USDA: Organic tree nut production continues to grow

Acreage and sales of organic tree nuts have increased notably during the past five years, according to a new report from the U.S. Department of Agriculture. The report, released late last month, compared data on organic tree nuts listed in USDA organic production surveys conducted in 2008 and 2011.

Organic tree nut production remains a small proportion of the overall market—amounting to less than 1 percent of conventional tree nut production—but organic acreage increased 10 percent from 2008 to 2011, and the value of farm sales rose 52 percent during the same period, the report said.

California farmers account for 85 percent of U.S. organic tree nut sales. In 2011, sales of California-grown organic tree nuts totaled $40 million, up 44 percent from 2008.

"Tree nut production has been expanding rapidly in the United States and abroad in response to strong export demand, especially for almonds, pistachios and walnuts," the report said. "Organic production, while growing rapidly, still accounts for a small share of this acreage."

Total organic tree nut acreage had reached 17,478 by 2011, USDA said, demonstrating a trend toward increased production.

"It is fairly common for producers to establish tree nut orchards using conventional weed and disease management practices in order to increase tree survival and growth," the report said, "and then transition the orchards to organic production practices around their third year."

USDA said almonds provide the largest share of organic tree nut production, representing 45 percent of 2011 organic tree nut sales in the United States. Walnuts represented 21 percent of organic sales; pistachios, 20 percent; pecans, 8 percent; and hazelnuts, less than 1 percent.

Between 2008 and 2011, the on-farm value of organic almond sales rose 69 percent, to $21 million, which mirrored the value increase for conventional almonds. Volume of organic almonds totaled 8.2 million pounds in 2011, up 25 percent from 2008. USDA said that represented about one-half of 1 percent of the conventional almonds produced in 2011.

The report said almond acreage accounted for 30 percent of total organic tree nut acreage, and that acreage of organic almonds increased 5 percent between 2008 and 2011, reaching 5,196 acres.

The value of organically grown walnuts declined 11 percent in the same four-year period, USDA said, ending at $9.9 million in 2011, and the quantity of organic walnuts dropped 18 percent at the same time.

"This, however, does not necessarily suggest a sustained downward trend in organic walnut production," the report said, noting that overall organic walnut acreage increased 19 percent between 2008 and 2011, reaching 5,150 acres.

USDA analysts noted that walnuts, as well as other tree nuts, struggle with blight and need intensive treatments in seasons with wet spring weather, and that new growth is most susceptible to the disease.

"Risk of loss due to these disease pressures might reduce many growers’ interest in organic production," the report said. "However, the disease can be treated organically so it cannot be the only reason behind the decline in quantity and value produced of organic walnuts."

Production of organic pistachios experienced what USDA termed "tremendous growth" in the four years from 2008 to 2011. Gross farm sales more than doubled, to $9.3 million, and the size of the organic pistachio harvest nearly doubled, reaching 2.9 million pounds; the report noted that the trees’ alternate-bearing pattern could account for part of the large swings in production. Plantings of organic pistachios grew to 1,221 acres by 2011, with California producing 93 percent of the organic crop.

The report said organic production of pecans and hazelnuts also grew significantly during the study period, and concluded by forecasting continued gains in organic tree nut production.

"As organic producers and scientists find more effective pest control methods, organic tree nut production will continue to increase in the future as there is continued room for market growth," USDA said.