Safety WorkshopField ResearchField ResearchFS Working GroupFS Working GroupGrades & StandardsGrades & StandardsFDA InspectionsFDA InspectionsIntense ScrutinyIntense Scrutiny

Will it be worth the effort?Will it be worth the effort?Will it be worth the effort?Will it be worth the effort?

There is no choice!There is no choice!There is no choice!There is no choice!FDAFDAMediaMediaMediaMediaCustomersCustomersThe very integrity of our industry!The very integrity of our industry!The very integrity of our industry!The very integrity of our industry!

QualityQualityFreshnessFreshnessFreshnessFreshnessServiceServiceHealthHealth

Direct Sales by GrowersDirect Sales by GrowersDirect Sales by Growers Direct Sales by Growers

By pass the networkBy pass the networkBy pass the networkBy pass the networkAgainst Federal LawAgainst Federal Law

No Reports = bad crop/inventory numbersNo Reports = bad crop/inventory numbersNo Reports = bad crop/inventory numbersNo Reports = bad crop/inventory numbersFines of $1,100 per day/incidentFines of $1,100 per day/incident

A Risk forA Risk for Food SafetyFood SafetyA Risk for A Risk for Food SafetyFood SafetyNo InspectionNo InspectionInIn--transit risktransit riskAnd . . .And . . .

You Are Now a Handler!You Are Now a Handler!. . . You Are Now a Handler!. . . You Are Now a Handler!

You have new reporting requirements!You have new reporting requirements!You have new reporting requirements!You have new reporting requirements!Receipts (including your own production)Receipts (including your own production)AssessmentsAssessmentsAssessmentsAssessmentsInspection/gradingInspection/gradingWhen that demand dries upWhen that demand dries up what do I do?what do I do?When that demand dries up When that demand dries up –– what do I do?what do I do?Risk as SellerRisk as Seller

We can send you a Handler Package!We can send you a Handler Package!

Impact of World EconomyImpact of World EconomyImpact of World EconomyImpact of World Economy

2008/092008/092008/092008/09

Record CropRecord Crop –– 435 000 tons435 000 tonsRecord Crop Record Crop 435,000 tons435,000 tonsLow Ending InventoryLow Ending InventoryD ll St & M iD ll St & M iDollar Strong & MovingDollar Strong & MovingAggressive Opening of the Markets Aggressive Opening of the Markets Buyers Were Wait & SeeBuyers Were Wait & SeeExperience with declining marketExperience with declining marketExperience with declining marketExperience with declining market

The Current SituationThe Current SituationThe Current SituationThe Current Situation

Crop Slightly Higher Than 2008/09Crop Slightly Higher Than 2008/09Crop Slightly Higher Than 2008/09 . . .Crop Slightly Higher Than 2008/09 . . .. . . at 436,000 tons. . . at 436,000 tonsO i I t hi h t 58 000 tO i I t hi h t 58 000 tOpening Inventory higher at 58,000 tonsOpening Inventory higher at 58,000 tonsDollar Weak and stableDollar Weak and stableRain/Quality/delay in harvestRain/Quality/delay in harvestLess Aggressive at OpeningLess Aggressive at Openinggg p ggg p gNonNon--Traditional Markets BuyingTraditional Markets Buying

Result of CurrencyResult of CurrencyResult of Currency Result of Currency

Good climate forGood climate for Marketing ProgramsMarketing ProgramsGood climate for Good climate for Selling California Selling California WalnutsWalnuts

Marketing Programs Marketing Programs downsized with less downsized with less bang for the buckbang for the buck

NonNon--Traditional Market TrendsTraditional Market TrendsP d IP d I h ll (000) O i dh ll (000) O i dPounds, InPounds, In--shell, (000) Omittedshell, (000) Omitted

TrendsTrendsTrendsTrends

U S Walnut Production HistoryU S Walnut Production HistoryU.S. Walnut Production HistoryU.S. Walnut Production History

Total CA Walnut AvailabilityTotal CA Walnut AvailabilityTotal CA Walnut AvailabilityTotal CA Walnut Availability

Bearing AcreageBearing AcreageBearing AcreageBearing Acreage

* Note Acreage Survey conducted every other year since 2003

Average 5,000 acres every 5 years

Total US Shipment HistoryTotal US Shipment History

Walnuts Around the WorldWalnuts Around the World

UNITED STATESUNITED STATESUNITED STATESUNITED STATES87% believe walnuts are healthy (up from 87% believe walnuts are healthy (up from 67%)67%)67%)67%)55% believe walnuts provide 55% believe walnuts provide moremore health health b fit th th tb fit th th tbenefits than other nutsbenefits than other nuts55% buying more walnuts than 5 years ago55% buying more walnuts than 5 years agoA h f i d fA h f i d fAverage purchase frequency increased from Average purchase frequency increased from 3.47x to 3.91x3.47x to 3.91x

Increase to 4 79x for those aware that walnutsIncrease to 4 79x for those aware that walnutsIncrease to 4.79x for those aware that walnuts Increase to 4.79x for those aware that walnuts contain omegacontain omega--3s3s

63% believe that walnuts are “a good value63% believe that walnuts are “a good value63% believe that walnuts are a good value 63% believe that walnuts are a good value for the money”for the money”

MarketingMarketingMarketingMarketing

AdvertisingWebsites

Advertising

Public Relations

UNITED UNITED STATESSTATESKey Media EventsKey Media Events

Annual Harvest Tour Annual Harvest Tour -- OctoberOctoberBetter Homes & GardensBetter Homes & GardensCooking LightCooking LightSunset MagazineSunset Magazine

Spring Media Tour Spring Media Tour –– AprilAprilHealth Symposium Health Symposium –– JuneJune

Public and Health ProfessionalsPublic and Health Professionals

3 5 billi i i l t3 5 billi i i l t3.5 billion impressions last year 3.5 billion impressions last year

GERMANYGERMANYGERMANYGERMANYYear Round Advertising

C iCampaign• 88 Print Ads• 4 Online Ads• 4 Online Ads• 250,000 brochures at

point of purchasep p

SPAINSPAINSPAINSPAINSpring/Fall Advertising CampaignsCampaigns

• In Store • Print CampaignPrint Campaign• Online

JAPANWalnut Harvest Festival Retail Bakery Campaign

August – December, 2009

18 Participating Companies18 Participating CompaniesUp 20%

1,004 outletsUp 177%

32,310 applications postcardsUp 227%

KOREAKOREAKOREAKOREATV Program “It’s OK” TV Program “It’s OK”

SBS D b 9SBS D b 9on SBS, December 9on SBS, December 9

ViewershipViewership 5 000 0005 000 000ViewershipViewership 5,000,0005,000,000Ad ValueAd Value $500,000$500,0003 of 5 Home Shopping3 of 5 Home Shopping3 of 5 Home Shopping 3 of 5 Home Shopping Channels aired walnut Channels aired walnut programs following the showprograms following the show

70% l i i70% l i i70% sales increase vs. prior 70% sales increase vs. prior weekweek

CHINACHINA

Publicity Generated:y5 million impressionsAEV of $500,000

HEALTH RESEARCHHEALTH RESEARCH

WALNUT HEALTH RESEARCHWALNUT HEALTH RESEARCHWALNUT HEALTH RESEARCHWALNUT HEALTH RESEARCH

RecentRecent PublicationsPublicationsRecent Recent PublicationsPublications• Yale University (Katz) – Type 2 Diabetesy ( ) yp

• Harvard (Hu) – Meta Analysis on Cardiovascular HealthHealth

• Tufts (Joseph) – Cognitive Function

• University of Wollongong (Tapsell) – Diabetes

• Loma Linda University (Sabate) – Fish vs. WalnutsLoma Linda University (Sabate) Fish vs. Walnuts

WALNUT HEALTH RESEARCHWALNUT HEALTH RESEARCHWALNUT HEALTH RESEARCHWALNUT HEALTH RESEARCH

AcceptedAccepted PublicationsPublicationsAccepted Accepted PublicationsPublications• Harvard (Mantzoros) – Satiety( ) y

• Loma Linda University – Serum Lipids

• University of Wollongong (Tapsell) - Diabetes

• PREDIMED – Serum Lipids, Insulin pResistance, Inflammatory Markers

PENDING PUBLICATIONSPENDING PUBLICATIONSPENDING PUBLICATIONSPENDING PUBLICATIONS

33 papers under review atpapers under review at3 3 papers under review at papers under review at various journalsvarious journalsjj

WALNUT HEALTH RESEARCHWALNUT HEALTH RESEARCH

Studies Studies in progressin progressp gp g2121

Thank You!Thank You!

C lif i W l t C i iC lif i W l t C i iCalifornia Walnut CommissionCalifornia Walnut Commission101 101 ParkshoreParkshore Dr., Ste. 250Dr., Ste. 250,,

Folsom, CA 95630Folsom, CA 95630(916) 932(916) 932 70707070(916) 932(916) 932--70707070

www.walnuts.orgwww.walnuts.orggg