Robert Verloop, executive director and CEO of the California Walnut Board (CWB) and the California Walnut Commission (CWC), says things are looking up for walnut growers in the state.
“When I first walked in, people talked about the fact that there were a lot of trees planted in 2016 and 2015 when prices were good,” he says. “There was a promise of an open market to China, which shut down shortly thereafter when they started overproducing their own walnuts. And then there was also the promise of India, and with the change in the government there at that time and putting these tariffs in place, our growers got caught with having too many acres in the ground and the markets not being fully developed.”
Growers currently face a 100% tariff on imports to India, which Verloop hopes will change very soon. The industry has been in a catch-up mode since 2015 and 2016 to expand market access in other countries, he says, adding that the state’s growers export about 65% of its crop, with leading markets in Germany and Turkey.
“We’ll have probably close to 20 markets where we have active programs,” Verloop says. “California walnut handlers and exporters ship to over 50 countries around the world. We have a broad base that we work with, but we’re very interested in some of these key markets — EU (European Union), India and Turkey — that can be the real drivers and foundation builders for our program.”
India is still a relatively small market, Verloop says, but the CWC sees strong potential in the country, which has placed tariffs on U.S. imports since the late 2010s to protect walnut production in Kashmir and then retaliatory tariffs. The U.S. and Chile are the main exporters to India.
Verloop says the economy in India has experienced a major shift. There’s around 350 million to 400 million people in the middle class with more disposable income and changing shopping patterns.
“We see tremendous opportunities there,” he says. “Let’s say this year we’ll ship 15,000 tons. Its potential is up to 120,000 tons. The importers, distributors, they’re all looking forward to the change as well, because they know what it means in consumption. They know what it means in improving health.”
He says while negotiations continue, the CWC is optimistic for some good news soon.
Thanks to the USDA’s Market Access Program, California walnuts have expanded programs into the United Kingdom, Germany, Holland, Spain, Turkey, India, Japan, Korea, Canada and the Middle East, Verloop says. The CWC has also utilized $14 million in the last two years as part of the Regional Agricultural Promotion Program, started by then-Agriculture Secretary Tom Vilsack.
Verloop says the CWC plans trade and consumer programs in these markets; for some, it will be both trade and consumer programs, and in other countries, it will just be to expand trade access.
“We’re looking at markets such as Morocco, Taiwan, Singapore, Malaysia, Indonesia, Vietnam and then potentially some additional investments in India and the EU as well,” he says. “It’s possible that we may also look at Algeria and Egypt in the future.”
He says the CWC matches the Regional Agricultural Promotion Program funds, which helps boost the overall reach of the initiatives.
And aside from global markets, Verloop says increasing demand in the U.S. is also another key priority, which includes engaging with the next generations of walnut consumers. This includes working with distributors to ensure proper handling and marketing, he says.
“We feel that there’s still a tremendous amount of opportunity for growth in consumption in the United States, and so we’re trying to take the walnut out of the baking aisle and make it more relevant to today’s consumers,” he says.
