News

June 2018 shipment numbers of 30,049 tons were not great. We had the 4th largest June shipment total trailing June 2016 by 8,169 tons, and trailing June 2017 by 3,601 tons or a decrease of 10.7%. These shipment numbers have not helped to curb the slide in walnut prices for the past 4-5 months. What had started as a seller’s market to start the crop year has become a buyer’s market as demand has slowed for both California Walnuts and Chilean Walnuts. Kernel prices are down around $1.00 and in-shell prices are down around $0.50 from the highs. California new crop estimates have ranged from 750,000 ton in the early spring down to 660,000 ton this summer. Industry experts are anticipating that the Tulare crop is looking strong, however the Howard variety is estimated to be lower than expected. The Chandler variety is looking average to below average. New crop is selling closer to 2016 crop year price levels.

TARIFFS, TARIFFS, TARIFFS.

As if you haven’t heard enough trade talk in the news recently, let’s discuss how it’s directly affecting the walnut industry. Regardless of which side of the spectrum you fall on in regards to protectionism and tariffs, export market uncertainty is never a good thing. It seems like twice a week we get an update from the CA Walnut Board on tariff news. Since the US levied a 25% tax on steel imports and a 10% tax on aluminum imports on March 23rd, 2018 the following has resulted for our industry:

• China – Effective July 6, 2018 China will impose a second retaliatory tariff on both shelled and in-shell walnuts of 25%. This will increase the new tariff rate to 60% for shelled and 65% for in-shell walnuts.
• India – India had recently increased their basic duty from 30% to 100%. In addition to this duty India is proposing a 20% retaliatory tariff against both shelled and in-shell walnuts making the effective tariff rate 120%. This became effective June 21st, 2018. These duties and tariffs have been a big blow to what the walnut industry has heralded as the next big consumer. India in-shell is down almost 9 million pounds or down 28% year over year.
• Turkey – The largest importer of CA in-shell walnuts. In January of this year Turkey lowered their import duties on California walnuts from 43% to 15%. Effective June 21st, 2018 Turkey has increased its tariff rate up to 20%.
• Canada – Effective July 1, 2018 Canada will place an additional 10% surtax on nut purees and nut pastes. In-shell and shelled walnuts will not be affected.

Construction Update!

So, who has one of California’s newest, latest, and state of the art walnut processing facilities right here in your own backyard? You guessed it… Turlock Walnut Company! We’ve been telling you over the past year that it’s coming, and that day is upon us. We are excited to have you on board by allowing us to serve your walnut processing needs in this beautiful new plant. Our commitment sustains a consistent level of growth that allows us not to be the biggest, but the most proud, equal, fair and safe for all involved.

Allow us to thank you for being part of our team, and please mark this date: July 26, 2018. You should have already received an invitation by mail. However, if you haven’t or can’t locate it, simply call Maribel at (209) 668-0955 or Marcus at (209) 262- 0869 by July 18, 2018. This way we can get you on our list at the check-in table. Festivities will begin at 11:00 a.m. with lunch being served around noon and wrap up at 1:00 p.m., so you can get back to other things you need to do. Please join us at 400 3rd Street in Turlock to check out the new digs and enjoy some great food while mingling with other folks in our industry. Looking forward to seeing you!

Countries with Big Increases/Decreases in Imports: September 1, 2017 – June 30, 2018:

• North America shelled down 11 million or 6.59%
• Europe shelled up 4 million or 4.38%
• Middle East shelled down 15 million or 46.55%
• Asia shelled down 3 million or 3.19%
• North America in-shell up 6 million or 34.66%
• Europe in-shell down 13 million or 13.64%
• Middle East in-shell down 35 million or 21.59%
• Asia in-shell down 53 million or 46.36% 

California Walnut Inventory (In-Shell Tons):

• Carry-in from 2016 Crop Year: 55,976 2017
• Walnut Receipts: 627,798
• Total Inventory: 683,774
• Shipments through June 30th: 564,870
• Remaining Inventory: 118,904