California almond growers urge China-US trade reconciliation

During an exclusive interview with Xinhua on Wednesday, when asked what impact the trade war might have on his family's firm, Phippen responded, "No shipments to China have been cancelled yet, but, the new crop will be coming in August and if this disagreement isn't settled by then, it will have more impact on the new crop."

He added, "The 15 percent tariff the Chinese are talking about levying on top of the 10 percent tariff we already pay would have a significant impact on our business."

As the scion of a well-respected farming family that relies on a global marketplace, Phippen takes trade seriously.

"Any impediment to trade is a challenge for a Californian almond grower and something we're worried about. If a larger percentage of our product was consumed in North America, we'd probably be less concerned, but China is already our third biggest market." China buys roughly a third of their harvest each year.

California almond growers are a feisty lot who aren't afraid to get down in the dirt and duke it out. They pull no punches where their economic interests are concerned, "Any impact on foreign trade with any country is a concern to us," Phippen made plain.

"The people who represent us in Washington have heard from us," he grinned. "They are well aware of their California constituents, well aware California is an exporting state, well aware that almonds are NO 1."

California grows 80 percent of the almonds consumed by not just Californians, not just by Americans, but by the entire world. It's a mega industry.

There is no doubt there's a lot at stake. Including direct, indirect, and induced economic output, the total economic impact of the almond industry on California output is about $21.5 billion. Of that 21.5 billion, about 11 billion is value added to the California state economy.

Of that $11 billion, about $7.6 billion comes directly from almond farming. The remaining $3.4 billion is derived from the almond manufacturing and processing sectors.

"We've been in China for nearly 20 years and we've spent almost 70 million dollars (in marketing). Not a small investment," explained Emily Fleischmann, Senior Director of Global Marketing for the powerful California Almond Board. "And we've seen years of steady growth."

She discussed the Almond Board's mission to spread the news in China about their nuts versatility, as well as its nutritional and health benefits.

"We market to Chinese consumers in the 1st and 2nd tier cities, especially during the Spring Festival, with promotions that say, "Go home. Feel good." We focus on professional young women, especially around beauty, with ads like "Bring inside beauty outside."