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Interested in organic articles? SUBSCRIBE TO at organicfarmermagazine.com/subscribe Organic Walnut Production Increases as Growers Learn New Management Techniques By CECILIA PARSONS | Associate Editor Organic walnut growers work to enhance soil health and integrate mechanical weed control into their systems (all photos courtesy Fillmore Farms.) Kraemer & Co. Mfg., Inc. Nut Drying & Storage Facilities Almonds • Pecans • Pistachios • Walnuts • Burners • Fans • Drying Systems • Storage & Handling • Custom Manufacturing • Spiral E-Z Let Downs • Installation & Service Let Kraemer & Co. Design and Build the Facility that is Right for Your Needs Walnut Drying Bins Bin Features • Knock Down Kit • Modular • Corrugated / Galvanized Construction • Do-It-Yourself Option • Low Lead Time • 6 Ton Capacity 3778 County Road 99 W Orland, CA 95963 530-865-7982 │ Fax: 530-865-5091 CA Cont. Lic. #485-547 │ Web: www.kcomfg.com Organic walnuts are rapidly growing out of the ‘niche’ market. Evidence is in the number of retail online outlets for organic walnuts and the increase in production over the past six years. Mike Poindexter of the vertically integrated Poindexter Nut Company in Selma, Calif. said that domestic production of organically grown walnuts has ramped up to surpass foreign imports and pricing has reached more consumer-friendly levels. Supply of organic walnuts has increased greatly over the past several years, Poindexter said. In 2015, 4,424 tons of organic walnuts were produced. By 2019, production had increased to 10,055 tons. However, he said current data is hard to come by and there is no information on the size of the 2020 organic walnut crop, which has made figuring out pricing levels a bit tricky. Putting it into perspective, however, Poindexter’s total walnut output is two and a half times larger than Califor- 70 West Coast Nut <strong>Dec</strong>ember 2021
nia’s entire organic walnut crop. Poindexter attributed the increase in organic walnut production to existing orchards being transitioned to organic and increased production numbers per acre due to higher yielding varieties. Irrigation and nutrients are important components in organic farming practices, he noted, but neither of those are new developments in walnut farming. Pricing Premium, Higher Costs Water costs and debt service make up a large part of the cost structure. Poindexter said that typically, higher yielding walnut varieties would have a drop in production due to the inefficiencies of organic fertilizers compared to synthetics. Other farming costs, including weed control, for example, also tend to be higher in organic production. In order to achieve comparable returns on a per acre basis, he said there needs to be a 30% premium per pound on average. “We have seen substantially higher premiums in years past, but I expect the normal bump on pricing will be much closer to 30% to 40% over conventional pricing moving forward.” Poindexter said that ideal locations for organic production would be areas with lower insect pressure and without close proximity to conventional farms to eliminate the need for a buffer zone to account for drift of pesticide applications. Because of the difficulty in overcoming deficiencies in the soils, starting in good walnut ground, class 1 soils with good water penetration, would be ideal. Poindexter sources organic walnuts from growers in the San Joaquin Valley and in the Paso Robles area. He said that in the past, there have been many walnut orchards that were no longer economically viable under conventional methods and were converted to organic to stretch the productive life of the orchard. With the recent rise in supply of organic walnuts, Poindexter said that older orchards or those with lower yielding varieties are again getting pushed into negative margins. The market won’t pay the premium necessary for older varieties that do not have production or the crop quality. Color is the main quality driver for sales and pricing. “If a grower wants to farm organically, they should be farming one of the newer varieties: Chandler, Ivanhoe, Tulare, Howard or Solano,” Poindexter said. Visual aspects are very important as the largest segment of consumption for organic walnuts is in retail sales for culinary use. Institutional baking and ingredient use of organics is still a very small part of the market, Poindexter explained, so the older varieties are going to struggle to find a market amid the expanding supply of premium varietals. Finding a Home Lake County has historically led the way in acres of organically grown walnuts in California. UCCE Farm Advisor Rachel Elkins said that 2018 statistics show the county had 1,700 acres producing organic walnuts. San Luis Obispo County listed 650 acres, San Benito County listed 564 acres and the Solano/Yolo counties combined listed nearly 2,000 acres. Many growers of organic walnuts in Lake County are now struggling, Elkins said, with the loss of a major huller/dryer and marketer for their nuts. Two dry winters have also stressed the trees and made them more vulnerable to freezing temperatures. Many walnut orchards in Lake County are also older varieties, she said. “There is a short crop here this year, and the big issue is finding a home for those walnuts,” Elkins said. Grower Challenges The Fillmore family in Gridley, Calif. is a certified organic walnut grower and processor. Ryan Fillmore said growers who choose to farm organically have a different set of challenges compared to conventional walnut growers. “Those challenges are manageable, but you have to think ahead.” Continued on Page 72 T H E N U T Y O U T H O U G H T Y O U K N E W , I S S O M U C H M O R E T H A N Y O U E X P E C T E D . S U P E R N U T R I T I O U S . S U P E R D E L I C I O U S . S U P E R V E R S A T I L E . LEARN MORE AT AMERICANPECAN.COM <strong>Dec</strong>ember 2021 www.wcngg.com 71
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