NEWS Spring 2016 Rainmakers and Sunny Skies at APG 2016 Conference More than 800 American Pistachio Growers members, growers and pistachio industry friends headed to the desert oasis of JW Marriott Desert Springs Resort & Spa Wednesday through Friday, February 17-19 for APG’s Annual Conference. The new venue and expanded format provided more opportunities to balance leisure and business at the industry’s largest annual gathering. Despite a challenging year for many growers that also affected industry partners, sponsors provided amazing support that resulted in an unprecedented 100% offset of all conference and gala costs. A convenient, onsite PAC golf tournament; 72 exhibit booths; an increased slate of informative speakers; and a 70’s theme Gala finale event kept attendees constructively and pleasantly occupied throughout the three-day event. Executive Director Richard Matoian kicked off Thursday’s general session with his State of the Industry followed by a comprehensive marketing update that combined APG marketing staff, China grower ambassadors, Miss California, and the nutritionist for this year’s Superbowl Champion Denver Broncos. Presentations on water regulations, grower communications and crop insurance rounded out the day. Friday morning began with opening remarks from APG Chairman Thom Dille who turned the podium over to new Chairman Jimi Valov. A weighty presentation on the Food Safety Modernization Act was followed by lighter fodder from Keynote Speaker, David Wasserman from The Cook Political Report who analyzed this unusual election year. Afternoon breakout options included a production research session with respected researchers offering continuing education credits or an update from the Pacific Legal Foundation on their current efforts. Attendees took home this year’s Annual Report and attendee gift created to remind them of their warm memories while sipping a morning beverage from commemorative mug with exclusive Conference artwork (available on member portal for APG members). The APG Store offered 2016 Annual Conference shirts that utilized the graphic and other items for members to display their APG pride. Surveys submitted after the event gave high marks to this year’s format, speakers and the new venue. The APG Board and Membership Services Committee that oversees the Conference approved a return to Palm Desert for the American Pistachio Industry 2017 Conference WednesdayFriday, February 22-24 at JW Marriott Desert Springs Resort & Spa. Information will be posted online and mailed first to members in late fall. We hope to see you there! APG HIGHLIGHTS Desert Setting Ideal for Ninth APG Annual Conference Valov Elected Chairman - New Board Members Seated Sponsors Fully Fund 2016 Conference and Gala Gala Fun Finale: Members Go Wild with 70s Theme Miss California China Tour Showcases APG Growers LeadOn Silent and Live Auctions Raise Record Funds 2016 CA Regional Grower Meetings Scheduled Board Acts in Response to Lifting of Iranian Sanctions EXECUTIVE DIRECTOR UPDATE Spring is my favorite season of the year for many reasons. It’s a time when we start to shed heavy coats and pants for light wind breakers and shorts. It’s time when baseball is revving up. It’s the time for family activities and picnics in the park. And, it’s a time when spring showers and snowpack replenish the earth and nurture our orchards, vines and various other crops. Spring is truly a time of hope, renewal, and new life. So, at the risk of sounding like a weatherman, I’m happy to report rainfall to-date in California has been above normal in most areas, snow pack in the Sierras is almost near normal, and best of all, we have received adequate winter chill hours for our pistachio orchards. This weather news added to the fact that this should be an “on” year points to a healthy and substantial pistachio crop in 2016. This is great news for our industry and a welcome relief to many growers who suffered through a disastrous 2015. Though we know the drought is not over, we can rejoice in a welcome respite from its effects. Nowhere was this sense of joy more evident than at our recent Annual Conference in Palm Desert. Over 800 APG members and guests gathered at the beautiful Marriott Desert Springs Resort for content rich educational sessions, updates on industry related issues and topics, and comprehensive reports on our domestic and international marketing programs. By individual accounts and survey responses, a great time was had by all! 2 cover all of this year’s conference expenses, but to end up in the positive, a first since my time here, going back to 2008. Also with spring are APG’s first organizational meetings of the year with the newly elected Board of Directors. Four new members were seated at the February 18 meeting, and three returned for second terms. The three incumbents re-elected were: Jeremy Blackwell, Anil Gupta and Adam Kusmak. The four new members elected included Steve Burcham, Dominic Pitigliano, Gary Smith, and Brian Watte. Following their official seating onto the Board, officer elections were held. Jimi Valov will Chair the Board for 2016, with Sharon Roden as Vice-Chair; Rudy Hernandez will serve as Secretary/Treasurer. With Jimi’s election as Chair of the Board of Directors, I would like to officially recognize Thom Dille for serving two terms as Chair. Thom’s leadership, fair-minded character and business acumen helped lead this organization successfully through all the challenges we faced. With a healthy pistachio crop on the way and our new leadership in place, APG is well positioned to move into the future. This is evident in all areas of the organization, but especially apparent in our marketing department. The Marketing Committee has already been engaged in a thoughtful discussion to develop activities and programs that will build on our previous programs and goals in order to implement an outstanding marketing strategy for the 2016 crop. We here at APG wish you the best of growing conditions, quality production and successful harvest for 2016. APG Board Report I can truly say that our conference was fun, entertaining, and educational. However this year’s conference was successful on a much deeper level as well. When we got into the heavy planning of the conference back in October of last year, we were directed that this year’s conference would be financially self-sufficient. In other words, it was our goal that the 2016 conference would be totally funded by sponsorships and registrations and that no assessment funds would be used to underwrite the event. The APG Board of Directors held an open meeting Thursday, February 18 in Palm Desert. Prior to the meeting, an Annual Meeting of the Membership was conducted. Actions approved follow: Though financial self-sufficiency has been a goal for past conferences, we weren’t able to make this a reality. This year, I’m proud to report that due to the careful planning and hard work of our staff, primarily that of Director, Member Services Catherine Byrnes, we received enough revenue in sponsorships and registration fees not only to Recent Board Actions No formal actions were taken at the Annual Membership Meeting immediately preceding the February 18 Board Meeting. The newly elected Board members were announced. Sunset Review funds approved. APG slate of officers presented and approved. Approval to fund completion of carbon footprint project. Financial audit approved for year ended August 31, 2015. CHAIRMAN’S CORNER At the APG Board Meeting during this year’s Conference, I was elected Chairman of the Board, an honor I humbly accepted. I will work very hard to follow the lead of my predecessors Mike Woolf, Brian Blackwell, Jim Zion, and Thom Dille. They each made their mark as effective, perceptive and wise APG leaders, and I hope to do the same during my time at the helm of this great organization. For the past six years, I chaired the Membership Services Committee (MSC), which oversees membership activities that include our annual conference. When harvest was complete and resulted in very disappointing yields for many growers, the APG budget was necessarily cut. In response, the MSC set a goal to expend zero assessment dollars on the conference and Gala. Well, I’m pleased to report this was accomplished. In fact, targeted tightening of expenditures, very strong participation and attendance and incredible support from sponsors allowed us to exceed our own high expectations and actually fund ALL membership activities. These include regional grower meetings, our July Membership Luncheon, membership advertising and various member services included in the total MSC budget. When we decided to move the Conference to Palm Desert, as my long-time friend and previous Conference Committee Chair Corky Anderson had urged us to do for many years, we weren’t sure as many people would travel to the desert as the beach. Well, they did, and the talk around the resort confirmed it was a good move. So we’ll return in 2017 for sure and then take it from there. her Miss California crown through crowds of adoring fans. Along with fellow growers Devin Aviles and Alison Nagatani led by APG’s China market expert, Haiying Zhang, we really seemed to make a great impact in this important market for pistachio producers. Sharing our experiences about this important public relations trip is so important so everyone understands how receptive people in our largest overseas market are to American pistachios and the people who grow them. When it was all said and done, a trip back to the seventies at the Friday night Gala was a great way to end it in style... and fun to see so many dress the part! I hope you all have marked your calendars for February 22-24, 2017. As Chairman, I’d also like to strongly encourage all growers to invest in and influence their future by joining APG and becoming involved in the decision-making process. There is no other organization that allows you to express your opinion and play an active part in your livelihood. If you aren’t interested in serving on the Board or one of the committees, all meetings are open to APG members. The future for us pistachio growers looks bright, but without the support of a united organization looking out for our interests, that future will dim. Let’s pull together though good times and challenging ones to make sure we leave leave a strong legacy for our children and grandchildren. This group is not a closed, stagnant organization. Those of us who have been around from day one have put into place term limits and other measures to make sure there is room for new growers who are willing to contribute their time and brain power to APG. One recent example just implemented is term and attendance guidelines for committees to make sure all who want to serve are given a chance. The following chairpersons have been chosen within our committee structure for the current year: 2016 APG COMMITTEE CHAIRPERSONS Getting together was more important than ever this year, and APG offered many talks to please just about everyone. Mixed with important business were some lighter moments, such as Miss California tap dancing with our own Pistachio character (inside the costume that day was our very own talented Marketing staff member, Jessica Garrison). Membership Services Finance Govt Policies/Partnerships LeadOn Program Marketing Communications Nutrition Subcommittee I spent more time on stage (in my red satin doll shirt) this year with an added report on my participation in APG’s recent trip to China as a grower ambassador. It was a real pleasure talking about our product with Chinese consumers and so was escorting Bree Morse wearing If you are an APG member, thank you. If you have not yet joined us, we hope to see you at the upcoming Regional Grower Meetings at the end of April and/or at our Annual Membership Luncheon in July to discuss how you can become a proud American Pistachio Growers member. Adam Orandi Gary Smith Jeremy Blackwell Kristi Robinson Rudy Hernandez Sharon Roden 3 DIVINE DESERT DIGS PROVIDE IDEAL SETTING FOR The APG Annual Conference will return to Palm Desert February 22-24, 2017 4 AMERICAN PISTACHIO INDUSTRY CONFERENCE. Congratulations to CAROL SWINGLE, booth contest winner of an iPad gift basket and RONNIE TIPPS, post-event survey participant randomly drawn to win a 2017 Conference registration with Gala. 5 THANKS TO OUR VERY GENEROUS SPONSORS, APG PRESENTED CONFERENCE AT ZERO NET COST! TITANIUM SPONSOR $20,000 Contribution PLATINUM SPONSOR $10,000 Contribution GOLD SPONSOR $5,000 Contribution Conference pistachios provided by Meridian Growers. 6 SILVER SPONSORS $2,500 Contribution AGROMILLORA CALIFORNIA ALL CROP INSURANCE BOART LONGYEAR BUHLER GROUP C NAGATANI FARMS, FLP CABLEVEY CONVEYORS FIDDYMENT FARMS, INC FIVE STAR HARVESTING INDUSTRIAL DESIGN & CONSTRUCTION INGLEBY/ ERIKSSON MARY ROACH INSURANCE AGENCY SATAKE USA, INC. SEAMAN FARM MANAGEMENT STEVE MOORE FARMS SYNGENTA CROP PROTECTION A DIVISION OF ALLIANT INSURANCE BRONZE SPONSORS $1,000 Contribution Anex Manufacturing JKB Energy Corp. M Parise Associates/ Tomra Sorting Solutions Magnuson Corporation Kettleman Pistachio Growers Nelson Manufacturing Inc. Palogix International Pistacia Global, Inc. Sas-Z-Nuts Scroggs Consulting Sierra Gold Nurseries US Farm Systems Westside Farm Management PATRON SPONSORS $500 Contribution Bird Gard Blackwell Farming Company Cardinal Professional Products Dave Wilson Nursery Eurodrip USA Fruit Growers Laboratory, Inc. Hortau Madera One-100 LLC Mazon Trucking, Inc. Montage, Inc. Pearson Realty Roscoe Moss Company Schuil & Associates, Inc. Stewart Brothers Drilling Company VICAM A Waters Business TARGETED/SUPPLEMENTAL Sponsorships Sterling Electric Electric CLUB 49 RECEPTION HOST WELCOME Pioneer Nursery ATTENDEE GIFT Pioneer Nursery ATTENDEE GIFT Personal Ag Management REGISTRATION Personal Ag Management REGISTRATION ARO Pistachios and Setton Farms WELCOME RECEPTION Fiddyment Farms and Heart of the Desert VIP BAG PISTACHIOS Horizon Nut Company POWER UP BREAKFAST Meridian Growers CONFERENCE Fiddyment Farms and Heart of thePISTACHIOS Desert VIP BAG PISTACHIOS Rabobank APG CONFERENCE WEBSITE Meridian Growers CONFERENCE PISTACHIOS Rabobank APG CONFERENCE WEBSITE Zenith Agribusiness BOOTH CONTEST IPAD BASKET Setton Pistachio of Terra Bella CLUB 49 SNACKS 7 INFORMATIVE SPEAKERS AND EXPANDED Members may access photos, order APG logo with their username/password on the 8 SCHEDULE OFFERED SOMETHING FOR EVERYONE! gear/event shirts and download Conference art member portal at AmericanPistachios.org. 9 Palm Trees, Proximity Prime for Pistachio PAC Tourney The premiere fundraising event for the industry’s powerful Pistachio PAC was conveniently held Wednesday, February 17 at this year’s conference venue, the JW Marriott Desert Springs on their Palm Course. It was a near-perfect day full of sunshine, good food and friendly competition at this year’s annual APG Golf Classic. 2016 TOURNAMENT RESULTS First Place Team Golfers walked over to the onsite nightclub that hosted their awards lunch with Jeff Gibbons announcing the winners and awarding the eagle trophies. Shrimp cocktails and champagne generously hosted by Agri-World. Combined with the 2015 PAC Breakfast, this year’s tournament generated more than $100,000 to benefit the Pistachio PAC and further strengthen this influential pistachio industry organization. L-R: Jimi J. Valov, Tom Chedester, Jason Errecart, Jeff Scmiederer Not Pictured: Carl Scruton Second Place Team L-R: Andrew Howe, Dan Boswell, Kevin Willet, Kevin Gage, Jacob Sheeley, David Vierra Third Place Team L-R: Robert Lake, Sandy Landrum, Bill Hoover, Bryce Parker Not Pictured: Rene Nazarian, Tony Melillo PICTURED LEFT: Men’s Closest to the Pin Shawn Sowder Women’s Closest to the Pin Shelly White Men’s Longest Drive Derick Strain Women’s Longest Drive Betty Anderson Men’s Straightest Drive Jake Barcellos Women’s Straightest Drive Marolyn Chedester 10 THANKS 2016 APG GOLF CLASSIC SPONSORS! DIAMOND - $5,000 ATB Ranch, LP Gage Farms George Watte and Sons Pioneer Nursery Setton Farms, Inc. RUBY - $2,500 Agriland Farming Company, Inc. Agri-World Cooperative Doug Anderson Real Estate Horizon Nut Company Ingleby USA - Eriksson, LLC J. Vierra Pistachio Ranch, Inc. Jimi & Tammy Valov KAS-COT Farms, Inc. Keenan Farms, Inc. Meg & Jon Bassett Monarch Nut Company Pistachio Growers, Inc. Primex Farms, LLC Rainbow King Lodge Seaman Farm Management Inc. Stone Land Company Stratford Ranch Valov & Sons Farming West Hills Farm Services, Inc. EMERALD - $1,000 ARO Pistachios, Inc. Beeler Industries Inc. Bob Schramm & Nancy Williams Buchanan Hollow Nut Company Creekside Farms, LP Curtico Fiddyment Farms G & G Andrew Farms, LP Gebhardt Farm Management George Andrew & Son, LP Hoffman & Son Farming In Memory of Janie Poonian Kettleman Pistachio Growers Meridian Growers Mike Woolf Farming Nelson Hardie Orchard Sprayers Pitigliano Farms Schmiederer Family Farms Standard Truck & Trailer Sales, Inc. Steve Moore Farms Strain Orchards, LP Tech Flex Packaging Triple B Farms Sapphire - $500 2B Farming, Inc. A&R Pistachios of California Agromillora-CA Tree Nursery Anderson Farms BBAK, LLC Brian & Sharon Blackwell Cablevey Conveyors Doug Les Farms Greg Watte Ranch Hansen Ranches Landmark Irrigation Company Madera One-100 Mazon Trucking Pacific Nut Producer Russ Waymire / Doug Anderson Realty Saltzman Financial & Insurance Services Satake SBS AG West-Link Corporation Amethyst - $250 Kevin & Janie Blackwell Carl & Barbara Fanucchi Pearson Realty Golf Bag Contributors ARO Pistachios, Inc. Beeler Industries, Inc. Horizon Nut Company Industrial Design & Construction, Inc. Ingleby USA - Eriksson, LLC Keenan Farms, Inc. Monarch Nut Company Pacific Nut Producer Pearson Realty PR AG Services, LLC Primex Farms Setton Farms, Inc. Sterling Electric 11 THANKS TO THIS YEAR’S GROOVIN’ 70s Entertainment courtesy of Jimi and Tammy Valov 12 PLATINUM Sponsors - $10,000 Contribution GALA SPONSORS - OH WHAT A NIGHT! Dinner wine chosen and sponsored by Pioneer Nursery 13 APG MARKETING UPDATE APG Provides Consumers Inspiration and Advice for New Year’s Resolutions APG teamed up with our ambassador Cheryl Forberg, RD (Chef and Nutritionist for NBC’s hit show The Biggest Loser) for a Facebook Chat contest. The chats took place alongside The Biggest Loser show, which premiered Tuesday nights beginning January 4 and ran seven weeks. Fans were invited to Cheryl Forberg’s Facebook page where she answered questions related to weight loss, healthy eating and maintaining a healthy lifestyle. Each week’s set of questions gave Cheryl plenty of opportunities to highlight pistachios’ role in starting and/or maintaining a healthy lifestyle and discuss the nut’s health and nutritional benefits. Participants were also directed to our website for recipes and more pistachio nutrition information. Everyone who participated in the weekly chats was entered into a drawing to win a weekly prize (winners were randomly selected). The prizes, donated by the events sponsors, included a Big Green Egg MiniMax, KitchenIQ Giveaway Suite; Ary Vacmaster Vacuum Sealer; Melissa’s Organic Produce Products; two-nights at any Omni Hotel or Resort; Garmin Vívoactive Smart Watches; or Lodge Cookware packages, along with American pistachios and a copy of Cheryl Forberg’s book A Small Guide to Losing Big. The 15 chats resulted in a Facebook reach of more than 256,937 consumers and a 12 percent increase in APG Facebook likes. Bye Bye Love Handles, Hello Health and Fitness In December, hundreds of American pistachio Love Nut kits were sent to journalists just ahead of Valentine’s Day, the season of love. Our Love Nut campaign message was updated, repackaged, translated into several languages, and added to our websites around the world. The kit included messages from spokespeople Cheryl Forberg, RD and Sharon Palmer, RDN (The Plant-Powered Dietitian), as well as smart recipes for a healthy snacking, more information about pistachios and heart health, and, best of all, tips on how pistachios can help you lose those unwanted love handles! To read more about the Love Nut, visit AmericanPistachios.org. 14 APG Wins Gold and Silver at American Advertising Federation’s ADDY Awards Once again APG has received multiple ADDY awards for creative excellence in marketing and promotion. These nationally acclaimed awards are given out annually by the Fresno Advertising Federation through the nationally acclaimed American Advertising Federation Awards program (ADDY). Three APG entries received the coveted gold medal in this prestigious Central California competition; one won a silver medal. Judged by marketing and advertising professionals outside of the Fresno market, creativity, originality and creative strategy formed the award criteria. The American Advertising Awards is the advertising industry’s largest and most representative competition, attracting over 40,000 entries every year in local AAF Club (Ad Club) competitions. The mission of the competition is to recognize and reward the creative spirit of excellence in the art of advertising. The Central Valley competition is the first of a three-tier, national competition. Concurrently, local entrants from all over the United States vie to win a coveted ADDY award recognition for being the best of the best in their markets. GOLD MEDAL WINNERS Audio/Visual Sales Presentation Award: The American Pistachio Story video. View video at AmericanPistachios.org. Integrated Branded Content Campaign APG’s gold medal campaign integrates the various promotional mediums to communicate our powerful message, including our AmericanPistachios. org website, social media consumer contest, Snack Like a Pro advertisement and Tailgating with Pistachios video featuring our ambassador Bryan Snyder, Nutrition Director for the Denver Broncos. (The tailgate video can be viewed by visiting AmericanPistachios.org.) SILVER MEDAL WINNER Digital Publications Award: APG eNews 2015 Holiday Edition Exterior Award: Mark Cavendish Bus Wrap 15 Miss California December 2015 China Tour Miss California 2015, Bree Morse, and APG growers Jimi Valov, Devin Aviles and Alison Nagatani traveled to China for a public relations tour to promote American pistachios to Chinese consumers. The nine-day blitz stretched across China, focusing on four major cities: Shanghai, Ningbo, Xi’an, and Beijing. Their trip coincided with the holidays and just ahead of Chinese New Year, a season when pistachios are a popular food and gift item. APG grower ambassadors Devin Aviles, Alison Nagatani and Jimi Valov with Bree Morse. American pistachios are the official snack of Miss California China has the world’s largest diabetes epidemic, with onethird of Chinese adults diagnosed with the condition. To raise awareness of pistachios’ effectiveness as a dietary tool to help prevent diabetes, events with the media, consumers, and health and nutrition professionals were held in each city. In Xi’an, our nutrition expert, Dr. Ge Sheng joined our team for a seminar hosting 150 nutrition professionals. In Beijing, APG partnered with the Chinese Diabetes Association for an educational event. 16 APG ambassadors and the China Diabetes Association, Beijing Beijing Yide Baking School media event Press conferences in four cities drew representatives from more than 99 media outlets. USDA agricultural trade officers Valerie Brown from Shanghai and Bruce Zanin from Beijing joined in the media conferences in their perspective cities. In Beijing, a media event was held at the Beijing Yide Baking School where Miss California and our growers, along with the Minister Counselor for Agricultural Affairs Philip Shull, demonstrated the versatility of baking with pistachios. Media interviews were also conducted with four national television programs, one in each city. In Shanghai, a popular TV station, Taozui Shanghai, broadcast a media event with an unusual concept for people in China: Strong can be Beautiful! Miss California and pistachio grower Alison Nagatani were put to the test, and they proved to a room full of health and fitness-minded consumers that healthy and strong are beautiful. Growers Jimi Valov and Devin Aviles took questions about farming and happily provided samples of homegrown pistachios. APG team with Valerie Brown, Director, U.S. Agriculture Trade Office, Shanghai The mission of our tour was to raise consumer awareness of American pistachios’ health and nutrition benefits and to give the people of China an opportunity to connect with farmers. Our commitment to quality and food safety was also a key message that resonated well with Chinese consumers. While Miss California provided the hook to draw the crowds, once they came, the focus turned immediately to American pistachios and the people that grow them. Mission accomplished. Taozui Shanghai TV Station Broadcasted Media Event: Strong can be Beautiful with Miss California and pistachio grower Alison Nagatani. 17 2016 AMERICAN PISTACHIO GROWERS BOARD OF DIRECTORS Top Row L-R: Gary Smith, Dominic Pitigliano, George Schweers, Mia Cohen, Jimi Valov, Beth Sequeira, Adam Kusmak, Steve Seplak, Alison Nagatani, Kristi Robinson Bottom Row L-R: Richard Sandrini, Jeremy Blackwell, Brian Watte, Rudy Hernandez, Sharon Roden, Anil K. Gupta, Adam Orandi, Steve Burcham APG Growers Elect Board The 2016 American Pistachio Growers Annual Membership and Board Meetings were held Thursday during the Annual Conference in Palm Desert. All APG members were notified in advance of the meeting and encouraged to attend. Election results of the recent grower ballot for seven Board seats were announced by Chairman Dille during the Annual Membership Meeting. New to the APG Board are Steve Burcham and Dominic Pitigliano, both graduates of LeadOn, the APG Leadership Program. Jeremy Blackwell, Anil K. Gupta and Adam Kusmak were voted in for a second threeyear term; veteran Board members Gary Smith and Brian Watte ran for and won election after sitting out the required one year due to term limit expiration. During the Board Meeting Chairman Dille conducted the election of 2016 officers and officially handed over the gavel to incoming Chairman of the Board Jimi Valov. 2016 APG officers were unanimously confirmed: Jimi Valov, Chairman Sharon Roden, Vice Chair Rudy Hernandez, Treasurer/Secretary 18 The 2016 meeting schedule was also approved as follows: May 4 Board Meeting APG Fresno Office July 22 Annual Membership Luncheon and Board Meeting Visalia Convention Center November 9 Board Meeting APG Fresno Office CA Regional Meetings Invitations are on the way for this year’s APG Regional Grower Meetings. We welcome current and future members to enjoy a meal, open discussion and highlights of APG and industry updates presented at the Annual Conference for those who were not able to attend. TUESDAY, APRIL 26 Madera Municipal Golf Course - Breakfast Harris Ranch, Coalinga - Lunch WEDNESDAY, APRIL 27 Hungry Hunter Steakhouse, Bakersfield - Lunch THURSDAY, APRIL 28 California Farm Bureau Federation, Sacramento - Lunch If you are a pistachio grower and do not receive an invitation and/or know of a grower who has not yet joined APG, please call our office. Online registration is available at AmericanPistachios.org/RegionalMeetings. We hope to see you soon to answer questions and listen to your ideas on how to improve YOUR APG and harness the Power of Pistachios. LeadOn Graduates Bring Fresh Perspectives to APG The extremely successful APG Leadership Program, LeadOn, is now in its sixth year. A total of 70 have graduated from the program, many of whom have gone on to serve on the APG Board and committees. In fact, 10 of the current 18 Board members have completed the thorough education on a wide range of applicable topics. Along with a thorough education and valuable field experiences, each LeadOn class forms a special bond that nurtures continuing beneficial business and personal relationships. At this year’s Conference in Palm Desert, former graduates participated in a warm reunion reception Thursday night to hang out with old and new friends. There is no doubt an influx of committed Board rookies increase the diversity of the APG leadership team and help represent the broad spectrum of grower interests. In our democratic organization, meaningful engagement of members is critical -- American Pistachio Growers would not exist without active grower participation. In this aspect, we are unique and fortunate, and LeadOn provides a steady stream of educated, invested individuals. During Friday’s general session, 2015 participants were awarded plaques and welcomed into service. Congratulations to graduates: Anna Abbatiello, Skyler Bettencourt, Kristin Dodd, Courtney Goldman, Laura Gutile, Sherry Heuler, Drew Hoffman, Richard Kreps, Mike Michigian, Asha Munger, Gabrielle Munger, Michael Newton, Lorna Schultz Roush, and Nika Robani Shirani. The future of APG looks very bright indeed. Creative Auction Items Fund Leadership Program LeadOn Silent Auction items sparkled this year with the addition of handcrafted gems such as a diamond pistachio tree necklace; a polished assortment of pistachio wood pens; and an intricate, custom pistachio quilt designed and sewn by APG staff member Dianna Short. Gala guests were treated to Live Auction action with extremely diverse offerings, such as a Phantom 3 Drone, Razor Dirt Rocket bike, Kentucky Derby tickets or Aerial Hog Hunting. It was a fun and lucrative smorgasbord of items that raised record funds to support a very worthwhile cause - APG’s future leaders. THANKS TO OUR 2015-2016 SPONSORS: ARO Pistachios, Inc. ATB Growers Avellar-Moore Farms C. Nagatani Farms Citi Commercial/Ag Banking Chris and Lorna Roush Five Star Harvesting Gage Farms George Watte & Sons Keenan Farms, Inc. Madera One-100 Meridian Growers Mike Woolf Farming, Co. Monarch Nut Company Nut Farmers LLC Purewal Custom Harvesting Rainbow King Lodge Rain and Hail Insurance Services Robinson Farm Management Roman Electric Inc. SAS-Z Nuts Schmiederer Family Farms Setton Farms, Inc. Sol Aureus Farms Steve Moore Farms Valov & Sons Venture Farms Zenith Insurance 19 Congressman Paul Cook Addresses PAC Breakfast Once again, the Pistachio PAC breakfast provided the membership with a most interesting and educational experience when Congressman Paul Cook (R-CA) gave the annual PAC breakfast speech. Congressman Cook’s district covers a geographical area from just north of Palm Springs to almost east of Sacramento, and includes the town of Newberry Springs where APG members farm pistachios. The districts of Congressmen Kevin McCarthy, Tom McClintock, Steve Knight. Judy Chu, Pete Aguilar, and Raul Ruiz border Congressman Cook’s large district. Congressman Cook serves on three important congressional committees: the House Committee on Natural Resources (water), the House Committee on Foreign Affairs (Iran sanctions) and the Committee on Armed Services. Congressman Cook served with distinction in the United States Marine Corps and is a veteran of the Vietnam War. His military career spanned twenty-six years; he retired from the U.S. Marines in 1992 as a full colonel. His actions in combat earned him a number of honors, including two Purple Hearts and the Bronze Star Medal with a V for valor. The Pistachio PAC Chairman, Dr. Robert Lake introduced Congressman Cook and Cook’s wife Jeanne. (This was the first time that a Congressman’s spouse joined them at the Pistachio PAC breakfast.) The Congressman directed his comments to the water legislation and foreign relations. He reminded the attendees, approximately 120 APG members, that the U.S. House of Representatives passed several water bills, but the U.S. Senate has not acted on the House bills nor has it moved a Senate bill. Since the Congressman serves on the Foreign Affairs Committee, he was most concerned with the U.S. relations in the Middle East. Having served in combat, he spoke of his concern with the volatile political conditions in the region. In addition, he expressed his concern with the increasing economic and military power of China. As is the PAC breakfast custom, the Congressman received many questions from the attendees. His thoughtful responses to their questions demonstrated why he is eminently qualified to be a member of the U.S. House of Representatives. The APG membership’s continuing support of the Pistachio PAC allows it to remain one of the largest specialty crop political action committees in the United States. The annual Pistachio PAC breakfast not only updates the APG membership on the latest congressional activities but also serves to educate the congressional speaker about the U.S. pistachio industry. State PAC Fundraiser APG growers should have received by mail a request to provide voluntary contributions to APG’s State Political Action Committee (PAC). The State PAC efforts compliment the legislative and regulatory efforts of the Federal PAC (Pistachio PAC), but strictly on the State level. With your approval of the form that was attached with the State PAC fundraising letter, APG will deduct $99 per member entity from assessments already paid to us by your processor. This is not an additional assessment. 2016 PAC Breakfast Speaker: Congressman Paul Cook 20 Help do your part to support the efforts of the industry by joining the State PAC. GOVERNMENT AFFAIRS REPORT Schramm, Williams & Associates, Inc. U.S. Removal of Iranian Sanctions The United States officially removed sanctions on Iranian pistachios January 16, 2016, and a new trade era started for American Pistachio Growers and the U.S. pistachio industry. Opening the U.S. market to Iranian pistachios will result in allowing review petitions to be filed, with the first review to be the sunset review on the antidumping order on raw inshell pistachios. In addition to the sunset review, administrative, new shipper and change circumstances petitions are expected to be filed. The former California Pistachio Commission won the original unfair trade orders (antidumping raw inshell pistachios, countervailing raw inshell pistachios and countervailing roasted inshell pistachios) in 1986. In 2005, we were successful in maintaining the antidumping order in the sunset review. The amount of time involving the 2016 sunset review will range between six months and one year. Responding to the various reviews requires special legal trade representation and a large budget. The legal project requires cooperation by the growers and handlers with questionnaires, legal briefs and appearances before the U.S. International Trade Commission and the International Trade Administration, U.S. Department of Commerce. Using 2014 crop prices as an example, a $0.10 reduction in pistachio price will result in a $51 million loss for the U.S. pistachio growers. A $0.20 price reduction would result in $102 million loss. In 1985 when Iranian pistachios flooded the U.S. market, California pistachio growers’ prices dropped by 50 percent. Your APG Board recently voted in favor of participating in the sunset review for the purpose of maintaining the antidumping order on raw inshell pistachios. Federal Legislation on Drought In early February, Senator Dianne Feinstein introduced her most recent version of legislation to address the California drought (S. 2533). Senator Feinstein described the bill as being the end product of “dozens and dozens” of meetings with all interested stakeholder groups, and stated it strikes a compromise between the differing views of those groups. She recognized not everyone will be happy with the bill, but she believes this bill is the only one that can pass the U.S. Senate and be signed by the President. Of interest, the other California Senator, Senator Barbara Boxer, has not “endorsed” this bill. Of greatest interest to the Central Valley, the Feinstein bill does NOT contain mandated pumping levels in the Delta to move water south. Senator Feinstein says a bill with those requirements could not pass the U.S. Senate. In contrast, the House Republicans have said “mandated pumping levels are absolutely necessary.” In addition, the Feinstein bill contains a number of provisions authorizing more spending on projects such as desalination and recycling. Again, in contrast, the U.S. House is not eager to spend hundreds of millions of dollars on any new projects. So, there will have to be considerable compromise on both sides if a final bill is to be agreed upon. The next step for the Feinstein bill will be for the Senate committee with jurisdiction over water policy to “consider” the bill. An option is for the Feinstein bill to be woven into a broader bill that addresses the needs of other Western states; the Chairwoman of the Senate committee, Senator Murkowski (R-AK), has been indicating for the last year that this was her intention. Following committee consideration, the next step would be consideration on the floor of the full Senate and then a conference (perhaps on an informal level) with the House. Consideration by the full Senate will be something of a challenge, since time is short in this election year. A “lame duck” session after the November elections may hold the best hope for action. However, the agenda for a “lame duck” session would be driven largely by election results. Food Safety Modernization Act Over the past six months, the U.S. Food & Drug Administration has finalized and published four of the lynchpin FSMA rules. These include the Produce Safety rule (growers), the Preventive Controls rule for food facilities (handlers), the Foreign Supplier Verification rule, and Accredited Third-Party Certification rule. In the coming months, FDA will finalize more regulations that 21 are important to the FSMA; these include the Sanitary Transportation of Food rule and the Intentional Adulteration of Food rule. Produce Safety Rule The Produce Safety rule has staggered compliance dates, which are as follows: •Very small businesses - those with more than $25,000 but no more than $250,000 in average annual produce sales during the previous three year period: January 26, 2020 •Small businesses - those with more than $250,000 but no more than $500,000 in average annual produce sales during the previous three year period: January 26, 2019 •All other farms - January 26, 2018 The compliance dates for certain aspects of the water quality standards and related testing and recordkeeping provisions allow an additional two years beyond each of these compliance dates for the rest of the final rule. Compliance dates for modified requirements for farms eligible for a qualified exemption are the following: •Labeling requirement (if applicable): January 1, 2020 •Retention of records supporting eligibility for a qualified exemption: January 26, 2016 • Receiving facility is a small business and its supplier will not be subject to the human preventive controls rule or the produce safety rule: September 18, 2017 • Receiving facility is a small business and its supplier will be subject to the human preventive controls rule or the produce safety rule: September 18, 2017, or six months after the supplier is required to comply with the applicable rule, whichever is later • Receiving facility is not a small or very small business and its supplier will not be subject to the human preventive controls rule or the produce safety rule: March 17, 2017 • Receiving facility is not a small or very small business and its supplier will be subject to the human preventive controls rule or the produce safety rule: Six months after the supplier is required to comply with the applicable rule APG MRL Database APG maintains an MRL database that shows the top export markets for pistachios and the pesticide limits for each country for approximately 80 chemicals/active ingredients that the U.S. pistachio industry uses. This database is updated annually and was recently updated in January 2016. This database may be found on the APG website. If you have any questions, please contact the APG Fresno office. •All other modified requirements: •Very small businesses: January 26, 2020 •Small businesses: January 26, 2019 The Preventive Controls Rule The staggered compliance dates for the Preventive Controls rule are as follows: •Very small businesses (averaging less than $1 million per year (adjusted for inflation) in both annual sales of human food plus the market value of human food manufactured, processed, packed, or held without sale): September 17, 2018, except for records to support its status as a very small business (January 1, 2016) •Small businesses (a business with fewer than 500 full-time equivalent employees): September 18, 2017 •All other businesses: September 19, 2016 Within the Preventive Controls rule, FDA included provisions for the Supply Chain Program, which provides structures for the various entities along the food supply chain to maintain food safety along the supply chain. The staggered compliance dates are as follows for the supply chain program within the Preventive Controls rule: 22 T-TIP Update On February 26, 2016, the United States and European Union concluded the 12th negotiation session of the Transatlantic Trade and Investment Partnership (T-TIP), also known as the U.S.-EU Free Trade Agreement. Generally, both U.S. and European trade officials have stated that they would like to complete all negotiations before the end of the Obama Presidency. In order to reach this goal, the two countries have added two negotiation sessions to the 2016 calendar. In light of the accelerated talks, Turkey has expressed a desire to be a part of the final U.S.-EU trade agreement. Turkey is not a member of the European Union; however, the two maintain a customs union arrangement that allows the free flow of trade across borders. If left out of the agreement, Turkey stands to lose up to $5 billion in annual trade. Pistachio trade by Turkey to Europe was 1.67 million pounds in 2014, compared to U.S. exports that exceeded 113.4 million pounds. APG has requested the immediate elimination of Europe’s 1.6 percent duty on raw pistachios. Trans-Pacific Partnership A target market for pistachios has been Vietnam. Once implemented, the tariff on raw pistachio would be reduced to 15 percent and eliminated beginning year three of the agreement. APG urged negotiators to remove the pistachio tariff and visited Vietnam to directly communicate our tariff objective. When the TPP negotiations first started, the Vietnam pistachio tariff was at 35 percent; during the TPP negotiations, the government of Vietnam gradually lowered the tariff to 15 percent. Republican congressional leaders have repeatedly stated that consideration of the agreement will not come before the November 2016 elections. House Speaker Paul Ryan (R-WI) also believes that currently there are not sufficient votes for the trade pact to pass Congress. Senate Finance Committee Chairman Orrin Hatch (R-UT) has called for several changes to the agreement before it is presented to Congress. Democrats, led by House Ways and Means Ranking Member Sander Levin (D-MI), have listed numerous problems with the agreement, including deficiencies with workers’ rights provisions, rules of origin, investment, and the lack of currency manipulation controls. U.S. Agricultural Exports For the first time since the 2008/2009 recession, the U.S. Department of Agriculture reported U.S. agricultural exports did not exceed the previous year’s sales. In calendar year 2015, export sales were valued at $133 billion, down 11.3 percent from $150 billion in 2014. (The U.S. dollar gradually became stronger during this period.) In March 2016, the recently-elected Canadian Prime Minster, Justin Trudeau, visited the United States to discuss the pros and cons of the TPP with President Obama. The agreement is currently under review by the Trudeau government as the negotiations were conducted under reformer Prime Minster Stephen Harper whose party controlled the Canadian government from 2006 to 2015. Facilities in both the United States and Canada would be certified to move merchandise across the border without stops. The White House, Homeland Security and the U.S. Customs and Border Patrol are currently examining the proposal. Fresh fruit, vegetable and tree nut exports saw a 4.8 percent reduction in exports from 2014 to 2015, from $17.2 billion to $16.4 billion. The current fruit, vegetable and tree nut trade deficit is $6.2 billion, the largest on record, up from $3.8 billion in 2014. U.S. pistachio exports saw a reduction of 29 percent for the same time period, moving from 319.3 million pounds in 2014 to 226.3 million pounds in 2015. U.S. Monthly Exports of Pistachios: Crop Years 2011-2012 through 2015-2016 IN METRIC TONS Year Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2011-2012 6,711 7,046 7,367 7,762 7,032 8,840 7,839 8,259 13,751 14,666 9,169 Jan Total 9,783 188,475 Pistachios Raw 2012-2013 9,597 12,677 11,949 10,563 7,916 8,669 7,927 5,295 16,795 21,942 17,125 7,167 137,622 2013-2014 10,904 10,037 9,170 5,863 5,926 7,051 11,244 11,231 18,312 25,092 14,025 6,463 135,318 Inshell & Shelled 2014-2015 6,551 8,872 8,992 9,642 8,711 8,208 6,985 7,379 14,161 15,435 13,966 6,417 115,319 2015-2016 6,525 9,724 8,723 6,127 5,382 4,304 7,078 7,445 8,642 6,799 4,740 4,062 79,551 2011-2012 1,238 1,666 1,688 1,628 1,562 2,286 2,271 1,364 2,747 2,821 2,417 1,591 23,279 26,747 Pistachios Roasted Total 2012-2013 1,205 1,697 1,429 2,240 2,329 2,047 1,993 1,730 2,955 3,529 2,999 2,594 2013-2014 2,151 2,002 2,215 2,156 2,025 2,263 2,575 2,736 3,735 5,416 3,505 2,662 33,441 2014-2015 2,650 3,399 2,224 1,872 2,124 1,717 1,706 2,177 3,309 2,575 3,021 2,065 28,839 2015-2016 1,407 1,998 1,805 1,495 1,852 1,413 1,518 1,476 1,858 2,368 1,465 1,490 20,145 11,374 211,754 2011-2012 7,949 8,712 9,055 9,390 8,594 11,126 10,110 9,623 16,498 17,487 11,586 2012-2013 10,802 14,374 13,378 12,803 10,245 10,716 9,920 7,025 19,750 25,471 20,124 9,761 164,369 2013-2014 13,055 12,039 11,385 8,019 7,951 9,314 13,819 13,967 22,047 30,508 17,530 2014-2015 9,201 12,271 11,216 11,514 10,835 9,925 8,691 9,556 17,470 18,010 16,987 8,482 9,125 168,759 144,158 2015-2016 7,932 11,722 10,528 7,622 7,234 5,717 8,596 8,921 10,500 9,167 6,205 5,552 99,696 Prepared by Schramm, Williams Associates, Inc. using data from the U.S. Department of Commerce. 23 9 River Park Place East, Suite 410 Fresno, 93720-1530 7030 70 30 N. N. California Frui Fr Fruit uitt Av Aven Avenue, enue ue, , Su Suit Suite ite e 11 117 7 Tel: Fresno, 559.475.0435 Fax:93711-0782 559.475.0624 California [email protected] Tel: 559.475.0435 Fax: 559.475.0624 AmericanPistachios.org [email protected] AmericanPistachios.org 2016 Board of Directors JIMI VALOV CHAIRMAN 20 2011-2012 011-2012 Board of Directors SHARON RODEN VICE CHAIRMAN RUDY HERNANDEZ TREASURER/SECRETARY Jim m Zion Gary Smith JEREMY Chairman Cha airman BLACKWELL CALIFORNIA Vice Chairman STEVE BURCHAM CALIFORNIA Larry Lar rryCOHEN LowderCALIFORNIA MIA Treasurer/Secretary ANIL K. GUPTA CALIFORNIA ADAM KUSMAK NEW MEXICO ALISON NAGATANI CALIFORNIA ADAM ORANDI CALIFORNIA DOMINIC PITIGLIANO CALIFORNIA KRISTI ROBINSON CALIFORNIA SHARON RODEN CALIFORNIA RICHARD SANDRINI CALIFORNIA GEORGE SCHWEERS NEW MEXICO STEPHEN SEPLAK ARIZONA BETH SEQUEIRA CALIFORNIA GARY SMITH CALIFORNIA nonmember list: COURTESY NONMEMBER COPY JOIN APG TODAY! Board Member Emeriti H.P. ANDERSON III BRIAN BLACKWELL DR. JOHN LAKE RICHARD PASLAY APG Staff Richard Matoian Judy Hirigoyen Executive Director Vice President, Global Marketing Catherine Byrnes Haiying Zhang Director, Member Services and Communications Director, Asian Markets Rebecca Hall Karen Gross Marketing Project Manager Director, Accounting Genaro Gonzales Dianna Short Digital Content Manager Executive Assistant Jessica Garrison Jennifer Jones Marketing Admin Asst Receptionist/Admin Asst Calendar Kernels APG Board Meeting May 4, 2016 10:00 am Fresno APG Office 2016 APG Regional Grower Meetings April 26 - 28 Four California Locations American Pistachio Growers Annual Membership Luncheon July 22, 2016 Visalia Convention Center Printed on Recycled Paper
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