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NOVEMBER | DECEMBER 2012News, Views & Industry Insights“Good” News Welcomedat 2012 Annual MeetingFirst Look at Turlock PlantWealth of New RetailProducts Hit Shelvespg. 26Beach CruiserRaffle Winner

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PRESIDENT’S CORNERPresident’s CornerMark JansenPresident and CEOInvesting in Our Good2012 Annual Meeting SpeechTogether we have had two incredible years. We have had record grower and co-op revenues and havemade the biggest investments in the history of the almond industry, while still delivering leadingreturns. That is investing in our good! My appreciation goes out to the entire Blue Diamond boardfor their support and Blue Diamond employees for their heroic efforts.Leadership Bolstered By Record GrowerRevenues and Margin EnhancementsLet us reflect on our progress in marketing the 2012 almond crop.The early read on this year’s crop was, “It’s going to be big!” In May,at the International Nut Congress in Singapore, handlers were sellingwith the belief that this was a new record crop, up to 2.3 billionpounds. Prices were high, above those of last year, so their decisionto sell was rational. When the objective estimate was released at2.1 billion, it confirmed expectations of the market and supportedfurther selling, particularly in the domestic market.Harvest brought new information: first that Nonpareil wassignificantly short of last year, around 20 percent off; second, thehigher expectations for this year’s pollinizer crop were unfounded;and third, that the dryer and hotter summer created low moisture nuts with smaller sizing and lower quality. We nowbelieve this year’s almond crop will be around 1.9 billion pounds.The good news is that prices started at historically highlevels and have increased from there. In September alone,CA 2012 Almond Cropprices rose $.30 to $.50 a pound. Currently, prices areholding near their highest level of the year. We are bullishon future almond market pricing.Blue Diamond is on track to achieve record grower revenuesfor the third straight year! We have realized a two-yeartrend of record grower revenues accomplished throughhigher yields per acre and higher returns per pound.2.3BPricesThis year, many growers had lower yields per acre, butyou should be comforted in knowing that early in the2.1Bmarketing year we are generating significant increases inBlue Diamond returns per pound.At our historic 100 th anniversary grower meeting, during myintroductory speech, I promised that we would distinguishBlue Diamond returns from the competition by acceleratinggrowth in our value-added businesses and driving marginMayINCJulyObj. Est.1.9BSept.Harvest6 Almond Facts NOVEMBER | DECEMBER 2012

Margin EnhancementValue-Added Sales Volume$27.3m$37.3m$10mAnnual$ Growth+35%2-YearGrowth13.2%$13.1m$13.1m$14.2m$14.2m$14.2m1-3%2010 2011 2012 PlanCrop Year ImpactIndustryAverageCY2011enhancement. With this focus, Blue Diamond employees have been able to achieve a winning return for our growers.Last year I told our Blue Diamond team, “Go find another $10 million in margin enhancement for our growers!” And theyreally got their good going! They came back with $13 million in savings through improved manufacturing yields, fastermanufacturing lines and lower costs. The best part about our margin enhancement initiative is compounding. Eachyear’s successes are repeatable and build on the previous years. Our $13 million in new annual savings was built on topof the $14 million in savings from the previous year giving Blue Diamond a two-year annual impact of $27 million. I sopassionately believe in this program that, once again, I told our team, “Go find another $10 million in savings for ourgrowers!”Our strategy of growing value-added almond sales was built on the understanding that these are Blue Diamond’s mostprofitable sales and the vision that we should be best in the world in our consumer and ingredient businesses. Last year, weachieved 13 percent growth in our value-added business, bypassing the food industry average growth of 1 to 3 percent. Overthe last two years, our value-added ingredient businesses have grown by 35 percent, effectively consuming our pollinizervarieties in higher-profit sales.“Good” Campaign Connects with ConsumersAs part of our value-added growth strategy, we have significantly increased our investments in advertising, starting with BlueDiamond’s advertising during the Olympics. The purpose of this advertising is to build our Blue Diamond brand by creating anemotional connection between consumers who want to live their lives to the fullest and our wholesome products. We wantconsumers to believe that Blue Diamond gives them the vitality to be at their best. Simply said, Blue Diamond helps you get yourgood going!There is an incredible amount of work behind good advertising and also some great stories. Following are some of my favoritelittle-known numerical facts about Blue Diamond’s Olympic ad. You can watch our ad at www.youtube.com/BlueDiamondGrowers.1 … London Olympics ranking of all-time most watched TV events in US3 … The number of hours it took before the girl on the bike magically caught the almond can outof thin air4 … The number of cans eaten in one hour by the three guys riding in the back seat during theroad trip scene6 … As in Six Flags Discovery Kingdom in Vallejo where the roller coaster scene was shot. We areproud the entire commercial was filmed in northern California at places such as Stinson Beach.continued on next page »NOVEMBER | DECEMBER 2012 Almond Facts 7

Mike leads his small, dedicated team of five people who toil in a tinylaboratory in back the bowels of our Sacramento processing facility. InJanuary, they will move into our new Almond Innovation Center. This buildingwill contain prototyping equipment that allows Blue Diamond to increasethe speed of innovation and lower the cost of creating new products. Inparticular, Mike and his team will be able to create small batches of AlmondBreeze or small quantities of almond cans without shutting down our highspeed manufacturing lines. Increasingly, our global ingredient and foodservice customers want to visit Blue Diamond to jointly develop new products.Just imagine what is possible when our R&D team is able to partner with ourcustomers in this cutting edge facility.Envisioning Our FutureTwo years ago we established our vision, “delivering the benefits of almondsto the world!” Over the next 15 years, our envisioned future communicatesour shared inspiration for what we hoped to achieve. We will achieve thisvision by accelerating our transformation into a global branded food company.First, Blue Diamond will create dominant market positions in consumer brands,foodservice and ingredients. Good growth creates opportunity for employeesand value for our grower-owners.Second, Blue Diamond employees view themselves as partners because they are respected, challenged, appreciated, and areworking in a values-rich environment. Blue Diamond is already a great place to work. Today I am committing us to takingappropriate steps to ensure our employees say Blue Diamond is one of the best places to work. That is only appropriate as itis the people of Blue Diamond who will make our future vision possible.Third, Blue Diamond will deliver economic value to its growers that so far exceeds that of other handlers that superiorreturns are taken for granted. In this way, we will be able to define oursuccess with even higher standards. My wish is that, like me, you willsee these goals as realistic and inspiring.Together we can accomplish these goals and invest withconfidence. We have developed a track record ofincreasing grower returns and revenues per acre.We have created a superior business model thatallows us to deliver the most competitive returns.We have seen early positive returns in ourinvestments in advertising and people. Wehave the future promise of our new Turlockfacility months away from opening. We haveexperienced global demand forour consumer products. We haveseen the extraordinary potentialfor investing in this co-op. In a worldwhere bank accounts, CDs and bondsreturn almost nothing on your dollar, Ihope you share my confidence that BlueDiamond is one of the highest returningand safest investments.Remember, when youstart something good, it only gets better.And the best is yet to come!NOVEMBER | DECEMBER 2012 Almond Facts 9

CHAIRMAN’S MESSAGEChairman’s MessageClinton ShickChairman of the BoardA Record-Breaking YearRemarks from 2012 Annual MeetingThere is just no other way to describe 2012,our 102 nd year of delivering the benefitsof almonds to the world, than to declare“We really Got Our Good Going.” It was anabsolutely, outstanding, record-breakingyear, and record-breaking on not just onemeasurement, but on many counts.In the midst of so much gloom and doom discussionsurrounding the condition of the general economyand the impending fiscal cliff, it has occurred to allof us that agriculture is doing very well, and it is apretty good time to be a Blue Diamond almond grower.How fortunate, and blessed we are to be growing sucha versatile and healthy food, that enjoys strong andgrowing demand around the world? And how equallyfortunate for California almond growers that theunique climate of our valleys allows us to supply 80percent of the total world almond supply?The record 2011 California crop was also an alltimerecord handle for Blue Diamond, both in poundsreceived and in pounds shipped during our fiscal year.With strong prices that escalated during the year,we reached a milestone, attaining revenues of justover ONE Billion Dollars for the year! The USDACooperator magazine listed Blue Diamond as No. 39in its list of the top 100 grower-owned cooperativesmeasuring total revenue. Record volume, coupled withrecord revenue led our company to return record net proceeds to growers, both in total pool dollars and dollars peracre on the 2011 crop. This is the second year in a row for returning record revenue per acre to Blue Diamond growers.The quality of the 2011 crop, while not a record, did equal the all time record for quality set in the 2008 crop year.While not only delivering excellent returns to our members, our company also continued its policy of sound fiscalmanagement, keeping the balance sheet strong and added just over $9 million to retained earnings. This was madepossible largely by our non-patronage Breeze and Nut-Thin business. Our permanent capital reached a milestone of$102 million, which strengthens our relationships with our bankers, and reduces the need for holding larger revolvingfunds from you and I.There is no doubt that when crops are good, and the weather cooperates during harvest, and when prices are goodand rising, that it’s any wonder why we would be in a good mood as almond growers. While strong prices have a lotto do with our feeling good about the return, I want to highlight some of the other reasons for us to feel proud of10 Almond Facts NOVEMBER | DECEMBER 2012

moving the entire crop from the hullers and shellers to aBlue Diamond receiving point.Increasing our bottom line can also be seen this yearthrough the efforts of our Government Relations teamGetting their Good Going. They were active in developingand persistent in pushing for the recently enacted FreeTrade Agreements with South Korea, Panama andColombia. Sales to these three countries have respondedpositively with $75 million of new almond sales for theindustry just this year.Turlock Plant Stirs ExcitementAmong MembershipSo let’s talk a bit about the biggest story of the year— Turlock. What an exciting time to be watching thelong awaited, single largest capital improvement in our102-year history coming to life before our eyes? Just afew weeks ago, the final roof beam was lifted into place,and the roof was sealed up. Just last week, some of theequipment for the first line was moved into the building.Sometime in February the plan calls for starting to testrun some of the equipment.We are making excellent progress, meeting ourconstruction schedule, and of paramount importance,meeting our budget. Speaking of budget, while we havenot disclosed the specifics of cost, we have said fromthe beginning that this will be the largest single capitalexpenditure in our history. Since making the commitmentto expand into Turlock, the business reasons for buildingfor our future have only improved and we believe evenmore strongly that we are on the right path for BlueDiamond to continue to be the best almond processor andmarketer in the world.We know there is speculation about how this new valuableasset will affect our pool returns. Under the heading of“full disclosure” and to speak to any confusion that mightexist, the cost of building in Turlock had absolutely zeroeffect on the just final 2011 pool — none whatsoever. Theaccounting rules we follow do not allow for the expensingor depreciation of any capital expenditure until the yearthat it is put into useful service. Since the new plant willstart up next spring, during the processing of the 2012crop, there will be a charge against the 2012 pool. It willhave a real cost, starting next year, but we don’t thinkyou’re going to care. That’s right. WE DON’T THINKYOU’RE GOING TO CARE. Remember the marginenhancements I mentioned before? Remember the revenueimprovements from selling-up the value of our pool?Those pool improvements, that are sustainable, will morethan cover, way more than cover, the small charge tothe 2012 pool year.And even more importantly, don’t forget, there is somebusiness we can’t do now because of capacity constraints.Turlock will lead to expanded business once it is inoperation. And when it is in operation, it will be at lowercosts than we are experiencing today, adding furthermargin improvement. I don’t mention these things becauseI think you may be worried about the decision. I think weare all excited about how Turlock will add to our ability tobuild a better future. But as it is a BIG DEAL, we wantedto give you the facts and some perspective. Your future isbright.Would it surprise you if I said sometimes “underinvesting”can be as costly, if not more so, than “overinvesting”? Wehave come to realize that in some respects because we wereso focused on getting our business model refined and gettingour cost structure where it should be, that we may havewalked by some quarters, in order to pick up some dimes.It happens on our farms too. We sometimes make the “oldone” keep working too long – one breakdown too many. Theconstruction of Turlock is a big example of needing to dosome “catch up,” and the lessons we are learning there arehelping us discern some other areas where some prudentinvestment may be beneficial.Leading the Co-op in the RightDirectionA little over three years ago when we first started planningfor leadership change, we were real proud of Blue Diamond,and mindful of our responsibility to select the right kindof leadership. Part of the discussion turned into a goalthat making a wise choice could take a great company,and make it even better. We believe there is measurableevidence that our goal is being realized. Improvementswe are making are sustainable, and they are adding to ourbottom line.In our recent review of our President and CEO, one of thequestions we considered was “What Areas Of The CEO’s JobResponsibilities Have Been Performed Most Effectively?”Some of the comments were: ‘You have establisheda stronger One Business Team approach.’ ‘You haverecognized where additional talent could be beneficialto overall Blue Diamond success.’ ‘You have pushed forsignificant sustainable cost savings.’ ‘You have establisheda path for growth addressing our production limitations.’‘You have pushed value-added and consumer into newareas where additional margins can be captured.’ ‘Youare managing positive changes and implementing themthrough the organization.’In the beginning, I used a baseball analogy to describe how wellthe team was performing. Now that the World Series is over,maybe football vernacular would be more appropriate. Well, wethink our Quarterback had a winning season as well.12 Almond Facts NOVEMBER | DECEMBER 2012

ONE SMALL STEP FOR MAN,ONE GIANT LEAP FOR ALMOND-KINDOur new state-of-the-art plant in Turlock opens in May, 2013Slicing, dicing, roasting, toasting... It’ll all be happening in record time when our new Turlock plantcomes online. Fitted with the most advanced equipment available, the facility will help satisfy theworld’s growing appetite for almonds. And thanks to the totally controlled environment,our products will meet the highest food safety standards.Cutting-edge technology, global marketing and high returns are just a few of the valueadded services we provide growers. So partner with us now, and let’s take this giant leapinto the future together.Partner with the world’s leading grower-owned cooperative! Call 209-545-6225www.bluediamond.com

FIELD SUPERVISORSDave BakerRyan ChristyDirector, Member Relations209.545.6222 Salida209.541.9148 CellReceiving Coordinator, MemberRelations,Westside Stanislausand Merced Counties209.761.2289 Cell209.545.6218 Salida209.742.2089 HomeTehama, Butte andEastern Glenn530.864.0619 Cell530.674.4724 HomeWestern Glenn, Colusa, Yolo,Solano, Yuba and Sutter Counties530.518.9109 Cell530.458.2669 HomeSan Joaquin County East of JackTone Rd, West of the San JoaquinRiver Stanislaus County, West ofthe San Joaquin River209.531.6352 Cell209.545.6221 SalidaNorthern Fresno andSouthern Madera Counties559.779.6400 Cell559.449.9751 HomeNorthern Madera andSouthern Merced Counties559.474.2996 Cell559.645.4708 HomeKern and SouthernTulare Counties661.203.7680 Cell661.588.8961 HomeStanislaus County East of Hwy 99209.531.4112 Cell209.668.7708 Home209.545.5225 SalidaSteve RothenbergKC StoneJereme FrommErnie ReichmuthBob KetcherMel MachadoGerry GuthrieDennis MeinbergMike GriffinRob KissFresno, Kings andNorthern Tulare Counties559.269.6809 Cell559.561.4508 HomeStanislaus County South ofTuolomne River, West of Hwy 99and East of San Joaquin River,Merced County, North of Merced River209.596.5375 Cell209.545.6225 SalidaSan Joaquin County West ofJack Tone Rd Stanislaus County,North of the Tuolomne River209.596.9520 Cell209.545.6225 SalidaOther InquiriesSalida Membership Department | P 209.545.6225 F 209.545.6215Sacramento Membership Department | P 916.446.836814 Almond Facts NOVEMBER | DECEMBER 2012

2014With the increasingdemand forBurchell NurseryHealthy Start Trees,now is the time toplace your 2014order for thebest selecton.Call800-828-TREEnow!TM©2012 The Burchell Nursery, Inc.burchellnursery.com

2012 GROWER LIAISONDistrict 1Eric Behring (530) 342-8313Bruce McClintock (530) 895-8771Greg Overton (530) 865-2520Dan Cummings (530) 894-5494 **Fred Montgomery Jr. (530) 891-6625 CHoward Isom (530) 891-0375 *Larry Bradley (530) 893-5347Merritt Erickson (530) 330-1871John Nock (530) 342-2240Lyle Livingston (530) 345-4405RaymondAntonowich(530) 899-3820 VCMark Lohse (530) 934-7248Jim Wilson (530) 865-9458Hank Wallace (530) 342-8770 !District 5Merlyn Garber (209) 522-3851Gordon Heinrich (209) 524-8989Ron Harding (209) 522-4159 VCSid Miller (209) 238-9946 !Stephen Van Duyn (209) 599-4094 **Neil Van Duyn (209) 545-1055 *John Alberti (209) 604-4830Gary De Vries (209) 838-2300Pam Riddle (209) 874-9784 CDennis Bowers (209) 578-0713Manuel Azevedo (209) 522-0774Mark Giannini (209) 545-2189Dan Howser (209) 521-2072Bruce Oosterkamp (209) 505-6234District 2District 3LegendChairmanCVice-Chairman VCEx-Officio *Director **Appointed(Member-at-large)!Almond BoardAlternateABA2012District 4Matt Cotter (916) 919-1307 Paul Voortman (209) 838-7064 Dustin Wagner (209) 651-5192Jim Manhart (530) 682-5957 VC Kathy Thomsen (209) 914-2580 Phil Mohler (209) 985-8617Joe Martinez (530) 795-1928 Joe Rishwain (209) 477-5841 Matt Visser (209) 765-9297 VCElaine Rominger (530) 476-2103 ** Dale Van (209) 599-3713 ** Kevin Fondse (209) 599-2751 **GroningenGerald Rominger (530) 476-2103 *John Thoming (209) 835-2792 ABAArt Weststeyn (209) 599-3193 *Douglas Mathews (530) 476-2576 *Rita E Low (209) 823-8762 !Kenneth Roos (209) 599-3037 *Richard Denison (530) 724-3514Jim Lopes (209) 823-5930Will Drost (209) 838-3263 !Logan Dennis (530) 304-2907Joe Molina (209) 479-1359 David Berg (209) 838-7451Ranjit Dhillon (510) 375-0168Arthur Sipma (209) 599-3017 David Dole (209) 599-4482Mike DeRee (530) 695-2585Craig Miller (209) 914-4601 VC Terry Mulder (209) 599-7219Gilbert Ramos (530) 510-7282Mike Bogetti (209) 835-9120Jake Sonke (209) 599-2430 CMatt LaGrande (530) 682-8939 CRichard Phillips (209) 858-3696John Almeida (209) 599-3604Tim Doherty (530) 681-8206Jim Thoming Jr. (209) 601-2726Joe Gasper (209) 838-2717Bob Payne (530) 662-2354Mike Sonke (209) 612-0818 CDwain Zack (209) 838-6887Ryan Romness (530) 790-6716 !David Roos (209) 605-6564123 4 56 789District 6Rich Gemperle (209) 604-8660Lisa Giannini (209) 535-4121Randy Bergman (209) 883-0642Gerry Costa (209) 484-4506 !Brian Ramos (209) 634-6917 Rep*Charles Crivelli III (209) 667-4547 **Steve Vilas (209) 668-4466 *Bill Brush (209) 537-8857 ABADarrell Cordova (209) 874-4042Steve Scheuber (209) 669-6848Aaron Piazza (209) 678-0787Ron Gonsalves (209) 668-2077Allen Peterson (209) 667-4697 VCDirk VanKonynenburg(209) 648-6578 CJohn Miller (209) 531-3822District 7Ralf Sauter (209) 394-0001Joe Enos (209) 394-7830Leo Lamb (209) 383-5225Pete Bandoni (209) 722-0123 !Robert J. Weimer (209) 358-1685 **David L. Zollinger (209) 632-4013 *Zenon M. Frago (209) 394-2446David Passadori (209) 648-3418Steve Stone (209) 357-1176 CDon Harckson (209) 634-5830Jim Baballe (209) 667-2763Clark Heppner (209) 358-5298 VCGordon Wade (209) 394-8180Ezio Sansoni (209) 722-6148District 8George Goshgarian (jr) (559) 281-4392George Goshgarian (559) 246-4918 **ABADuane Cunha (559) 259-5905Norman Pretzer (559) 485-9496Aldo Sansoni (209) 826-4665 *Tim Parichan (559) 435-9131 !Jens Finderup (559) 779-9277Dave Loquaci (559) 673-2198Rusty Nonini (559) 908-3837Robert Allen (559) 291-1944 VCKyle Rodrigues (559) 970-4906Martin Souza (559) 385-0578Dennis DeFreitas (559) 864-3456 !R.J. Maan (559) 871-6048 CTony Ramos (559) 269-0580Jim Sani (559) 888-2745District 9Don Davis (661) 792-3423John Allen (661) 834-8439Jeff Noble (559) 359-3844Clinton Shick (661) 792-2660 **Dominic Fino (559) 591-3711Tom Schwartz (661) 797-6808 *Ben Wilson (661) 746-4423Ernie Spencer (559) 443-9501Rick Jelmini (661) 599-0531David Snell (661) 792-2424 CKent Stenderup (661) 854-6337 VCCarl Nikkel (661) 589-5349Sean Shick (805) 234-4608 !16 Almond Facts NOVEMBER | DECEMBER 2012

HULLER/SHELLERSCONTEMPLATE ISSUESNew FDA Regulations,Bay/Delta Plans HighlightedBy Gray AllenAfter a relatively uneventful hulling/shelling seasoncharacterized by favorable weather and dry product, one longtimemanager observed at the annual Huller/Sheller Breakfastsponsored by Duarte Nursery, “This was a very good year, thekind of year that helps you decide to stay in the business.”Mel Machado, Blue Diamond Growers special projects coordinator and hostof the breakfast, welcomed some 85 managers of Central Valley huller/sheller operations with, “Thank you for the great job you do. You arethe first point of quality control,” which led directly into the first topicof the morning, a discussion of the new Food Safety and ModernizationAct regulations scheduled to take effect in 2013.Kelly Covello, President of the Almond Hullers and ProcessorsAssociation (AHPA), noted that the new regulations grant increasedpowers for the Food and Drug Administration in inspection, preventivecontrols, registration by handlers and processors, record keeping andfood defense plans. Each of those areas will have strict new requirementsthat huller/shellers will have to abide by, she said. “And tree nuts willlikely be included in the “high risk” category, which makes them eligiblefor mandatory recalls.”Huller/sheller daily operations will require stricter attention to detail,she said. “The rules take steps beyond Good Management Practices.Inspectors will look for hazards. Handlers will begin asking forcompliance certificates because FDA will follow the supply chain.”Food Safety Plans are a priority with FDA, Covello explained. The AHPAoffers a comprehensive workbook that huller/shellers can use step by step tocomply with the new rules, she said. It, as well as re-registering guidelines, isavailable online from the Association’s website: www.ahpa.net.Kelly Covello, AHPA»Mike Wade, CA Farm Water Coalition»18 Almond Facts NOVEMBER | DECEMBER 2012

GROWERS GET THEIRGOOD GOINGRecord Sales And Revenues, PlantExpansion Signal Good Times Ahead20 Almond Facts NOVEMBER | DECEMBER 2012Blue Diamond members and guests gathered for the 102ndAnnual Member Meeting in Modesto, November 14, tunedin to the upbeat theme of “Good Is In Everything We Do.”An exhibit area highlighted by promising new products,business reports of record sales and revenues, and tours ofan expansive new processing facility under construction innearby Turlock confirmed grower optimism on the heels ofa record crop.Those feelings echoed in Board Chairman Clinton Shick’s openingremarks at the annual luncheon. “This is a good time to be an almondgrower, especially a Blue Diamond almond grower!” he declared.Stirred by a patriotic medley sung a cappella by all-male chorus SweetDeliverance and a heart-felt pledge of allegiance led by six-year old GirlScout Katelyn Stout, the near-overflow audience of growers and guests tookin glowing reports of double-digit sales growth across all product lines and anaggressive growth strategy of plant and product-line expansion.Significant Milestones AchievedShick announced, “We reached a milestone this year, attaining revenuesof just over $1 billion!” It was a year of record setting, he said: recordvolume, record revenue, record return to growers and the second yearin a row of record revenue per acre.continued on page 22 »

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Trusting Our VisionPresident and CEO Mark Jansen thanked the members for “...trusting in our new vision...,”which delivered industry leading grower returns at the same time the cooperative was investingin new marketing strategies and expanding processing capabilities. “You have the security ofknowing that each year our aim at Blue Diamond is to have the best return in the state.”The cooperative achieves superior, dependable returns by “not taking risky marketpositions,” Jansen noted. “We do not try to time a peak in the market. Given our size andbusiness model, this is not an option. Our strategy is to average sales throughout the year.”As for returns on the 2012 crop, Jansen said, “Most of you had lower yields per acre this year,but you should be comforted in knowing that early in the marketing year we are generatingsignificant increases in returns per pound. Barring a significant turn in the market, BlueDiamond is on track to achieve record grower revenues for the third straight year!”Jansen described the remarkable response from employees to his challenge to “find $10million in margin enhancements for our growers.” Employees delivered $13 million insavings though improved manufacturing yields, faster manufacturing lines and lowercosts, he said, and are continuing down that path to even more savings and value-addedproducts for higher grower returnscontinued on next page »NOVEMBER | DECEMBER 2012 Almond Facts 23

Two years ago, Blue Diamond established the vision of “Delivering the benefits of almonds to the world,” Jansen recalled.“We will achieve this vision by accelerating our transformation into a global branded food company with dominant marketpositions in consumer brands, foodservice and ingredients. We will deliver economic value to our growers that so farexceed those of other handlers that superior returns are taken for granted.”“Remember,” he said, “When you start something good, it only gets better. And the best is yet to come!”Growers Enjoyed Turlock Tours, Visiting with ExhibitorsAn estimated 500 growers boarded buses to Turlock for a walk-through of the new plant under construction there.Incorporating the latest, food-safe construction and processing techniques and equipment, the plant will be the mostadvanced almond facility in the world, and lowest-cost producer of value-added products.More than 20 commercial businesses displayed farm-related products and services in the exhibit area along with a clusterof Blue Diamond exhibits sampling newproducts sold in the U.S. and around theworld. Among the informational displayswas a preview of Blue Diamond’s new AlmondInnovation Center, nearing completion ina remodeled building on the Sacramentoproperty. It will enable the industry-leadingproduct and process development team todo more development work to meet growingdemand for innovative almond products andcommercial ingredients.IMPROVING SOILPAYS DIVIDENDS:• WATER USE IS LESS• NITROGEN USE IS LESS• LESS DISEASEShur-Crop SUPRA helps toaccelerate the biological break-downof debris & toxins; improving soiltexture, nutrients & health.IF YOU WANT MORE INFORMATIONCONTACT BLUE DIAMOND GROWER:Jim Tanioka (209) 769-5627MANUFACTURED IN CALIFORNIA; SINCE 1970.MAIN INGREDIENT: CERTIFIED ORGANICICELANDIC KELPBY LEE KENDER, INC.P O BOX 472, ORVILLE CA 9596524 Almond Facts NOVEMBER | DECEMBER 2012

Residual control that goes the distance.Alion pre-emergence herbicide:Cleaner. Longer. Alion.Labeled for use on citrus, pome fruits, stone fruits,grapes, walnuts, almonds, pistachios and olives.NOVEMBER | DECEMBER 2012 Almond Facts 25

And the Winnerof the Get YourGood GoingBeach CruiserBicycle Is…# 9202200NEWS IN A NUTSHELLBlue Diamond’s North American Retail team raffledoff a “Get Your Good Going” beach cruiser at the2012 Annual Meeting to get people excited and intothe spirit of the new campaign. The winning ticketnumber is 9202200. If this is your ticket, pleasesnap a photo of it and email the photo to sholtberg@bdgrowers.com to claim your prize!Alternatively, you can call Almond Facts editor CassandraKeyse at (916) 446-8353 and she will help you claim the bike.Snack Almonds Hit Shelves of World’s2nd Largest Retailer – CarrefourBlue Diamond has established relationships with two of France’s largest food retailers.The largest of these retailers initiated contact with the cooperative, requesting a lineof flavored almonds for their shelves. Final negotiations and terms were completedwith both retailers this summer. Initial product launch occurred in August in Frenchretailer Monoprix in 290 stores and followed with a launch in France market’s leader,Carrefour, on October 10th in over 1,000 outlets. Carrefour, while a seeminglyunfamiliar name to Americans, is the world’s second largest retailer, trailing onlyWalmart in terms of revenue.Blue Diamond developed three new items for the French marketplace — Grillées SaléesAmandes (Roasted Salted Almonds), Smokehouse® Goût Fume Amandes (Smoked Almonds)and Grillées au Miel Amandes (Honey Roast Almonds) all in 150g cans.In September, Blue Diamond contracted with in-store activation company CB’a BrandEngine to help develop marketing and promotion support activities for the Frenchmarket. In late September, the marketing team held its first brand strategy session, todefine Blue Diamond’s brand proposition and Key Messaging for France. Additionally,they created a marketing and promotion plan to support efforts within the two retailaccounts with Monoprix and Carrefour. Activities will include in-store promotions suchas couponing and price promotions,advertising in retailer catalogues andcirculars, digital and social mediapresence with the development ofa France market website, Facebook,Google+ and Twitter pages, andpublic relations activities towards theblogosphere to support the launch ofBlue Diamond and new flavors. The firstactivities went live November 2012.26 Almond Facts NOVEMBER | DECEMBER 2012

Blue Diamond Honors Veterans Day“Our veterans are part of an unbroken chain of men and women who have served our country with honor and distinction.On Veterans Day, we show them our deepest thanks.” Bob Carroll, business director of international retail, read fromPresident Barack Obama’s Veterans Day proclamation to welcome Blue Diamond employee veterans to the company’shonorary breakfast.The morning began at dawn on November 9 in front of the flagpoles at the Sacramento plant, where nearly 40 veteransgathered for reveille, followed by a complementary breakfast, to thank them for their service to the United States. BlueDiamond is proud to employ veterans from each branch of service.News continued on next page »NOVEMBER | DECEMBER 2012 Almond Facts 27

NEWS IN A NUTSHELLPresident Obama and Gov. ChristieSnack on Whole Natural AlmondsFor more than 50 years, Blue Diamond has provided almonds to Air Force One, Marine One and other high levelfederal offices, including the President of the United States and all NASA space shuttles. In this photo, PresidentBarack Obama and New Jersey Governor Chris Christie tour the aftermath of Superstorm Sandy aboard MarineOne helicopter with a pack of Blue Diamond’s Whole Natural almonds between them.Clonal AlmondsUniform Growth, HigherProduction, Proven Performance• Kyrmsk® 86 *• Controller® 9.5• Hansen• Marianna• Brights Hybrid® *• Empyrean® 1 *• Nemagaurd• LovellClonal WalnutsEverything you’ve dreamt about• Clonal ParadoxRootstocks• Crown Gall Free• Easy to Plant• Uniformly Vigorous• Highly productive• Delivered• Guaranteed* P2G exclusivesales@duartenursery.com1-800-GRAFTEDwww.duartenursery.com • Hughson, Ca.1-800-GRAFTEDwww.duartenursery.com • Hughson, Ca.28 Almond Facts NOVEMBER | DECEMBER 2012

“GOOD TO BE A MEMBER”Knowledge is power andpride for young leaders»Cory Ramos, participantfrom District 6: “Seeing theinternational side of the businessand what Blue Diamond does forus made me proud to be a BlueDiamond grower.”Learning about the business side of their cooperative stirred feelingsof awe and pride in the 30 young growers who participated in the 2012Class of Blue Diamond’s Young Leader Program. These feelings led thesuperlatives voiced by the young growers at their graduation dinner inModesto the evening before the 2012 Annual Growers Meeting.They, along with four young bankers who serve the almond community, visited BlueDiamond’s plant and headquarters in Sacramento in January, toured the state capitol andmet with legislators and legislative advocates who represent them in the Capitol. In June,they learned about operations at the Salida plant, saw almond trees being prepared forsale to growers, and witnessed the assembly of almond harvesting equipment.From these adventures, along with interaction with the cooperatives elected directors andtop management, the young growers said that they developed a deep appreciation for thework their cooperative does on their behalf around the world. Some of their comments:Andrew and Dyana Parsons, District 7 participants: “The Young Leader Program was an eye opener. It has helped usdo our job better.”Eric Cabral, participant from District 7: “I appreciated learning what the future holds for the almond industry.”Sean and Valerie Shick, participants from District 9: “The biggest takeaway for us was meeting the team that runs BlueDiamond and seeing how competent and professional they are.”Eric and Theresa Heinrich, District 5 participants: “ Blue Diamond achieves a level of unsurpassed excellence. It isconstantly adding value-added products. We are proud to be members!”Brandon Longstreth, District 4 participant: “I didn’t know much about Blue Diamond. I discovered how impressive it is— the plants, product development, market development — all that it does for us.”A Fantastic TimeMark Jansen, President and CEO, in a brief hint of what he would discuss in his annual meetingremarks the next day, noted that in spite of the difficult business climate in the United States and,especially, in California, Blue Diamond believes it is time to expand operations with a new, ultraefficient,state-of-the-art almond processing facility in Turlock.“We developed a 15-year vision of what we think we need to efficiently process your crops inthe years ahead. That shared long-term vision was critical in making the big leap to saying, ‘Yes,we should invest to assure our continued success,’” Jansen said. “It was a collective decision bythe board and the leadership team. It is a three-phase project with the first phase to be ready foroperations next summer. When you see that first phase you will say, ‘Wow, this is impressive!’ Thisis a fantastic time to be part of Blue Diamond Growers.”Selling to the WorldBlue Diamond almonds flow from California orchards to consumers in nearly every corner of theworld, explained Warren Cohen, Director of Sales for the Global Ingredients Division. “If youare walking down a supermarket aisle in the U.S., Japan, any nation of the European Unionor any Asian country, you will see cereals, chocolate products, bakery goods, processed foodsand snacks that incorporate Blue Diamond almonds as one of the main ingredients.”30 Almond Facts NOVEMBER | DECEMBER 2012»Lynae Lucchesi,daughter of BoardMember SteveVan Duyn andparticipant fromDistrict 5: “It wasgreat to see howBlue Diamonddoes what itdoes.”

“Your almonds are everywhere — in pastry shops in Istanbul,bazaars in India and across the Middle East, in chocolatecoveredalmonds being sold in Beijing or Shanghai. BlueDiamond sells to the world!” he said. Our Almond They havelearned which planes not to fly, which airlines to avoid, andhow to overcome jet lag and hit the ground running whenthey get to their destinations, no matter how remote, he said.Being able to adapt to a wide range of customer types andneeds is critical, he said. “We visit multinational companies todiscuss new product ideas, quality issues and specifics aboutthe nutritional benefits of almonds. The next day we may besitting on a cushion on the floor with our shoes off drinkingtea and making a deal with a local merchant.”“Having this flexibility and close relationships with ourcustomers in each region is vital to our success anddifferentiates us from our competitors,” he said. “Whenwe meet face-to-face we learn much more and develop arapport that leads to more business.”Cohen and his team also work closely with the U.S. ForeignAgriculture Service and U.S. Embassies around the world todiscuss duty issues, market access problems and to developties, which can be important when a problem occurs. Histeam participates in leading food shows around the world, andserves on key committees of the Almond Board of California.Cohen meeting with customers in a unique office settingin Old Delhi, India.Almonds in an open-air spice market in India.»»Prevents Crown Gall, a seriousplant disease that reduces yieldsand shortens the life of your trees,vines, and shrubs.Eradicates galls on diseasedplants. The only product thatcontrols Crown Gall aftertumors are formed.Costs OnlyPenniesPer Tree!530.586.1561 | www.agbiochem.com | agbiochem9@gmail.comNOVEMBER | DECEMBER 2012 Almond Facts 31

New Products Usherin New Marketing YearAfter a remarkable sales year where established product lines each posted double-digit salesgrowth, North American Consumer marketing is keeping the ball rolling with new productslaunching this fall. From Snack Almonds to Nut Thins and Almond Breeze, new additions to theproduct line are sure to please a wide range of consumers craving healthy snacking alternatives.The expanding product lines opened the door for Blue Diamond’s entry into new grocery segments. In addition tohaving a presence on shelves in the snack, natural foods and dairy sections, expect to see Blue Diamond enteringproduce and single-serve beverage categories in full force.CORNERING THE MARKETThin Shell Almonds Welcomed in Produce SectionNew Fresh Roasted Thin Shell Almonds enter the produce section backed by a wealth of consumerresearch. With the in-shell nut category sales up double-digits compared to a year ago, NorthAmerican Consumer marketing thinks there is no better time to capitalize on the category’ssuccess. The produce section offers a unique opportunity to enter a highly trafficked area ofthe grocery store and as a grower-owned cooperative, it is a unique opportunity to presentBlue Diamond Almonds amongst other commodity products.“We have such great brand awareness in the snack almond segment that making this moveto produce made perfect sense,” Al Greenlee, Marketing Director, said.The product is perfect for men and women looking for a unique tasting snack that is funto eat. According to a “State of the Snack Industry” report from 2011, 55 percent ofconsumers often eat snacks for enjoyment and consumers are snacking significantly morenow than they were just two years ago. In a product test, 92 percent of consumers showedpositive interest to Fresh Roasted Thin Shell Almonds, confirming that the product is “unique,appetizing and tastes great!”“I would recommend these to anyone I know who enjoys eating in-shell peanuts,” said oneconsumer. “Similar experience, but a better tasting product!”Blue Diamond’s Thin Shell Almonds come in two flavors, Hint of Sea Salt and Unsalted. They are brined in a seasoningsolution and delicately roasted, leaving a delicious tasting almond in a thin-shell that you easily crack open by hand,providing the satisfying crunch of cracking open their almonds and enjoying them in a whole new way!Almond Breeze Now Easier On The GoOn the whole, Almond Breeze experienced a very strong year, posting salesincreases of 28 percent for aseptic varieties and 59 percent for refrigeratedproducts. Blue Diamond’s popular non-dairy beverage is now easier toenjoy than ever as it joins the single-serve beverage category with threeof the line’s most popular flavors: Original, Unsweetened Original andUnsweetened Vanilla.The decision to enter this category was based on consumer feedback,according to Suzanne Hagener, Senior Marketing Manager for AlmondBreeze. “Our Almond Breeze consumers are looking for convenience andmobility. This product line really speaks to our Get Your Good Going campaignas it allows consumers to go about their lives with our easily accessibleproduct in tow,” she explained.More and more, Almond Breeze marketers are finding that consumers aretaking their health into their own hands and portion control is one way to32 Almond Facts NOVEMBER | DECEMBER 2012

trio offers customers more healthful options forsophisticated snackers.The product is supported through printadvertisements in publications such as the Gluten-Free Grocery Guide and Whole Foods Magazine,through in-store couponing and through a publicrelations campaign targeted at natural foodsshoppers. Consumers are learning about theproduct directly from Facebook, the Blue Diamondwebsite and through e-blasts.“Blue Diamond is making a splash throughoutthe grocery store with these new product lines,”Greenlee said. “This is an exciting time to be partof Blue Diamond Growers.”accomplish living a healthier lifestyle. The single-serve AlmondBreeze is the perfect fit, marrying an already healthful beveragewith an 11-oz easy grip container featuring a re-sealable lid notcurrently available in the category. Another unique feature is theinclusion of the American Heart Association’s “Heart HealthCheck Mark” on the packaging, driving home the product’shealthy attributes.Check out www.Facbook.com/AlmondBreeze for more information in thecoming months.Artisan Nut Thins Reach Savvy SnackersWhat do you get when you combine sesame seeds, flax seeds anda multi-seed blend with wheat and gluten free almond Nut Thins?Brand new Artisan Nut Thins, the crackers that give shoppers thenutritional value and functionality that they’re looking for!After a growth year of 28 percent and yet another year as theNo. 1 cracker brand in the natural foods section driving categorygrowth, Nut Thins was primed to launch three new Artisan flavorsthat complement the trusted product line. Artisan Nut Thins offernot only delicious taste, but also a new square shape, more wholegrain from brown rice, and more texture and nutrition from seeds.The new flavors each bring a unique nutritional element to theproduct line. Sesame Seed Artisan Nut Thins are a good source of fiber,Flax Seed provides 400 milligrams of ALA Omega-3 per servingand Multi-Seed provides 21 grams of whole grains per serving. ThisNOVEMBER | DECEMBER 2012 Almond Facts 33

A Tale of Three Sales ProfessionalsBlue Diamond Growers is made up of diverse employees, each bringing to the table differentexperiences, backgrounds and unique skill sets. This quality is especially true in the Global IngredientDivision, where the sales staff travel the world on the cooperative’s behalf to sell almonds to customersin the far corners of the globe. They each approach their jobs with the same goal in mind – to highlightthe differences that set Blue Diamond apart from any other almond ingredient supplier in the world.“We have a team to be proud of,” said Warren Cohen, Director of Global Ingredient Sales. “They have a healthyvariety of backgrounds that make us successful in all the many markets where we sell our almonds.”CORNERING THE MARKETEiichi FujimotoBlue Diamond’sJapanese Foot SoldierEiichi Fujimoto has workedfor Blue Diamond for morethan 30 years on the groundin Japan. He was born andraised in Sapporo on thenorthern Japanese island ofHokkaido, graduated fromthe School of Agriculture atMeiji University and lives with his family in Tokyo.“Almonds are a really interesting food and crop,” he saidwhen asked about why he was interested in sales. “Mycustomers are in the confectionary category, mostly chocolate,bakery and pastry, and snack nuts. It is interesting workingwith them to incorporate almonds into their products.”According to Fujimoto, working with internationalcustomers requires respect of business styles and cultures. Forexample, in Japan, he explained that exchanging businesscards is taken more seriously than in the United States. “Theexchange is very important and almost ceremonious whenJapanese customers first meet, while that is not really the casefor people in the U.S.,” he said.Working for a California-based company has required himto conduct business in his native Japanese and as well as inEnglish. He recalled his first trip to California with Japanesecustomers over 30 years ago and noted that the languagebarrier was not easy to overcome at first. “In that first trip,I was embarrassed at breakfast because the waitress had somany questions and I had a hard time translating for thecustomers, even when it came to what style we wanted oureggs. Now I know what 'over easy' means, but I rarely havethe chance to have a traditional American breakfast now.”One of Fujimoto’s Japanese customers, Meiji Chocolate,visited Blue Diamond in September celebrating the 50 thanniversary of their chocolate almond product. BlueDiamond’s President and CEO Mark Jansen presentedrepresentatives from Meiji with a commemorative statuetteacknowledging the long-term partnership between the twocompanies on this successful product, a partnership that issure to blossom into the future.John GaffneyRepresenting theCo-op from Toronto toMoscowFor Blue Diamond salesmanager John Gaffney,the key to his entry intosales was his knowledgeof the Russian language.A Santa Rosa, CA nativeand graduate of Universityof California, Santa Barbara and Indiana University,Gaffney studied political science, international relations andRussian language before taking a job forwarding freightin Vladivostok, Russia. “Working there, I decided that Iwas not satisfied moving along other people’s cargo,” heexplained of his decision to enter sales. “I wanted to put myown deals together.”From there, his language skills led him to Atlanta, Georgiato sell poultry because for years, poultry was the leadingU.S. export to Russia. Today he represents East Canada,primarily the Toronto and Montreal markets, and Europe,including Eastern Europe and Russia, for the GlobalIngredient Division, selling to customers in retail, bakerydistribution and supplying confectionary companies, biscuitmanufacturers and leading snack nut companies.For Gaffney, building on past experiences with othercultures has helped foster strong relationships with hisforeign customers. “Growing up, my mom taught Englishas a Second Language classes and I would accompanyher when she taught people in the Hispanic, Vietnamese,Cambodian and Laotian communities. My older brotherhas been active with the Chinese culture and traveled toAsia since I was young. His wife is Chinese and he is fluentin the language. And to top it off, my lovely wife, Akiko, isJapanese. I would say all of this helped me in being openmindedand interested in learning about other cultures andpeoples. It makes life more interesting,” he explained.34 Almond Facts NOVEMBER | DECEMBER 2012

Customers, he said, are similar no matter where they’refrom because when it comes down to it, they are looking fora quality product and good customer service. “Each culturehas its own overlay. Once you peal that back, it’s down tobuilding trust and delivering on that trust,” Gaffney said.Jeff SleeperThe World is HisAlmondWhen asked which regionhe represents, regional salesmanager Jeff Sleeper hasquite an extensive list: Asia,Middle East, Australia, NewZealand, Africa and SouthAmerica. While some ofthose are large in terms oflandmass, the markets aremanageable for Sleeper, whose customers are looking forbulk almonds and core manufactured products. Sleeper is agraduate of University of California, Davis with a bachelor’sin international relations, and the University of SouthernCalifornia where he earned master’s degrees in businessadministration and East Asian area studies. “My lifelongattraction to and joy for meeting and communicating withpeople from countries throughout the world made sales anatural fit for me,” he said.Sleeper, who speaks Japanese and Korean, said sensitivityto and sincere respect for foreign cultures, customs andmanners is crucial to connecting for customers abroad.In the regions he represents, each approach business in aslightly different way. While his customers in the Englishspeaking regions of Australia, New Zealand and SouthAfrica hold customs similar to the United States, fornon-English speaking regions, business customs can bedifferent. In Asia, some customers prefer high quality,perfect almonds free from chips or scratches. In the MiddleEast, customers like to haggle on prices, something that isunfamiliar in the U.S.His most memorable moment while abroad for Blue Diamondcame on a trip to the Middle East during Hajj, the annualMuslim pilgrimage to Mecca, Saudi Arabia. Sleeper saidhe found himself the only westerner in a business suiton a connecting flight from Amman, Jordan to Riyadh,Saudi Arabia. Contrary to any negative stereotype ofMiddle Easterners with unpopular views of westerners,he explained that he was treated with the utmost courtesy,being offered a seat by several older men on a bus from thetarmac to the gate, and an airport employee volunteered tobe a translator for him on the walk to his connecting flight.“It was very interesting to see that kind of hospitality firsthand and to know that stereotypes just aren’t true,” he said.Each Working for a Common GoalIn the end, each is working to achieve Blue Diamond’s mission– to deliver the benefits of almonds to the world. They arebuilding on their mutual respect for culture and interactingwith diverse populations in order to realize the best possiblereturn to Blue Diamond’s grower-owners. Whether they areselling a sliced, diced or slivered almond as an ingredientto a bakery company or bulk whole natural almonds to achocolatier or snack food company, the Global Ingredientsales staff is working on the growers’ behalf to find a homefor Blue Diamond Almonds.NOVEMBER | DECEMBER 2012 Almond Facts 35

AgriculturalCouncil of CaliforniaEMILY ROONEY, PresidentCreating Our Nichein the Next Legislative SessionAGRICULTURAL COUNCIL OF CALIFORNIAAs we approach the holiday season, we can all be thankful for the postelectionpeace, free of political advertising and posturing. Reflectingon the recent election, there are some lessons the staff and membersof Agricultural Council of California (Ag Council) must keep in mind.In the national races, one has to wonder if we are facing post-election “fallout,”or really just more of the same? The close presidential election was proof thatas a nation, we have an almost equally divided populace when it comes to partyaffiliation. “Swing” states and independent voters were actively courted by bothcandidates. The results of the most expensive election on record helped validatethe approach Ag Council has taken in reaching out to California lawmakers. Partyaffiliation is a line we have to continue to bridge and cross in order to make sure allof California’s lawmakers know the value of agriculture to the state’s success.In the Legislature, Democrats now hold a two-thirds supermajority in the stateSenate. While a few close races remain undecided, it appears Democrats mayalso have a veto-proof majority in the Assembly. A supermajority gives onepolitical party the ability to override vetoes, avoid deadlines and more easily placeconstitutional changes on the ballot. This underscores the need to reach out tomoderate legislators to ensure that California’s position as the number-one ageconomy is secure.Even if both the state Senate and Assembly consist of a supermajority forthe next legislative session, it will be razor-thin. We are hopeful that throughcontinued advocacy, we will be able to influence the more reasonable lawmakersto vote with us on our key issues pertaining to labor, water, environmental andfiscal matters. This will not be an easy task, but perhaps the most-savvy legislatorswill be encouraged to employ more moderate behavior.»Screenshot from NoProp37.comAg Council’s Board ofDirectors voted to take anofficial position on two ballotmeasures. Proposition 32,which Ag Council was infavor of, unfortunately failedwith only 43.9 percent ofCalifornians voting in supportand 56.1 percent in opposition.Proposition 32 would have bannedcorporations and public andprivate sector unions from usingpayroll-deducted funds for politicalpurposes and prohibited unionsand corporations from directlycontributing to political candidates.Ag Council is pleased thecontroversial geneticallymodified organism (GMO)labeling measure, Proposition37, was voted down with 53.1percent opposing and 46.9percent supporting the measure.Proposition 37 would havemandated labeling of raw orprocessed food as geneticallyengineered under certainparameters.Ag Council opposed Proposition37 because it created a privateright of action against familyfarmers and food processors,increased the cost of food forconsumers, and prohibitedmarketing as “natural” anyproducts that are processedin any way, even if a cropis not genetically modified.Proposition 37 also containednumerous exemptions.36 Almond Facts NOVEMBER | DECEMBER 2012

Unfortunately, it took an aggressive and costly consumereducation program to inform voters that Proposition37 did not provide more information to consumers, butinstead it created a burdensome and inequitable labelinglaw. While this proposition did not pass, it highlights thecontinued need to educate consumers and lawmakersabout existing food labeling.Ag Council thanks Blue Diamond and its membershipfor continued support in our advocacy efforts. With asingle political party having a supermajority in the stateLegislature, our advocacy efforts are more importantnow than ever.To sign up for our newsletter and learn how to participate, please go toour website www.agcouncil.orgNOVEMBER | DECEMBER 2012 Almond Facts 37

A PEEK ATTHE FUTUREGrowers TourState-of-theArt AlmondProcessingPlantby Gray Allen38 Almond Facts NOVEMBER | DECEMBER 2012Busload after busload of BlueDiamond members made theshort trip from the ModestoConvention Center to aconstruction site in Turlock tosee their new processing plantnearing completion. Built tomeet rapidly growing demandfor high-end manufacturedproducts, the automated, ultrasanitaryplant is designed formaximum efficiency and todeliver industry-leading quality.“Customers want zero-defects and acertified food-safe product. We willdeliver that,” said Darrell Nelson,Plant Manager in Salida and a keyfigure in designing the Turlock facility.As the growers moved through the cavernous rooms on guided tours, operations managers pointed out state-ofthe-artfeatures that will qualify the plant as the most food-safe almond processing facility in the world. Workerswill wash, don sanitary work suits, booties and masks before entering the pressurized and temperature-controlledprocessing area.Designed for easy cleaning, all processing equipment is made of stainless steel. The plant interior featuresseamless floors, smooth walls and ceilings free of pipes, wires or supports. All steam lines, cables and supportequipment are safely tucked away in the attic. Cross ventilation will exhaust steam to prevent moisture buildup inthe processing area.Centrally located in the almond production area, the Turlock plant will pull raw product from both Salida andSacramento for processing into value-added products packaged for shipment to customers worldwide. Thestreamlined, flow-through layout equipped with the latest automated processing machinery assures low-costoperations. Highly trained, high-performance work teams will man the equipment and oversee operations.“Employees will work in teams to achieve goals and solve problems,” said Nelson.Raw product enters the building on conveyors, is scalded and blanched, sent to cutters to be sliced, diced or slivered,then dried and packaged — in one end and out the other in the blink of an eye.As the growers boarded buses for the return trip, tour directors pointed out where the next two phases of thethree-stage project will be located. Expansion is planned to the east and west, with the pace of development tobe determined by sales growth — which is happening faster than anyone expected. In theory, the expansion is tooccur over 15 years, but that could change. The rapidly growing global appetite for Blue Diamond almonds seemsto know no limits.

PREPPERJACKconditionerThe Prepperjackconditioner will speed up your harvest with drier nuts, lesssticks, and conditioned product for a faster delivery to the huller.DE-STICKER CHAIN• Removes Sticks and Debris forclean uniform 30” windrows• Reduces drying time for earlierpickup• Hydraulic bin door for evenproduct placement• High capacity stick bin with leftor right belt discharge for fast unloading• Conditioning if untimelyweather prevails• Irrigate soonerBefore conditioningAfter conditioning471 Industrial Ave. ∙ Ripon, CA 95366 209.599.6118 ∙ www.jackrabbit.bz

The Bee BoxCHRISTI HEINTZ& MEG RIBOTTOWith the 2013 almond bloom right aroundthe corner, growers may be wondering whatto expect in bee strength and availability inthe coming months. Initial reports appearedencouraging. Total losses of managedhoneybee colonies in the United Statesdropped to 21.9 percent for the 2011-2012 overwinteringseason. That number was downfrom the approximately 30 percent averageloss beekeepers had experienced in the 2010-2011 survey conducted by the USDA- AIAand Bee Informed Partnership (BIP). Oneexplanation was the weather. Winter wasunusually warm; in fact, January 2012 was thefourth warmest January in U.S. history.»Growers can help beekeepers locate and stage colonies nearavailable bee forage while the bees wait for almond bloom.December- and January-blooming mustards provide goodbee nutrition. Photo by Christi HeintzTHE BEE BOX“A warm winter means less stress on bee colonies and may help them be more resistantto pathogens, parasites and other problems,” said Dr. Jeff Pettis, co-leader of the surveyand research leader of the USDA-ARS Bee Research Laboratory in Beltsville, MD. Dr.Dennis vanEngelsdorp, University of Maryland, further added, “One in five bees lostis still huge and still quite a ways from the 13-14 percent loss beekeepers say would besustainable.” January started out “warm” but what soon followed in the coming monthswas to become one for the record books.Simply put, it was a tough summer for farmers in most of the country. One of thisyear’s top news stories was the weather. The most severe and extensive drought in atleast 25 years seriously affected U.S. agriculture, according to the USDA-EconomicResearch Service and the U.S. Drought Monitor.With the crippling drought came the heat. The U.S. experienced the third hottestsummer ever. And the year-to-date (January through August) period was also thewarmest first eight months ever recorded for the contiguous U.S., according to theNational Oceanic and Atmospheric Administration (NOAA), whose records go backto 1895.The drought and heat then fueled wildfires. As of this past August, nearly 7 millionacres had been destroyed — more acreage across the U.S. in the first eight months ofany year since accurate records began in the early 1960s, cite federal fire officials.The impact of the drought may affect growers of pollinated crops dependent onhoneybees. Regions affected by the drought included the states of North and SouthDakota, Montana, Colorado, Idaho and Minnesota, areas where many commercialbeekeepers summer their colonies. The dry conditions gravely diminished available foodsources for honeybees. In parts of Colorado, for example, the USDA National HoneyReport (10/16/12) stated that the excessive drought killed foraging bees and queens.The reduced hive populations may reduce the number of hives available to be shippedto California for the almond pollination. This was echoed throughout the honeyproducing states as the dry and hot weather conditions wilted available forage resourcesfor honeybees. The drought required beekeepers to supplement their bees’ diet with»The above brochure isavailable to beekeepersand is being providedat California borderstations to more easilyenable bee trucks tobring bees to almonds.40 Almond Facts NOVEMBER | DECEMBER 2012

sugar syrup and pollen patties earlierto reduce the stress on colonies andto keep them healthy going into thewinter. Commercial beekeepersshipped their bees to California inOctober and November to get theirbees into a better location for thewinter months.The effect of the drought, heat andreduced summer forage resourceson honeybee strength and numbersremains to be seen but out-of-statecolonies will be able to quench theirthirst and keep cool as they waitto be inspected and cleared forentry into California for the 2013pollination season. The CaliforniaDepartment of Food and Agriculture(CDFA) announced on Sept. 28ththat with joint funding from ProjectApis m. (PAm), the California StateBeekeepers Association (CSBA) andthe Almond Board of California,the upgrading and installationof hose bibs at California borderinspection stations that see thebulk of truckloads coming throughwas underway. Good news for theover 1 million colonies that come toCalifornia to pollinate the almond.PAm, through its outreach andeducation efforts, has developed atransportation guide “For Honey BeeColonies Entering California.” Theseupdated Best Management Practices(BMPs) will be distributed tobeekeepers and CDFA has asked PAmfor additional copies to be placed atthe border inspection stations.It’s been a challenging summer forfarmers, beekeepers and pollinators.Let’s hope for better weatherthis almond bloom. Growers canhelp beekeepers with BMPs too.If possible, help your beekeeperlocate flowering forage prior to and after bloom, provide abundantand potable water with bee landings to prevent drowning, and timeagricultural sprays when honeybees are not flying — late in theafternoon or at night and when the tree is not producing pollen. Hivelocations within the orchards should be accessible, roads maintained,eastern and southern exposures are better for sun and warmertemperatures encourage bee flight for pollination.While we can’t control the weather, there are some things within our control. Let’swork together in 2013 for an optimistic and assured pollination season.100 YEARSBecause we are MOREthan just a smileand a handshake!Steve Neill530-933-9794Northern CaliforniaAdam Avedikian661-979-4885San Joaquin ValleyGreg Correa530-844-0082Sacramento Valley100 Years in Newcastle, Ca 800-675-6075 FowlerNurseries.comAlmonds • Apricots • Asian Pears • Cherries • European PearsFresh & Cling Peaches • Fresh & Dried Plums • Nectarines • WalnutsFowler Nurseries Almond Growers JSeptOct2012.indd 1NOVEMBER | DECEMBER 2012 Almond Facts 419/12/2012 4:39:34 PM

Time To ConsiderROB KISS, Field SupervisorBeesBees are still one of the majorexpenses on the production budget.Getting the most of the dollarinvested in bees is huge. One way toprotect your investment is for you,as a grower, to make a concertedeffort to check and record objectiveobservations of bee activity aroundthe hive as soon as possible. Thetruth of the matter is that yourclose monitoring of hives starts assoon as they are spotted in the field.Check your bees often; checkthem early; check them atdifferent times and underdifferent weather conditions.You should see significant activityaround each hive on sunny orwarming days. The theory is thatbees fly at 55 degrees, and theydon’t particularly like overcastor windy conditions. However,recently we have recorded fairlygood bee flights at temperaturescloser to 50 degrees. Remember,it’s too late if you recognize aproblem or particularly weak hiveswell into bloom. We only havea small window of opportunityfor pollination — we can’t blowit. If you do see any hives thatlook questionable, be sure tocommunicate with your beekeeperASAP; it’s your crop; it’s yourmoney.The following is a fairly establishedreview of guidelines growersshould keep in mind during thepollinations season.• Disperse the hives: Placethem in the sunniest locationsavoiding shade where possible,with hive entrances facingsouth, never north because itTIME TO CONSIDERis cooler. In larger blocks, hivescan be grouped at 500- to 1200-foot intervals and also throughthe centers. In smaller blocks (40acres or less), hives can be placedalong the perimeters, providingsecurity is not a factor.• Timing: They should be in thefield at about popcorn of yourearliest blooming variety. Bloomsneaks up on us and placing themafter the primary variety is inearly bloom may be late.• Maintenance: The beekeeperis responsible for making surecolonies are disease free andhave healthy queens. Beekeepersshould replace weak colonies assoon as possible.• Monitor: DO NOT assumeyour beekeeper will, as a matterof practice, come and monitoryour hives daily. Be sure to checkthem, all of them, every day anddocument hives that are inactive.• Access: Beekeepers need to havehive placement sites that are fairlyeasy to get to. They should havethe right of entry to service thehives. Incidentally, it remainstheir responsibility to do so andthe good beekeepers generallytake that responsibility seriously.• Pesticide Protection: Besure to communicate with yourbeekeeper about any applicationyou may make during bloom.The guidelines regarding beetolerance is on the label and theCounty Ag Commissioner canalso assist in details regardingmaterials registered for almondsand their effect on the bees.• Rental fee: There are obviouslya number of factors that influencethis. Availability, the cost ofproduction, hive maintenanceand transportation all go into themix. Rental agreements with provisionsthat tie relative strength(frame count) to cost are becomingmore popular.• Payment schedule: Be sure todiscuss it and come to an agreementbefore placement. Termsmay include allowances forpoorly performing hives.42 Almond Facts NOVEMBER | DECEMBER 2012

Also, be aware that hive theftcontinues to be a threat. Bevigilant of any situation that mayput your hives at risk. Stolenhives can put a huge hole in yourpollination potential.Spray rig RxNothing excites us more thanopening a pesticide bill andwondering why it is getting soexpensive to operate. Certainly,chemicals remain a significantentry on our balance sheet, so itobviously warrants close attention.Part of that stewardship is properapplication. Most of us climb ontothe tractor and drag the sprayrig through the field assumingsince the finished spray appearsto be going into the right generaldirection – all is well. The truthmay lie somewhere in between(read “coverage” below). Here aresome basic thoughts when it comesto application preparation.• Pattern: Check yournozzles. Do you really knowhow many gallons/minuteeach nozzle discharges? Makesure that approximately twothirdsof the spray volume isdischarged from the top halfof the spray manifold whichis the 10 – 2 o’clock positionof your spray rig. The bottomnozzles should not be dischargingthe same amount asthe nozzles on the “shoulder”of the manifold.• Ground speed: Studiesfor years have shown that ifyour ground speed exceedsthe ability of the spray rigto fill up, supersaturate anddisplace the volume of airyou are spraying through, you are going too fast. Speed kills good coverage.Also, on older blocks, it is difficult to get to the tops of the trees if theground speed is incorrect. Recent observations reveal that there may bedeposition, but not good coverage, which is especially important in wormsprays where the material must be in place for the worm to ingest it.• Orifices and Nozzles: Check the condition of the nozzles, orifices, swirlplates, lines, tank, pump, pressure gauge and any other part of your sprayrig that may reduce efficiency; old worn nozzles are very inefficient. Justbecause the nozzle is unplugged and the pump is blowing material throughthe orifices, that does not mean the nozzle system is operating correctly;check them all. Nozzles are the last link between your wallet and an efficient application.• Pressure: Like most of us, when a spray rig ages, pressure drops and sodoes efficiency. Without the correct pressure, calibration is off and the tankmixture is not forced through the nozzles into the airflow at the appropriatepressure causing the orifices to lose their ability mix the material withthe air properly. The range of pressure where these nozzles operate atgreatest efficiency is narrower than you think. Also, check the lines andmanifolds — they get clogged with age and use.• Coverage: When’s the last time you checked your spray rig for coverage?I bet it’s been a while … or never. Most of us figure that if it’s getting intothe trees, it must be covering. However, it may be time to check coveragewith spray strips. What do you have to lose…except $$$? Most PCAs willhelp you with getting some spray indicator strips. It’s simple: just hangthem, and really see how your spray rig grades out as to coverage. It couldbe a very profitable, if not interesting, experiment. Let’s face it: if thematerial is right and the timing is right, but the coverage is bad, the controlwill be bad as well!continued on next page »NOVEMBER | DECEMBER 2012 Almond Facts 43

Time To Consider Continued...Navel OrangewormThe 2012 crop generally was not extremely high in NavelOrangeworm (NOW) numbers, however, it was a littlebit puzzling and there were some train wrecks. Growerswho normally have relatively low numbers experiencedan unexpected spike in NOW percentages in someblocks or even appeared in various parts of the field. Lastwinter, it was fairly dry. In fact so dry that many growerswere not able to get the mummies off. Field observationscoming into bloom noted a fairly significant populationof mummy nuts in the trees. By the time some rain eventsoccurred, it was too late to mummy shake. And, the rainsand storms were not heavy enough to knock-off most ofthe mummies. This probably contributed to an elevatedNOW population.Fortunately, most growers experienced a fairly goodshake this year and there may not be a high mummypopulation. However, at this point, there is no reason tobelieve the NOW pressure will be any less for 2013 — atrend that may continue to amplify if we do not attemptto lower overall populations. The key this year, then, isTIME TO CONSIDER44 Almond Facts NOVEMBER | DECEMBER 2012

determining an economically feasible pest control budgetthat may well be impacted by the cost of winter shaking.Ultimately, mummy removal should fall into the positive“return-on-the-investment” column when weighed againstthe real loss of crop and important premium opportunities.Crop loss is not just what was reported on your gradesheets. Most huller operators believe that modern hullingoperations remove +/- twice again the rejects duringthe hulling process. For example, if you had 3 percentreported rejects, it’s entirely possible that the field damagewould approach 6 percent. If you double your grade levelreject number, it may change how you feel about orchardsanitation. Hopefully, with some cooperation of theweather, growers can establish a good baseline for NOWcontrol for next year.While the following may seem a little comical, it is truethat the best humor has shreds of truth running throughit. Basically it serves to focus on why we are continuing tofight NOW. If you identify with one, or any combinationof these, you could have a problem.Take Home Message:1. I’ve only got a “few” mummies per tree — they allcame off at harvest. (It only takes as little as twomummies per tree to make a difference.)2. Yes, the neighbors had bad NOW. (NOW are strongflyers; they WILL invade your field.)3. Winter storms will remove all my mummies. (If it’s ahurricane…)4. The birds will clean all my mummies. (West Nileanyone?)5. I put on a good dormant spray. (Oops, this doesn’tcontrol NOW.)6. I sprayed when my PTB traps peaked. (PTB does notconsult with NOW.)7. Hull-split spray: Better late than never. (Once NOW& PTB start feeding under the hull, they won’t comeback out to feed where the material was deposited.)8. It was the huller’s fault. (While he can usually cleanup some of your NOW, you can’t expect miracles.)Fan-Jet® System or Dual Line Drip?Advantage Fan-Jet®Bigger Wetted Area- Larger Root Zone- Potentially Bigger YieldsFrost Protection- Raise ambient temperatureup to 2 degreesLeaching Capabilities- Leach Salts Away From The Root ZoneCosts Less- Less Plastic- Save Up To $100/AcreBowsmith® Fan-Jet® Microsprinklers - helping growers irrigate since 1977.Precision Rain: Water where you want it!Call 1-800-269-7648 to schedule an appointment with yourFan-Jet® Specialist, or to learn more go to www.bowsmith.comAmerican Invented American Made American OwnedNOVEMBER | DECEMBER 2012 Almond Facts 45

WANTED:Gasoline Memorabilia: Old Gas Pumps, Gas Signs, OilSigns and Car Signs Call (559) 485-9496FOR SALE:20,000 used 2”x 2”x 5’ tree stakes, $.60 each.Call (209) 969-0526FOR SALE:One 75 HP Electric motor with attached centrifugalpump - $500; 2 dragon-type filters - $600; System wasdesigned to sprinkle 30 acres using 7/64 nozzles.For detailed information call Henry at (209) 522-7144 -Modesto/Ripon.FOR SALE:Flory 6640 Sweeper, good condition. $3,600.Call (209) 358-2244. (Best time between 12 and 12:30 p.m.).FOR SALE:John Deere Model 5510; Flory Sweeper Model 7640.Contact Vancy Bullock, (209) 358-7514FOR RENT:Country home: 2-bed, 1-bath, no garage. $650/month,1st and last. Call Gary, (209) 769-4256.FOR SALE:Approx. 150 potted eucalyptus trees for wind break, etc.$2.50 each. Call Gary, (209) 769-4256.FOR SALE:HD-5 Allis Chalmers Trac layer-wide gauge with a3-cylinder Detroil diesel engine.500 gallon Orchard Master Orchard Sprayer with tankand plumbing, all stainless steel. John Deere, 11-ft offsetwheel disc. Call for details. (209) 847-0369CLASSIFIED ADS46 Almond Facts NOVEMBER | DECEMBER 2012

Free listings in this section are forthe exclusive use of Blue Diamondmembers.Classified ads for personal use — notas an additional means of advertisingcommercial ventures members may own.Ads are limited to a maximum of 10 linesand may be submitted to Blue Diamondfield supervisors or by contacting theeditor directly at:Editor: Blue Diamond GrowersP.O. Box 1768, Sacramento, CA 95812Or contact Cassandra Keyse at:Phone: (916) 446-8353Fax: (916) 325-2880Email: ckeyse@bdgrowers.comUnless advised otherwise, ads will run twoconsecutive issues. In order to guaranteeplacement, classified listings must besubmitted by the 10th of: January, March,May, July, September & November.P FShredding ServiceProviding quality shredding service to the valley'sorchard growers for the past eight years.Escalon, CA - (209) 604-7594 - www.panerofarms.com

BLUE DIAMOND GROWERS1802 C STREETSacramento, CA 95811PRESORTSTANDARDU.S. POSTAGEPAIDSACRAMENTO, CAPERMIT NO. 694