California Walnuts Looking to the Future
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1,800,000
01/0
2
02/0
3
03/0
4
04/0
5
05/0
6
06/0
7
07/0
8
08/0
9
09/1
0
10/1
1
11/1
2
12/1
3
13/1
4
14/1
5
15/1
6
16/1
7
Production research funding by category
Varieties Rootstocks Disease Mgt.Insects & mites Nematode management Canopy managementIrrigation/Fertility Misc
Rese
arch
exp
endi
ture
, $
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
California Walnut Commission Continuation HearingWednesday, March 8, 2017
10:00 am
California Farm Bureau2300 River Plaza DriveSacramento, CA 95833
OUTLOOK
•Nuts, nuts, and more nuts•Foreign competition•750,000 tons by 2020•Half of new tonnage utilized by domestic market
BEARING ACREAGE
100
150
200
250
300
350
400
'06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16
Thou
sand
Acr
es
Bearing Acreage Non-bearing Acreage
CALIFORNIA WALNUT PRODUCTION
0
100
200
300
400
500
600
700
'06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16
Shor
t Ton
s (in
thou
sand
s)
Crop Year
*estimate
WORLD PRODUCTION
500,000600,000700,000800,000900,000
1,000,0001,100,0001,200,0001,300,0001,400,0001,500,000
'05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15
Shor
tTon
s
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
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%
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
-
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug
Poun
ds
Retail Sales Equivalent Pounds
2014/152015/162016/17
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
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
45
65
125
101
219
148
114102
0
50
100
150
200
250
2008 2009 2010 2011 2012 2013 2014 2015
Volume in MM lbs.
MM lbs. 2 per. Mov. Avg. (MM lbs.)
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
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
0
20
40
60
80
100
120
Germany China Turkey Japan Spain Korea Canada Italy Israel
ISE
lbs.
in m
illio
ns
14/15 15/16
64%Of Shipments
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
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