{"id":23118,"date":"2017-11-14T23:37:33","date_gmt":"2017-11-15T04:37:33","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/blue-diamond-growers-the-effect-of-climate-change-on-the-almond-industry\/"},"modified":"2017-11-14T23:37:33","modified_gmt":"2017-11-15T04:37:33","slug":"blue-diamond-growers-the-effect-of-climate-change-on-the-almond-industry","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/blue-diamond-growers-the-effect-of-climate-change-on-the-almond-industry\/","title":{"rendered":"Blue Diamond Growers: The effect of climate change on the almond industry"},"content":{"rendered":"

Why is America going nuts for almonds? <\/strong><\/p>\n

Blue Diamond Growers is the world\u2019s largest handler of almonds. Blue Diamond was originally founded with 230 Californian growers in 1910 as a cooperative of farmers [1]. Estimates suggest that Blue Diamond\u2019s market share is more than half of all the almonds grown in California [2].\u00a0 Since 2005, almond demand has grown more than 220 percent, and the annual consumption per person has quadrupled from a half pound in 1970 to two pounds in 2014 [3].<\/p>\n

\"\"<\/a>
[3]<\/figcaption><\/figure>Changing information on health, an increased focus on diet, and aggressive marketing campaigns have all helped influence the rising demand. Prices of almonds have also risen, from $1\/lb in 2000 to $5\/lb in 2005, making it an attractive investment for farmers [4].<\/p>\n

 <\/p>\n

High risk, high reward: <\/strong><\/p>\n

As a result of the industry\u2019s growth, lands have been converted into almond fields with a 14% acreage increase from 2007 to 2014 [4] and a 6% acreage increase from 2015-2016 [5]. While almonds are more profitable than some other crops, almond trees require years of growing and watering before farmers can truly recoup their investment [6]. Therefore, almond farmers are taking on a bigger risk, with potentially more reward, when deciding to plant almonds instead of other crops.<\/p>\n

 <\/p>\n

Trouble in paradise: <\/strong><\/p>\n

It takes about 1 gallon of water to grow 1 nut. Overall, almonds are responsible for about \u201c10% of California\u2019s agricultural water supply,\u201d which in recent years has been under stress due to climate change [7].<\/p>\n

\"\"<\/a>
[7]<\/figcaption><\/figure>California\u2019s water supply originates from 3 primary sources: snowpack, reservoirs, and groundwater. In normal years, water is sourced equally from the three. However, in drought years, residents are forced to rely primarily on groundwater which can lead to limited overall water supply [7]. In 2015, California was in its 4th<\/sup> consecutive drought year and farmers were put in a tough position in which they needed to remove orchards ahead of schedule and lay off workers [8]. Global warming was responsible for intensifying the Californian drought in 2015 by 15-20% and the odds of California suffering droughts \u201chave roughly doubled over the past century,\u201d [9]. Therefore, Blue Diamond needs to work with its farmers to mitigate this supply chain risk.<\/p>\n

 <\/p>\n

Blue Diamond’s<\/strong>\u00a0response: <\/strong><\/p>\n

During the drought, Blue Diamond educated its farmers through Industry Notes and explained why water shortages were a problem that needed to be addressed [10]. Blue Diamond educated farmers on the effects of excessive stress, drought-tolerant growth phases, and how decreased water usage at the right time can improve crop quality\/yield and conserve water [11]. In the long-term, Blue Diamond has committed to \u201ccollaborating with industry peers, water and environmental experts, consumer groups, regulatory bodies and policy-makers to address several key factors to combat water shortage,\u201d [8].<\/p>\n

Furthermore, California farmers have invested over $3 billion in developing smarter irrigation systems in order to reduce water use by 14% [8]. \u201cAlmost 70 percent of almond growers use micro-irrigation systems and more than 80 percent use demand-based irrigation scheduling,\u201d [8]. \u00a0At an individual level, farmers are working to gain access to technology that can help them combat water issues. For example, Eric Genzoli, graduate of the Blue Diamond Leadership Development program, completed his first California Almond Sustainability Program module in 2011, through which he learned to use CASP\u2019s online irrigation calculator and other tools that help Genzoli respond to water crises [12].<\/p>\n

 <\/p>\n

Adapting to a changing world: <\/strong><\/p>\n

The Almond Board of California has created the Almond Irrigation Improvement Continuum, which is a manual on irrigation management and scheduling practices [13].<\/p>\n

\"\"<\/a>
[13]<\/figcaption><\/figure>The strategy is divided into 3 levels that span a range of sophistication and accessibility, such that the information applies to all growers [9]. Blue Diamond should encourage its farmers to use the Continuum in order to truly understand best practices for water management. Additionally, Blue Diamond should invest in new irrigation technologies. Specifically, they should invest in precision irrigation, where systems use remote sensing to track soil and water status, as well as link with a mobile platform that has decision support tools [14] [15].<\/p>\n

 <\/p>\n

Going forward: \u00a0\u00a0\u00a0<\/strong><\/p>\n

In the future, Blue Diamond will not only need to worry about limited internal resources, but also external competitive pressures. During the 2015 drought, Australian almond producers boosted production to meet growing demands in Asia, stealing Blue Diamond\u2019s market share [16]. As droughts continue to affect the Californian region, will the \u201cgood\u201d years be enough to combat the \u201cbad?\u201d It is in Blue Diamond\u2019s best interest to work with its growers to adopt technologies that conserve water in order to meet increasing demand.<\/p>\n

 <\/p>\n

Questions:<\/strong><\/p>\n

What\u2019s to prevent almond growers from using \u201csaved\u201d water to just plant more crops, offsetting any conservation efforts? Is this a good or a bad thing in the long-run?<\/p>\n

 <\/p>\n

(Word Count: 788)<\/p>\n

 <\/p>\n

[1] Blue Diamond Growers. \u201dPower in Partnership.\u201d Blue Diamond Growers, <\/em>2017, http:\/\/bluediamondgrowers.com\/, accessed November 12, 2017.<\/p>\n

[2] White, Martha. \u201cBlue Diamond Growers.\u201d Slate Magazine, <\/em>28 Oct. 2010, http:\/\/www.slate.com\/articles\/business\/exports\/2010\/10\/blue_diamond_growers.html, accessed November 12, 2017.<\/p>\n

[3] Ferdman, Roberto A. \u201cThe rise of the American almond craze in one nutty chart\u201d. The Washington Post, <\/em>6 Aug. 2014, https:\/\/www.washingtonpost.com\/news\/wonk\/wp\/2014\/08\/06\/the-rise-of-the-american-almond-craze-in-one-nutty-chart\/?utm_term=.68e44cd8e9c0, accessed November 12, 2017.<\/p>\n

[4] Geological Society of America. “California’s almond boom has ramped up water use, consumed wetlands and stressed pollinators.” Science Daily, <\/em>27 Sept. 2016, https:\/\/www.sciencedaily.com\/releases\/2016\/09\/160927135017.htm, accessed November 12, 2017.<\/p>\n

[5] California Department of Food and Agriculture. \u201c2015 California Almond Acreage Report.\u201d USDA\/NASS, Pacific Regional Office. <\/em>27 Apr. 2016, https:\/\/www.nass.usda.gov\/Statistics_by_State\/California\/Publications\/Fruits_and_Nuts\/2016\/201605almac.pdf, accessed November 12, 2017.<\/p>\n

[6] Fimrite, Pam. \u201cCalifornia drought: How water crisis is worse for almonds.\u201d SF Gate<\/em>. 24 Mar. 2014, http:\/\/www.sfgate.com\/science\/article\/California-drought-How-water-crisis-is-worse-for-5341382.php, accessed November 12, 2017.<\/p>\n

[7] Holthaus, Eric. \u201cStop Vilifying Almonds.\u201d Slate Magazine. <\/em>17 Apr. 2015, http:\/\/www.slate.com\/articles\/business\/moneybox\/2015\/04\/almonds_in_california_they_use_up_a_lot_of_water_but_they_deserve_a_place.html, accessed November 12, 2017.<\/p>\n

[8] Blue Diamond Growers. \u201cGovernment Issues Mandatory Water Reductions Amid Droughts.\u201d Almond Facts. <\/em>May|June 2015, http:\/\/www.bluediamondgrowers.com\/almondfacts\/may-june-2015\/may-june-2015.pdf, accessed November 12, 2017.<\/p>\n

[9] Gillis, Justin. \u201cCalifornia Drought Is Made Worse by Global Warming, Scientists Say.\u201d The New York Times. <\/em>20 Aug. 2015, https:\/\/www.nytimes.com\/2015\/08\/21\/science\/climate-change-intensifies-california-drought-scientists-say.html?_r=0, accessed November 12, 2017.<\/p>\n

[10] Blue Diamond Global Ingredients Division. \u201cInsights from Blue Diamond Regarding the California Water Situation and the Almond Crop.\u201d Blue Diamond Almonds. <\/em>31 Jan. 2014, http:\/\/www.bdingredients.com\/insights-from-blue-diamond-regarding-the-california-water-situation-and-the-almond-crop\/, accessed November 12, 2017.<\/p>\n

[11] Venton, Danielle. \u201cA Better Way for California to Water Its Farms.\u201d Wired. <\/em>5 Jun. 2015, https:\/\/www.wired.com\/2015\/06\/farming-and-drought\/, accessed November 12, 2017.<\/p>\n

[12] The Almond Board of California. \u201cPrioritizing Sustainability on the Farm.\u201d The Almond Board of California. <\/em>14 Jul. 2017, http:\/\/www.almonds.com\/newsletters\/outlook\/prioritizing-sustainability-farm?desktop=1, accessed November 12, 2017.<\/p>\n

[13] The Almond Board of California. \u201cIrrigation Improvement Continuum.\u201d The Almond Board of California. <\/em>2017, http:\/\/www.almonds.com\/irrigation, accessed November 12, 2017.<\/p>\n

[14] Mulla, David J. \u201cTwenty five years of remote sensing in precision agriculture: Key advances and remaining knowledge gaps.\u201d Science Direct. <\/em>Apr. 2013, http:\/\/www.sciencedirect.com\/science\/article\/pii\/S1537511012001419, accessed November 12, 2017.<\/p>\n

[15] Upadhyaya, Shrinivasa. \u201cPrecision Canopy and Water Management of Specialty Crops through Sensor-Based Decision Making.\u201d United States Department of Agriculture. <\/em>2013, https:\/\/www.nal.usda.gov\/fsrio\/research_projects\/\/printresults.php?ID=6388, accessed November 12, 2017.<\/p>\n

[16] Packham, Colin. \u201cAustralian almond producers target Asia as drought hits California.\u201d Reuters. <\/em>7 May 2015, http:\/\/www.reuters.com\/article\/australia-almonds\/australian-almond-producers-target-asia-as-drought-hits-california-idUSL4N0XT08F20150507, accessed November 12, 2017.<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

For Blue Diamond Growers, almond demand is growing and acreage is increasing; however, supply is being threatened by climate change, specifically droughts in the California region. <\/p>\n","protected":false},"author":10046,"featured_media":23119,"comment_status":"open","ping_status":"closed","template":"","categories":[28,1218,1926,3521],"class_list":["post-23118","hck-submission","type-hck-submission","status-publish","has-post-thumbnail","hentry","category-agriculture","category-climate-change","category-food-supply","category-food-sustainability","hck-taxonomy-organization-blue-diamond-growers","hck-taxonomy-industry-food-and-beverage","hck-taxonomy-country-united-states"],"connected_submission_link":"https:\/\/d3.harvard.edu\/platform-rctom\/assignment\/rc-tom-challenge-2017\/","yoast_head":"\nBlue Diamond Growers: The effect of climate change on the almond industry - Technology and Operations Management<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/blue-diamond-growers-the-effect-of-climate-change-on-the-almond-industry\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Blue Diamond Growers: The effect of climate change on the almond industry - Technology and Operations Management\" \/>\n<meta property=\"og:description\" content=\"For Blue Diamond Growers, almond demand is growing and acreage is increasing; however, supply is being threatened by climate change, specifically droughts in the California region.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/blue-diamond-growers-the-effect-of-climate-change-on-the-almond-industry\/\" \/>\n<meta property=\"og:site_name\" content=\"Technology and Operations Management\" \/>\n<meta property=\"og:image\" content=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2017\/11\/Screen-Shot-2017-11-14-at-11.21.43-PM.png\" \/>\n\t<meta property=\"og:image:width\" content=\"580\" \/>\n\t<meta property=\"og:image:height\" content=\"407\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"6 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/submission\\\/blue-diamond-growers-the-effect-of-climate-change-on-the-almond-industry\\\/\",\"url\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/submission\\\/blue-diamond-growers-the-effect-of-climate-change-on-the-almond-industry\\\/\",\"name\":\"Blue Diamond Growers: The effect of climate change on the almond industry - Technology and Operations Management\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/submission\\\/blue-diamond-growers-the-effect-of-climate-change-on-the-almond-industry\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/submission\\\/blue-diamond-growers-the-effect-of-climate-change-on-the-almond-industry\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/wp-content\\\/uploads\\\/sites\\\/4\\\/2017\\\/11\\\/Screen-Shot-2017-11-14-at-11.21.43-PM.png\",\"datePublished\":\"2017-11-15T04:37:33+00:00\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/submission\\\/blue-diamond-growers-the-effect-of-climate-change-on-the-almond-industry\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/submission\\\/blue-diamond-growers-the-effect-of-climate-change-on-the-almond-industry\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/submission\\\/blue-diamond-growers-the-effect-of-climate-change-on-the-almond-industry\\\/#primaryimage\",\"url\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/wp-content\\\/uploads\\\/sites\\\/4\\\/2017\\\/11\\\/Screen-Shot-2017-11-14-at-11.21.43-PM.png\",\"contentUrl\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/wp-content\\\/uploads\\\/sites\\\/4\\\/2017\\\/11\\\/Screen-Shot-2017-11-14-at-11.21.43-PM.png\",\"width\":580,\"height\":407},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/submission\\\/blue-diamond-growers-the-effect-of-climate-change-on-the-almond-industry\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Submissions\",\"item\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/submission\\\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"Blue Diamond Growers: The effect of climate change on the almond industry\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/#website\",\"url\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/\",\"name\":\"Technology and Operations Management\",\"description\":\"MBA Student Perspectives\",\"potentialAction\":[{\"@type\":\"性视界Action\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Blue Diamond Growers: The effect of climate change on the almond industry - Technology and Operations Management","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/blue-diamond-growers-the-effect-of-climate-change-on-the-almond-industry\/","og_locale":"en_US","og_type":"article","og_title":"Blue Diamond Growers: The effect of climate change on the almond industry - Technology and Operations Management","og_description":"For Blue Diamond Growers, almond demand is growing and acreage is increasing; however, supply is being threatened by climate change, specifically droughts in the California region.","og_url":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/blue-diamond-growers-the-effect-of-climate-change-on-the-almond-industry\/","og_site_name":"Technology and Operations Management","og_image":[{"width":580,"height":407,"url":"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2017\/11\/Screen-Shot-2017-11-14-at-11.21.43-PM.png","type":"image\/png"}],"twitter_card":"summary_large_image","twitter_misc":{"Est. reading time":"6 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/blue-diamond-growers-the-effect-of-climate-change-on-the-almond-industry\/","url":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/blue-diamond-growers-the-effect-of-climate-change-on-the-almond-industry\/","name":"Blue Diamond Growers: The effect of climate change on the almond industry - Technology and Operations Management","isPartOf":{"@id":"https:\/\/d3.harvard.edu\/platform-rctom\/#website"},"primaryImageOfPage":{"@id":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/blue-diamond-growers-the-effect-of-climate-change-on-the-almond-industry\/#primaryimage"},"image":{"@id":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/blue-diamond-growers-the-effect-of-climate-change-on-the-almond-industry\/#primaryimage"},"thumbnailUrl":"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2017\/11\/Screen-Shot-2017-11-14-at-11.21.43-PM.png","datePublished":"2017-11-15T04:37:33+00:00","breadcrumb":{"@id":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/blue-diamond-growers-the-effect-of-climate-change-on-the-almond-industry\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/d3.harvard.edu\/platform-rctom\/submission\/blue-diamond-growers-the-effect-of-climate-change-on-the-almond-industry\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/blue-diamond-growers-the-effect-of-climate-change-on-the-almond-industry\/#primaryimage","url":"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2017\/11\/Screen-Shot-2017-11-14-at-11.21.43-PM.png","contentUrl":"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2017\/11\/Screen-Shot-2017-11-14-at-11.21.43-PM.png","width":580,"height":407},{"@type":"BreadcrumbList","@id":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/blue-diamond-growers-the-effect-of-climate-change-on-the-almond-industry\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/d3.harvard.edu\/platform-rctom\/"},{"@type":"ListItem","position":2,"name":"Submissions","item":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/"},{"@type":"ListItem","position":3,"name":"Blue Diamond Growers: The effect of climate change on the almond industry"}]},{"@type":"WebSite","@id":"https:\/\/d3.harvard.edu\/platform-rctom\/#website","url":"https:\/\/d3.harvard.edu\/platform-rctom\/","name":"Technology and Operations Management","description":"MBA Student Perspectives","potentialAction":[{"@type":"性视界Action","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/d3.harvard.edu\/platform-rctom\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"}]}},"_links":{"self":[{"href":"https:\/\/d3.harvard.edu\/platform-rctom\/wp-json\/wp\/v2\/hck-submission\/23118","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/d3.harvard.edu\/platform-rctom\/wp-json\/wp\/v2\/hck-submission"}],"about":[{"href":"https:\/\/d3.harvard.edu\/platform-rctom\/wp-json\/wp\/v2\/types\/hck-submission"}],"author":[{"embeddable":true,"href":"https:\/\/d3.harvard.edu\/platform-rctom\/wp-json\/wp\/v2\/users\/10046"}],"replies":[{"embeddable":true,"href":"https:\/\/d3.harvard.edu\/platform-rctom\/wp-json\/wp\/v2\/comments?post=23118"}],"version-history":[{"count":0,"href":"https:\/\/d3.harvard.edu\/platform-rctom\/wp-json\/wp\/v2\/hck-submission\/23118\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/d3.harvard.edu\/platform-rctom\/wp-json\/wp\/v2\/media\/23119"}],"wp:attachment":[{"href":"https:\/\/d3.harvard.edu\/platform-rctom\/wp-json\/wp\/v2\/media?parent=23118"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/d3.harvard.edu\/platform-rctom\/wp-json\/wp\/v2\/categories?post=23118"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}