California Walnut Update

Anderson Exports is a Bulk Ingredients Sourcing Agency in Northern California. We specialize in sourcing the best ingredients from California, Brazil and the rest of the world. Our newsletter delivers actionable market intelligence to inform our clients' purchasing decisions.

Walnuts

California in-shell walnut shipments are off to a slow start compared to prior years. Total in-shell walnut shipments in September and October are down (24%) versus last year and (36%) versus the 3-year average according to data from the California Walnut Board. The later harvest is certainly contributing to the lower shipments seen in September and October of this year.

However, even with the later harvest, lower year-over-year shipments to all but one of California’s top export markets suggest many buyers have been seriously apprehensive and slow to book.

The top markets receiving considerably less in-shell tonnage so far this year compared to last include Turkey (7.7 MM lbs), Vietnam (5.6), China + Hong Kong (5.2), and the U.A.E (3.8). Turkey’s geopolitical uneasiness and currency volatility are probably weighing on imports. In China, the uncertain trade tariff environment is playing a major role. in Vietnam, perhaps the transshipment / smuggling crackdowns are really making an impact, though it is hard to be certain.

Pakistan, the only top 10 destination market with a year-over-year increase in shipments, is picking up tonnage only due to low import duties compared to India.

Since India’s tariffs make importing California walnuts so expensive, regional importers have adjusted their routes accordingly. When taken together, the shipment numbers for Pakistan and India bring some positive news: regional demand for California walnuts is strong, with combined shipments so far this year up 38% or 1.9 MM lbs compared to the prior year period.

As of October 31st 2018, walnut receipts as reported by handlers totaled 597K tons, up 4.9% from the prior year and up 2.8% from the 3-year average. Based on these figures, the crop is coming in about normal. We continue to hear reports of the Chandler crop coming in a bit short with some handlers off the market and others totally sold out of Chandler.

Domestic shipments of shelled California walnuts in September & October of 2018 were up 16% compared to the prior year period while export shipments were down (12%). Total shipments of shelled walnuts were about flat compared to the prior year period. The U.S. and Spain are posting strong shipments so far this year, up 16% and 44%, respectively. So far this year, shipments to South Korea totaled 4.3 MM lbs, up 38% compared to last year and up 41% on the 3-year average. Shipments to Germany in September & October of 2018 totaled only 2.4 MM lbs, down severely from ‘17 / ‘18 and ‘16 / ‘17 when the country imported 12.6 MM and 9.2 MM lbs, respectively.

We work with California’s top walnut packers to supply our customers with Jumbo and Jumbo / Large (J/L) in-shell Chandler, Howard, Hartley, Vina, Tulare, Serr and other varieties. We also provide bleached in-shell walnuts in addition to California shelled product including Chandler and non-Chandler Light Halves & Pieces (LHP) 20%, 40%, 80% and higher based on customer requirements.

Raisins

Exports of California Natural Thompson Seedless (NTS) raisins are starting to recover with the start of new crop shipments in October. Based on data from the Raisin Administrative Committee (RAC), exports increased by 84% or 2,449 packed tons from September to October, narrowing the year-over-year difference in exports from (59%) to (31%).

As shipment numbers continue to ramp in November and December, we expect some of the more cautious “wait-and-see” buyers to enter the market to cover their forward needs.

We supply all major bulk California raisins including dried-on-the-vine (DOV) and tray-dried Natural Thompson Seedless Selects, Selma Petes, Flames, Goldens, and other varieties in Jumbo, Select, and Midget sizes and welcome your inquiries. We also supply Selma Pete DOV Double-Run Supreme raisins to Japan and elsewhere which are processed twice to achieve exceptionally low stem and capstem counts.

Cranberries

The market for bulk Sweetened Dried Cranberries (SDCs) remains tight and little has changed in the last few weeks. Early reports indicate smaller-than-expected crops from Wisconsin and Massachusetts, though the full extent remains to be seen. The 25% Handler Withholding (supply reduction) also passed, which will further perpetuate availability challenges and put upward pressure on 2019 SDC prices. We expect pricing to settle in Q1 2019, perhaps at levels slightly higher than present, as we did last year.

We supply Conventional and Organic Whole or Sweetened Dried Cranberries (SDCs) packed in bulk cases as well as 50 Brix and 65 Brix cranberry concentrate shipped in bulk 55 gallon drums.

Other Products

We work with a number of other products so please reach out if you have an inquiry for something you do not see here. We are experts in sourcing bulk food ingredients and welcome the opportunity to work with you on your inquiries. Some of our other product offerings include sunflower seeds, lentils, green peas, freeze dried fruits, popcorn, dried cherries, dried apples, dried blueberries, cherry concentrate, quinoa, dried honey dates, dried cherry tomatoes, dried gojis, dried kiwis, dried strawberries, chickpeas, chia seeds, dried mulberries, almonds, macadamias, pistachios, walnuts, cashews, pine nuts, pecans, brazil nuts, pumpkin seed kernels, melon kernels, hazelnuts, dried prunes, golden raisins, sultanas, dried apricots, sweet apricot kernels, dried black currants, dried figs, dried dates, popcorns, maraschino cherries, dried tomatoes, strawberry pie filling, blueberry pie filling, cherry pie filling, dried mangoes, dried gingers, dried pineapple, and desiccated coconut.

Work With Us As a Supplier

We are always looking to grow our supplier base with companies capable of delivering high quality food ingredients at large volumes. If you are interested, please reach out and introduce yourself.

We welcome your inquiries and look forward to working together to deliver you the highest quality ingredients from the world's best suppliers. We are available to our suppliers and buyers 24/7 over email, phone, or WhatsApp.

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