No More California Walnuts For China

By Ann-Marie Jeffries|January 20, 2015

Thanks to China’s stellar 2014 walnut crop, the country has no need for California walnuts. China has been a prime importer of California walnuts for a number of years, and their pulling out of the California walnut market has lowered commodity prices and could be detrimental to growers’ profitability.

Increased demand for walnuts globally led to the price of walnuts increasing from 65 cents per pound in 2008 to $2.42 per pound in fall 2014. But, with China’s crop 35% above normal last year, there were plenty of walnuts available without relying on California’s supply. As a result, the price of Chandler walnuts fell more than 30 cents to $2.10 over the course of only two months, and it could keep falling.

Data from the California Walnut Commission shows that Hong Kong walnut shipments this past November were down 60% from November 2013, and shipments to China were down nearly 30 million pounds from September through November.

However, exports to India are on the rise, with shipping increasing by nearly 800,000 pounds in November 2014 compared to the previous year. Although it’s not enough to compensate for losses from the Chinese market, it is a promising sign for California growers.

Source: Andrew Creasey/Appeal-Democrat