The almond convention is one of the biggest is held every year on the outskirts of Sacramento, California, a suitable location as California’s Central Valley is responsible for about 75% of world’s almond production. The Central Valley is one of the five areas in the world that can grow almonds due to its ideal climate.

The convention is amidst the exhibit of cutting-edge technology for agricultural machinery and pollinator systems The discussions with growers as well as processors revolve around a variety of key issues in the industry, including pricing in the marketplace, pest management as well as water-related regulations. Most particularly, the impact of tariffs. Mohnish Seth, owner of Farms International in Chico, California is a voice of worry among growers in the area about the disadvantages to competition caused by tariffs on California almonds on key markets such as India as well as China as opposed to their Australian counterparts that benefit from the free trade agreements with China.

Imposition of tariffs like Seth notes, greatly increases the price of California almonds that are sold in the markets they are in, and puts the almonds at a significant competitive disadvantage. This is especially true for the California almond industry, that is heavily dependent on exports, with about 70% of the yield being destined for international markets. In the meantime, retaliatory tariffs imposed during the Trump administration’s time persist to be a source of collateral damage amid concerns of an intensified trade war.

As a result of taxes on aluminum and steel imports imposed by the president Trump, China retaliated by raising tariffs on U.S. products, including almonds between 10% and 25 25%. The move led to China decline from as the leading exporter of California almonds. In spite of this Almond Board of California Almond Board of California remains active in dealing with these issues and attempting to reduce the negative impact of tariffs via diplomacy with other governments.

Incredibly, Australian producers such as Neale Bennett, while having a lot to gain from American trade tensions, have expressed worries about the supply chain’s ability to supply demand should the restrictions for California almonds continue to linger. This could result in a change to consumers’ preference for alternative nuts, which could impact the entire almond industry.

Furthermore, the wider implications of tariffs go to other industries that are ancillary, such as American producers including Gruber Manufacturing, which supplies machines to almond processors. Since components are sourced from all over the world as well, the imposition of tariffs increase operational expenses which could be unsustainable if further increase in tariffs.

Source: Marketplace