STATE OF THE INDUSTRY RICHARD WAYCOTT, President and CEO, Almond Board of California HOLLY A. KING, Chair of the Board
CITIUS ALTIUS FORTIUS
OVERVIEW 1. Look back at CY17/18: What has changed and what has been accomplished 2. CY18/19 last year of the assessment increase: Investments and what s next? 3. Strategic Developments 4. Almond Orchard 2025 Goals 5. New Almond Industry Vision and Mission
WHAT HAS CHANGED? WHAT HAVE WE ACCOMPLISHED?
CALIFORNIA ALMOND PRODUCTION 3,500,000,000 FY2014/2015 FY2021/2022 Actual/Projections (Pounds) 3,000,000,000 2,500,000,000 2,000,000,000 1,500,000,000 1,000,000,000 500,000,000-14/15 15/16 16/17 17/18 18/19 19/20 20/21 21/22
CONSUMER GROWTH AVQ snacking and health scores 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% 2014 2017 US Canada Brazil U.K. Germany France China India S. Korea
ALMONDS OUTPACE IN NEW PRODUCTS 12,000 10,000 8,000 6,000 4,000 2,000 0 2010 2011 2012 2013 2014 2015 2016 2017 Almond Hazelnut Peanut Cashew Walnut Pistachio Pecan Macadamia Mixed
REGULATORY HEADWINDS AND TAILWINDS Retaliatory Tariffs USDA Mitigation Programs - Direct Payment - AG Trade Promotions Almond Industry Solidarity
ADDITIONAL GROWER FUNDING $67 MILLION CY 16/17 CY 18/19 Market Development - 88%
INCREASING CURRENT MARKETS +$14.4 Million +$10.8 Million +$4.6 Million +$2.5 Million +$2.3 Million +$1.4 Million +$1 Million
EXPANSION INTO NEW MARKETS +$2.4 Million +$6.1 Million +$3.6 Million +$600,000 SOUTH AMERICA
NEW RESEARCH NUTRITION AG, ENVIRONMENTAL, and BIOMASS Land IQ and groundwater recharge Saline, drought, and nematode resistant rootstock Improved biomass utilization Pest monitoring tools and biological controls
ABC ORGANIZATIONAL CHANGES Scientific Advisory Panel Organic Advisory Panel Board of Directors Finance Committee Almond Quality, Food Safety & Services Committee Global Communications Committee Nutrition Research Committee Strategic Ag Innovation Committee Technical & Regulatory Affairs Committee Global Market Development Committee Biomass Workgroup 135 volunteers Workgroups: Sustainability/CASP Pest Management Orchard, Tree, Rootstock Irrigation & Nutrients, Soil Health Harvesting Pollination & Bee Health Ag Regulatory Subcommittee
ASSESSMENT INCREASE SUNSET $90,000,000 Assessment Projected ABC Revenues $80,000,000 $70,000,000 $60,000,000 $50,000,000 $76.9 M (2.25 B Lbs) $81.4 M (2.45 B Lbs) $66.1 M (2.65 B Lbs) $70.2 M (2.82 B Lbs) $74.6 M (2.99 B Lbs) $40,000,000 $30,000,000 $20,000,000 $10,000,000 $0 17/18 (4 Cents) 18/19 (4 Cents) 19/20 (3 Cents) 20/21 (3 Cents) 21/22 (3 Cents) Assessment Revenue (Crop Size)
FOCUS ON THE FUTURE Farm ~ Farmer ~ Customer ~ Consumer
EVOLVING OUR POSITION Building on our industry advantage Leveraging the firm and profound foundation that we have developed over the past many years Adding to it the multiple attributes that the Almond Orchard and Almond Farmer of the Future provide
OUR NEW INDUSTRY ADVANTAGE, OR POSITION, IS COMPOSED OF THE FOLLOWING: Healthy lifestyle food Innovation in farming and environmental practices Unique solutions for California agricultural Grower/Handler programs to exemplify progressive agriculture Goals and metrics to which the industry is committed
OUR NEW INDUSTRY ADVANTAGE WILL BE DELIVERED AND COMMUNICATED IN ENHANCED AND UNIQUE WAYS: Solidify relationships throughout the supply chain Drive advantage in the global competitive marketplace Communicate with our growers and handlers Develop and enhance our industry stature
THE FARM AND FARMER OF THE FUTURE FARM Hyper efficient Water use advanced monitoring Pollination contributor Zero waste Zero dust Optimal pesticide use FARMER Open Innovative Mindful Transparent Proud Successful
CITIUS ALTIUS FORTIUS
WHY SET GOALS? DRIVERS Commitment to measurable change Prioritize sustainability goals towards areas where we can make the most meaningful impact and generate the biggest results Build consumer trust and demands for change Motivate accelerated innovation and adoption within the industry RESULTS Customer partnership: solidify our relationship Protect Right to Farm Lead ahead of regulations Protect and grow consumer demand Industry unification and ownership
GOALS AND METRICS
REDUCE THE AMOUNT OF WATER USED TO GROW A POUND OF ALMONDS BY 20%
ACHIEVE ZERO WASTE IN OUR ORCHARDS BY PUTTING EVERYTHING WE GROW TO OPTIMAL USE
INCREASE ADOPTION OF ENVIRONMENTALLY FRIENDLY PEST MANAGEMENT TOOLS BY 25%
REDUCE DUST DURING ALMOND HARVEST BY 50%
Almond Board of California Vision and Mission Statements approved by the Board of Directors on October 24, 2018 Vision California Almonds make life better by what we grow and how we grow. Mission Expand global consumption of California almonds through leadership in strategic market development, innovative research, and accelerated adoption of industry best practices.
Karen Ross, Secretary of the California Department of Food and Agriculture Thank you for your tireless service as secretary for the past 7 years!
STATE OF THE INDUSTRY RICHARD WAYCOTT, President and CEO, Almond Board of California HOLLY A. KING, Chair of the Board