MODESTO, Calif., Nov. 18 /PRNewswire/ -- Over two dozen innovative almond products contributed to Blue Diamond's stellar 2008 crop return to cooperative growers according to President and CEO, Doug Youngdahl, who addressed 1200 growers at their 99th annual meeting. Despite a global recession, almond shipments increased 23 percent. This pushed overall shipments to a record 10.2 percent increase versus the 2007 crop year for another near-record sales year of over $700 million.

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While U.S. consumer demand for almonds grew four percent, Blue Diamond's North American snack sales increased 23 percent versus the prior year; Almond Breeze sales jumped 43 percent and Nut thins rocketed by 24 percent to outstrip sales growth in their respective product categories. Blue Diamond's consumer branded sales have grown 600 percent in the last seven years!

U.S. export shipments were up almost 13 percent. Over 70 percent of California almonds are exported. Widening awareness of the nutritional benefits of eating almonds is expected to continue to drive demand upward, especially in markets that sizzled this year: shipments to India jumped 19 percent; Middle Eastern markets increased by 51 percent and opportunities in China abound with a 115 percent gain!

"One of Blue Diamond's key strategies to maximize grower returns is to sell a portfolio of new high-margin almond products that consumers value," explained Youngdahl. "We've successfully created a 99 year legacy of almond innovation by converting good ideas into cash!"

Since 1910, Blue Diamond has opened all major almond markets; advocated for reduced trade barriers and increased market access; created new almond products in major food categories; formed partnerships with suppliers to adapt new technologies for food safety, product quality, productivity and package design; helped to obtain tax benefits for cooperative growers; and formed the California Almond Export Association to promote better export market information.

Youngdahl also reported that Blue Diamond employees voted more than two to one in favor of the cooperative in a representation election last November, 2008. The election was supervised by the National Labor Relations Board (NLRB) as employees cast ballots for or against the ILWU. After the election was challenged by the ILWU in hearings conducted before an Administrative Law Judge (ALJ), the ALJ ruled last month to certify the election results. Without further appeal, the NLRB upheld the ALJ's findings.

Blue Diamond is cautiously optimistic about a continuing trend toward stronger market price levels. While the 2009 crop is forecast to decline by 17 percent, a carryover from the 2008 crop of 413 million pounds means the total almond supply is relatively even with last season. Improvement in the global economy, historical almond growth rates and lower inventory could see a continuing firming trend in prices depending on weather conditions during the 2010 bloom and the possible effects of a predicted El Nino.

"While industry shipments were impressive, grower profitability suffered and declined versus the prior year," cautioned Youngdahl. "The significant market price differential between varieties due to smaller kernels created a two tier market and meant that grower profitability was largely dependent on the mix of varieties produced," he explained. "Although the final 2008 crop grower return was the fifth highest historically (on an average revenue per acre basis), rising grower cultural costs for water and inputs severely squeezed profits. Grower cost increases make it vital that Blue Diamond continue to innovate new products to improve grower profitability."

Photos and charts available on request.

SOURCE Blue Diamond Growers

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