jul-aug-2019

What makes Blue Diamond unique is that we are owned and governed by our growers. We’re proud to be a co-op and proud that every grower has an equal voice when it comes to the best interests of Blue Diamond. Mark Jansen President & CEO PRESIDENT’S CORNER Defining Our Sense of Purpose As a member of this cooperative, you know what it means to work together towards a common goal – our mission of maximizing returns for growers who entrust their almonds to Blue Diamond is our clearest example. That common goal gives every Blue Diamond grower and team member a sense of purpose as they begin their day on the farm or at a facility. As preparations for harvest take place, it sharpens our sense of purpose. At July district meetings, you heard of Blue Diamond’s recent accomplishments increasing almond consumption in both the U.S. and internationally. We also addressed what is happening within the industry and with market pricing. This knowledge benefits our grower-owners and empowers you to make necessary decisions that impact your business and your family. In Spring 2018, market prices were good and stable, and your co-op was thriving! Our businesses were performing and our team members excelled at managing the crop. In May 2018, you may recall, tariffs significantly impacted almond market prices. Over the course of the past year our industry found ways to manage and overcome the tariffs. The good news is that the entire crop will be sold, in spite of the tariffs. Many key varieties of almonds are unavailable, and some buyers are waiting for next year’s crop to fulfill their needs. Countries with tariffs will continue to purchase almonds and, with Australia selling all their crop, customers will be looking to California for the supplies they require. These dynamics keep the almonds moving, which is profitable for both the industry and Blue Diamond . As a result of the continued tariffs and trade disruption, specifically in China, the USDA recently announced its second round of Market Facilitation Payments to affected growers. Almond growers will be eligible for $143 per acre, which is an increase from the $.03 per pound in the first MFP payments. The inclusion of almonds within these direct payments is possible because of the hard- fought effort by your Blue Diamond public affairs team, the Almond Alliance and others within the industry who had the common goal of ensuring the industry’s economic export value was recognized. Although the payments will not completely offset the financial impacts of the tariffs, it is important to note that this signifies a win for our industry as it highlights our crop as an economic driver within U.S. Agriculture. The surprise of this summer was the NASS Objective Estimate of 2.2 billion pounds. Compared to the Subject Estimate released in May, the forecast is a 12 percent decrease. In my nine years at Blue Diamond , this forecast was the most unexpected. From an industry perspective, 2.2 billion 6 A L M O N D F A C T S