INDUSTRY NEWS
Sustainability insights from the Central Valley
MANY of the drivers, challenges, and opportunities faced by the Californian and Australian industries are similar. In California, industry sustainability is driven by the regulatory environment and market access requirements. The key challenges in both countries include water availability, higher input costs, market pressures, and reduced availability of chemistry. California has established some of the strictest emissions reporting requirements in the United States. The State of California has established emissions reporting requirements that are some of the strictest in the United States and comparable to Australian requirements. Businesses above a specified revenue threshold will be required to report Scope 1 and Scope 2 emissions from 2026, with Scope 3 emissions reporting phased in from 2027. Comparatively more rigorous reporting requirements are in place for pest management, despite the broader range of registered products and application frequencies. Californian growers are also required to report their nitrogen use due to concerns about groundwater pollution. In contrast, irrigation water was largely unmeasured and unmanaged in California until the Sustainable Groundwater Management Act( SGMA) was introduced in 2014. The reliance on remote sensing rather than metering, absence of any environmental water allocation, and the fragmented implementation of the Sustainable Groundwater Management Act( SGMA) highlighted the benefits of the Murray-Darling Basin Agreement for Australian growers. While tightly regulated water legislation can feel limiting, the experience of Californian growers emphasises the importance of water management in allowing the industry to continue to operate in the long term. California’ s acreage outlook is uncertain, with talk of significant almond removals over the coming years. The California State University indicates that supply is projected at around 3.7 billion pounds( 1.68 million tonnes) against demand approaching 4.7 billion pounds( 1.23 million tonnes) by 2030. While the true impacts of SGMA are yet to be understood, Land IQ has observed almond acreage shifting towards areas with higher water availability. The drivers of these changes are more nuanced than SGMA alone, as climatic, financial, social and political pressures contribute to an increasingly challenging environment for Californian growers. Despite operating in a challenging regulatory environment, Californian growers have significantly more access to financial support or benefits for engaging with sustainable practices. Such benefits can be accessed through government subsidies and grants, processor incentives, or investment from buyers. Participation in the Almonds Board of California’ s( ABC) California Almond Stewardship Program( CASP) can support almond growers to receive financial incentives either through government grant programs or their handler. Blue Diamond’ s sliding scale example offered up to seven cents per pound for full module completion and accreditation. A new feature in CASP streamlines the process for growers applying for Conservation Stewardship Program( CSP) funding from the Natural Resources Conservation Service( NRCS). These incentives have supported the ABC to reach 30 percent adoption. Despite the financial benefits, sustainable practices did not appear to be widely adopted except for Whole Orchard Recycling( WOR). While cost remains a barrier in
industry. australianalmonds. com. au
LEFT: Trent Preece and Jeremy Miatke talk to Brent Holtz about Whole Orchard Recycling.
Australia, the widespread adoption of WOR in California has been supported by government subsidies. Funding from the Mars Sustainability Investment Fund( MSIF) has allowed ofi to trial a range of sustainability initiatives in their Californian orchards, including subsurface irrigation, compost and biochar, and cover crops. The trials aimed to reduce greenhouse gas emissions and water use, but also increased yield and productivity, demonstrating that sustainable practices can deliver both environmental and production benefits. The ABC invests significant resources into telling their sustainability story, highlighting that sustainability credentials and storytelling will become increasingly important to remain competitive and protect our social license. Australian growers implement many of the same sustainable practices and often more, and there is an opportunity to tell our story better. However, to do so effectively, we need independent, industry-owned data to support advocacy and counter inaccurate comparisons drawn from California. While regulatory and reporting requirements can present a challenge for the Australian almond industry, they are necessary to ensure our ability to operate in the long term. Access to robust and credible data will become increasingly important, not just to achieve regulatory reporting requirements but to effectively tell our sustainability story.
21