In a letter sent to the Almond Board of California (ABC), the Punjabi American Growers Group (PAGG) highlights several industry concerns. The group points out almond growers’ struggles, which PAGG asserts could be remedied in some fashion by action taken by ABC. PAGG is seeking regulatory and policy reforms to address the challenges that industry members are facing. Speaking on behalf of the 235 signatories of the letter, Ameet Sharma says ABC needs to “reallocate resources” and refocus on “building long-term demand for almonds.”
A considerable amount of ABC resources is committed to market development. ABC President and CEO Richard Waycott explained that one of the key priorities has always been driving global demand. “Over 80% of ABC’s annual budget is directly or indirectly invested in demand creation activities,” said Waycott.
California almond harvests over the past few crop years have been some of the largest on record. At the same time, challenges including a global pandemic, logistical failings, and economic pressures have created difficult market conditions. PAGG notes that industry-wide revenue has been halved “despite an increase in acreage, production and inflation.” The group believes that ABC should “shift its focus towards maintaining ‘orderly marketing conditions’ and focus on avoiding unreasvonable fluctuations in ‘supplies and prices.’ With a strong emphasis on ‘prices.’” However, as a Federal Marketing Order, ABC is prohibited from setting field and market prices.
PAGG also noted an issue with what the group describes as “quasi-government regulation” known as the Almond Orchard 2025 Goals Roadmap. The Punjabi American Growers Group asserts that the goals are noble, but do not adequately address demand for almonds. However, Changes in consumer values and priorities were a key factor in the development of the completely voluntary practices outlined in the Roadmap.
“We are all focused every day on making the most effective decisions to return the industry to prosperity,” Waycott explained. “I encourage anyone who would like to discuss the current industry situation and ABC activities to contact me.”
The letter from PAGG also calls for “more information from the demand side of the industry,” specifically a commitment of traders report. Sharmaa has previously raised this issue in regard to the nut industry as a whole. PAGG is calling for ABC to “register all brokers and traders that trade more than a threshold amount and require them to report their positions and commitments.”
Brian German
Ag News Director / AgNet West