The USDA’s purchase of 28 million pounds of U.S. walnuts is providing a boost for the walnut industry, particularly as growers and handlers work to manage supplies and market lower-grade product. Michael Jamieson, director of sales with Murata Nut Company, says the purchase is a positive development for the industry and provides an important outlet for walnuts that can be more difficult to sell.
USDA Walnut Purchase Supports Demand
The USDA purchase works through a competitive bidding process involving walnut packers. Companies submit bids to supply the program, and USDA evaluates the offers before allocating portions of the purchase among participating packers based on factors such as price and available volume.
Jamieson explained that the process allows different packers to receive portions of the purchase depending on what they can supply.
“You put in for a bid and so you send in a bid to the USDA and then they evaluate it and then they’ll allot out different portions of the bid,” Jamieson said.
Once the contracts are awarded, walnuts are shipped over an established period and used through USDA programs. Jamieson said the purchases provide a beneficial outlet for the industry while supporting programs intended to serve consumers.
Lower-Grade Walnuts Find a Market
One of the more significant aspects of the purchase is the type of walnuts being acquired. Jamieson noted that USDA purchased lower-grade walnuts, which can be more challenging for the industry to move through traditional commercial markets.
Finding an outlet for those walnuts can help reduce supplies that might otherwise remain in inventory or face weaker demand. The purchase therefore provides value not only through the volume involved but also by creating demand for product that can be harder to market.
For walnut growers and handlers, additional movement through USDA programs can help support the broader market as the industry manages supplies and works to maintain demand.
Jamieson said the program ultimately serves a useful purpose for both the agricultural industry and consumers.
Listen to the full report for more agricultural market news and insights on the walnut industry.