March 2019 American Pistachio Growers eNews

MARCH 2019

AMERICAN PISTACHIO INDUSTRY

ANNUAL

American Pistachio Conference 2019 Projections Point to 1.4 Billion Pounds of California Pistachios By 2026 APG Events Around the World PAC Fundraiser Member News

ANNUAL CONFERENCE

AMERICAN PISTACHIO CONFERENCE 2019 American Pistachio Growers held its annual Pistachio Conference in Palm Desert, California, February 25-27. Over 900 people attended the three-day event, making it the largest Conference ever.

CHECK OUT SNAPSHOTS OF OUR INDUSTRY’S

BIGGEST EVENT OF THE YEAR! To view the 2019 American Pistachio Conference photo gallery click here.

WELCOME TO THE 2019 AMERICAN PISTACHIO CONFERENCE This three-day event was filled with connecting, collaborating and cultivating with members of the American pistachio industry. The event began with a welcome reception with more than 106 exhibitors showcasing their products and services.

Learning Lounge Sessions, a new perk for members, offered helpful information during breaks throughout the conference. Held in the exhibit hall, topics such as Whole Water Profitability, Advance Strategies for Controlling NOW, Plant Nutrition, Insect Monitoring, and Irrigation Water Treatment, among others, provided conference-goers a time to relax and learn.

PISTACHIO PAC GOLF TOURNAMENT

PISTACHIO PAC G LF

Tournament The PAC Golf Classic kicked off with an early morning shotgun start. Nearly 200 golfers competed in a friendly game of golf while supporting APG’s government relations’ programs.

FIRST PLACE WINNERS Raymond Alaniz, Frank Casares, Damon Silva, Sharon Roden

SECOND PLACE WINNERS Matthew Verdegaal, Drew Hoffman, Kamie Munger, Chance Munger, Ajay Munger

THIRD PLACE WINNERS Richard Kreps, Michelle Olson-Moran, Ronnie Koetsier, Mike Flynn

STRAIGHTEST DRIVE

LONGEST DRIVE

Laura Ehman, Rudy Hernandez

Linda Henry, Jason McKee

CLOSEST TO THE PIN Charlotte Avila, Matthew Verdegaal

PISTACHIO PAC GOLF TOURNAMENT

SPEAKERS EDUCA ADAM ORANDI Membership Committee Chair Adam Orandi opened the conference with a warm welcome and thank-you to all.

RICHARD MATOIAN Richard Matoian, American Pistachio Growers Executive Director, presented an industry update. He then teamed up with Dennis Tootelian of Tootelian and Associates, to discuss the important role APG has played in both eliminating trade barriers and increasing consumer demand, over the past ten years, through smart marketing.

ATE, ENGAGE AND…

PISTACHIO NUTRITION JEOPARDY PISTACHIO NUTRITION JEOPARDY

NUTRITION JEOPARDY PISTACHIO NUTRITION JEOPARDY

JUDY HIRIGOYEN Judy Hirigoyen, American Pistachio Growers Vice President of Global Marketing, tested the audience’s knowledge on how well they knew our consumers.

Using a clicker survey, the audience’s responses to questions were quickly collected and displayed, then compared to the responses of 1,000 Americans.

Afterward, the Wylie and Sheely families competed in a game of Pistachio Nutrition Jeopardy, with the Sheely family winning. Then, to celebrate our entrance into the India market, the marketing presentation concluded with Bollywood dancers. Jai Ho!

...EXCITE

DR. LINDA THOMAS

DR. KEVIN FREIBERG

Dr. Linda Thomas, Vice Chancellor of Educational Services and Workforce Development at West Hills Community College, gave guidance on how to resolve conflict in the workplace.

Keynote speaker, Dr. Kevin Freiberg, spoke about “What the Future Could Hold for Agriculture.”

LEADON GRADUATES

APG’s LeadOn graduation ceremony took place during the Annual Conference. Executive Director Richard Matoian presented the 2018 LeadOn graduates with their graduation plaques, and Adam Kusmak, APG’s Leadership Committee Chair, welcomed them into service.

In accordance with its mission, LeadOn prepares volunteers to become the future leaders of American Pistachio Growers. Without the active participation of our growers, APG would not exist. Therefore, we thank and applaud our 2018 graduates as well as those who are currently enrolled.

Since the inception of LeadOn in 2011, a total of 107 LeadOn students have graduated from the program; 21 have served on APG committees and 12 currently serve on APG’s Board of Directors.

LastCall,

Poolsi de P

Party

In a tropical setting complete with palm trees and live entertainment, APG guests closed the conference by enjoying a poolside Last Call Party.

LastCall,

Poo

olside Part y

T hank 2019 AMERICAN PISTACHI VISIONA RY PA RT NER

Y ou O CONFERENCE PARTNERS M AJOR PA RT NERS

CON T RIBUT ING PA RT NERS

T hank 2019 AMERICAN PISTACHI SUPP ORT ING PA RT NERS

MOM EN T M A K ER PA RTNERS

Moss Adams LLP

Welcome Reception Horizon Nut Company

All Crop Insurance KCoe Isom Gage Farms Zions Ag Finance Palogix International J.R. Simplot Bank of the West Tri-Cal Distributing, LLC Cardinal Professional Products Eriksson LLC, Ingleby USA C. Nagatani Farms

Last Call Party Personal Ag Management Taps & Brews JKB Energy Sponsor of a Good Time Diversified Nut Processing DoughNUT Cart Cablevey Conveyors Seaman Farm Management We All Scream for Ice Cream Cart All Crop Insurance Services Industrial Design & Construction For You, I Would Share My Pistachios Nichols Farms Thirst Quencher The Heuler Family

Y ou O CONFERENCE PARTNERS BE SEEN PART NERS

M EDI A PART NERS

Under Lock & Key Primex Farms, LLC

West Coast Nut

Fuel Up Setton Farms of Terra Bella, Inc

Western Farm Press

Valet ARO Pistachios, Inc Badge It Bayer Crop Science Walk All Over Me Primex Farms, LLC Mirror, Mirror on the Wall Semios Learning Lounge Corteva

Pacific Nut Producers

PROJECTIONS POINT TO

1.4 BILLION

OF CALIFORNIA PISTACHIOS MARKETING IS SEEN AS KEY FACTO R TO KEEP California’s burgeoning pistachio industry is on a trajectory to produce more than 1.4 billion pounds by 2026 according to a new economic study commissioned by American Pistachio Growers (APG). Bountiful harvests predicted in the years ahead will present both new opportunities and challenges that APG and its member processors fully embrace amid positive consumption trends in the United States as well as in global markets.

The study, conducted by agricultural economist Edmond Missiaen, projects annual California pistachio production from 2019-2026 based on new tree plantings in the past five years, a conservative projection of new plantings in the next three years, normal weather conditions and no major interruptions to water supplies.

Missiaen projects annual production could exceed 1.4 billion pounds by 2026 from a projected 392,595 bearing acres in California.

The study did not include production in Arizona and New Mexico which account for 1% of today’s total production.

His prediction for new pistachio plantings in 2019 to 2021 are 15,000 acres annually, a figure based on average new plantings between 2005 and 2018 (15,886 acres). His data show growers planted an estimated 30,000 new acres in 2018. He also notes that his new planting forecasts do not account for uncertainties related to the availability, price or regulation of water

in the years ahead, factors which would reduce the rate of new pistachio plantings.

In arriving at his prediction for 1.4 billion pound crop by 2026, Missiaen estimates the production, acreage and yield for all bearing trees in their 6thyear and older, when pistachio trees usually produce their first saleable crop.

His yield estimates projected for 2019-2026 are for fully mature acres and account for the cyclical nature of pistachio production as trees tend to produce large crops in on-years followed by smaller crops in off-years in the next season. His estimates are for 4,300 pounds per acre for on-years and 2,800 pounds per acre for off-years for fully mature trees. Missiaen’s forecast assumes this cyclical trend over the eight year period from 2019 to 2026, but he cautions against putting too much faith in that trend.

“There were 13 off-years but only 10 on-years in the 23 years from

POUNDS

BY 2026

PACE WITH FUTU RE BO U NTI FU L HARVESTS Bigger crops have become the norm for the California pistachio industry as production has risen 89 percent in the past eight years, from 2010’s harvest of 521.8 million pounds to the 986.7 million pounds gleaned from state orchards in 2018. As recent as 2005, production in California was 282.4 million pounds and bearing acreage had just surpassed 104,000 acres.

1996 through 2018,” noted Missiaen. He stated that it is likely that two successive off-years will occur once or twice during the 8 years projected. Should that occur, it could bring cumulative production for the 8-year projection period 400 million to 800 million pounds below the cumulative estimates during the 2019-2026 production.

Bigger Pistachio Crops Continue Long Trend in California Only time will tell whether Missiaen’s production estimates are fully realized, but there is no discounting the fact that California’s pistachio industry continues to grow as does the popularity of pistachios as a healthy and nutritious snack. After gaining a foothold as a promising agricultural crop in California in the mid-1970s, the industry has steadily grown to become the number-one pistachio producer of the popular nut to global consumers.

Marketers Ready to Embrace Bigger Crops American-grown pistachios have become frequent topics in health publications and medical research studies that have touted their attributes in helping to manage body weight, controlling blood sugar and reducing the risk of cardiovascular disease.

“

As the meteoric rise of U.S. pistachio production continues in California and other states it will require an intense and unrelenting focus on marketing future big crops, but we are confident that the myriad health benefits of pistachios and growing global demand for pistachios will keep our industry profitable” -APG Vice President of Global Marketing, Judy Hirigoyen.

Click here to read the entire article

Events

AROUND THE WORLD

ITALY

IL SOLE 24 ORE BUSINESS SCHOOL In February, more than 230 journalist students attended a presentation by APG nutrition expert, Dr. Martina Donegani, regarding the research findings that earned pistachios a “Super Food Status.� The students (young graduates and professionals) learned that snacking on pistachios during the day helps people with desk jobs maintain their energy and concentration levels. The business school also publishes Il Sole 24 Ore, a popular economic and financial daily newspaper in Europe.

Dr. Martina Donegani APG Nutrition Expert in Italy

GERMANY

TOUR From January to February, APG “Health Nut� spokesperson and fashion photographer Jan-Ole Hoffman shared his weight-loss story on Instagram. Multiples times a week, Jan-Ole posted messages about his daily workouts and diet, sharing healthy snacks and recipes with pistachios. The goal of the campaign? Use a real-life testimonial to reach and persuade a large audience of consumers regarding the health and fitness benefits of American pistachios.

GERMANY

ISPO MUNICH 2019

APG sponsored a journalist event, in January, with APG spokesperson Jan-Ole Hoffmann, and nutrition experts Dr. Ursula Manunzio and Dr. Wiebke Elsner at Munich’s ISPO 2019.

The topic, "Health Talk," covered healthy snacking on nutritious foods, such as pistachios, as well as the importance of maintaining a healthy lifestyle.

ISPO is the largest sports business conference in Europe with approximately 85,000 visitors from 120 countries attending every year, and more than 2,800 exhibitors showcasing their sports products from segments such as Snowsports, Outdoor, Health & Fitness, Urban and Teamsports.

ITALY and GERMANY

SAMPLING EVENTS Nearly 8,000 runners received a sample pack of pistachios in their goody bags in Italy’s Napoli Marathon in Naples, February 24 and Germany’s Bramfelder Winter Running Series, January 20 and February 17. Race participants, journalists and spectators viewed the American Pistachio Growers logo on pre-promotional materials, such as the event’s website and social media platforms.

CHINA

NUTRITION SEMINAR On January 11, APG nutritionist Dr. Sheng Ge, Deputy Director of the Institute of Nutrition and Health Foods, in Shanghai Tongji University Hospital, and Dr. Hongwei Guo, Director General of Shanghai Nutrition Society, collaborated on a presentation given to 120 nutrition professionals. They addressed research findings pointed toward the possibility that pistachios may boost brain power and concentration levels at work. They also cited a French study that showed adding a daily snack of pistachios would not likely cause weight gain, but add important nutrients to one’s diet.

D r.

H o n g wei Gu

o

JOURNALIST EVENT On January 12, APG hosted a journalist event with Dr. Sheng Ge and popular pastry chef, Ciel, a pastry chef in Michelin-recommended Le Donjon Eretat restaurant and a graduate of Ferrandi, in Paris.

Chef Ciel demonstrated how to make two delicious desserts with American pistachios. While the journalists sampled the desserts, Dr. Ge spoke about the many health benefits of American pistachios. Thirty-five journalists, representing leading health, fitness and lifestyle publications attended the event. To date, the event has generated more than 22 million views about American pistachios.

Dr. Sheng Ge

C h ef Ciel

Support the APG California PAC in the Inaugural “Pins for PAC� FUNdraiser!

On June 12, the American Pistachio Growers California Political Action Committee is hosting its inaugural fundraising event, Pins for PAC. The event is an opportunity for APG members and supporters of the pistachio industry to get together for a little friendly bowling competition and to raise money for the APG California PAC. The APG California PAC is a bipartisan political action committee that supports candidates for election office that are supportive of policies beneficial to agriculture, the pistachio industry, and the economy. The PAC makes direct contributions to candidates for elected office in California state government in order to elect leaders that understand the importance of a vibrant and prosperous agriculture sector in California.

WHEN: Wednesday, June 12, 2019; 2:00pm-5:30pm WHERE: Bowlero Fresno, 6450 N. Blackstone Ave., Fresno, CA 93710 Click here for sponsorship opportunities and to sign up!

APG MEMBER JIM MAXWELL

RECEIVES DISTINGUISHED CITIZEN AWARD

Jim Maxwell, APG member and CEO of Madera, California-based Agriland Farming Company, received the “Central Valley Distinguished Citizen Award,” presented by the Sequoia Council, Boy Scouts of America. Jim’s award testified to his outstanding record as a community and business leader, and to his years of community involvement, civic activities and service.

APG MEMBER JIM CHEW FEATURED ON

#FRIDAYSONTHEFARM APG member Jim Chew and his family’s pistachio farm were featured on the #FridaysOnTheFarm story series. Each Friday a new story is shared about a farmer, producer or landowner. People are encouraged to "visit local farms, ranches, forests, and resource areas where USDA customers and partners do right and feed everyone." Click here to read about their visit to the Chew’s pistachio farm– Forever Grateful Ranch. You won’t regret it.

In Memorium SHARLEEN ROBSON, Robson Ranch & Buchanan Hollow Nut Company, passed on February 19. Many will remember Sharleen as the artist who painted beautiful pistachio watercolors, some that graced the covers of our Annual Reports.

CORKY ANDERSON,

Pioneer Nursery, passed on February 23. Corky was instrumental in the formation of Western Pistachio Association in 1989, its expansion in 2007 and the conversion to American Pistachio Growers in 2011. He served on its Board of Directors and Chaired the Membership Committee. Corky also served on APG’s federal Political Action Committee Board of Directors.

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