Dried Fruit & Nuts · Dried fruit is enjoying a similarly good press., though the supply this year is being complicated by politics and finance. The political situation in Turkey

IEG Vu

Dried Fruit & Nuts 2019

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Publishing Director IEG Vu & IEG Policy Adam Sharpe Tel: +44 20 7017 7587 Email: [email protected]

Senior Analyst: Dried Fruit & Nuts/Spices & Exotics Julian Gale Tel: +44 20 7017 7539 Email: [email protected]

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News Analyst: Canned Products Estela Cuesta Tel: +44 20 7017 4549 Email: [email protected]

News Analyst: Dried Fruit & Nuts/Spices & Exotics Jose Gutierrez Tel: +44 20 3377 3704 Email: [email protected]

Contents Production and demand are both rising04 Brazil nuts will find

new customers 08 Eastern European walnuts

to co-lead the market with the US and Chile

10 Higher global market share

12 Chilean dehydrated apples bet on quality in a challenging industry

14 Strong dried grape harvest in the southern hemisphere

16 US almond success relying on ABC’s long-term work

19 Good growth prospects for Brazilian nut market

22 Australian dried fruit sector feeling the heat

24 Walnuts will meet global demand

26 Raisins to be cheerful about

Not so many years ago, nuts were being demonised as unhealthy things to eat. Today, nut consumption is positively encouraged and nuts are considered an integral part of a healthy diet.

Better still, the global industry has managed to keep up with demand. Obviously, there can be supply problems with nuts that are gathered rather than cultivated (though this year the issue is of over-supply for Brazils), and politics also intrude (think pistachios…) but the industry has, generally, managed to increase its production to match the planet’s hunger for nut products.

This office remembers the first Californian almond harvest to exceed two billion pounds. At the time, we wondered whether the US would find a market for all those nuts. Now we are looking at a harvest that’s bigger by half and California is confident the almonds will find buyers.

Macadamias are another success story. A long way from being a ‘cheap’ nut, like

peanut, the macadamia’s success is export markets is a tribute to the marketing put behind it.

Dried fruit is enjoying a similarly good press., though the supply this year is being complicated by politics and finance. The political situation in Turkey and friction between it and the US (and both countries are major dried fruit suppliers) has sent the country’s lira bouncing up and down like a yo-yo, which has made life difficult for suppliers and customers alike. Nobody likes it when the cost of a shipment can vary by as much as 10% in a few weeks, or even days.

The US is also being troubled by exchange rates – the strong dollar is making life difficult for Californian raisin suppliers, while the weak Turkish lira and South African rand is having the opposite effect for the industries in those countries. California should ride out the storm, not least because of its excellent branding. Besides, if buyers are happy to pay a premium for quality nuts, they should do the same for dried fruit.

A rising global appetite and consumers who are willing to pay a premium for quality means a bright future for the dried fruit and nut industry.

News Analyst: Tomato Products/Frozen Foods Cristina Nanni Tel: +44 20 7017 5174 Email: [email protected]

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IEG Vu | Dried Fruit & Nuts 2019 / 5

The Brazil nut industry has changed little since it was born at the beginning of the 20th century, as an alternative income for rubber extractors in the Bolivian and Brazilian rainforest.

The US and Europe have been traditionally the main markets, mixing the product with other products in snacks to cut costs when key categories such as almonds, walnuts, raisins or prunes reached a high price. A combination of unfavourable weather and an effective Peruvian promotion policy changed the scenario.

A severe drought in the western Amazonian region halved annual sales from Bolivia, the main origin, to 700 containers. Peru is not the largest exporter, but its government has worked

successfully to sign free trade agreements with key importers and to promote its agricultural and fishery exports. As a result, South Korean consumers started to demand increasing amounts of Brazils, exceeding Peruvian demand, and many traders re-exported Bolivian nuts.

“This operation is not illegal if traders declare the origin on the label, although many avoid it to cut inspection time and expenses in South Korean customs. When Asian officers noticed they sent inspectors to Peru, imposing high fines to exporters,” Bolivian sources explained to IEG Vu.

However, this operation showed a positive outlook: Bolivia was likely to sell Brazil nuts as a high-quality category and not only as a cost cutting tool. South Korea

The Brazil nut industry is set to seek new markets in the Far East, after experiencing a two-thirds fall in price to USD3.2 per pound in 2018 after a record USD9.75/lb in May 2017.

By Jose Gutierrez

Brazil nuts will find new customers

South Korean consumers started to demand increasing amounts of Brazils, exceeding Peruvian demand, and many traders re-exported Bolivian nuts

6 www.ieg-vu.com/ Dried Fruit & Nuts 2019 | IEG Vu

become the largest importer in 2018, with a total of 7,670 tonnes, according to customs data, overtaking the US and Germany as the main global importer. This Asian market is very influential in Far East grocery and cultural industries, acting as a re-exporter for the Japanese and the Chinese markets. The weekly price reached a record USD9.78/lb exw on the week ending May 29 2017, closing 2017 at USD8.7/lb. This price was stable until February 2018, starting to fall gradually from the USD7.52/lb level, rewarding European and US importers who suspected collectors and processors of delaying deliveries to imply there was a supply shortage again.

As Bolivian sources told IEG Vu: “Collectors and processors were playing a game of chicken, tempering the falling imports to the EU and the US with South Korea’s purchases but they cannot delay shipments due to humidity conditions in the Amazon region, which has a high warehousing cost. And the Bolivian crop was even higher than the usual average of 1,400 containers annually.”

As a result, prices dropped to USD3.35/lb in December, mirroring the 2016 price level, and unlikely to exceed USD4.00/lb. “Many South Korean importers are now more wary of buying 2019 product after paying a premium price in the previous season. In addition, importers know the

Bolivian Brazil nut weekly prices (USD/lb, medium, exw UK))

Bolivian Brazil Nuts, 2014-18 (tonnes)

2014 2015 2016 2017 2018

26,51925,630

27,149

14,518

26,684

Source: GTT

Bolivian Brazil nuts, main exporters 2014-18 (tonnes)

Main Brazil nut importers, 2018 (total: USD425.28 million)

“Many South Korean importers are now more wary of buying 2019 product after paying a premium price in the previous season”

Bolivian Brazil Nut Weekly Prices (USD/lb, Medium, exw UK)

3

4

5

6

7

8

9

10

15/0

5/20

1722

/05/

2017

17/0

7/20

1707

/08/

2017

28/0

8/20

1718

/09/

2017

09/1

0/20

1730

/10/

2017

20/1

1/20

1711

/12/

2017

01/0

1/20

1822

/01/

2018

12/0

2/20

1805

/03/

2018

26/0

3/20

1816

/04/

2018

07/0

5/20

1828

/05/

2018

18/0

6/20

1809

/07/

2018

30/0

7/20

1820

/08/

2018

10/0

9/20

1801

/10/

2018

22/1

0/20

1812

/11/

2018

03/1

2/20

1824

/12/

2018

14/0

1/20

1904

/02/

2019

25/0

2/20

19

Source: IEG Vu

Main Brazil Nut Importers, 2018 (Total: USD425.28 million)

South Korea 20.56%

Germany 14.07%

US 11.50%

UK 11.42%

Netherlands 8.50%

Belgium 6.88%

France 3.27%

Italy 2.41%

Canada 2.21%

Others 19.18%

Source: GTT

Bolivian Brazil Nut Weekly Prices (USD/lb, Medium, exw UK)

3

4

5

6

7

8

9

10

15/0

5/20

1722

/05/

2017

17/0

7/20

1707

/08/

2017

28/0

8/20

1718

/09/

2017

09/1

0/20

1730

/10/

2017

20/1

1/20

1711

/12/

2017

01/0

1/20

1822

/01/

2018

12/0

2/20

1805

/03/

2018

26/0

3/20

1816

/04/

2018

07/0

5/20

1828

/05/

2018

18/0

6/20

1809

/07/

2018

30/0

7/20

1820

/08/

2018

10/0

9/20

1801

/10/

2018

22/1

0/20

1812

/11/

2018

03/1

2/20

1824

/12/

2018

14/0

1/20

1904

/02/

2019

25/0

2/20

19

Source: IEG Vu

Main Brazil Nut Importers, 2018 (Total: USD425.28 million)

South Korea 20.56%

Germany 14.07%

US 11.50%

UK 11.42%

Netherlands 8.50%

Belgium 6.88%

France 3.27%

Italy 2.41%

Canada 2.21%

Others 19.18%

Source: GTT


Chilean ports of Arica and Iquique have increased their capacity and they are very demanding about delivery times. The only solution is working more to open new markets in the Far East, but it will take a while,” Juan Pablo Casted of the Bolivian trader CCBOL explained.

Prices ranged from USD3.3-3.5/lb fob Arica from January-February, although Bolivian processing plants will be in full swing from March onwards and we will have a clearer outlook on 2019 prices later on.

Hylea to control the whole Brazil nut supply chainThe Swiss-Bolivian company Hylea is set to open in March-April 2019 one of the largest Bolivian nut processing plant in the Bolivian region of Pando.

This will shake up an industry in which factories are usually located far from the rainforest. The USD15 million installation has taken two years to build due to the harsh climate in Pando, on the Amazon frontier with Brazil and Peru. The factory is certified as organic

but will also supply conventional product.

“Our whole production process has been certified as organic although we will supply product labelled as organic and conventional. The collected raw material is organic because it grows in the wild rainforest, the difference between organic and conventional production depending on warehouse installations and products used to clean the processing machinery. As a result, the key difference between both categories is the cleaning process, which takes longer for organic,” the chief executive officer of Hylea, Aime Hecker, told IEG Vu.

Why did Hylea decide to build a processing plant in the Amazonian region? “We saw a gap in the industry: no company has ever controlled the whole Brazil supply chain. We have been working for ages in collecting, packing and shipping, and decided to develop our own Paranusse brand and to build the factory in 2017,” Hecker explained.

“Paranusse is exclusively sold in the German market but we expect to expand into other EU members. In addition, we are set to open an office in Shanghai to sell in Far Eastern markets,” he noted.

Hylea has its roots in the Swiss companies Seiler & Co. and Hecker & Co. in Bolivia, which traded in rubber until 1988. The Hecker family was a pioneer in supplying Brazil nuts to the US and Europe since 1919, providing new incomes for rubber extractors.

“We saw a gap in the industry: no company has ever controlled the whole Brazil supply chain”


Ukraine, Moldova, Romania and Bulgaria, whose governments consider this product as a strategic agricultural commodity, are positioning themselves as key global walnut suppliers for neighbouring markets, mainly the EU, Turkey and Caucasian markets (Azerbaijan, Georgia and Armenia).

They take advantage of their low logistical costs to export to EU members and Turkey, the main global importers, although California in the northern hemisphere is still co-leading the global exports.

Ukraine will strengthen its position as the main European walnut grower and the third global, following the US and Chile, after extending its planted area to 18,900 hectares. Its 2019 crop is expected to reach 120,000-132,000 in-shell tonnes, according to the Ukraine government and the USDA. It exported 40,984 tonnes in 2018, the EU and Turkey being its main importers with a 33% and 29% market share, respectively, according to customs data.

The production rise is based on the expansion of modern irrigated plantations, which reached 4,800 hectares in 2017, 84% more than in the previous season, and offsetting the fall in small orchards cultivated by families. These traditional small orchards are not fertilised or treated to avoid pests, many of their growers trading in wood for the domestic furniture industry. As a result, the average size of walnut

plantations has risen from 20 to 50 ha from 2009-17, as have the yield and the quality of the product, according to State Statistics Service of Ukraine (SSSU) and the USDA.

Most small farmers do not report their stock figures, being able to keep their inventories unsold for over a year until export prices are convenient for them. The estimated walnut stock levels were over 13,000 tonnes in 2016-17, due to low export prices at the beginning of the previous season. This stock data explains the 56% export growth from September 2017-May 2018, according to the USDA.

The Ukrainian government is promoting walnut production but not exports, due to its high profitability and its price, and its relative nearness make it easier to sell to the EU and Turkey.

Ukraine’s organic area reached 289,551 hectares in 2017, around 1% of the total, according to the Research Institute of Organic Agriculture (FIBL). Walnut orchard extension accounts for 1% of the total. The Ukrainian law on organic production and trade was adopted in September 2013 but it has not been implemented yet, but the country recently started the process to label the domestic organic product.

“Ukraine exported around 300,000 tonnes of organic products in 2017, mainly to the EU due to a comprehensive free trade area

Walnut crops in Ukraine, Romania, Moldova and Bulgaria have been gradually increasing in last years, competing with the US in the EU market.

By Jose Gutierrez

Eastern European walnuts to co-lead the market with the US and Chile



(DCFTA) with Ukraine. Walnuts are not yet a key organic exporting product, cereals, berries and apples being the largest. We have no accurate data yet on organic walnut exports because they are not yet relevant, although we have started to register organic operators in this industry,” the director of the organic export support of the Ukraine government, Hanna Morozova, told IEG Vu.

MoldovaMoldova is a small country (33,846 square kilometres), surrounded by Ukraine and Romania and with agriculture accounting for around two thirds of its economy. Walnuts is one of its main agricultural commodities, with a 6% market share in the international market.

It exported 14,870 tonnes worth USD98 mln in 2017 (last year with complete available data), mainly to the EU and Turkey.

Moldovan walnuts have been increasing in quality, although there were some issues about colour, having a high share percentage of amber nuts. “As a result, prices for light grades were quite high and very low for amber to sell out that product,” Michael Stevens of Freeworld Trading told IEG Vu.

However, the government has developed a very ambitious organic strategy, encouraged by development funds from the UN and the EU. The area dedicated to agriculture totals 1.9 million hectares, the organic accounting for 3.9% of the total according to Moldovan ministry of agriculture. There were 29,000 ha of walnut trees, with a low yield due to their high average age.

It exported 5,274 in-shell tonnes of nuts in 2018, mainly to the US and the EU,

accounting for 10.1% of the total organic exports. “The industry views Moldova as the main eastern European organic walnut supplier, its prices being around 15-20% higher than the conventional,” Stevens added.

RomaniaRomania reached a record crop of 45,700 in-shell tonnes on a total area of 1,600 ha in 2017, declining slightly in 2018, according to Romanian government data. Development of the industry has been encouraged by the EU funds. It exported 3,790 tonnes worth USD27 mln in 2018, mainly to the EU (83% of the total).

Romania’s industry is taking advantage of EU membership in the EU and its strategic location to import in-shell product from Moldova and Ukraine, although “it is a very hard process due to bureaucratic barriers in these countries, especially in Moldova, where there is still a system of export licences, favouring corruption practices,” Romanian sources told IEG Vu in Biofach Nuremberg (March 14-17).

Romania’s organic area totalled 258,471 ha in 2017, 2% of the total and around 12,000 hectares of permanent crops, not having an official census of organic walnut trees. Romanian sources told IEG Vu that around 10% of the domestic crop is certified as organic, exported mainly to the US, Germany and Japan. Average organic walnut prices are around 20-35% higher than the conventional.

BulgariaBulgaria is the smallest grower of the group. Its 2018 crop reached around 4,500 in-shell tonnes on a total area of around 5,000 ha, according to the government, being stagnant as the agricultural industry is focused on other high-value agricultural commodities, such as berries, oil seeds or essential oils.

The development of walnut orchards has been favoured by EU subsidies, as in Romania.

It exported 1,430 tonnes in 2018, one-third of 2017’s tonnage due to the sharp rise in domestic consumption. Its main importers are Albania and the EU, with a 41.7% and 38% market share, respectively. There are no records of its organic walnut production or exports yet.

Ukrainian, Moldovan, Romanian and Bulgarian Walnut Exports(Tonnes)

2014 2015 2016 2017 2018

31,1

45

14,3

11

10,5

49

3,35

7

28,7

23

14,9

83

8,39

6

5,29

6

40,1

13

15,4

35

5,21

2

1,88

9

30,9

30

14,8

60

5,10

0

4,19

2

40,9

84

9,07

5

3,79

2

1,43

0

Ukraine Moldova Romania Bulgaria

Main Importers 2018 (total: 55,281 Tonnes)

Turkey 22.24%

France 10.19%

Iraq 6.87%

Germany 6.31%Azerbaijan 6.21%Greece 4.83%

Netherlands 4.60%

Austria 3.92%

Others 34.83%

Source: GTT

Ukrainian, Moldovan, Romanian and Bulgarian walnut exports (tonnes)

Main importers 2018 (total: 55,281 tonnes)


The weather has been the biggest adverse factor for a lot of South Africa’s huge and varied fruit industry. Some areas have fared better than others, but the long drought in the Western Cape, the heart of the country’s wine industry, hit grape and deciduous fruit growers worse than anywhere else.

The reservoirs have slowly been refilling, but there are still some issues, according to Tanya Alston, marketing manager of Fruits du Sud, one of the country’s prominent dried vine fruit processors.

“The currant volumes are a lot less due to the drought,” she told IEG Vu at the recent Gulfood exhibition in Dubai. On the other hand, raisin production, at an estimated 70,000 tonnes, is better than 2018’s output. Thompson seedless raisins are fetching a higher price at the moment, but the price of Goldens has been weaker.

The harvest was delayed by three weeks due to cooler weather. The sugar levels were low in the fruits, so the farmers left the grapes on the vines for longer, in order to bring the levels up. This left less time to ship the finished product, especially to the critical Middle Eastern markets for Ramadan.

Thompson prices, at the time of writing, are around USD2,900 per tonne fob, the same price as Californian Thompsons, so there is little chance of Fruits du Sud being able to export to the US this year.

“We have got to find new markets,” stressed Alston. The Middle East is attractive: it is a big consumer of dried fruit, and South Africa

is – now – politically very attractive to Middle Eastern customers. South Africa’s global market share is increasing, says Alston, so the plan must be working, and exports now are running 50% higher than the levels of a decade ago (see chart).

Present problems include the erratic electricity supply. The state-owned electricity provider, Eskom, is technically bankrupt, due in part to mis-management and corruption. A lack of investment in increasing generating capacity means that power cuts are becoming increasingly frequent, which makes life difficult for any form of industry. “We have ‘power management’ twice a week,” revealed Alston, but it varies from state to state.”

The exchange rate affects all exporters, and raisin producers “tremendously”. The rand, generally, has been weak for the last few years, which helps exports, but the currency has been volatile, which makes planning tricky. Ironically, one of the country’s major markets is the UK, whose currency has been equally weak since the Brexit vote in 2016, and the exchange rate between the rand and sterling has not changed much.

South Africa has several obstacles in the way of its agro-industry, some home-grown, some external and beyond its control, but its dried fruit industry is still a global player.

By Neil Murray

Higher global market share

South African Dried Grape Exports (Tonnes)

60K

50K

40K

30K

20K

10K

02002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

3369

3

3451

9

2764

7

2197

7

2361

0

4116

2

3874

7

2318

2

4038

3

1695

0

2492

3

3219

4

3504

1

5289

7

4648

5

4880

8

6118

1

Source: GTT

South African dried grape exports (tonnes)

http://www.bayadelsur.com


Chile has made an exceptional effort to be a key player in the international agricultural market, despite being far from Europe and North America. Dehydrated apples are an example of this hard and successful long-term work.

Its 2019 crop is expected to be of normal quality, although the early varieties’ harvest, especially Gala, has had fruits of smaller size.

“We cannot compete with other large origins such as China through low prices. The Chilean dehydrated industry offers

reliability in service commitments, excellent organoleptic properties and a consistent quality average, honouring our contracts whatever changing conditions we may suffer,” the sales manager of Surfrut, of the main Chilean apple and cherry processors, Joyce Abrahams, told IEG Vu.

Surfrut started as a grower, processor and packer of fresh cherries in the Central Valley area in 1945, growing apples and developing dehydrated product and purées, conventional and organic, later on. “We are analysing market demands all the time and we have been certifying as organic part of

Although Chile is working in high-middle and high-quality segments, Chilean processors told IEG Vu that as apple plantations have not increased in Chile and the harvest should be normal, a weak output might upset their cost structure as they compete with juice and purée processors to obtain raw product. Surfrut, one of the main Chilean processors, has been updating us on the current situation.

By Jose Gutierrez

Chilean dehydrated apples bet on quality in a challenging industry

“The Chilean dehydrated industry offers reliability in service commitments, excellent organoleptic properties and a consistent quality average”


our apple tree orchards in the last couple of years, due to the growing organic demand from the US and German markets.

In addition, we have developed Purefruit Chile, a company specialist in organic purées for babies. Currently, we are studying to develop maqui berry and other superfruit powders for breakfast compounds and fruit bars,” Abrahams added.

“Chilean dehydrated apple processors must compete with the fresh market and juice and purée makers for the raw material and this season has started with high prices for Gala; over 20% more than in the previous season. In addition, the Chilean peso is worth 650 per US dollar, up from 670 in the previous year. As a result, our international prices are set to increase. However, I am not pessimistic because we are still in

March and the harvest of the rest of varieties has just started. It is soon to have a clear outlook on the rest of year.”

China has had a poor apple crop, pushing up prices in all its processing categories. On the other hand, Poland, the main European origin, has had a very strong production, leading to a huge carry-over

stock with weak prices. “We are not competing directly with China as it is working in the low quality segment nor Polish processors, which work mainly with apples with red skin, as opposed to our green and peeled ones. It would be naïve to think that this situation is not going to affect us because Europe is one of our key markets,” she added.

However, ”we are not excessively worried because we have acted in a stormy market before and I am sure we will reap the fruits of long-term work,” she concluded.

Joyce Abrahams, sales manager of Surfrut

“Chilean dehydrated apple processors must compete with the fresh market and juice and purée makers for the raw material”

http://www.prunesco.com


South Africa is reporting better weather conditions for the dried fruit harvest following earlier reports of rain showers, although some damage was caused last November due to a heatwave.

Producers expect this year’s harvest will be very similar in size to the 2017/18 crop at approximately 65,000 tonnes of dried vine fruits. There may be a larger percentage of Thompson seedless raisins this year, compared with Golden raisins and Orange River sultanas.

There is an ongoing issue with the availability of South African currants where vines are reported to be recovering from the effects of the previous drought. This will reduce the available tonnage of currants by as much as 3,000 tonnes. Good quality new season choice South African Thompson seedless raisins are initially being offered at between USD2,900-3,000 per tonne cif UK. South African raisins are likely to be a popular alternative to US and Turkish raisins.

This year’s Australian total vine fruits crop will be similar in volume to the 2018 crop, at around 17,000 tonnes. The 2018 crop enjoyed strong growth of 30.7% over the previous season, with sultanas accounting for 48.4%, Sunmuscats at 16.3% and currants at 10.4%. Exports for 2018 reached 5,613 tonnes, an increase of over 50% from the previous year.

The ready availability of Thompson seedless raisins from both South Africa and Chile should help to create a more stable global market for dried vine fruits and will be good news for European buyers, who have suffered significant increases in the cost of dried vine fruits over the past few months.

News from California suggests that prices of Thompson seedless raisins have continued to ease with some packers now offering below USD1.40 per pound c&f UK for select grade Thompson seedless raisins for shipment through until August.

Prices of Turkish sultanas and raisins have stabilised over the past few days, with reports of little activity on the local Izmir bourse. Packers are still purchasing fruit direct from the growers at relatively high prices with raw material for sultanas around TRY10.5 per kilo (USD2.00/kg).

A dramatic change in the value of the Turkish lira since the start of the season has affected export pieces; the rate was over TRY7.00 to the dollar early this season whereas today’s rate is around TRY5.3. The fluctuation of sterling against the US dollar, principally on the back of ever-changing news about Brexit negotiations, is also having an impact on the cost of Turkish dried fruits.

Exports of both Turkish sultanas and raisins

First new season prices are being received from the major southern hemisphere dried fruit producers.

By Andrew Ciclitira

Strong dried grape harvest in the southern hemisphere



have reached around 137,000 tonnes up to February 9, compared with 140,265 tonnes for the same period last year. The average export price for Turkish sultanas is USD2,107/tonne fob Izmir. Although it is still too early to make any accurate predictions for the size of the 2019 Turkish sultana crop, weather conditions remain favourable with cold temperatures and good rainfall.

This means that the vines are dormant, which should encourage a better crop this year if there are no rain or frost problems later in the season. Indicative prices of Turkish no 9 sultanas remain unchanged around USD2,250–2,300/tonne fob Izmir for prompt shipment with a slight increase going forward.

The position with currants remains confused, with some new offers of Greek currants reported at levels between EUR3,000-3,100/tonne (USD3,405-3,520/tonne) fob Piraeus for good quality provincial fruit. It seems unlikely that South Africa or Australia will have significant quantities of currants for export this year, in part due to a low yield in the case of South Africa and an increase in domestic demand in Australia.

It is likely that the price fall is due to packers selling raw material to generate cash flow because of the present RBA contracts, which call for payments for raw material in advance. It is unclear whether prices will fall further but there is certainly a need for US packers to try to recover some of their loss of export sales.

British importsThe last month has seen an increase in Easter bakery lines stocked by all the major UK retailers, which should bolster sales of dried vine fruits.

Sales of hot cross buns have grown considerably in recent years with a plethora of different recipes and now even different sizes to fit all tastes. Sales of dried vine fruits are, however, steady rather than spectacular with reports are that new sales of Turkish sultanas and

raisins are less than had been expected. It is possible that major UK buyers may have covered their forward requirements early and shipped larger than usual quantities as companies stockpile in anticipation of a possible interruption in supply when Brexit takes place at the end

of March (unless it is delayed – Editor).

March sees government elections in Turkey, which could have an impact on the value of the Turkish lira against the US dollar which will, in turn, affect the export prices of Turkish dried fruits.

TABLE 1: WORLD SULTANA AND RAISIN SUPPLy 2018 (TONNES PACkED WEIGHT)

Country Estimated physical stock

31/08/2018

Estimated production

Northern Hemisphere

1/10/2018

Estimated production

Southern Hemisphere 28/02/2018

Total estimated available product

for marketing

Greece 2,000 2,000

Iran 80,000 80,000

Turkey 25,000 261,000 286,000

USA 68,000 210,000 278,000

Indıa 140,000 140,000

Uzbekistan 45,000 45,000

China 190,000 190,000

Argentina 1,000 52,000 53,000

Australia 15,468 15,468

Chile 5,000 48,000 53,000

South Africa 0 51,000 51,000

Total 99,000 928,000 166,468 1,193,468

2017 117,916 883,461 153,000 1,154,377

% Difference -16% 5.00% 8.80% 3.40%

Source: International Seedless Dried Grape Producing Countries Conference

TABLE 2: WORLD GOLDEN AND CURRANT SUPPLy 2018 (TONNES PACkED WEIGHT)

Country Estimated physical

stock 31/08/2018

Goldens Estimated

Production 2018 crop

Total estimated available

product for marketing

Estimated physical

stock 31/08/2018

Currants Estimated

production 2018 crop

Total estimated available

product for marketing

Greece 16,000 16,000

Iran 25,000 25,000

Turkey

USA 18,000 18,000 1,500 1,500

Indıa

Uzbekistan

China

Argentina

Australia 1,069 2,092 1,841

Chile 8,000 8,000 0

South Africa 800 17,000 17,000 800 2,000 2,000

Total 800 68,000 68,000 1,869 21,592 21,341

2017 5,111 64,718 44,829 2,485 28,421 20,905

% Difference -84% 5% 52% -25% -24% 2%

Source: International Seedless Dried Grape Producing Countries Conference

It is possible that major UK buyers may have covered their forward requirements early and shipped more than usual


The chief officer of the Almond Board of California (ABC), Richard Waycott, and chairman Holly King expressed their satisfaction at the state of the industry, in one of the most important presentations at the 2018 Almond Conference, held in Sacramento from December 4-6 2018.

These good projections have meant that the assessment revenue paid to ABC will be reduced from four US cents to three cents from the 2019/20 season.

Waycott noted that these good income figures are the result of a long-term promotion policy. The 2019 promotion budget totals USD49.7 million. Germany,

the US, India and Mexico account for 72.2% of this. China, France, the UK, South Korea, Japan and Italy are other priority markets for its promotion policy. “We will invest USD14.4 mln in Germany because it is the largest European market, but we are not reckoning to reach all our potential,” Waycott explained.

King highlighted the lobby work developed in Washington DC, having succeeded in getting almonds listed in the direct payment compensation programme to mitigate the effects of trade conflicts.

In addition, they explained the strategic plan, called Almond Orchard 2025

The Almond Board of California (ABC) has reason to be satisfied. US almonds experienced strong sales in 2018 and between January-February 2019, despite being pressured by the trade war between the US and China. As a result, ABC expects a 3.0 billion pounds crop in 2023.

By Jose Gutierrez

US almond success relying on ABC’s long-term work

“We will invest USD14.4 mln in Germany because it is the largest European market, but we are not reckoning to reach all our potential”

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Goals, which has four main objectives:

1. Further reducing the water used to grow almonds by 25% to 2025.

2. Increasing adoption of environmentally friendly pest management tools by 25%.

3. Achieving zero waste in orchards, obtaining environmental and economic value.

4. Improving local air quality during almond harvesting by 50%.

Research projectsABC has budgeted a USD6.8 million investment in 75 research projects relating to new farming practices, water sustainability, pollinator health and new uses for almond products, including hulls, shells and woody material. ABC has funded nine products-focused research projects, totalling USD1.2 million.

There are three ongoing almond product research projects:

• Almond shells, transformed to a charcoal-like powder through a process known as ‘torrefaction’, working as a strengthening agent and colorant for post-consumer recycled plastics

• Almond hulls to feed animals and insects

• The hull without sugar as an alternative to traditional peat moss for mushroom cultivation.

Waycott commented: “Since 1973, almond farmers and processors have invested USD80 mln in research through the Almond Board to improve our understanding of almonds’ impact on human health, ensure food quality and safety, and improve farming practices while minimising environmental impacts.”

China and IndiaChina and India are the world’s most populous countries, although both face trade conflicts with the US and their consumption per capita is still low compared with mature markets such as the US or Europe.

Almonds are traditionally consumed raw, soaked and peeled in India. They are more favoured than other nuts such as cashews or peanuts, despite India being one the

larger world’s exporters. However, per capita Indian consumption of almonds is much lower than that of western countries, such as the UK, France or Germany.

The key points of ABC’s marketing programme in India are:

• Trade outreach programme, reinforcing confidence in trade.

• Media outreach and events. “It is important to invest in digital and print advertorials but also to establish a strong nutrition public relations campaign to promote consumption educative programmes,” Mazumdar explained.

• India has developed a very important media industry and celebrities such as the journalist Amitabh Bachchan or actors such as Alia Bhatt and Malaika Arora have been talking publicly about almonds or taking part in almond advertisements in traditional media such as newspapers or TV and in social media.

• Family consumption campaigns to enhance frequency. “Mothers are essential because they prescribe daily consumption in Indian families and children, especially,” Mazumdar quoted. The campaign motto is ‘small investments today, build into big successes of the future into my family’, justifying a premium price.

• Festival campaigns to strengthen almonds as a popular gift.

The Chinese market is still focused on low prices, although ABC has managed to establish a strong connection with

high-income consumers interested in healthy and beauty products.

The Chinese ABC subsidiary has developed a consumer communication based on women as family financial decision makers and beauty and health conscious, working with influencers and leading traffic to e-commerce platforms. In addition, it launched almond-inspired proposals during Shanghai fashion week. In addition, it launched the ‘Taste of beautiful new year campaign’ in January 2018. Finally, five million consumers played the ‘Follow the Sunshine’ mobile game, leveraging animated video to educate consumers about almonds; lifecycle and vitamin E benefits.

Agricultural love and advanced techniquesIEG Vu visited the Vann Brothers orchards and processing plant, located in Colusa and Yolo counties, close to Sacramento, during the last Almond Conference organised by ABC.

The Vann family has 10,000 acres of almond trees and 1,000 of walnuts, plus an additional 2,000 acres of non-bearing land. They started planting tomatoes and wheat in the 1970s, acquiring water rights later on. “Vann Brothers has a long-term vision and bet on investing in almonds and walnuts. Currently, it is very hard for a beginner to try to replicate a similar trend, due to water rights costs in the state,” the director of sales and marketing, Bob Silveira, explained.

They produce around 32 million lbs of almonds, exporting shelled and in-shell product to all kind of markets, establishing long-term relationships with clients. Their orchards are a example of how California has become the main global almond supplier: modern irrigation systems, layout to maximise pruning, pollinating and collecting tasks, etc.

“We only close three weeks a year, between the weeks previous to Christmas and January, following a strict calendar,” Silveira said.

They decided to start a subsidiary specialist in hulling and shelling almonds, Yolo, in 2017, investing around USD24 mln to acquire the most advanced technology, not only to be efficient but also to minimise the dust created by the most advanced technology.


Among the eight most consumed nuts in the world, four are produced in Brazil:

• Cashews nuts – main type produced here, with extractive predominance;

• Brazil nuts (also known as Para) – also essentially extractive;

• Macadamia – cultivated by planting;

• Pecan – commercial planting in growing phase.

(Cashews and Brazil nuts are part of the ‘native’ category. While pecan and the macadamias are of the ‘exotic’ category introduced in Brazil).

Good growth prospects for Brazilian nut marketGlobal nut consumption has grown by 6% per year in the last decade and its price has risen 400%, according to the International Nut Council (INC).

By Ana Andrade

Brazilian Cashew Exports, 2015 - Feb 2019 (volume and value)

2015 2016 2017 2018 Jan-Feb 19

12,9

57

102,

725

15,6

04

129,

611

11,4

24

114,

090

12,4

69

116,

107

2,78

3

22,3

66

Tonnes USD (1,000)

Brazil Cashew Exports, Main Importers 2018 (total: 12,469 tonnes)

US 45.96%

Canada 8.39%

Netherlands 10.89%

Italy 3.10%

Germany 2.50%

Argentina 5.17%

Mexico 5.92%

France 4.50%

Others 13.55%

Source: Secex

Brazilian cashew exports, 2015-Feb 2019 (volume and value)


Brazilian Cashew Exports, 2015 - Feb 2019 (volume and value)

2015 2016 2017 2018 Jan-Feb 19

12,9

57

102,

725

15,6

04

129,

611

11,4

24

114,

090

12,4

69

116,

107

2,78

3

22,3

66

Tonnes USD (1,000)

Brazil Cashew Exports, Main Importers 2018 (total: 12,469 tonnes)

US 45.96%

Canada 8.39%

Netherlands 10.89%

Italy 3.10%

Germany 2.50%

Argentina 5.17%

Mexico 5.92%

France 4.50%

Others 13.55%

Source: Secex


More recently, baru, which is a nut from the Cerrado biome, is gaining ground in the domestic market, but is not yet recognised in foreign markets.

In 2018, total nuts exports (in shell or shelled) reached USD175 million, making up 0.13% of total Brazilian agribusiness exports. The cultivation of nuts in Brazil is often seen as a good diversification crop, even in steep topography, as well as being an above average profit per hectare crop.

MacadamiaThe processing of macadamia on average equates to BRL9.50 (USD2.49) per kilo of nuts-in-shell, which can generate an income between BRL40,000-50,000 per hectare for the producer.

In Brazil there are 6,500 ha cultivated with macadamia. The state of São Paulo is the largest producer, with 2,200 ha, followed by Espírito Santo and Rio de Janeiro state.

The average macadamia yield in Brazil is 4-5 tonnes per hectare, with production only beginning four to five years after planting and trees reaching adulthood/peak production from 12 years onwards.

Nearly 60% of domestic macadamia production is destined for international markets such as the US, Japan and China.

In the state of São Paulo, the production of macadamia has become an alternative for areas where it is not possible to harvest sugarcane.

In 2019, Brazilian macadamia production is expected to grow between 8% and 10% compared to this year’s crop of 7,000 tonnes (in-shell), given favorable weather conditions, with good rainfall.

PecanThe pecan was first introduced into Brazil in 1870, via São Paulo state by North-American immigrants, but only started to be traded around 1960-70. Production in the state of Rio Grande do Sul is the largest, followed by Paraná and Santa Catarina

Brazilian Brazil Nut Exports, 2015 - Feb 2019 (volume and value)

2015 2016 2017 2018 Jan-Feb 19

21,4

66

41,4

88

8,49

8 15,1

28

4,28

8

11,9

61

14,9

33

59,0

70

2,12

1

3,68

5

Tonnes USD (1,000)

Main Importers 2018 (total: 14,933 tonnes)

Peru 26.71%

Bolivia 27.36%US 9.68%

Israel 1.94%

Others 34.31%

Source: Secex

Brazilian Brazil nut exports, 2015 - Feb 2019 (volume and value)


In Brazil there are 6,500 ha cultivated with macadamia. The state of São Paulo is the largest producer


states. The country as a whole contains 3,500 ha of pecan nut-trees, 60% of which lie in Rio Grande do Sul, according to data from IBGE.

The importance of the crop to the region, led the state government to launch the State Program for Development of Pecanicultura (Pro-Pecan) in 2017. The program’s goal is to register producers, organise the supply chain and develop a strategic plan for the next 15 years.

In 2018, the state saw an increase of just over 48% in volumes exported by the Rio Grande do Sul, to 56,710 tonnes, compared with the previous year. In revenue, the increase was slightly lower, but still one of the highest in relation to all products exported by the state, at USD42.58 million.

Brazil consumes all the pecan it produces and is one of the main importers of Chilean walnut, which is very similar to the pecan. In terms of revenue per hectare, this reaches approximately BRL50.00, which earns the producer BRL12.00 per kilo of nut-in-shell, with an average yield of four tonnes/ha.

However, a lack of reliable technical information (scientific knowledge) and productivity stand in the way of the crops’ future potential. Solving these problems

related to production and improving pecan nuts productivity may lead to greater opportunities to supply to the Brazilian market as well as increase its share in foreign markets.

But despite the problems faced by the sector, the 2019 pecan production area is expected to increase, according to the sector’s estimates. This is as a result of an anticipated growth rate of the orchards, which has been in the order of 500 ha per year in the country as a whole. Domestic demand will continue to be the main focus, although seizing the opportunity to access the foreign market is also a goal, particularly at this time of the appreciation of the US dollar.

Looking forwardThe main focus of Brazil nuts production is organic, though Brazil is still very dependent on agrochemicals, and producing varieties with drought tolerance may also increase the importance of this segment in the country.

Brazil’s greatest challenge is to increase nut production and take advantage of business opportunities; capitalising on the product’s increasing demand owed to its great nutritional benefits.

For nuts producers, there is the certainty that they are investing in a product with a high consumer market price. Brazil’s soil and climate are optimal for advancing the production of nuts and chestnuts, so why not become a major producer and exporter of these products?

Brazilian Macadamia Exports, 2015-18 (volume and value)

2015 2016 2017 2018

338

3,494

393

2,496

1,041

6,102

1,226

9,211

Tonnes USD (1,000)

Main Importers 2018 (total: 1,226 tonnes)

Hong Kong 43.81%

Vietnam 34.62%

US 6.31%

Japan 3.99%

Australia 6.63%Others 4.64%

Source: Secex

Brazilian macadamia exports, 2015-18 (volume and value)


Brazil consumes all the pecan it produces and is one of the main importers of Chilean walnut


Record temperatures were registered across large parts of Australia in January, prompting health warnings for people to stay indoors during the hottest parts of the day – and the Australian dried fruit sector has also felt the effects of that heatwave.

In Mildura, Victoria, located at the heart of the country’s dried grape industry and home to the Dried Fruits Australia (DFA) industry group, the mercury hit a scorching 47oC, with the prime prune producing region of Griffith in New South Wales seeing similar highs.

For the dried vine fruit crop, the hot weather arrived just before harvesting began and it is expected to result in a crop that is slightly smaller than initially expected.

DFA was predicting a volume on a par with 2018’s exceptional output before the season began, with new plantings coming into production and higher yielding varieties performing well, but the outlook has been lowered as the heat has impacted yields. The harvest is expected to be shorter than usual as well.

“We were thinking around 17,000 tonnes but we had severe heat just before the harvest and now that we are into full swing, I don’t believe the we will reach this number,” DFA chairman Mark King told IEG Vu in early March. “We are probably looking at around 15,000 tonnes now.”

Growers have also seen production costs rise this year, in particular for water, with many growers affected, but prices are likely to be around 10-20% up year-on-year - easing some of the pain.

Export focusIn 2018, around 50% of the dried vine fruit crop in Australia was sultanas, with Sunmuscats making up around 16% of the total harvest and currants around 10%.

King expects a similar ratio this year, although some of the new plantings are Sunglo, a rain-tolerant variety, and Selma Pete, an early-ripening variety, which will produce more sultanas going forward. He added: “Sunmuscats are increasing and will in the future gain in percentage share”.

Last year, Australia exported around 5,000 tonnes of dried vine fruits overseas, the main buyers being Germany, Italy and Japan, but

there are plans to double this amount over the course of the next five years.

DFA has partnered with Sunbeam Foods and Australian Premium Dried Fruits for a promotional campaign that they hope will eventually see shipments hit up to 10,000 tonnes per annum, with higher sales to China and the UK, as well as the current biggest markets.

When asked how Australia is able to compete with other southern hemisphere producers, such as Argentina, South Africa and Chile, where costs, particularly for labour, are so much lower, King said it is because Australia produces a different colour and plumper product that can command a premium in overseas markets.

“South Africa are the only ones that produce a product that is similar, but they only do a very small amount,” King explained.

It is for this reason that he does not see much scope for expanding domestic consumption of Australian dried vine fruits. “It will be hard for us to increase sales in the domestic market, as a lot of fruit is landed in Australia at very cheap prices, even though it is not of the same quality,” he said.

Potential for prunesMeanwhile, it is a different situation with the Australian prune industry, which sees more opportunities in increasing local demand rather than looking abroad.

“We are not looking at export markets,” Grant Delves, chairman of the Australian Prune Industry Association (APIA),” told IEG Vu. “APIA sees stronger growth for our

Scorching temperatures in early January hit dried vine fruit and prune crops, but the industry remains upbeat.

By Adam Sharpe

Australian dried fruit sector feeling the heat

“We are probably looking at around 15,000 tonnes now”


industry fulfilling our own domestic market needs. Only supplying about 50% of our domestic market means there is huge potential for growth at home.”

While the industry is relatively small, with limited funds, Delves says they are taking a “grass roots” approach to promotion, with many growers taking the time to attend food shows and promote local brands. They are also employing prominent chefs to present a fresh approach to cooking with prunes.

“We have created an array of brochures targeting different demographics with health information regarding prunes and we attend our national nutritionists’ conference to get straight to the diet influencers,” Delves explained.

“Australian farmers have gone nut crazy in recent years, but I am convinced that when markets level out and the new prune message is absorbed by the public, sales will increase and prunes will be in demand again.”

Output bounces backThere was a setback for the industry a year ago, when excessive heat during the flowering period around September 2017, and later hail, saw total prune production slump to just 1,000 tonnes.

But while the previously mentioned hot weather at the start of 2019 had an impact by delaying the start of harvesting, the total crop is expected to return to normal levels.

“The harvest is looking good and we are expecting the final amount to be slightly above an average crop – perhaps 3,000-3,500 tonnes,” Delves said, adding that cooler temperatures towards the end of January meant that sugar accumulation could continue and eventually reach harvest levels.

“Those growers that thinned heavy crops early in the season saw the benefits both in size and sugars in the harvested fruit,” Delves said.

The crop was not completely unscathed from the heat. The APIA official said there was an average yield reduction of up to 20%

dependent on the age of the tree, the variety and growers’ access to available irrigation.

The impact on quality has been small, he added, only affecting a “small percentage” of the crop that did not accumulate sugars. “Overall, the quality looks good,” he said.

There are challenges ahead, however. Griffith produces around 90% of Australian prunes and traditionally the region has reliable access to irrigation water. But this could change.

“The prolonged drought and pressure from other crops, namely almonds and cotton, has seen the value of both temporary trade water and permanent trade water escalate dramatically,” Delves said. “With the long-term forecasters predicting another dry winter some growers may find that they have to make some difficult decisions with respect to water next season.”

While boosting domestic demand remains the short term focus for the APIA, Delves sees growing production as a possibility in the future.

“Dehydration in Australia is traditionally undertaken on farms by individual growers who then do some contract drying for those without their own facilities. For our industry to expand we would need to develop a large centralised drying facility based on the most efficient systems available today,” he said.

“I would also like to see growth in by-product sales and development to utilise all parts of the prune.”

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“Those growers that thinned heavy crops early in the season saw the benefits both in size and sugars in the harvested fruit”


JG: California walnut exports viewed an extraordinary jump driven by Middle Eastern markets, even Turkey, in February 2019. Could you explain which promotion policies has developed CWC in these countries to achieve a so successful result?

CWC: The California Walnut Commission (CWC) has been active in the Turkey since late 2014 with public relations and advertising programs. The UAE is an important trading hub for the Middle East and the CWC has been active in the region with annual participation at Gulfood, providing education and information on the quality and consistency of California walnuts. As for other parts of the Middle East, various factors are driving growth, including a reported a decline in walnut production in Iran due to frost damage,

which has increased the need for imported walnuts to fill consumer demand.

JG: China and Hong kong are still importing less than in the previous season. What policies is CWC applying to revert the situation?

CWC: In 2018, China imposed retaliatory tariffs on walnuts from the US/California. These tariff rates, along with increased production within China, have impacted shipments to both China and Hong Kong. The CWC works with the USDA and the US Trade Representative (USTR) to provide information about how the tariff rates and any non-tariff barriers are impacting the industry for any future negotiations between the two countries. In the near term, we are optimistic that the ongoing

California walnuts are suffering from the trade war between the US and important customers such as China and Turkey. However, its global exports are strengthening. The California Walnut Commission (CWC) and Peter Meadows, who represents California walnuts in the UK, explain why.

By Jose Gutierrez

Walnuts will meet global demand

The CWC works with the USDA and the US Trade Representative (USTR) to provide information about how the tariff rates and any non-tariff barriers are impacting the industry

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negotiations will result in a net positive for the California walnut industry.

JG: The US dollar value is currently strong. How it is affecting global California walnut sales?

CWC: While the dollar remains strong, global demand for the quality and consistency of California walnuts remains high. Sales were slow at the start of this crop season but the pace has picked up with a large percentage of the crop already committed for future shipments. It is anticipated that shipments, overall, will remain strong through to the next harvest.

JG: What is the most serious global competitor for Californian walnuts?

CWC: Competition varies by country of import. However, the four largest producers of walnuts in the world, according to the International Dried Fruit and Nut Council statistics, are responsible for 83% of the world’s production of walnuts. Among these countries is China, which consumes most of its production domestically; Chile, which exports most of its production; and Ukraine, which is estimated as exporting about half of its production.

JG: How concerned are you about the threat (maybe receding) of new tariffs as part of Trump’s trade war?

CWC: Tariffs remain an ongoing challenge for our industry. However, the CWC is optimistic that negotiations between the US and other countries will provide a platform for fair trade between countries.

JG: California walnuts must face competition from eastern European and Chilean product in the Uk. Can you explain what differentiates the Californian product from its competitors and how you explain them to the Uk market?

Peter Meadows: Competition for California walnuts in the UK does indeed come mainly from eastern Europe (Moldova, Ukraine, Hungary) and also France and Chile. Having spoken with most leading UK importers they

tell us that over the past five years, UK consumers are becoming used to the lighter creamer, superior tasting CA walnuts. Importers also state that when selling California walnuts, they receive zero complaints compared to other origins they sell. California walnuts are overall lighter in colour than their eastern European counter- parts and their texture is generally creamier. Overall, the consistency of California walnuts, in looks, size, taste and texture are major contributing factors for both trade and end consumers and these remain key communication points in our advertising and promotional activities in the UK.

JG: The Uk is one of the most-open minded European markets for innovative proposals (flavours, special compounds, etc.). Which walnut-based product is being more successful (walnut milk, special snacks, etc.)?

Peter Meadows: We know that in the UK there is some development on nut butters using California walnuts, which helps expand the use and perception of the product to both trade and consumers. In mainland Europe also, some headway has been made in developing nut butters with some leading manufacturers as well as walnuts integrated into cheeses, yogurts, chocolates and other confectionery items. Cereal manufacturers are also interested in increasing their mixes and nutritional profiles with California walnuts too. In addition, there are a range of cereal bar manufacturers now using California walnuts in the UK. In addition, Nestlé SA recently announced the development of a dairy-free milk using walnuts and blueberries. The general trend towards

more plant-based eating has undoubtedly helped raise further interest in nuts generally, and the versatility of California walnuts are perfectly positioned to take advantage of these NPD trends in the UK in the future.

JG: CWC is actively working with retailers to launch new walnut-based products in the Uk. What is your main focus for launching in 2019 (flavours, spreads, etc.)?

Peter Meadows: We now have active campaigns running with two leading UK retailers. As these gather momentum throughout 2019, the ultimate aim is to inform consumers that there are a variety of ways in which to consume California walnuts, not just as snacks and in baking, which are the more ‘traditional’ uses for the product. Walnuts have tremendous versatility and can be used throughout the day in a variety of dishes. They can even act as a substitute for ground meat. Recipe ideas are provided at retail during these campaigns with more soon to found at californiawalnuts.co.uk

JG: Is CWC planning to change its promotion policy in the Uk due to Brexit? If so, can you what specific changes is CWB planning?

Peter Meadows: It is fair to say that we are as prepared as we can be regarding Brexit, even though a number of factors remain unknown. There is enough flexibility in our promotional programme to cover most eventualities post Brexit and the CWC is committed to the UK market in making California walnuts a part of the daily diet and a healthy lifestyle.

California walnuts are overall lighter in colour than their eastern European counter-parts

26 www.ieg-vu.com

NM: What are, in your opinion, the three main USPs for Californian raisins?

PM: Taste, consistency, quality – these are just as relevant US’s to both target audiences: consumer and industrial.

NM: What is the split in end usage between industrial (ie: ingredients use) and simple consumption as dried fruit?

PM: It tends to vary year on year, but generally speaking the figures are approximately 60% retail and 40% bulk.

NM: How reliable is the raw material source and does this affect annual production (ie: what happens if more grapes go for winemaking!)?

PM: This is one of the key elements of California raisins. The overall crop is largely unaffected by external factors generally and remains pretty consistent year-on-year.

NM: How successful have promotional campaigns been, worldwide, in various countries?

PM: It is fair to say that without promoting California raisins, they wouldn’t have got to become the world’s preferred raisin.

There are various promotional campaigns each across northern Europe and also in Asia each with their own ‘local’ focus in each market.

NM: Who’s the most serious competition?

PM: For Europe, the key competitors are Turkey and South Africa and to a lesser extent Chile, who tend to compete purely on price and do very little or nothing to support the overall markets in which they operate. More recently, China and Afghanistan have made inroads into northern Europe, purely in specific bulk applications.

NM: Why does the Uk like California raisins?

PM: It’s the caramelised flavour and juicy consistency that makes California a popular choice with UK and Scandinavian consumers.

NM: How concerned are you about the threat (maybe receding) of new tariffs as part of Trump’s trade war?

PM: As yet, California raisins are not affected directly. In time this may change,

however. We are therefore not too concerned at this stage in proceedings.

NM: The US dollar is very strong right now. How is this affecting sales, or how is the problem being overcome?

PM: Issues like exchange rates can and have make a difference to exports generally. Most buyers account for these things when placing orders, usually between September and December for early crop.

NM: What is the most imaginative use you have seen for California raisins?

PM: We’ve seen them in beer in the UK! Cains Raisin Beer, brewed in Liverpool, has made a comeback once again due to popular demand. Back in 2005 when it was originally launched, the beer won an award against 625 other beers.

NM: What is the most promising new market?

PM: For sheer size alone, and with a growing middle class eager to

discover new products and snacks from the West, it would

have to be China. Right now, however China is one of the

countries directly affected by the retaliatory tariffs. So imports have been depressed, having previously been

positioned as the fourth most important market

for California raisin exports.

The US has managed to establish a brand out of a dried fruit commodity. Peter Meadows, who represents California Raisins in the UK, identifies their key selling points.

By Neil Murray

Raisins to be cheerful about

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/ Dried Fruit & Nuts 2019 | IEG Vu

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Our Purafruta fruit bars are made of 100% fresh fruit, peeled by hand, slowly dried on slices in the drying oven, gently chopped and cut from the skin. The fresh fruits come from micro-farmers from the Valle del Cauca regions. They are paid fairly and above average. However, they are too small to be certified organic.



100 %

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http://www.hibashop.ch

Superior taste, quality, safety and sustainability. You've got to hand it to us.

A Flavour to SavourThe U.S. peanut industry’s technologyand research in breeding, seeding, cultivation and harvesting combineto deliver the most flavourful,wholesome peanut.

Committed to Quality The U.S. peanut industry invests heavilyin plant modernization and the latestequipment to ensure that all buyers receive the best possible product.

Stringent Safety PracticesU.S. peanut processors follow stringentfood safety practices to ensure thatconsistency, safety and quality arepresent in every aspect of U.S. peanutproduction.

A Leader in SustainabilityPeanuts are naturally sustainable.They replenish soil with essentialnitrogen depleted by other crops, resulting in less greenhouse emissions.

www.peanutsusa.comAmerican Peanut Council (U.S. office)Tel: +1-703-838-9500 E-mail: [email protected]

www.peanutsusa.org.ukAmerican Peanut Council (European office)Tel: +44-208-263-6254E-mail: [email protected]

Innovation with Quality Ingredients

The U.S is able to supply quality peanuts in a wide range of forms, from whole kernels to chopped,

nibbed, butters, flours, oils and extracts.

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Documents

Dried Fruit & Nuts · Dried fruit is enjoying a similarly good press., though the supply this year is being complicated by politics and finance. The political situation in Turkey