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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