“Oakland: Nuts R Us”
By Jock O’Connell
U.S. West Coast ports have lately been thriving on exports of scrap paper products (like what was left of the cardboard box I found ripped open on my front porch just before Christmas). A surge in demand for packaging materials from China, Vietnam, and other East Asian economies has largely been behind the recent rise in the strong-dollar-defying exports of laden TEUs sailing from USWC ports.
America’s West Coast ports, fortunately, traffic in commodities other than rubbish. The Port of Oakland, for example, has long been known as a major gateway for agricultural exports, a somewhat ironic status given its location amidst the world’s capital of most things high-tech.
The port’s website lists four agricultural commodities among its top five exports by weight. Yet, unlike other ag-oriented ports such as New Orleans and Houston, Oakland’s terminals do not feature massive grain silos. Indeed, crops such as wheat, corn, and soybeans do not factor significantly in Oakland’s export trade. Instead, Oakland is preeminently an exporter of short to medium grain rice and what are called “specialty crops” -- notably fruits, vegetables, wines, and nuts.
Oakland’s role as a conduit for farm exports is hardly surprising given its proximity to California’s Central Valley, arguably the most valuable piece of agricultural real estate on the planet. (It always seems to amaze those accustomed to imagining California’s economy in terms of Silicon Valley and Hollywood that California is also the nation’s most prolific agricultural state, with farm receipts totaling more than double those of Texas, the country’s second leading food producer.)
Planting vast acreages in wheat, corn, and soybeans long ago ceased to be a viable option for growers in a state where production costs are as high as they are in California (Only one-half of one percent of all U.S. acreage given over to wheat production lies within California). To sustain themselves economically, California farmers turned to crops that commanded much higher prices. So, while not necessarily producing the basic food products that sustain life, the state’s growers produce the kinds of foods that make life enjoyable.
Today, California accounts for 100% of the nation’s exports of table grapes, raisins, figs, dried plums, kiwis, dates, olives and olive oil, garlic, artichokes, almonds, walnuts, and pistachios. It also accounts for just over half of the nation’s production of medium grain rice and nearly all its commercially-grown short grain variety. Not surprisingly, 85% of the nation’s wine is produced in California.
Oakland’s preeminence as the port of departure for the state’s agricultural exports is especially noteworthy when it comes to exports of nuts. As Exhibit 4 shows, Oakland’s share of U.S. nut export tonnage soared between 2005 and 2015, when the port handled 81% of all almond exports and 94% of all walnut exports from U.S. ports.
That dominance was not always the case. As recently as 2005, Oakland’s share of U.S. nut exports was just over 43%, followed by Houston at 22%, and Los Angeles/Long Beach at 18%. Ten years later, Houston’s share had fallen to 4%, Los Angeles/Long Beach held steady at 18%, but Oakland’s jumped to almost 68%.
The commentary, views, and opinions expressed by Jock O’Connell are his own and do not reflect the views or positions of the Pacific Merchant Shipping Association. PMSA does not endorse, support, or make any representations regarding the content provided by any third party commentator.