Western Pistachio Association • 7030 N. Fruit Avenue, Suite 117 • Fresno, CA 93711 • Phone: 559-475-0435 • Fax: 559-475-0624 • E-mail: info@westernpistachio.org

THE VOICE OF THE PISTACHIO INDUSTRYTM

WPA HIGHLIGHTS

WESTERN PISTACHIO NEWS

SPRING 2009

EXPANDED ANNUAL CONFERENCE EDITION

- High Profile Speakers Inform and Entertain

- Water Panel Responds to Passionate Pleas

- Santa Barbara Events Benefit Pistachio PAC

- 2009 Conference and Gala Photo Collages

Board Approves Crisis Preparedness Plan

Nutrition Research and Promotion Updates

San Joaquin River Restoration Bill Update

WPA PROMOTES DEMOCRATIC UNITY AT SECOND ANNUAL U.S. PISTACHIO INDUSTRY CONFERENCE

WPA 2008-09 ANNUAL REPORT DISTRIBUTED

The second annual industry Conference presented by the

Western Pistachio Association February 16-18 in Santa

Barbara brought together a diverse group of growers

and industry representatives. The Conference theme

highlighting democratic unity unique to the WPA, where

members work “hand in hand” to meet challenges, was

evident in unprecedented support.

Sponsorships, exhibit reservations, registrations and room

block sales all exceeded last year’s impressive totals.

Approximately 450 attendees registered for the three-

day event that began with the WPA Golf Classic; included

a stellar array of speakers; featured an elegant seaside

Gala and concluded with the WPA Annual Membership

Meeting where 2008-09 WPA Board Members and

Officers were unanimously elected.

Responses to the post-event attendee survey on

westernpistachio.org will aid the WPA Conference

Committee in planning for 2010. Respondents

overwhelmingly supported returning to Santa Barbara

and provided top ratings in all areas, from their overall

Conference experience to the relevance and expertise of

speakers. Most favored scheduling the Conference taking

into consideration availability of political speakers, and

the water panel was rated as the most relevant speaker

offering. The survey will be available on our Website for

feedback from attendees until May.

The U.S. Pistachio Industry Annual Report for crop

year 2008-09 was again published by the WPA and

distributed at the Conference. A copy will be mailed to

members who were not able to attend this year’s event.

In service to WPA members and the U.S. pistachio

industry, we have continued the 20+ year tradition of

annual reporting of relevant information, research and

statistics in a format familiar to growers. Additional

copies are available at no charge to WPA members (and

to non-members for a fee on a limited basis).

Because scheduling the Conference during Presidents’

Holiday proved such a popular choice, the Conference

Committee has secured February 15-17 for the 2010

Conference in Santa Barbara.

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Western Pistachio Association • 7030 N. Fruit Avenue, Suite 117 • Fresno, CA 93711 • Phone: 559-475-0435 • Fax: 559-475-0624 • E-mail: info@westernpistachio.org

We are grateful to our members and industry

supporters who came together in Santa Barbara

for the WPA’s second annual U.S. Pistachio Industry

Conference. The feedback we’ve received has been very

positive and encourages us to move forward not only

with next year’s events, but with plans and programs

that will continue to benefit our members and the U.S.

pistachio industry at large.

An important distinction of the WPA is our democratic

foundation and decision-making process. Our Board

of 18 grower members hold open meetings where

actions are discussed before approval; major decisions

are then subject to votes by the WPA membership.

This year’s Annual Meeting of the Membership was

followed by a Board meeting held after the program on

February 18. Members were encouraged to attend and

given opportunities to voice their concerns about the

direction of the Association and vote on agenda items.

Resulting actions by the WPA membership included

unanimous adoption of new Bylaws in connection with

the formal corporate relocation from Washington,

D.C. to California and approval of the 2008-09 Board

of Directors. The Board provided approval to move

forward with implementation of a Crisis Preparedness

Plan for the industry and to allow CPEC to contract with

WPA staff to assist with administrative duties related to

the Market Access Program. Officers were also elected,

and a complete listing of 2008-09 Board Members

and Officers may be found on the back cover of this

newsletter.

In other news, the WPA office has moved to a new

location in northwest Fresno. Please note our updated

contact information listed below. We hope you will visit

your new WPA office when you are in the Fresno area.

Western Pistachio Association7030 N. Fruit Avenue, Suite 117Fresno, California 93711Phone: (559) 475-0435; Fax: (559) 475-0624

Your continuing support and active involvement is

appreciated. Working hand in hand, our members really

do help shape the future of the U.S. pistachio industry.

PLATINUM - $5,000 CONTRIBUTION

Duarte Nursery Pioneer NurserySetton Pistachio of Terra Bella

GOLD - $2,500 CONTRIBUTION

AgriLand Farming Company, Inc.Agri-WorldEarmark Farming CompanyKeenan Farms, Inc.Meridian Nut GrowersMPA, Inc.Nichols FarmsPrimex Farms, LLCPrudential Agricultural InvestmentsRabobankStrain Orchards, LPWells FargoWoolf Farms

SILVER - $1,000 CONTRIBUTION

Beeler Industries, Inc.CalWest RainHorizon NutIndustrial Design & Construction, Inc.Landmark Irrigation, Inc. Monarch Nut CompanySatake-USA, Inc.Schramm, Williams & Associates Westside Farming, LLC

BRONZE - $500 CONTRIBUTION

2 B Farming CompanyB&R FarmsBlackwell FarmingDoug Anderson Real EstateKettleman Pistachio GrowersMacro PlasticsMadera One - 100Mid Valley Packaging & Supply Co.Raul Family Farms, LPSteve Moore Farms

Conference pistachios provided by:Meridian Nut Growers

Gala Transportation: Eriksson, LLC

EXECUTIVE DIRECTOR UPDATE

Thank You 2009 WPAConference Sponsors!

Western Pistachio Association • 7030 N. Fruit Avenue, Suite 117 • Fresno, CA 93711 • Phone: 559-475-0435 • Fax: 559-475-0624 • E-mail: info@westernpistachio.org

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WPA Member Processor Forum participants L-R:

Ali Amin - Primex Farms

Bob Keenan - Keenan FarmsJim Zion - A&P/Meridian Growers

Mia Cohen - Setton PistachioChuck Nichols - Nichols Farms

Kable Munger - Monarch Nut Co.

Richard Matoian, Moderator

Huell Howser, Host of “California’s Water”

and “California’s Gold” on PBS, moderated

Wednesday’s panel of State water experts.

“Growing” Water Concerns Front and Center at WPA Annual Pistachio Industry Conference

Growers attending the Conference in Santa Barbara

were given a rare opportunity to address decision

makers from the highest levels of State government

during the WPA event.

Tuesday’s appearance by Senator Barbara Boxer

included questions from growers that all centered

on the severe lack of irrigation water earmarked for

California’s farmers. They also expressed concern

over the consquences of legal decisions based on

the Endangered Species Act that are increasingly

strangling necessary supplies for crops. Senator Boxer

provided assurances work was being done that would

protect both the environment and farmers and urged

growers to contact her State Director Tom Bohigian

with their concerns.

At Wednesday’s session, a distinguished group from

various agencies addressed passionate questions and

demands for action, such as one grower’s emotional

plea to “just turn on the pumps, it’s as simple as that.”

Huell Howser adeptly steered the lively discussion and

provided his characteristic down-home flavor. At one

point, he good-naturedly offered to provide a human

barrier for the panel guests after a particularly pointed

remark, which drew appreciated comic relief from the

crowd that packed the venue.

Special guest speakers also included Soumen Bagchi

from the Consulate General’s office of India’s Embassy

who spoke on trade relations between the U.S. and

India; Bob Beede reporting on production research

subjects including Navel Orangeworm and salinity; and

California Pistachio Export Council (CPEC) European

Representative George Smith and Marketing Manager

Jean Valentine who both presented information on

CPEC’s overseas marketing efforts.

WPA consultants presented updates on their respective

program activities. Guests included: Bob Schramm -

Governmental Affairs; Dr. Constance Geiger - Nutrition

Research; and Beth Kleineman with Amie DeLuca of

Henson Consulting - Nutrition Promotion.

Representatives from the six WPA member processors

participated in the final session. Participants responded

to questions and provided their analyses on current

market trends, industry conditions and opportunities for

continued growth.

Providing welcome breaks from the pressing issues

tackled during these important sessions were social

events that included the Pistachio PAC Golf Tournament

and Breakfast; Monday’s Welcome Reception; Tuesday’s

all-Conference Luncheon; and the WPA member

processor-sponsored Gala at the Four Seasons Resort.

Photos of this year’s Conference may be viewed on the

WPA Website.

L-R: Tim Quinn, Association of California Water Agencies;Michael Jackson, U.S. Bureau of Reclamation; Jerry Johns,

California Department of Water Resources; andMike Wade, California Farm Water Coalition

2009 WPA ANNUAL CONFERENCE: PUTTING OUR HEADS TOGETHER

Additional event photos are posted on the WPA Website.

2009 WPA ANNUAL CONFERENCE: PUTTING OUR HEADS TOGETHER

Next year’s Conference will be held February 15-17.

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Western Pistachio Association • 7030 N. Fruit Avenue, Suite 117 • Fresno, CA 93711 • Phone: 559-475-0435 • Fax: 559-475-0624 • E-mail: info@westernpistachio.org

The forecast for Monday’s WPA Golf Classic to benefit

the Pistachio PAC was not typical for sunny Glen Annie

Golf Club - but golfers, especially nutty pistachio

industry golfers, are a hearty bunch. Most of the 132

registered players teed off for the 9:00 shotgun start.

Drizzles discouraged some after the first few holes,

and soggy conditions sent another group packing after

nine. But at the end of 18 holes, with improved weather

conditions, the remaining golfers had rosy cheeks and a

great story to add to their golf repetoire.

Tournament Chair Jeff Gibbons, with Nick Lapietra

(both of Setton Pistachio of Terra Bella) again donated

many hours of their time organizing and soliciting

sponsors for this important fundraiser. This year’s Golf

Classic brought in nearly $80,000 to strengthen the

Pistachio PAC.

During Monday night’s award ceremony, Jeff asked for

a show of hands from those who chose to forego the

event due to morning rain, then added, “We understand

and have a gift certificate for you to enjoy a round of

golf anytime during the year at Glen Annie Golf Club.”

He continued, asking for a show of hands from those who

finished nine or less holes, awarding them all certificates

for making that effort; and finally, to those who toughed it

out, big congratulations and, yes, gift certificates for them.

Looking around at all the raised hands and smiles, it was

clear every golfer was a winner this year.

TOURNAMENT RESULTS:1st Place Net 55Ted McLemore, George St. Jerne, William Lewis and Tom Firkins

2nd Place Net 56Rick Strain, Gene Poth, Marcia Anderson and Marta Boyer

3rd Place Net 57Jared Ginsberg, Brad Robson, Brandon Leslie and Randy Irwin

Men’s Closest to the Pin Hole #9Gene Poth

Women’s Closest to the Pin Hole #9Shurene Curti

Men’s Straightest Drive Hole #13Bill Lewis

Women’s Straightest Drive Hole #13Betty Anderson

Men’s Longest Drive Hole #16Eric Lawson

Women’s Longest Drive Hole #16Marta Boyer

Sportsmanship Shines at 2009 PAC Golf Classic

Western Pistachio Association • 7030 N. Fruit Avenue, Suite 117 • Fresno, CA 93711 • Phone: 559-475-0435 • Fax: 559-475-0624 • E-mail: info@westernpistachio.org

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THANKS TO WPA GOLF CLASSIC SPONSORS SUPPORTING THE PISTACHIO PAC

DIAMOND - $5,000 ContributionPioneer NurserySetton Pistachio of Terra Bella

RUBY - $2,500 ContributionAgri-WorldGary SmithKeenan Farms, Inc.Mazon TruckingNichols Farms

EMERALD - $1,000 ContributionAanonson Sprinkler CompanyAgriland Farming Company, Inc.Akhavi, LLCCurtico EnterprisesFiddyment FarmsJon & Reneé BassettKlepper Ag Service, LLC

SAPPHIRE - $500 ContributionA&P GrowersAlkali Hollow FarmsAMA Pistachio DevelopmentA.W. Coulter TruckingBeeler Industries, Inc.Buchanan Hollow Nut CompanyCA Pistachio OrchardsClarklind FarmsDoug Anderson Real Estate, Inc.Doug Les FarmsHelena Chemical CompanyHillman RanchesHorizon NutIn Memory of Janie PoonianInternational PaperJ. Warner, Inc.Jeff Curry and AssociatesJessup, Norris & Trunick, Inc.Keller RanchKettleman Pistachio Growers

AMETHYST - $250 ContributionAC Freight Systems, Inc.Allied Electric Motor Service, Inc.B&B Surplus, Inc.Best Overnight ExpressBuckman Mitchell, Inc.Cardinal Professional ProductsEagle RanchFanucchi Diversified ManagementFirst Association Ranch

Landmark Irrigation CompanyMapleleaf Pistachio RanchMeridian Nut GrowersMike Woolf Farming CompanyMobilexe, Inc.MPA, Inc.Norman & Marlene BlackwellPacific Nut ProducerPurewal Custom HarvestingPyramid Hills Pistachio RanchRussell Waymire Saltzman Insurance Services Satake-USA, Inc.Seaman Nursery, Inc.Steelex Building CompanyTechFlex PackagingThe James Brooks CompanyTri State Electric, Inc.Victor Cruz Trucking

Jennings & Associates, Inc.Madera One - 100Madera Ranchos Pistachio, LLCSAM InternationalThe Specialty Crop CompanySteve Moore FarmsTriple B FarmsVictor & Peggy Zabala

Mordecai Jones FarmsRod ParichanRTS Agri BusinessTed Sheeley FarmsTri-L Brush ShreddingWells FargoYurosek Farms

PGI GrowersPrimex Farms, LLCStrain Orchards, LPValov & Sons Farming

SUNNY SMILES AT FOUR SEASONS RESORT SEASIDE, SUNSET GALA

Thanks to Processor Gala Sponsors: A&P Growers; Keenan Farms; Monarch Nut; Nichols Farms; Primex Farms and Setton Pistachio.

SUNNY SMILES AT FOUR SEASONS RESORT SEASIDE, SUNSET GALA

Thanks to Processor Gala Sponsors: A&P Growers; Keenan Farms; Monarch Nut; Nichols Farms; Primex Farms and Setton Pistachio.

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Western Pistachio Association • 7030 N. Fruit Avenue, Suite 117 • Fresno, CA 93711 • Phone: 559-475-0435 • Fax: 559-475-0624 • E-mail: info@westernpistachio.org

WPA NUTRITION PROMOTION UPDATEBy Kathleen Henson, Beth Kleineman & Amie DeLuca

Henson Consulting, Inc.

The Western Pistachio Association continued efforts

to heighten visibility of pistachios within the media

and among consumer audiences throughout the fourth

quarter, finishing out 2008 strong! Henson Consulting

representatives presented highlights of the exciting

WPA initiatives in progress throughout the past year.

From a holiday media mailing to 300 local and national

reporters to proactive media outreach around National

Pistachio Day, pistachios have made great strides in

the news, from both a nutrition and health benefit

standpoint. As efforts continue into 2009, we will build

upon the solid foundation achieved through last year’s

efforts.

Holiday Media MailingOn November 10, 2008, more than 300 holiday

packages stocked full of press and consumer materials

– as well as pistachios – were sent to select health, food

and nutrition reporters at local and national media

outlets. The press release announcing the launch of the

“Go Green with U.S. Pistachios” recipe booklet (included

in the mailing) received pick-up across 50 Websites,

and reached more than 17 million people. Some of the

top online outlets that picked up the release included

Reuters, Yahoo!, Los Angeles Times and ABC/NBC/CBS

network sites in multiple local markets.

Several unique media placements have reached more

than 36 million people through local and national print,

broadcast and online media. Of note, Us Weekly – one

of the top celebrity news magazines currently on

stands - featured pistachios in their January 12 issue.

In addition to Us Weekly, “The Today Show” featured

a December 26 segment entitled, “Slim Down in Six

Days,” which incorporated pistachios as a healthy snack

to help lose weight before the New Year.

Another article of note appeared in the January/

February 2009 issue of Men’s Health, which featured

results from the Penn State study in the Nutrition

Bulletin section. Recipes from the recipe book were

picked up in the Atlanta Journal-Constitution and

Albany Times-Union, and general pistachio information

was seen in Health magazine, Chicago Tribune,

BusyFamily Meals.com and Today’s Grocer.

Ongoing Media RelationsWe continue to pitch pistachios on an ongoing basis

through a variety of story angles to select media targets

by utilizing WPA’s 12-month proactive media calendar

developed in fall 2008.

In addition, editorial calendar research to determine

target consumer media will be utilized to pitch

pistachios’ health benefits throughout the year.

Most recently, WPA leveraged National Pistachio

Day – February 26 – in outreach efforts and garnered

significant results on both local and national levels.

To date, media hits have resulted in reaching nearly 15

million people across print, broadcast and online media.

Reporters were intrigued that there was a designated

day for pistachios, which generated interest across

outlets like The Washington Post, Pittsburgh Post

Gazette, Star Tribune (Minneapolis) and WPIX-TV in

New York (CW network).

Of note, The Washington Post and Pittsburgh Post

Gazette ran one of WPA’s celebrity recipes from

Shawn McClain (Chicken and Pistachio Fried Rice with

Fresh Ginger and Chinese Mustard), and WPIX-TV in

New York reported on National Pistachio Day in two

separate segments.

Western Pistachio Association • 7030 N. Fruit Avenue, Suite 117 • Fresno, CA 93711 • Phone: 559-475-0435 • Fax: 559-475-0624 • E-mail: info@westernpistachio.org

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Spokesperson OutreachWPA has further strengthened the already-established

relationships with chef and reality TV star, Jesse Brune,

and renowned chef, Michael Psilakis. Within the last few

months, we were able to secure placements for Brune in

Life & Style – a prominent pop culture/celebrity weekly

magazine that reaches more than 2 million readers, and

Rage Monthly – a consumer lifestyle publication that

reaches approximately 160,000 readers.

The Life & Style Story was a two-page spread that

featured commentary from Jesse Brune. Within his

at-home fitness tips, it stated “GO NUTS – Brune says

49 pistachios constitute a serving, making them a filling

choice.” In Rage Monthly, the extensive profile of Jesse

included a section entirely dedicated to pistachios.

Jesse mentioned that they’re one of his favorite cooking

ingredients.

For Michael Psilakis, a segment was secured on the CBS

“Early Show” as well as the Website for FOX, “Good

Day New York.” Both incorporated a recipe featuring

pistachios. Relationships with Jesse and Michael will

continue to be leveraged to lend credibility to WPA’s

pistachio outreach efforts.

Color Food Page SeriesA color food page (CFP) is a one-page newspaper

spread featuring one or more recipes, associated

content and accompanying images that is made

available for pick-up by local community newspapers

across the country and typically reaches millions of

readers. The objective surrounding a color food page

series is to reach as many consumers as possible with

WPA-sponsored pistachio-focused recipes.

The WPA recently developed and launched a CFP in

partnership with chef Art Smith, which featured his

pistachio chicken recipe from the 2006 WPA recipe

booklet. In the coming months, a second page will

be developed with WPA spokesperson, chef Michael

Psilakis, for publication in June 2009.

Mat Release SeriesIn February 2009, WPA launched a second mat

release featuring health and nutrition tips from our

spokesperson, Jesse Brune. Some of his helpful tips that

mention nuts/pistachios included:

•Trade those unhealthy snacks for nuts like

pistachios! Not only do they regulate blood sugar

levels- reducing the risk of heart disease, but you

can eat up to 49 nuts per serving and stay satisfied

longer with zero guilt.

•If you’re feeling hungry mid-day but don’t want

to stress about calories, eat something green!

Vegetables and nuts are always a healthy choice

since they are low in calories and high in nutrients.

•Avoid the urge to overeat. By grabbing a handful of

nuts - like pistachios - before heading out to a party

or outing, you‘ll feel more satisfied and will be less

likely to binge.

•When on the go, pack a handful of nuts, some fresh

fruit, vegetables or string cheese to help you avoid

impulsive, less healthful snack choices. Keep a

supply of water handy to stay hydrated. If you are

dehydrated, you will feel hungrier.

In addition, one of his recipes that incorporated

pistachios as a key ingredient was featured in the mat

release.

Ongoing Efforts: EatingWell PartnershipWPA’s strategic partnership with EatingWell – an

award-winning national consumer magazine and

online publication that provides high-quality food

and nutrition information to nearly 1.4 million monthly

readers – continues to run strong. The Association’s

information is still visible on the site, and a banner ad

has recently been incorporated and can be seen with

other publication sponsors throughout the Website.

Work continues with Dr. Constance Geiger and Penn

State researchers to leverage nutrition information

surrounding pistachios. We are currently developing

a WPA press release for the upcoming Experimental

Biology meeting in April 2009, highlighting valuable

data that looks at pistachios’ effect on type 2 diabetes.

Henson Consulting Representatives Amie Delucaand Beth Kleineman at the WPA Conference.

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Western Pistachio Association • 7030 N. Fruit Avenue, Suite 117 • Fresno, CA 93711 • Phone: 559-475-0435 • Fax: 559-475-0624 • E-mail: info@westernpistachio.org

WPA NUTRITION RESEARCH NEWSConstance Geiger, PhD, RD, CD

2010 Dietary Guidelines Committee Examines Nut Health Benefits

I enjoyed the opportunity to present again at the WPA

annual meeting. As I mentioned in my presentation, the

2010 Dietary Guidelines for Americans are currently

under development by the Dietary Guidelines Advisory

Committee (DGAC).

These Guidelines are important because they form the

basis for all nutrition guidance from the government,

which is then used by health professional associations

and the food industry in their messages for consumers.

In the January 2009 meeting, the DGAC indicated

they want to examine nut research more carefully.

Importantly, the DGAC is asking a specific question:

“What is the epidemiologic and clinical trial evidence

for the health effects of nuts?”

The WPA, in conjunction with the Nutrition Research

and Education Foundation (NREF) of the International

Tree Nut Council (INC), specifically answered this

question and sent additional testimony in March 2009.

(We sent our first testimony in January 2009.) The

WPA also submitted comments, as did all the nut

groups, as part of the NREF extensive testimony on the

health benefits of nuts. In fact, more than 100 published

nut studies were submitted to USDA and DHHS.

We certainly have an impressive amount of

research that has been conducted. Testimony

and articles may be viewed at: cnpp.usda.gov/

DGAs2010CommentSummaries-Mtg2.htm.

About one-third of testimony at the January 2009

Dietary Guidelines meeting specifically supported plant-

based diets that currently appear to be in favor. The

following Tree Nut Fact Sheet submitted as testimony

provides some key points about the health benefits of

nuts. (Pistachio facts added for this newsletter.)

TREE NUT FACT SHEETBy Maureen Ternus (NREF), Karen Lapsley (Almond Board), Constance Geiger (WPA)

Nut Consumption

• The qualified health claim for nuts and heart disease

recommends 1.5 ounces of nuts per day to reduce the

risk of heart disease (FDA 2003).

• In the 2001-2004 What We Eat in America/NHANES

survey, 34% of those surveyed consumed nuts,

but most ate ~3/4 of an ounce, roughly half of the

recommended amount (King et al, 2008).

Research [The Penn State results showed eating about 3 ounces

of pistachios per day - about 20% of total daily calories -

reduced total cholesterol 8% and LDL (bad) cholesterol

11.6%; HDL (good) cholesterol increased slightly.]

Cardiovascular Disease31 randomized clinical trials have shown that nuts can help reduce the risk of heart disease (three of these studies were from pistachios).

• 25 significantly lowered total cholesterol

• 25 significantly lowered LDL cholesterol

• 13 significantly increased HDL

DiabetesA number of epidemiological and clinical trials have suggested that nut consumption may have a significant impact on diabetes.

• In the Nurse’s Health Study, frequent nut consumption

(≥5 x/wk) was associated with a 27% reduction in

relative risk of developing diabetes, compared to those

who rarely or never ate nuts (Jiang et al, 2002).

• Acute feeding studies have demonstrated the ability of

nuts, when eaten with carbohydrate (bread, rice and

pasta), to depress postprandial glycemia (Jenkins et al,

2008). [Pistachio pilot studies have suggested a dose

response effect on lowering blood glucose levels after

eating in healthy persons (Kendall et al, 2007).]

Weight/SatietySix epidemiological and six clinical studies show that nut consumption is not associated with higher body weight.

• In a recent National Health and Nutrition Examination

Survey analysis, nut consumers had lower Body Mass

Indexes than non-nut consumers (Fulgoni 2009).

• Potential reasons? (1) Satiety value of nuts from

unsaturated fats, fiber and protein; (2) incomplete

fat absorption (the fat in nuts does not appear to be

fully absorbed); and (3) a potential increase in resting

energy expenditure with chronic nut consumption

may contribute to the less than predicted weight gain

(Mattes et al, 2008).

Western Pistachio Association • 7030 N. Fruit Avenue, Suite 117 • Fresno, CA 93711 • Phone: 559-475-0435 • Fax: 559-475-0624 • E-mail: info@westernpistachio.org

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Tree Nut Allergy0.2% of children and 0.5% of adults in the U.S. are

allergic to tree nuts (FDA 2003; Sicherer et al, 2003).

Nuts in a Healthy Meal PatternSeveral U.S. studies investigating increased consumption

of plant foods (nuts, vegetables, etc.) have shown that

combining a range of cholesterol-lowering plant foods

may benefit cardiovascular disease risk by reducing both

serum lipids and blood pressure and may help lower the

risk for type 2 diabetes.

Role of Nuts in the Diet • ~ 60% of nuts consumed are as snacks; many

people obtain ~25% of their calories from snacks

(King et al, 2008)

• “Replacing snacks high in refined carbohydrates with

nuts could have a positive impact on nutrient density

and risk of chronic disease” (King et al, 2008).

More on the Dietary Guidelines: Obesity Continues to Drive Change—Nutrient Density and Nutrient Adequacy EmphasizedCalories count and so do the nutrients associated with

them. With more than 75% of Americans overweight,

obese or extremely obese, the DGAC will continue to

emphasize the nutrient density of the U.S. diet; e.g.,

getting the most nutrients for calories. Pistachios can

be considered nutrient dense.

Lowering of Sodium Guideline The American Heart Association (AHA) supports a

change from 2400 mg of sodium/day (current standard

for the food label) to 1500mg/day, about 1/8 tsp. The

reason behind this recommendation is that as sodium in

the diet increases, blood pressure may also increase.

The AHA recommends a phased-in approach, with 2000

mg/day by 2013 and 1500 mg/day the target for 2020.

Processors may want to consider offering consumers a

choice of a lower level of sodium/salt in their pistachios.

Three more meetings of the DGAC are scheduled, with

the release of the final Guidelines in 2010.

CIA World Of Healthy FlavorsPromotes Nut Health Benefits In January, Executive Director Richard Matoian and I

attended the Culinary Institute of America’s (CIA) and

Harvard University School of Public Health’s Worlds of

Healthy Flavors. The WPA sponsored and exhibited at

the event, which was developed as a major initiative to

increase the scope and range of healthy menu choices

available to consumers through American foodservice.

The three-day event included several speakers on the

health benefits of nuts and was a good positioning for

pistachios because plant-based diets were emphasized.

Dr. Frank Hu of Harvard’s Nutrition Department

discussed his research on the health benefits of nuts.

He cited a number of studies, whose participants

totaled about 260,000, and concluded that regular

consumption of nuts is linked to a reduced risk of heart

disease. In the Harvard-based Physician’s Health Study,

men who ate nuts two or more times a week were

47 percent less likely to die suddenly of heart-related

causes than those who rarely ate nuts.

This same response to nuts has also been seen in

other groups, including women, African-Americans,

Caucasians, the elderly and individuals with heart

disease. The more times per week nuts were eaten, the

more the risk of heart disease was lowered.

According to Dr. Hu’s research, nuts may also help

prevent the development of type 2 diabetes, an

increasingly common condition among American

adults. More than 80,000 women were followed for

16 years, with those who ate nuts five or more times a

week 27 percent less likely to develop type 2 diabetes

than those who rarely ate nuts. For more information,

go to: ciaprochef.com/wohf/d-fats.html.

Dr. Janet King of Children’s Hospital, Oakland Research

Institute, co-chair of the 2007 Nuts and Health

Symposium and Dr. Penny Kris-Etherton (Principal

Investigator of our Penn State Study) also discussed

the health benefits of nuts. The timing of this meeting

was ideal because the DGAC met three days later in

Washington, D.C., and plant-based diets were a major

topic of discussion.

Bottom Line: Our participation at this meeting was

important for WPA’s positive promotion of the health

benefits of pistachios. U.S. pistachios were featured at

breaks, receptions and meals.

Allergen Webinar Produced As nut crops increase, the importance of using pistachio

kernels as an ingredient will also increase. However,

many manufacturers are concerned about the cost

and effort to dedicate lines and areas of plants to nut

processing. In response to processors’ requests, NREF

funded a Webinar produced with the University of

Nebraska’s Food Allergy Research & Resource Center.

Dr. Steve Taylor, an international allergen expert, led the

effort that resulted in “Allergen Control and Safe Nut

Processing Practices,” This Webinar may be accessed

at: http://ianrhome.unl.edu/treenuts. A short sign-in

page allows viewing of the one-hour program.

14

Western Pistachio Association • 7030 N. Fruit Avenue, Suite 117 • Fresno, CA 93711 • Phone: 559-475-0435 • Fax: 559-475-0624 • E-mail: info@westernpistachio.org

Senator Boxer read a letter sent to USDA Secretary Vilsack expressing her support of the proposed expansion of the Federal

Marketing Order for Pistachios.

Senator Barbara Boxer addressed the 2009 U.S. Pistachio Industry Conference in Santa Barbara. Her comments are

posted on the new Website: californiaagnet.com under Patrick Cavanaugh’s February Video Reports.

“Water is very much on

the front burner...Senator

Feinstein and I are working in

a number of areas to address

it...we care a lot - we don’t

want to lose our farmers.”

“I understand this and am

working on these issues…

you’re absolutely right – we

need to look at this ESA with

an eye toward making sure we

don’t lose our environment,

but that we have some

common sense attached to

what we’re doing.”

Western Pistachio Association • 7030 N. Fruit Avenue, Suite 117 • Fresno, CA 93711 • Phone: 559-475-0435 • Fax: 559-475-0624 • E-mail: info@westernpistachio.org

15

GOVERNMENTAL AFFAIRS REPORTSchramm, Williams & Associates, Inc.

Obama AdministrationEach new federal government administration brings

new opportunities but also new problems for the U.S.

pistachio industry. In less than 100 days, the Obama

Administration is requiring your Western Pistachio

Association to work on numerous pieces of legislation,

regulations and policies in all the federal departments

and agencies.

The new 111th Congress have been working with the

Obama Administration on a new policy towards the

Islamic Republic of Iran, taxes, food safety, trade

agreement reviews, union elections, and a new

transparent budget. There are bound to be additional

challenges and WPA, as the grower representative, will

be protecting all of the U.S. pistachio industry’s interests

with these governmental initiatives.

Food SafetyThere have been a flurry of bills introduced that address

the food safety issue. Food safety legislation, H.R. 1332

the Safe FEAST Act, was introduced by Congressmen

Jim Costa (D-CA) and Adam Putnam (R-FL). As

members of Congress who represent districts that

produce large amounts of fresh fruits and vegetables,

their legislation specifically addresses the fresh produce

industry.

They received input from stakeholders around

the country as to what systems and ideas would

be included in the bill. Congresswoman Rosa

DeLauro, Chairman of the House Agriculture

Appropriations Subcommittee, has introduced a

bill that would completely restructure the Food and

Drug Administration allowing most of the food safety

activities to be housed in one agency.

Presently, food safety jurisdiction is spread across

various agencies including the Food and Drug

Administration, the Center for Disease Control,

National Oceanic and Atmospheric Administration, and

the U.S. Department of Agriculture. Because of the

wide berth of the food safety activities, coordination

between the different departments and agencies

tends to get in the way when outbreaks occur such as

happened recently with tomatoes and peanut butter.

Former Chairman of the House Energy and Commerce

Committee, John Dingell, also recently introduced

legislation with a large number of supporters to

address the nation’s food safety system.

We believe that Congress will push to enact legislation

in this Congress to improve the nation’s food safety

system. We will keep you updated as to their action on

this important topic.

Pistachio Tariff and Non-Tariff BarriersSince 1981, the California Pistachio Commission

removed numerous world trade barriers to U.S.

pistachios enabling the U.S. pistachio industry

to steadily increase pistachio exports. When the

Commission was terminated in 2007, WPA assumed the

task of continuing to successfully remove the foreign

trade barriers.

While most trade observers would not consider zero

duty as an impediment to trade, most exporters opted

not to compete with Iran in Mexico and Israel because

of preferential illegal treatment for Iranian pistachios.

Recent trade events have reduced the problem

countries to two - India and South Korea - both with 30

percent tariff rates.

Israel - Anatomy of SuccessThe California Pistachio Commission had secured zero

pistachio tariffs in the U.S.-Israel Free Trade Agreement

(1984). Israeli importers, in contravention to an Israeli

law against trading with the Islamic Republic of Iran,

imported Iranian pistachios through Turkey claiming

the pistachios arriving into Israeli ports were Turkish

pistachios.

Recently, Congressman Howard Berman (D-CA)

became Chairman of the House Committee on Foreign

Affairs, and while visiting Congressman Jim Costa, a

WPA delegation comprised of Richard Matoian, Dr. Mike

Woolf and Jim Zion met with Chairman Berman. There

was a follow-up conference call with additional WPA

members when all the facts were relayed, and Chairman

Berman pledged to discuss the illegal trade with the

highest Israeli officials. Chairman Berman’s involvement

was a significant diplomatic accomplishment.

In January 2009, WPA was briefed by a Government

of Israel official who said all pistachios, except for

U.S. pistachios, would have a duty of 23 percent. In

February, U.S. exporters started receiving orders for

U.S. pistachios. Israel’s pistachio imports for 2007 were

approximately $17 million.

16

Western Pistachio Association • 7030 N. Fruit Avenue, Suite 117 • Fresno, CA 93711 • Phone: 559-475-0435 • Fax: 559-475-0624 • E-mail: info@westernpistachio.org

Over the years, there were numerous U.S. government

official contacts with the Government of Israel -

Secretary of State Madeleine Albright’s 1999 demarche,

Undersecretary of Agriculture Mark Keenum’s 2007

meeting with his counterpart in Rome, USTR/USDA

staff negotiations, U.S. Ambassador Jones’ 2008

challenge to Israel - but Congressman Howard Berman

provided the final and successful message to Israel -

stop importing Iranian pistachios.

As a post note, the Government of Israel requested

WPA inform Congress of its action.

Mexico - Zero Pistachio Tariff Since 1994Mexico’s duty on U.S. pistachios has been at zero

since 1994. In recent years, U.S. pistachio exporters

started to increase exports to Mexico. According to U.S.

government trade statistics, U.S. exports have increased

from 875,000 lbs in 2005 to 6.5 million lbs in 2008.

Mexico’s total yearly pistachio imports were 10.7 million

lbs in 2008. U.S. pistachio exporters are determined to

capture the Mexican market for U.S. pistachios.

What is interesting is that the California Pistachio

Commission testified before the House Ways and Means

Subcommittee on Trade in 1993 and predicted that

Mexico would be a U.S. pistachio market of at least 10

million pounds. This appearance plus other activities

resulted in a zero duty for U.S. pistachios starting in

1995 paving the way for recent increased U.S. pistachio

exports to Mexico.

Unfortunately because of a trucking issue between

Mexico and the U.S., on March 17, 2009, Mexico

announced that it would retaliate against U.S. roasted

pistachio and other U.S. export trade items (raw

pistachios will continue at zero duty). WPA has

experienced previous trade retaliations, and all have

been ultimately resolved. WPA’s Board of Directors

are being kept informed on the trade dispute and will

act accordingly to have the problem solved as soon as

possible.

Two Outstanding Trade ProjectsThe remaining two high tariff countries are India and

South Korea. In April 2009, the U.S. International Trade

Commission will hold a hearing, requested by Senators

Max Baucus (D-MT) and Charles Grassley (R-IA), to

determine India’s agriculture trade practices.

As this report was being prepared, the Commission

received requests from WPA and the California

Pistachio Export Council (CPEC) to testify. Brian

Blackwell, Chairman, WPA Government Affairs

Committee, and Executive Director Richard Matoian will

testify on behalf of WPA.

Jim Zion, President of CPEC, will testify on behalf

of CPEC. Since WPA’s 2007 annual meeting when a

representative from Reliance supermarket attended, U.S.

pistachio exports to India have increased significantly.

WPA is determined to have India adjust the pistachio

tariff either through India’s annual budget process or in

WTO’s multilateral trade round, the Doha Development

Agenda. WPA continues to be in contact with the

Ministries of Finance, Commerce and Agriculture.

Mr. Soumen Bagchi, Economic and Political Consul for

the Indian Consulate General, San Francisco, spoke

at WPA’s 2009 Annual Conference in Santa Barbara.

HIs message was that trade is a two way street and

recommendations on how we can help India export

to the U.S. without disrupting the U.S. industry were

encouraged.

The U.S. Korean Free Trade Agreement is stalled while

the Obama Administration decides if it wants to extract

more concessions from the Republic of Korea. The U.S.

pistachio industry received zero duty if and when the

agreement is approved by the two governments. U.S.

exports should increase significantly as a result of this

agreement.

New USDA Deputy Secretary With the new President comes a new roster of

people to fill his administration. One of the most

recent additions that is of particular interest to the

U.S. pistachio industry is the nomination of Kathleen

Merrigan as Deputy Secretary of the United States

Department of Agriculture. Ms. Merrigan begins her new

tenure at USDA with a long list of achievements. Most

recently she has been a professor at Tufts University in

Boston, Massachusetts in conjunction with serving as

the Director of the Agriculture, Food and Environment

Master of Science and PhD Program at Tufts University.

Prior to her position at Tufts, she worked in various

roles in policy making. She served in the Clinton

Administration as the Administrator of the Agricultural

Marketing Service where she worked on fruit, vegetable

and tree nut programs. She has worked for various

Senators and Members of Congress throughout her

career. She holds a PhD from the Massachusetts

Institute of Technology in environmental planning and

policy, a Master of Public Affairs from the Lyndon B.

Johnson School of Public Affairs at the University of

Texas and a Bachelor of Arts in Political Science and

English from Williams College.

Western Pistachio Association • 7030 N. Fruit Avenue, Suite 117 • Fresno, CA 93711 • Phone: 559-475-0435 • Fax: 559-475-0624 • E-mail: info@westernpistachio.org

17

Ms. Merrigan is a great friend of U.S. agriculture and

very familiar with the U.S. pistachio industry. She will be

an important voice for U.S. agriculture, especially the

specialty crop industry, as the new administration makes

the transition into their new role in leading the country.

Proposed MAP Budget CutsIn early March, President Obama released his budget

outline for Fiscal Year 2010. As a part of his new

administration’s efforts to reduce the federal deficit,

he has proposed cuts to many agriculture programs

including the Market Access Program. This program has

been greatly beneficial to the U.S. pistachio industry in

opening new markets in Europe and Japan. President

Obama is proposing a twenty percent decrease on

annual funding to MAP and a change to promote

generic U.S. products overseas.

As Congress begins appropriating funds to the various

programs, WPA will monitor and lobby the process

as the Appropriations committee makes a decision

on MAP funding. Additionally, the Western Pistachio

Association is a long time member of a coalition of

agriculture interests that promote the Market Access

Program in Congress and educate new Congressional

members and their staffs as well as “old timers” on the

documented accomplishments of the program. The

U.S. pistachio industry continues to be recognized as

managing a successful Market Access Program and was

one of two recipients to actually receive a 20 percent

increase in MAP funding.

Stimulus Tax Considerations for Fruit Trees and VinesDuring the recent Congressional consideration of the

Economic Stimulus legislation, two grower entities- one

tree fruit company and one trade association for vine

fruit - initiated a legislative project to obtain a provision

in the bill to provide 50 percent bonus depreciation

for fruit trees (including tree nuts) and vines placed

into service in 2009. The amendment was sponsored

by Senator Bill Nelson (D-FL) and supported by the

Chairman of the Senate Committee on Finance, Senator

Max Baucus (D-MT).

However, the amendment failed to be accepted by

the U.S. Senate, in part because it was offered as one

provision in a larger package of amendments. There are

daily rumors of another stimulus bill being introduced

by Speaker of the House Nancy Pelosi, but there are

also daily refutations of those rumors as well. Should

there be new consideration of this tax provision in a

new stimulus bill or another legislative vehicle, WPA will

monitor its progress and report to you, the grower.

Islamic Republic of IranWith the new administration also comes new policies

and philosophies on foreign relations especially where

the Islamic Republic of Iran is concerned. Throughout

the Bush administration, Iran was an “axis of evil” but

this new administration seems to be softening that

stance. At the end of March, Secretary of State Hilary

Clinton will be meeting with a coalition of nations to

discuss Afghanistan. In discussions that led up to this

meeting, Secretary Clinton has asked that Iran be

included in these discussions. This is a large departure

from the previous administration’s stance on the Islamic

Republic of Iran.

In 2000 when President Bill Clinton removed the

embargo on trade from Iran, the U.S. Department

of State was of the opinion Iranian pistachios could

enter the U.S. Only after State Department officials

contacted the House Committee on Ways and Means

and the U.S. Department of Commerce did the officials

realize the U.S. pistachio industry had three unfair

trade orders against Iranian pistachio imports. How

these new Obama/Iran diplomatic discussions will

impact pistachio trade remains a question. March

was the anniversary month for the filing of either an

Administrative review or New Shipper Petition, and

WPA is pleased to report none were filed.

Union LegislationOne of the promises made by Senator Obama to the

unions when campaigning for the Presidency was to

have the Card Check legislation become law. The Card

Check legislation would eliminate the secret ballot in

the unionization process and simply have the unions

sign pro union cards (hence the legislation’s name

“Card Check”). Senator Tom Harkin (D-IA), Chairman of

the Senate Committee on Agriculture, has introduced

the card check legislation and has named the bill

Employee Free Choice Act. Congressman George Miller

(D-CA) has introduced the same bill in the House of

Representatives.

This legislation is another controversial piece of

legislation. Business is lining up to oppose the bill, and

the unions are working to have it enacted. The unions

view the legislation as a method of increasing the

unionization of U.S. business. Business is not without

liberal friends in the debate.

Former South Dakota senator and 1972 Presidential

candidate George McGovern has announced his

opposition to the legislation calling it undemocratic. If the

legislation is to be stopped, it will have to be in the U.S.

18

Senate. Political observers believe the unions are short

one vote in the Senate to have the legislation enacted.

Senator Arlen Specter (R-PA), who was initially

expected to vote in favor of the legislation, recently

announced he would oppose the legislation.

Congressional Democratic leaders have decided to

allow the Senate to vote first because the House has

enough votes for passage, and many in the House

do not want to cast a vote in favor just to have the

legislation fail in the 111th congress.

Administrative Committee for PistachiosFederal Marketing Order AmendmentsThe U.S. Department of Agriculture (USDA) is moving

forward with the proposed rule to incorporate

Arizona and New Mexico pistachio growers into the

Administrative Committee on Pistachios.

Before the end of June 2009, a referendum will be

held to allow the U.S. pistachio growers to decide if

they support the inclusion of the new growers into the

marketing order and other amendments to improve the

program. WPA is working to have the new program in

operation for the 2009 harvest. Senator Barbara Boxer

(D-CA) announced at the WPA Conference in Santa

Barbara that she had written USDA Secretary Tom

Vilsack urging him to have the program implemented

for the 2009 crop year.

Pre-CertificationIn 1997 the U.S. pistachio industry received an unusual

opportunity to capture the European pistachio market

when the Iranian pistachio industry aflatoxin problem

was identified by the EU’s member states. The CPC and

California Pistachio Board immediately implemented

several plans leading to increased food safety measures

and market promotion.

Since 1997, U.S. pistachio exports to the original 15 EU

member states have increased from 18.5 million pounds

to 131.9 million pounds in 2008. By the EU recognizing

the U.S. aflatoxin food safety programs, it spared the

U.S. from the food safety requirements placed on

pistachios from the Middle Eastern countries. As the

U.S. pistachio exports increased to Europe, it became

apparent further modifications for the U.S. exporters

might be possible.

The EU is amenable to a pre-certification program for

importing foods into the EU, and the Administrative

Committee for Pistachios has started the process

to draft food processing procedures that would be

acceptable to the EU. If the plan is successful, it would

result in removing food safety impediments while

providing a more thorough food safety program.

Unfair Trade OrdersAs is WPA custom since 1986, we provide an update on

the U.S. pistachio industry’s unfair trade orders. March

is the anniversary month for the countervailing duty

(subsidy) order on raw pistachios from Iran that was

obtained by the California Pistachio Commission (CPC)

in 1986. In 1986, the Commission obtained three unfair

trade orders against pistachio imports from Iran: an

antidumping order on raw pistachios; a countervailing

duty order on raw pistachios; and a countervailing duty

order on roasted pistachios.

Beginning in 2000, shortly after the U.S. government

removed the embargo on imports of Iranian foodstuffs,

Iranian interests have requested a series of reviews in

order to end the orders or to reduce the import duties

imposed under the orders. There were numerous New

Shipper and Administrative Reviews and a Change in

Circumstances Review.

Some of these Reviews caused changes in the rates

of duties on pistachio imports from certain Iranian

exporters and producers. However, for the vast

number of potential Iranian pistachio imports, the

high antidumping and countervailing duties originally

imposed remain in place.

The U.S. market is very attractive for the Iranian

pistachio industry, and while there may be no request

in this month of March 2009 to review the existing

raw pistachio countervailing duty order, we must

be prepared to defend these orders in the future.

As reported in previous newsletters, requests for

Administrative Reviews can be filed in the anniversary

month of the original order.

The anniversary months are: March for the

countervailing duty order on raw pistachios; July for

the anti dumping order on raw pistachios; and October

for the countervailing order on roasted pistachios. New

Shipper Review requests can be filed in the anniversary

month of the order and six months from the anniversary

month of the order.

While other fruits and vegetables continue to enter the

United States in increasing amounts, few, if any, Iranian

pistachios have been imported because of the efforts of

the WPA and CPC to defend the unfair trade orders.

19

San Joaquin River Restoration Bill and California Water SuppliesThe legislation to settle the long-running San Joaquin

River litigation ran into trouble as it worked its way

through the U.S. Congress, but Congressional leaders

ultimately crafted a process under which the bill was

adopted by both the U.S. Senate and House.

The San Joaquin River bill is but one piece of a much

larger, “omnibus” bill with some 160 public lands and

water provisions. After an extended debate, the U.S.

Senate ultimately adopted its version of the “omnibus

lands” bill in January and sent it to the U.S. House. The

House Democratic leadership attempted on March 11th

to have the bill adopted under a special process known

as the “suspension calendar”; however, this vote failed

by the narrow margin of two votes.

The next step had the U.S. Senate take up a different

version of the large, omnibus bill that the House could

accept. This version still contains the San Joaquin River

bill, as it has been negotiated by interested parties

under the direction of Senator Dianne Feinstein. The

House of Representatives voted 285-140 (8 not voting)

in favor of the Senate bill March 25, and it was sent to

the President for his signature.

There has been considerable discussion in Washington,

about the critical California water situation, but there is

currently no legislation under consideration that would

address the supply situation. Virtually all experts on the

Endangered Species Act (ESA) agree that it is simply

not possible to amend the ESA, no matter the merits

of doing so. There is simply too much emotion tied up

with the ESA, particularly the animal protection side.

Average Grower Price Per Pound5-Year History:

2004 $1.34

2005 $2.05

2006 $1.89

2007 $1.41

2008 $1.94

Source: California Agricultural Statistics Service

Pistachios Roasted

Pistachios Raw Inshell & Shelled

Total

US Monthly Exports of Pistachios to the WorldIN METRIC TONS

Year Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Total

2004 2487 2496 2827 2558 1985 2384 1266 882 3928 6006 4678 4095 35592

2005 4140 4677 5555 3739 3714 2859 2994 3405 2711 5278 6745 4059 49876

2006 3310 3049 3305 3630 3947 3426 3410 5002 3269 5575 5624 5025 48572

2007 4973 3324 4132 5308 5770 3984 5576 4966 4264 5176 5343 7126 59942

2008 5413 6770 7003 9252 10066 7863 8447 8559 7378 9036 11578 9508 100873

2004 432 394 491 428 343 332 226 167 528 1399 1020 1346 7106

2005 1086 818 821 533 599 428 362 776 596 959 724 782 8484

2006 460 408 291 602 479 651 475 684 433 546 1130 813 6972

2007 792 1025 733 972 907 808 1037 1070 1269 1785 2642 2108 15148

2008 1220 957 1308 1270 1080 1485 1497 2075 1569 2551 3111 2340 20463

2004 2919 2890 3319 2985 2328 2716 1492 1049 4456 7405 5699 5441 42699

2005 5226 5496 6375 4271 4313 3288 3356 4181 3308 6237 7468 4841 58360

2006 3769 3458 3596 4232 4426 4077 3884 5686 3702 6122 6754 5838 55544

2007 5765 4349 4866 6280 6676 4792 6613 6037 5533 6962 7984 9234 75091

2008 6633 7726 8311 10521 11147 9348 9944 10635 8947 11587 14689 11848 121336

Prepared by Schramm, Williams & Associates using data from the U.S. Department of Commerce.

WPA MEMBER VOLUNTARY PISTACHIO RECALL BULLETIN

April 10, 2009 -- As our members are no doubt aware, the Food and Drug Administration (FDA) announced a

voluntary recall of pistachios by our member processor, Setton Pistachio of Terra Bella (Setton) on March 25 due

to salmonella contamination. The FDA has advised consumers not to discard pistachios in their possession, but to

avoid eating them until additional information is available and has stressed this recall is in no way related to the

recent peanut salmonella outbreak.

This recall, the first ever for the U.S. pistachio industry, has generated extensive media coverage that may impact

long-term consumer confidence, although thankfully no confirmed illnesses have been reported. FDA officials

were complimentary of the swift precautionary measures taken by Setton upon learning of the potential risk to

consumers. This week, Setton expanded its voluntary recall to include additional products from their 2008 crop.

Even though we have not yet directly communicated with all our members on this issue, we want to provide

assurances that the WPA leadership has been actively engaged since day one of the recall, working in conjunction

with industry processors and our crisis management firm, Fleishman-Hillard to provide accurate information to

the media and minimize negative consumer messaging.

To address this critical situation in a timely manner, the following actions have been taken:

WPA Website updated with Voluntary Pistachio Recall Information page that is kept current:

Meetings held with FDA, WPA lobbyist Bob Schramm and Paramount Farms counsel on issues related to

the pistachio recall

Fleishman-Hillard hired by WPA to generate press releases and provide media guidance

Daily conference calls with crisis management group and industry processors since March 30

Creation of new Website with list of unaffected products: www.pistachiorecall.org - FDA linked to site

Continuous WPA response to consumer and media requests for information regarding pistachios

The WPA is committed to an all-industry cooperative rebuilding effort emphasizing the safety and healthfulness

of U.S. pistachios, and we have maintained an active collaboration with Paramount Farms. Future combined

generic promotion efforts are being considered, as our success in minimizing the impact of this situation is

dependent upon presenting a unified front. There is consensus within the leadership of both Paramount Farms and

the WPA to determine how best to work together as a unified voice on this particular issue.

Future Board meeting dates will be posted on our Website, along with updated information and press releases

relating to the recall. We appreciate your continuing support while we address daily developments and work

towards restoring confidence in healthful U.S. pistachios.

Consumer Q & A (Please see reverse for a reprint of this document.)

Audio Podcast

Current Status

Most Recent Press Release

Initial Statement

pistachiorecall.org

www.fda.gov/pistachios

[This Q&A document is currently posted on the WPA Website and will be kept current.]

PISTACHIO GROWERS AND PROCESSORS PROVIDE IMPORTANT FACTS ABOUT VOLUNTARY RECALL

Consumer Questions & Answers UPDATED 04/07/09

Q: What are the details of the recent pistachio recall? A: The voluntary pistachio recall involves a single processor: Setton Pistachio of Terra Bella, Inc. The company is recalling pistachios as a precautionary measure due to potential Salmonella contamination. It is important to note that no known illnesses have been associated with this voluntary action, and pistachios processed outside of the Setton Pistachio facility are not affected by this recall. Pistachio growers and processors have also produced a Website: www.pistachiorecall.org that lists specific pistachio products and brands that do not contain pistachios from Setton Pistachio. Q: What qualifies a product to be listed on www.pistachiorecall.org? A: All of the products listed on this Website are placed there under signed affidavit confirming that the specific product or brand does not contain pistachios from Setton Pistachio of Terra Bella, Inc. Q: Have there been any reported cases of illness associated with pistachios? A: No. The FDA reports there have been no confirmed illnesses linked to this voluntary recall. This is a proactive, precautionary measure, and it is not related to recent recalls of peanut products linked to a Salmonella outbreak. As it relates to specific, affected products, the Food and Drug Administration (FDA) is providing a searchable database at www.fda.gov/pistachios. Q: What should consumers do with pistachios they may already have at home? A: The FDA recommends consumers avoid eating pistachio products unless they can confirm they are not from Setton Pistachio. The FDA has not suggested that consumers or retailers return or dispose of pistachio products. Q: Are more companies now involved with the recall? Why does the list of recalled products continue to grow on the FDA Website? A: The voluntary pistachio recall involves a single processor. The growing list of recalled products is a sign that the recall process is working. Here’s why: as the recall proceeds, and the FDA identifies where the potentially affected products were shipped and how they were used, they can then identify and recall specific products. It may seem counterintuitive, but an expanding list of products actually reflects a narrowing of the recall effort as specific products/brands are pinpointed. Q: What steps does the pistachio industry take to ensure a healthy product? A: The health and safety of consumers is the pistachio community’s number one priority; as such, growers and processors are continuing efforts to ensure the safety of pistachios. Processors follow stringent quality control procedures using advanced testing technologies. These measures have contributed to the industry’s excellent track record of producing high-quality products that are wholesome and healthy.

Q: Where can consumers get more information?

A: We will continue to update information as it becomes available via the Western Pistachio Association Website

and at www.pistachiorecall.org.

WPA Staff

Richard MatoianExecutive Director

Catherine ByrnesDirector, MembershipServices and Communications

Amanda Ingram Bookkeeper

Dianna ShortAdministrative Assistant

Board Membership

Thomas DilleCalifornia

Jim GrahamArizona

Larry LowderCalifornia

George SchweersNew Mexico

Gary SmithCalifornia

Jimi ValovCalifornia

Jim ZionCalifornia

Larry EasterlingCalifornia

Dr. Robert LakeCalifornia

Steve MooreCalifornia

Joshua SettonCalifornia

Rick StrainCalifornia

Brian WatteCalifornia

2008-09 Board of Directors

Executive Board

Dr. Michael Woolf Chairman

H.P. Anderson, III Secretary/Treasurer

Richard Paslay California

Brian BlackwellVice Chairman

Dr. John LakeCalifornia

Calendar Kernels

WPA Board MeetingMay 13, 2009Fresno, California

U.S. Pistachio Industry ConferenceFebruary 15-17, 2010Santa Barbara, California

7030 N. Fruit AvenueSuite 117Fresno, CA 93711(559) 475-0435www.westernpistachio.org