Blue Diamond Chairman Says Expansion Plan Secures Future for Almond Growers

MODESTO, Calif., Nov. 18, 2011 /PRNewswire/ -- Calling Blue Diamond's plant expansion plan "the largest single capital expenditure in the cooperative's 101 years," Chairman of the Board, Clinton Shick, told his fellow almond growers at their annual meeting that the board's decision merited long hours of due diligence because of an acute sensitivity about the board's "stewardship over your assets." He also added that it would reap the largest incremental returns to growers who seek a secure future in the almond business.

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The state of the art facility "will provide the platform we need for continued global market expansion of our coveted brand," said the McFarland grower, "which means that Blue Diamond growers can expect higher quality product output, improved yields, lower operational costs and a world-class food-safe processing facility now required by global food companies who demand the highest standards."

Essential to the strategic expansion plan, added Shick, "was our goal to pay for the large capital project while minimizing its impact on our grower returns. We expect huge monetary benefits over the long term as we continue to find new sources of margin-improvements and expand our brand and introduce new products worldwide."

Central to the plan is the purchase of 88 acres in Turlock and a three- phased project that will eventually yield about 500,000 square feet of manufacturing space over 15 years designed to satisfy the growing global demand for healthy foods like almonds. The first phase of the project is currently underway, consisting of detailed design work for grading and construction. Initial infrastructure work could begin as early as January 2012 with actual construction scheduled for spring. Phase one, which should be operational by May 2013, will provide about 200,000 square feet of building for manufacturing new almond products.

Shick made it clear that Blue Diamond's global marketing plan will require the continuing operation and technological improvements in its existing plant operations in Sacramento and Salida. He also emphasized that existing employees will have first priority for all jobs regardless of location. "It is important to understand that we are expanding, not replacing our capacity, to meet the demands of 2 billion pound plus crops and record demand for our products," he said.

Shick, who has participated on the Blue Diamond board for 27 years, was re-elected to serve another year as chairman. Dale Van Groningen of Ripon was re-elected to serve as vice chairman. Board members Stephen Van Duyn and Robert Weimer were re-elected to serve another three-year term. The following growers were elected to serve a three-year term on the Grower Liaison Committee (it meets quarterly with the board and management to review operations):

Blue Diamond Growers is the world's largest almond marketer and processor. It is responsible for developing the industry and opening world markets more than 100 years ago when Spain and Italy were the major producers of almonds. While the U.S. market is the largest single market for almonds, more than 70 percent of them are exported to 95 countries worldwide. Almonds are California's largest food export and they rank among the top ten food exports in America. California produces more than 80 percent of the world's supply.

SOURCE Blue Diamond