Chinese demand grows for California-grown nuts

By Mark Glover
mglover@sacbee.com
Published: Thursday, Nov. 17, 2011 - 11:11 am

China is showing an increasing appetite for U.S.-grown tree nuts - good news for California farmers- according to new research by Rabobank N.A.'s Food & Agribusiness Research and Advisory group.

The study said U.S. almond, walnut, pistachio, pecan and hazelnut growers had banner years for crop prices as consumer demand rose throughout China.

Just this week, Sacramento-based Blue Diamond Growers reported record sales of $825 million for its fiscal year ended in August. The cooperative noted that revenue was driven in part by a 34 percent increase in global use of almonds as an ingredient in other foods.

California farmers also are major producers of other tree nuts.

"As the Chinese middle class grows, so will the demand for almonds, walnuts, pistachios, pecans and hazelnuts. This is good news for growers here in the U.S.," said Karen Halliburton Barber, author of the Rabobank report.

The report noted, however, that there is a potential downside for U.S.-based nut processors, which face competition from lower-cost processors in China.

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