Ag Bag: Citrus prices up, walnuts not so much
Farmers are getting good news on citrus and fertilizer prices but not-so-good reports on stone fruit and walnuts. Beef and milk producers are making news as well.
Citrus: California is estimated to produce over twice as many oranges as Florida in 2022 and 2023. Prices for California oranges and lemons are up this holiday season. Citrus Mutual reports that Valley navel orange prices are higher this last year for many sizes or just below last year's good price. Lemons too are strong compared to the past four years, says the trade group.
Stone fruit: Local peach, plum and nectarine growers are closely watching what happens to the largest player in the industry - Prima Wawona who declared bankruptcy earlier this year. The company announced recently that they could be sold through a court supervised auction process in December. The company has some 15,000 acres of tree fruit in San Joaquin Valley and a major local packing house in Cutler in Tulare County. The company is now owned by private equity firm Paine Schwartz. Sources cite increased costs and weather-related impacts for their troubles but lawsuits claim mismanagement. The industry hopes that can be a resolution before the start of the 2024 season.
Walnuts: Local growers face an uncertain future after several years of sinking prices that averaged well below break even. Growers have responded by pulling several thousand acres of trees, says a report. Processors processors are said to favor only a limited amount of walnut varieties to purchase. This fall’s Tulare County walnut cash selling season was a bust as low prices and little processor demand meant fewer gleaners combing the fields for nut leftovers after the harvest says ag commissioner Tom Tucker.Tucker says gleaners used to get $2 to 3 a pound for leftovers but this year it was not worth it.
USDA says the total 2022 California walnut crop purchased from producers reached 677,999 tons with an average price of 30.4 cents per pound. One report says five years ago growers were getting $3 a pound. Some blame an oversupply of trees, high tariffs, port back-up and tougher overseas competition. Also excessive heat has hurt nut quality.
Farm Bureau reports that “As part of the Walnut Bargaining Association, Sutter County grower Donald Norene says the group has urged growers not to accept a price lower than 60 cents a pound for good-quality Chandler walnuts, even though 60 cents—or $2.20 a pound for buyers—remains “a pretty marginal price” and not profitable for many growers. About 80 cents a pound “would be very helpful,” he added.”
Dairy: Several dairy organizations have just been named recipients of USDA funding under the 2023 Regional Conservation Partnership Program (RCPP), which supports targeted projects that incentivize reduced greenhouse gas (GHG) emissions.
Visalia-based California Dairies Inc. is a recipient with their “Absolute Enteric Methane Reductions in California Dairies” project that will help dairy producers reduce GHG emissions through innovative feed additives. California Dairies accounts for 9% of U.S. on-farm milk supply and aims to reduce the GHG footprint by 35%. Funding request was for $21.4 million.
Beef: Sandridge Partners has requested a CUP from the Kings County Planning Commission for approval of its plan to construct and operate a beef harvesting plant. The proposed project near Lemoore will total 135 acres including a 72,000-square-foot space consisting of livestock loading areas, a kill floor, coolers, cold storage, dry storage, a cut room, offices, employee facilities and 1,900 square-feet of retail space. This facility will be used to slaughter, butcher, process, and distribute bulk beef products using kosher and halal slaughter techniques. At capacity the beef harvesting plant would harvest a maximum of 210 cattle per day with the maximum number of cattle allowed onsite at any one time restricted to 420 head of cattle. The project site is to be located on Jackson Avenue in Kings County next to Highway 41.
Fertilizer: Lower fertilizer prices have followed the decline in oil prices this year. Nitrogen fertilizer has an average price of $338 per ton compared to $580 a ton this time 2021 and 2022. Another fertilizer, Potassium Chloride Spot Price, is at a current level of 341.88, down from 352.00 last month and down from 622.50 one year ago. Reports say all fertilizers are now lower by double digits compared to one year ago. MAP is 19% lower, 10-34-0 is 20% less expensive, DAP is 23% lower, urea is 31% less expensive, both UAN28 and UAN32 are 38% lower, potash is 41% lower and anhydrous is 42% less expensive compared to a year prior.
Seventeen new projects were recently announced by USDA highlighting progress made in the push to increase domestic fertilizer production, according to a USDA news release from Oct. 16. In 2022, USDA made $500 million available under the Fertilizer Production Expansion Program, looking to address consolidation in the industry.
This article originally appeared on Visalia Times-Delta: Ag Bag: Citrus prices up, walnuts not so much
