SEPTEMBER | OCTOBER 2014
Almond Facts 7
Market pricing refects California’s
reluctance to sell. Price lists are being
adjusted upward daily. This trend will
likely continue until there is signifcant
positive news on crop supply or water
security. At some point there will be a
correction in pricing, but I do not see
a trigger on the horizon.
Over the last two years, competitive
handlers have forecasted doom for
Blue
Diamond
because of our investment
in new facilities. Second hand, I have
heard all kinds of predictions on
what the new Turlock facility would
cost growers in returns. Fortunately,
the fear-based selling tactics did not
work on our growers and last year
Variety
Overall
Average
Average of
High Quality
Maximum with
All Premiums
Nonpareil/Sonora/
Independence Inshell
$3.46
$3.47
$3.48
Nonpareil/Supareil Meats
$3.42
$3.43
$3.45
Sonora/Independence Meats
$3.31
$3.34
$3.36
Carmel
$3.19
$3.19
$3.21
Monterey
$3.15
$3.15
$3.17
Calif/Price/Fritz/Wood Colony
$3.07
$3.09
$3.10
Butte/Padre
$3.04
$3.05
$3.06
Mission/Neplus
$2.98
$2.99
$3.01
Peerless Inshell
$1.08
N/A
$1.10
Blue Diamond
handled a record supply of almonds. Throughout this time, we
promised, “the new facility will cost one cent in return and you will not notice,
because each year we fnd margin enhancement savings that beneft growers by
several cents a pound.” In watching our returns, you will see that our actions live
up to our words.
It is true that
Blue Diamond’s
investments in the long-term health of the co-op
and the almond market, as exemplifed by the Turlock plant and advertising,
distinguish us from the industry. It is also true that
Blue Diamond’s
product
innovation, marketing and margin enhancement programs distinguish our
business model from the remainder of the industry.
Our almond market expertise is the best in the industry, but we are not
dependent on timing the market. As a result,
Blue Diamond’s
returns have been
very competitive for the previous three years, and this year we have created
additional distance with our excellent performance. With today’s almond
price volatility,
Blue Diamond
growers can take comfort knowing that we are
transforming into a value-added business model. This positive change will
increasingly provide stability in returns.
Our 2013 crop performance
set a record for the highest per
pound payment and the greatest
total dollar amount ever paid to
our growers. More importantly,
I believe that you will agree
that our performance this
year signifcantly outpaced the
balance of the industry.
As was announced at the 2014
District Meetings in July, we
are providing our growers with
an additional tax beneft this
year in the form of an IC-DISC.
The total amount applied to the
DISC will appear on IRS Form
K-1 that you will receive in
January along with your regular
IRS Form 1099-PATR. There
will be a seminar at the 104th
Annual Meeting detailing the
importance of this tax beneft.
Note: The above rates do not include Volume Premiums, Domestic Production Activities Deduction and IC-DISC advantages.
Blue Diamond
2013 Crop Returns