Robert Verloop, Executive Director and CEO of both the California Walnut Board (CWB) and the California Walnut Commission (CWC), is sounding the alarm over the mounting challenges facing California’s walnut industry. Chief among them: overproduction and crippling tariff policies that have disrupted access to major global markets.
From Expansion to Oversupply
Back in 2015 and 2016, strong international demand and high prices spurred growers to dramatically increase acreage. Countries like China and India looked like high-growth markets, prompting many farmers to plant new walnut orchards in hopes of capitalizing on booming demand.
But the strategy soon turned into a headache. Trade tensions and retaliatory tariffs—most notably a 120% tariff imposed by India—severely curtailed export opportunities. Even China, once a top buyer, pulled back in response to broader U.S. trade policies.
Searching for New Markets
In the wake of these disruptions, CWB and CWC launched efforts to diversify market access. Germany and Turkey have become critical trade partners, absorbing much of the surplus. Still, India remains a key target, thanks to its rapidly growing middle class and strong consumption potential.
While India’s tariff remains a significant barrier, exporters and industry leaders remain hopeful for change—either through diplomatic negotiation or unilateral policy shifts by the Indian government.
Competing with Chile
Despite the challenges, U.S. walnuts still reach India, where they compete directly with Chilean exports. Together, the U.S. and Chile dominate walnut trade into the Indian market. Verloop stresses that without tariff relief, California growers risk losing long-term ground to global competitors.
Navigating Uncertainty
Verloop’s comments highlight the complex relationship between agricultural planning and international trade. California walnut growers now face the consequences of earlier expansions made under different market assumptions. Looking ahead, market diversification and trade policy reform are vital to restoring stability and growth.