California WalnutsLooking to the Future

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Production research funding by category

Varieties Rootstocks Disease Mgt.Insects & mites Nematode management Canopy managementIrrigation/Fertility Misc

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WALNUT PRODUCTION RESEARCH 2001-2016

• Walnut Improvement Program: New varieties (Leslie)• New pest & disease resistant clonal rootstocks (Kluepfel)• Transitioning to Marker Assisted Breeding (Neale)

RECENT RESEARCH PROGRESSBreeding and Genomics

WALNUT PRODUCTION RESEARCH

WALNUT PRODUCTION RESEARCH

RECENT RESEARCH PROGRESSUsing genomic approaches to speed variety and rootstock development:

• Emphasis on conventional breeding, not GMOs

• DNA markers for lateral bearing, light pellicle color (Dvorak, Dandekar)

• Continue to explore transgenic and gene editing approaches where appropriate.

DNA Markers

WALNUT PRODUCTION RESEARCH

RECENT RESEARCH PROGRESS‘Durham’• Tulare harvest date or earlier• Leafs few days before Chandler• 55% kernel• 8.4 g kernels consistent light color, plump• Low blight• Large, oval, smooth nuts• Very solid shells with good seals• Mid-season in-shell replacement for Hartley

WALNUT PRODUCTION RESEARCH

RECENT RESEARCH PROGRESSPlant Pathology

• Walnut Blight (Adaskaveg)• Testing new products & additives • Monitoring Cu and Cu+manzate resistance

• Bot and Phomopsis Cankers (Michailides)• Refine fungicide choices & spray timing• Better understanding of seasonal biology

• Thousand Cankers Disease (Seybold)• Measure yield and tree health impacts

RECENT RESEARCH PROGRESSPlant Pathology – Thousand Cankers Disease (Seybold)

Walnut Twig Beetle,Pityophthorus juglandis

Geosmithia morbida

• Impact of walnut twig beetle on tree health, production, and management.

WALNUT PRODUCTION RESEARCH

RECENT RESEARCH PROGRESSOrchard Management (Lampinen, Zwieniecki, Volder, Doll, Pope)

• Refinement of non-pruning and minimal pruning techniques.

• Early season water management impact on tree health, production & quality.

• Seasonal root growth dynamics.• Tree carbohydrate dynamics.• Rootstock and row & tree spacing effects

orchard performance and profitability. • Nitrogen fertilizer demand and early season leaf

sampling.

WALNUT PRODUCTION RESEARCH

RECENT RESEARCH PROGRESSInsects and Mites• Walnut husk fly baits and control. (Van Steenwyk)• WHF degree day model and seasonal development. (Mills)• Improved lures for monitoring navel orangeworm. (Burks, Rijal,

Symmes)• Understanding biocontrol of spider mites and why it fails in

walnuts. (Mills)

WALNUT PRODUCTION RESEARCH

RECENT RESEARCH PROGRESSWeed Management (Hanson) • Herbicide performance testing

management.• Managing glyphosate-resistant

weeds.• Better control of field bindweed.• Herbicide injury symptoms:

Troubleshoot and diagnose orchard crop injury and problems.

WALNUT PRODUCTION RESEARCH

CALIFORNIA WALNUT ACTIVITIES

California Walnut Board

• Production Research • Food Safety• Grades & Standards• Regulatory Matters• U.S. Marketing to Build

Demand• USDA School Lunch Program• Volume Control

California Walnut Commission

• Health & Nutrition Research• U.S. & International Market

Development• Educate government officials

• Non-tariff trade barriers• Trade Policy (FTA)• Regulatory Issues

• Communication within the Industry

CWB/CWC Staff

California Walnut Commission Continuation HearingWednesday, March 8, 2017

10:00 am

California Farm Bureau2300 River Plaza DriveSacramento, CA 95833

California Walnut BoardReferendum – Board’s Ability to

Borrow

Timing - TBD

OUTLOOK

•Nuts, nuts, and more nuts•Foreign competition•750,000 tons by 2020•Half of new tonnage utilized by domestic market

BEARING ACREAGE

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Bearing Acreage Non-bearing Acreage

CALIFORNIA WALNUT PRODUCTION

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WORLD PRODUCTION

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Health Research

Health Research Program

• 9 Countries• 52 Institutions• 110 Published Papers

Focus Areas:• Weight Management • Cognition/Diseases of Aging• Cardiovascular• Cancer• Diabetes/Metabolic Syndrome• Gut Health

15 CWC Papers Published in 2016

Consumer Perceptions of Health

Why is health research Important?

Consumer Perceptions Walnuts are HealthyUSA 84%

Germany 75%

Spain 76%

Turkey 60%

Japan 64%

Korea 72%

China 70%

India 92%

Domestic Marketing

Marketing Goals

Awareness Building•Advertising, Public Relations

Volume Driving•Retail, Industrial Development

RE-LAUNCHING CALIFORNIA WALNUTS

• U.S. goal to increase shipments by 73,000 tons in 5 years• Estimated 22% of households bought walnuts before campaign launch• Program primarily public relations• Needed to re-launch the California Walnuts “brand” in the U.S.

Right Product

Right Price

Right Program

2016/17 MEDIA PLAN STRATEGY

• Increase U.S. shipments• National reach at impactful levels

with greater continuity• Introduce 2 new print advertising

executions • Synergy with digital and social

RESULTS

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Retail Sales Equivalent Pounds

2014/152015/162016/17

Holiday Baking PR

• Media Outreach• Brit & Co. Partnership• 12 Day of Baking on Social Media

RETAIL PROGRAM

• 4 test programs November – December 2016 (2 baking, 2 produce)

• 568 stores• Mix of tactics – shipper displays, recipe tear

pads, in-store audio ads, demos, circulars, e-newsletters

• 2-4 additional programs will be conducted pending outcome

• CWB has acquired Nielsen data to track sales

RECENT INDUSTRIAL DEVELOPMENT WITH NUTS

Little product development with walnuts in recent years

INDUSTRIAL PROGRAM

Export Marketing Update Export Marketing Update

2017 KEY CHANGES

• Decrease Chinese Investment• Increase Investment: Germany, Spain, India, Turkey• Establish Program in UK • Maintain investment in Korea and Japan• Market Development: Market Research to Assess Future

Spend Levels

THE CHINA SYNDROME

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WHY UK?

• 45+% market share - Direct/indirect• Rise of the discounters:

• Aldi targeting 1,000 stores by 2020• Lidl doubling stores to 1,500 by 2020 • Traditional Retail - pressured to compete, evolving formats/offerings • Healthy checkout

• Industrial:• $8 bn baked goods market• $6 bn sweet and savory snacks market• $74 bn food service sector

VOLUME DRIVING

Point Of Sale Promotions• Retail• Bakery• E-Commerce• Home Shopping• Department Store Food Hall

Need new example?

VOLUME DRIVING

Food Service• Menu Promotion• Technical Seminars• Collaboration with

Food Service Publications

• School Lunch• Institutional/Mass

Catering Promotions

Need new example?

AWARENESS BUILDING

• Trade• Trade Shows• Technical Seminars• Menu Presentations• Formulary Development• Trade Public Relations• Trade Advertising

Korea Spain Germany

AWARENESS BUILDING

AWARENESS BUILDING

• Public Relations/Digital• Media Relations• Events

• Harvest Tours• Media Cooperations• Website/Blog

• Content• Contests• E-Newsletters

AWARENESS BUILDING

• Social Media• Direct Consumer Engagement• Brand Storytelling

• Taste/Versatility• Origin/Quality• Health

• Larger, integrated campaign initiatives & promotions• Optimizing paid digital strategy• Retain User Base & Expand

AWARENESS BUILDING

HEALTH PROFESSIONALS

Conference Participation Speaker Placements Mini-Scientific Advisory Council

Meetings

KEY OPINIONS LEADERS /INFLUENCERS• Media• Partners (Spanish Heart Foundation) • Digital/Social/Online Influencers

• Bloggers

Export Performance

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64%Of Shipments

In Closing…

The Bottom Line

• Lots of walnuts = Continue building demand• New users … “show me how to use walnuts”• Industry can promote future success

• Continue marketing investment• Retail support• New product development

• Support ongoing health research to build evidence on the benefits of walnuts

Thank you!

Election Timelines

• California Walnut Board• Nomination petitions mailed late-February• Ballots mailed mid-April

• California Walnut Commission• Nomination petitions mailed late-April • Ballots mailed mid-July

For more information, please contact Dana at the California Walnut Board/Commission office at 101 Parkshore Drive, Suite250, Folsom, CA 95630, (916) 932-7070