Grower Guidelines

Harv e s t
2 0 1 0
Grower Guidelines
for Delivery,
Grading &
Payment
Payment Information
2
Early Harvest Program
2
Qualifying for Inshell
3
Shelling Quality Bonus
3
Insect Classification
4
Volume Incentive Program
5
Ranch Pick Up Program
5
Delivery information
6
2010 Receiving Calendars
8
Tips for Improving Food Safety 10
And More…
Payment Information
T
he first delivery payments for the 2010 crop are planned
for early October and projected as follows:
• Delivery payments will be mailed 10 to 14 days after
delivery
• Progress payment by February 15, 2011
• Final payment in August 2011
The California Walnut Commission and California Walnut
Board assessments will be deducted from the 2010 delivery payments to fund the activities of the commission
and board.
Crop Value Statements
Beginning with the 2010 crop year, we will be providing the final price information with the final payment in
August rather than sending you a minimum final price
statement in March. If you need an estimate of your
crop value in March for budgeting or other purposes,
please contact your Grower Services Manager, and we
will provide information to you.
Deferred Payment Program
Deferral forms for the 2010 crop will be mailed in August
2010 to accounts that have deferred in prior years as
well as to new growers.
Should you wish to defer, but did not receive a deferral form,
please contact Grower Accounting. If you would like to defer
your February and August 2011 payments as well, please
indicate on the form and return two weeks prior to making
any deliveries.
Please note that Diamond does not offer tax advice. Therefore, contact your tax adviser to determine the tax implications of deferring your 2010 crop payments.
Accelerated Payment Program
Diamond will once again offer an accelerated payment program that will be available approximately December 15,
2010. The payment amount will be based on an estimated
price adjusted for quality and other variables identified in
the Walnut Purchase Agreement and these guidelines.
For information or an application form, please contact
Grower Accounting.
Early Harvest Bonus Program
T
he Early Harvest Bonus Program is again in place for
the 2010 harvest season. As in the past, participating
deliveries of Ashley, Payne, Vina, Hartley, Serr, Tulare,
Howard and Chandler varieties may earn a bonus of up
to 3 cents per pound. To minimize the seasonal harvest
variability, the program does not have any pre-determined
cutoff dates that correspond to a specific bonus payment.
Rather, the Early Harvest Bonus for each eligible delivery
will be calculated at the conclusion of harvest and will
be based on each load’s delivery date in relation to the
total volume of the variety received by Diamond. Bonus
payments will be paid in the February 2011 progress
payment in accordance with the percentile ranking listed
in the table below.
2010 Early Harvest Bonus Schedule
Percentage of total volume received by variety
Cents per lb bonus
2
Diamond Harvest 2010
0–25%
26–50%
51–75%
76–100%
3.0
2.0
1.0
-0-
Shelling Quality Bonus
T
Qualifying for Inshell
I
nshell rates are paid on all jumbo sound pounds of
Hartley, Vina, Payne and Ashley deliveries that meet
the following quality criteria.
he Shelling Quality Bonus program allows deliveries
of shelling varieties with less than 6% offgrade and
less than 5% insect damage to earn a bonus of up to 6
cents per edible pound. The shelling bonus is added to
the base shelling value and is paid on delivery. Certain
varieties such as Howard, Chandler, Serr and Tulare will
also receive additional recovery value due to their superior yield and ease of processing.
Hartley
Other Inshell:
Vina, Payne & Ashley
1) Contain at least
90% Hartley
1) Contain at least 90% Ashley, Payne or Vina varieties
2) Insect Class 1
or 2
2) Insect Class 1 or 2
SHELLING QUALITY BONUS
3) Less than 12% external
damage
3) Less than 12%
external damage
¢ / EDIBLE LB BONUS
6.0 u
5.0
4.0
3.0
2.0
1.0
0.0
0.0%
u
u
u
u
u
1.0%
2.0%
3.0%
4.0%
5.0%
u
6.0%
PERCENTOFFGRADE
4)Less than 8% internal
damage
4) Less than 10%
internal damage
Calculating the
Shelling Bonus
5) Payne and Ashley varieties
must be received on or
before October 25, 2010
T
he amount of the Shelling Quality Bonus is based on
the amount of offgrade in the delivery.
Inshell qualifying deliveries that contain less than 6% internal damage can earn an additional inshell quality bonus. The bonus will be paid at delivery on the inshell
qualified pounds with a maximum bonus of 6 cents per
inshell pound.
The chart below illustrates the amount of bonus paid at
various levels of internal damage.
INSHELL QUALITY BONUS
¢ / LB BONUS
6.0 u
5.0
4.0
3.0
2.0
1.0
0.0
0.0%
u
u
u
2.0%
3.0%
4.0%
InternalDamagePercent
• Multiply the cents/edible pound by the percent of the
edible yield. For example: 4.0¢ x 49% = 1.96¢ bonus
for each pound in the delivery.
• This bonus is added to the base shelling value to determine your total shelling cents/pound. The base shelling
value is determined by the combination of percent edible
yield and an RLI score of up to 54.
u
1.0%
• From the shelling quality bonus schedule, find the
cents/edible pound that corresponds to the percent of
offgrade of your delivery. For example: 2% offgrade =
4.0¢
u
u • If a delivery qualifies for both the inshell payment and
5.0%
6.0%
the shelling bonus, then the delivery will be paid with the
method that generates the most revenue for that delivery.
Diamond Harvest 2010
3
Insect Classification
D
eliveries are classified 1 through 5 according to the percentage of insect-damaged walnuts contained in each
delivery. This percentage is determined by count and is shown in the line headed “Insect Damage %” on your
statement. Classes 6, 7 and 8 are determined according to other factors as shown below.
Deduction:
Insect ¢ Per Inshell
Class Damage
Pound
Deduction:
Insect ¢ Per Inshell
Class Damage
Pound
Deduction:
Insect ¢ Per Inshell
Class Damage
Pound
1
< 5%
None
4
11%
5.0
4
18%
8.5
5
25%
12.0
2
5%
2.0
4
12%
5.5
4
19%
9.0
5
26%
12.5
2
6%
2.5
4
13%
6.0
4
20%
9.5
5
27%
13.0
2
7%
3.0
4
14%
6.5
5
21%
10.0
5
28%
13.5
3
8%
3.5
4
15%
7.0
5
22%
10.5
5
29%
14.0
3
9%
4.0
4
16%
7.5
5
23%
11.0
5
3
10%
4.5
4
17%
8.0
5
24%
11.5
30%
or more
Offgrade
value only
class
definition
6
Deliveries containing less than 12% edible kernels receive offgrade value only.
7
Deliveries made after the close of the regular delivery season (Nov. 29, 2010) receive offgrade
value only.
8
Deliveries which have not been “commercially prepared” receive offgrade value only.
Moisture Levels
W
alnuts must be hulled, cleaned and dried prior to
delivery. To assure inshell walnuts can be safely
stored and shipped without degradation to the product, deliveries should contain a moisture level of 8%
or below.
It is recommended that dehydrator operators target a
moisture level below 8% to compensate for the nut moisture variability in any given load.
Each delivery will be tested upon receipt. Readings above
the acceptable level will be resampled and retested. If multiple samples (up to three samples) are taken, an average
will be used to determine the final moisture percentage.
Loads having a verified final moisture level above 8% will
be returned for additional drying.
4
Deduction:
Insect ¢ Per Inshell
Class Damage
Pound
Diamond Harvest 2010
Volume Incentive Program
B
ulk loads of walnuts significantly improve our receiving, handling and processing efficiencies at all of our
locations; therefore, growers and dehydrators are encouraged to use our Ranch Pickup (RPU) and Partition Trailer
Programs to maximize the ease and value of each delivery. Our Volume Incentive program is designed to reward growers with a per pound bonus based on their total
pounds delivered in bulk. The volume incentive is based
on a tiered scale and the bonus payment will be included
in the February 2011 progress payment. To estimate your
volume incentive, please see the chart below. To participate in the bonus program, a grower must deliver a minimum of 50,000 lbs on RPU. Growers should make sure
that their dehydrator is signed up and able to participate.
For more information or to get signed up, please contact
your regional Grower Services Manager or our Grower Services department in Stockton.
VOLUME INCENTIVE PROGRAM
5.0
u
¢ / LB BONUS
4.0
3.0
2.0
1.0
u
u
u
u
u
u
u
0.0
50,000
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
RANCHPICKUPPOUNDS
Ranch Pick Up and
Partition Trailer Program
T
the scheduling team. Each set of trailers has four compartments that will each hold approximately six tons of
dried walnuts. Please try to make partition lots as large
as possible.
he Ranch Pick Up (RPU) & Partition Trailer Programs
will open for scheduling on September 8, 2010.
The program is free of charge; available 24 hours a day, 7
days a week. All deliveries received through the RPU and
Partition Programs qualify towards the Volume Incentive
program. To participate in the RPU program, the dehydrator’s load-out conveyor should clear a trailer height
of 13.5 feet and load a set of trailers in approximately
one hour. If your dehydrator is not currently participating
in the program, but would like to, please contact your
Grower Services Manager for additional details.
• Growers in the Southern Central Valley and Visalia areas, call the Sequoia Plant office at (559) 734-3367
during normal receiving hours.
To schedule Ranch Pick Up services, please contact
the RPU Call Center at (800) 719-4111 or (800) 7195111 between 8:00 AM and 12:00 PM (noon).
• Growers in the Sacramento Valley, call the Cal Orchard Receiving office at (530) 846-4900 during normal
receiving hours.
The Partition Trailer Program is an extension of the RPU
program, available to pick up smaller lots from dehydrators. To optimize hauling efficiency, pick ups may be coordinated and scheduled with multiple dehydrators by
• Growers in the Modesto, Linden and Knightsen
areas, call the RPU Scheduling office at (800) 719-4111
between 8:00 AM and 12:00 PM (noon).
To schedule a Partition Trailer pickup, please refer
to the numbers below for your region:
Diamond Harvest 2010
5
Delivery Information
D
iamond Foods receiving locations will soon be
open to receive walnuts following the receiving
calendars on pages 8–9. We plan to follow the
receiving calendars as closely as possible; however, the
schedule may change due to crop and weather conditions.
Please check the notices posted at the scale, or you may
phone the receiving plant for any updates. Any deliveries planned before the opening date should be scheduled
directly with the receiving plant office.
Diamond Foods receiving locations are equipped to receive walnuts in bulk, and deliveries that unload quickly
will expedite receiving for everyone. All delivery vehicles
should be self-cleaning as Diamond employees will not be
allowed to climb into the containers.
Prior to making your first deliveries, please make sure your
dehydrator has your correct account name and number,
and a copy of the delivery schedule for the local receiving
station.
When delivering your walnuts, please check your weight
receipt for accuracy (account number, weight, variety, date,
etc.). Any discrepancy should be brought to our attention
as soon as possible—discrepancies or errors reported to us
after December 31, 2010 cannot be corrected.
Handle walnuts as carefully as possible throughout the
harvest, hulling, drying and loading processes. Care
should be given not to drop nuts any farther than necessary when loading trucks. The yield recovered from
broken nuts is about 25% compared to more than 40%
from sound nuts.
To comply with USDA guidelines, all walnuts delivered
by Diamond growers must be produced within the
state of California. Walnuts of foreign origin will not
be accepted.
Delivery Information Requirement
T
he Walnut Purchase Agreement with Diamond requires all walnuts produced by the grower during
the term of the agreement to be delivered to Diamond.
While this requirement includes cull walnuts, which represent pick-outs from the huller sorting tables, dehydrators should not deliver huller trash that is produced from
Foreign
Material
6
Diamond Harvest 2010
D
the air-leg removal process. Please inform your dehydrator of this requirement prior to the beginning of harvest.
If you have any questions regarding the delivery terms
and conditions or the classification of culls, contact your
regional Grower Services Manager.
ue to the expense of additional processing, care should be given to remove all foreign
material: dirt, rocks, sticks, glass, other crop residue, etc. prior to delivery. Deliveries containing excessive foreign material may be returned to the dryer to be reworked. If
unloaded before the foreign material is found, deliveries could be classified as “not commercially prepared” and receive offgrade value only. Extra attention will be devoted to
identifying the exact source of foreign material to determine corrective action.
Assess Your Quality at the Dryer
B
efore your walnuts leave the dryer you should sample
each lot to check the quality. Keeping track of quality
at the dryer serves multiple purposes:
• It gives you a reference to any variability within the field.
• By comparing this information with your statement from Diamond, you will know immediately if a regrade should be considered.
• It alleviates any surprises when you receive your
statement.
To take a representative sample at the dryer:
• First, coordinate each sample at the dryer with the lot of walnuts to be delivered.
•
•
Second, pull walnuts from as many places within the dryer as possible to assure a representative sample is produced.
Third, individually crack and quantify 50–100 walnuts from each lot. Check for internal damage from codling moth, navel orangeworm, mold or shrivel, and for external damage such as adhering hull, splits, broken, etc.
If you need help to set up this sampling scheme, call
your regional Grower Services Manager who can guide
you through the process.
Harvest Season Ends
November 29
All receiving locations
will be open
until noon
on Monday,
November 29, 2010.
Variety Consolidation
T
o further enhance the receiving and handling efficiency
at our various locations, Diamond is encouraging growers and dehydrators to consolidate smaller lots of varieties
of similar material type and quality whenever possible.
Grower payments for deliveries consolidated along
these guidelines are equivalent to individual deliveries, but
the receipt of consolidated lots greatly improves the receiving flow and significantly reduces the handling and administrative costs associated with multiple individual deliveries.
To maximize the value of deliveries of consolidated varieties, the following variety combinations should be used as
guidelines:
•
•
•
•
Chandler and Howard
Serr and Tulare
Ashley, Payne and Vina
All other varieties
Regrades
R
eserve samples of your deliveries are normally held at Stockton for at least three weeks after the delivery has been
graded. To request a regrade, contact your regional Grower Services Manager. The regrade is combined with the
original grade, resulting in an average.
Diamond Harvest 2010
7
2010 Receivi
Sequoia Plant
(559) 734-3367
S
5
M
6
SEPTEMBER
T
7
Modesto Plant
(209) 526-0575
W
Th
F
S
1
2
3
4
8
9
10 11
S
5
M
6
T
7
W
Th
F
S
1
2
3
4
8
9
10 11
12 13 14 15 16 17 18
12 13 14 15 16 17 18
19 20 21 22 23 24 25
19 20 21 22 23 24 25
26 27 28 29 30
26 27 28 29 30
S
3
M
4
OCTOBER
T
5
W
6
Th
7
F
S
1
2
8
9
S
3
M
4
OCTOBER
T
5
W
6
Th
7
F
S
1
2
8
9
10 11 12 13 14 15 16
10 11 12 13 14 15 16
17 18 19 20 21 22 23
17 18 19 20 21 22 23
24
25 26 27 28 29 30
31
24
25 26 27 28 29 30
31
S
7
M
NOVEMBER
T
W
Th
F
S
1
2
3
4
5
6
8
9
10 11 12 13
S
7
M
NOVEMBER
T
W
Th
F
S
1
2
3
4
5
6
8
9
10 11 12 13
14 15 16 17 18 19 20
14 15 16 17 18 19 20
21 22 23 24 25 26 27
21 22 23 24 25 26 27
28 29 30
28 29 30
KEY:
8 8 Diamond
Diamond
Harvest
Harvest
2010
2010
SEPTEMBER
= Half Day (7AM–12PM)
ng Calendars
Linden Plant
(209) 887-3565
S
5
M
6
SEPTEMBER
T
7
Cal-Orchard
(530) 846-4900
W
Th
F
S
1
2
3
4
9
8
10 11
S
5
M
6
SEPTEMBER
T
7
W
Th
F
S
1
2
3
4
8
9
10 11
12 13 14 15 16 17 18
12 13 14 15 16 17 18
19 20 21 22 23 24 25
19 20 21 22 23 24 25
26 27 28 29 30
26 27 28 29 30
S
3
M
4
OCTOBER
T
5
W
Th
6
7
F
S
1
2
8
9
S
3
M
4
OCTOBER
T
5
W
6
Th
7
F
S
1
2
8
9
10 11 12 13 14 15 16
10 11 12 13 14 15 16
17 18 19 20 21 22 23
17 18 19 20 21 22 23
24
25 26 27 28 29 30
31
24
25 26 27 28 29 30
31
S
7
M
NOVEMBER
T
W
Th
F
S
1
2
3
4
5
6
8
9
10 11 12 13
S
7
M
NOVEMBER
T
W
Th
F
S
1
2
3
4
5
6
8
9
10 11 12 13
14 15 16 17 18 19 20
14 15 16 17 18 19 20
21 22 23 24 25 26 27
21 22 23 24 25 26 27
28 29 30
28 29 30
Plant
Locations
Sequoia Plant
615 N. Ben Maddox Way
Visalia, CA 93291
(559) 734-3367
Modesto Plant
395 Mitchell Road
Modesto, CA 95354
(209) 526-0575
Linden Plant
19525 E. Main Street
Linden, CA 95236
(209) 887-3565
Cal-Orchard
448 Hwy. 99
Gridley, CA 95948
(530) 846-4900
Knightsen Station
Knightsen Ave & A Street
Knightsen, CA 94548
(925) 437-8145
= Full Day (7AM–4PM)
Diamond Harvest 2010
9
Food Safety
Starts with You!
Follow these tips to ensure
continued production of
high quality walnuts.
T
he basis of a strong and reliable food safety program starts with the raw materials. As growers and
dehydrator operators, there are many things that
you can do to help ensure that the walnut industry continues to produce a high quality product. With continued
emphasis being placed on the walnut industry to provide a
safe and wholesome product, it becomes vital that walnuts
be grown, harvested, hulled and dehydrated under conditions that help minimize the risk of contamination.
As discussed last December at the Best Management Practices Workshops, the following are some considerations for
growers to help ensure production of quality walnuts:
• Understand the risks of contamination and how contaminants can be spread by way of various mediums (air, soil, water).
• Establish an individualized Good Agricultural
Practices (GAP) Program.
• Keep detailed records, update property maps and develop action plans to monitor and/or correct potential hazards.
• Develop a sound orchard management plan that may address:
– Wildlife policies, irrigation management,
fertilizer and nutrient applications.
–Set policies for the removal and disposal of
potential contaminants and undesirable
materials from the orchard.
• Incorporate the basic principles of IPM into your farming decisions.
• Inform employees on the importance of your GAP program.
10
Diamond Harvest 2010
• Only apply materials registered for your crops and only at label rates.
–Submit pesticide use reports monthly.
–Train employees on safe handling and use of
chemicals.
• Clean harvest equipment and field containers before the season and when transitioning from another crop, such as almonds.
• Properly adjust sweepers and pick up machines
during harvest.
•
Encourage your dehydrator(s) to implement proper Good Manufacturing Practices (GMP’s) at their
location to minimize the chances of crosscontamination.
As a huller and dehydrator, the convergence of field run
walnuts from multiple growers can present a complex situ-
ation. The following GMP’s can assist in reducing potential
contamination:
•
Implement a record keeping system that adequately traces each lot from the field, through the entire hulling and dehydrating process, and to the handler. –Retain this information for at least one year.
• Implement a sanitation and pest control program.
– Clean out dehydrator bins, field carts, bulk
trailers and other containers prior to operation.
–Remove dust, feces, trash and nesting materials.
– Implement measures to control birds, rodents and insects during the off season.
• Keep the dehydrator reasonably clean during
harvest season by regularly washing down and
disposing of walnut debris and waste materials.
• Use only water of drinking quality within the facility and regularly change the water in float tanks.
• Properly train employees on basic food safety and hygiene procedures.
Online Delivery,
Grading and
Payment Information
Y
ou can view your delivery, grading and payment information through the Diamond Foods website via your
secured user name and password.
To access the Diamond Online site: Visit diamondfoods.
com
• Click on the Diamond Growers link
• Click on the Diamond Online link
When prompted, please enter your grower or dehydrator
User ID and Password and press the Enter key or click the
Login button. A welcome page will be displayed containing the links available to you.
If you need additional information, please contact the
Grower Services office or your regional Grower Serivces
Manager.
• Maintain clean and sanitary restroom and break facilities.
• Consider the use of a clean water spray or sanitized water spray rinse application after the nuts have
been hulled.
• Encourage your growers to follow basic GAP
principles throughout the year to deliver you a clean crop.
Your cooperation in keeping the industry safe and reliable
is appreciated. Should you have any questions regarding
the establishment or implementation of a GAP or GMP program, please contact your local Grower Services Manager.
For additional resources and information on Good Agricultural Practices and Good Manufacturing Practices:
• UC Davis Food Safety: http://ucfoodsafety.ucdavis.edu
• UC Davis GAP Programs: http://ucgaps.ucdavis.edu
• Cornell University Food Safety & Employee Training: http://www.gaps.cornell.edu
Diamond Harvest 2010
11
Grower Services Department
Eric Heidman
Senior Director of
Field Operations
Office: 209-467-6202
Fax: 209-933-6842
[email protected]
Justin Bream
Grower Services Manager
San Joaquin, Stanislaus, Merced &
Contra Costa counties
Linden & Modesto Plant Manager
Cell: 209-351-2363
Fax: 209-933-6874
[email protected]
Gene Manhire
Grower Services Manager
Southern San Joaquin Valley &
Coastal areas
Sequoia Plant Manager
Cell: 559-730-1959
Fax: 559-636-8917
[email protected]
Jessica Dunlap
Grower Services Supervisor
Office: 209-932-5665
or 800-355-3346
Fax: 209-933-6808
[email protected]
Dan Newman
Grower Services Manager
Sacramento Valley &
North Coast
Cell: 530-218-2612
Fax: 209-933-6885
[email protected]
Taryn Borba
Grower Accounting Supervisor
Office: 209-467-6217
or 800-692-3400
Fax: 209-323-7115
[email protected]
Steve Zaffarano
SVP of Supply Chain and
General Manager of Walnut Operations
Office: 209-467-6233
Fax: (209) 933-6892
[email protected]
Published by Diamond Foods, Inc., 1050 S. Diamond St., Stockton, CA 95205 • 209-467-6000 • diamondfoods.com
© 2010 Diamond Foods, Inc.