West Coast Nut September 2019

Continued from Page 53
China, Vietnam, India, Turkey, Europe,
Russia, and South America just to name
a few. Ryan says he does very little
domestic business. “It is cheaper to ship
export product. It costs $1,100-$1,200
to ship my product from Chico to the
port. But then to go from the port to
China is only $700. Our trucking costs
are way more expensive than shipping
costs. It is cheaper for me to ship across
the world than across the country.” Ryan
also explains most of their almonds are
inshell, making up about 75 percent of
their exports. He is shipping to other
manufacturers who are getting a final
consumer grade product.
Last year, Ryan says they shipped
more almonds to Vietnam than he
ever had before. “It was just a very slow
process and delaying the number of
loads from Vietnam into China. What
would normally take 45-60 days to go
from Port of Oakland to China was
taking 70-90 days.” He is hopeful this
year that more almonds will continue
to ship, he just wishes the tariffs would
work themselves out quicker. “They
have a lot of demand, but will China pay
the tariffs or continue to bring it in from
other countries? Will their price be able
to sustain that cost? There is a huge
demand, they need more almonds. We
just need to get the tariffs figured out.”
Ryan explains this isn’t anything new.
“Even in the last five years, at least 65
percent of what has shipped to China
has gone through Vietnam.” Shipping
through brokers helps Ryan ship his
product and cover some of the risk
associated with shipping almonds and
walnuts into difficult countries. The
brokers can help alleviate when vendors
don’t want to pay if they have an issue
with the product, especially when the
market goes down. Ryan says “Vendors
rarely complain when the market goes
up, but always complain when the
market goes down. To have a broker,
does cost a couple cents, but it helps
manage risk in foreign countries.”
If something happens to a container,
he still has to pay the grower. Vanella
Farms is selling product mostly for
growers who they at least do their
hulling. He lets the growers decide how
they want to get paid. They can sell it
all before January or he will watch the
market and sell throughout the year if
that is what the grower wants. They can
pick when they need the cash flow. Ryan
says it is a good model they seem to like
and still have control over their crop.
Ryan tries to pack and sell product all
twelve months throughout the year. “I
want to get the highs, get the lows and
I also get the average. That is all I can
ask. If I know the market looks good, I
might sell more that month. But I want
to be able to sell product every month
Continued on Page 56
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West Coast Nut September 2019