The Idea
The opportunity is to connect California almond suppliers with reliable international buyers. We have already spoken with farmers, packers, and traders to understand the industry. California has a large, established almond supply chain, especially around Fresno and the Central Valley. Our role would be to find buyers, understand exactly what they need, and work with experienced California partners to complete the transaction.
How We Should Start
The safest way to begin is by working with an established California almond broker or exporter, such as Derco. They can help manage:
- Sourcing and pricing
- Quality control and testing
- Export documents
- Shipping and logistics
- Payment terms
- Destination-country requirements
This would allow us to focus on finding buyers and building relationships while learning the business from an experienced operator. It also reduces the need to purchase inventory, finance an entire shipment, or manage complicated export requirements ourselves.
How a Sale Would Work
- Find a serious international buyer.
- Confirm the exact almonds, quantity, packaging, destination, and certifications they need.
- Work with the broker or exporter to source the product and prepare a quote.
- Agree on pricing, payment terms, responsibilities, and our share of the transaction.
- The export partner manages the almonds, testing, paperwork, and shipping.
- The buyer receives the order, and we earn an agreed commission or margin.
Almonds 101: Variety, Type, Form, Size, and Grade
“Almonds” is not a complete product description. Almonds that look similar can have different prices and uses. A proper quote may look like this: Natural whole Nonpareil almonds, size 25/27, U.S. No. 1 grade, pasteurized, packed in 50-pound cartons. Each part describes something different:
- Variety: The kind of almond tree it came from
- Type: A broader commercial group of similar varieties
- Form: What has been done to the almond
- Size: The approximate number of kernels in one ounce
- Grade: The almond’s quality and allowed defects
Main Almond Types
California almonds are generally grouped into three major commercial types.
Nonpareil is known for its light skin, smooth surface, long shape, and attractive appearance. It is commonly used for:
- Premium snack packages
- Chocolate-covered almonds
- Gift products
- Retail whole almonds
- Sliced or blanched products
Nonpareil often sells at a higher price because buyers value its appearance and versatility. A contract should make clear whether the buyer wants the actual Nonpareil variety or will accept a similar Nonpareil-type almond.
California Type: This group includes varieties such as Monterey and Carmel. These almonds may be less uniform in appearance than Nonpareil, but they are useful for:
- Roasting
- Slicing and chopping
- Candy and bakery products
- Almond flour
- Almond butter
- Food manufacturing
They can be a more economical choice when the buyer plans to process the almonds.
Mission Type: Mission-type varieties include Butte, Padre, Fritz, and Mission. They are generally shorter, rounder, darker, and more wrinkled. Their surface holds salt and seasoning well. Common uses include:
- Roasted and salted almonds
- Flavored almonds
- Bakery ingredients
- Products where appearance is less important
Common Almond Forms
The form describes how the almond is sold.
- In-shell: The edible almond remains inside the shell.
- Natural whole: The shell is removed, but the brown skin remains.
- Blanched: The brown skin has been removed.
- Sliced or slivered: The almond is cut for bakery, salad, cereal, or decorative use.
- Diced or chopped: Small pieces used in candy, ice cream, cookies, and other foods.
- Meal or flour: Ground almonds used in baking and food manufacturing.
- Butter or paste: Ground into a spread or ingredient.
- Roasted or flavored: A finished or nearly finished consumer product.
Processed almonds may sell for more, but they also require more manufacturing, packaging, testing, and labeling.
Understanding Almond Size
Whole almonds are commonly sized by the approximate number of kernels in one ounce. Examples include:
- 18/20
- 23/25
- 25/27
- 27/30
- 30/32
The important point is: The smaller the number, the larger the almond. For example: 18/20: About 18 to 20 almonds per ounce, making them relatively large.
Larger almonds often cost more when appearance matters, such as in gift packages or chocolate-covered products. Smaller almonds may offer better value when they will be chopped, ground, or made into flour or butter. Paying extra for a large, attractive almond makes little sense if the buyer plans to grind it.
Understanding Grade
Grade describes the quality and consistency of a lot. Common grades include:
- U.S. Fancy: Highest appearance standards
- U.S. Extra No. 1: High-quality whole almonds
- U.S. No. 1: A common commercial grade, often called “Supreme”
- Select Sheller Run: Allows more cosmetic damage and broken kernels
- Standard Sheller Run: Often used for further processing
- Whole and Broken or Pieces: Used when intact almonds are unnecessary
Grade affects how many chips, scratches, broken kernels, doubles, and other defects are allowed. “Supreme” is a common industry term for U.S. No. 1, but it is not an official USDA grade by itself. The buyer and seller should use measurable specifications instead of general descriptions such as “good quality” or “premium almonds.”
Food Safety and Aflatoxin
Aflatoxin is a food-safety contaminant that can develop from certain molds. It is measured in extremely small amounts, and acceptable limits vary by country. This is important because a shipment can pass a test in California but be sampled differently and fail at its destination. Before shipping, the agreement should clearly state:
- Which country’s limits apply
- How samples will be collected
- Which laboratory will test the almonds
- Who pays for testing
- Who is responsible if the shipment fails
- What happens to rejected almonds
Testing requirements must be confirmed for each country and each product.
Target Buyers
Potential customers include:
- Almond and nut importers
- Food distributors
- Snack companies
- Bakeries and confectionery manufacturers
- Almond-milk, flour, butter, and ingredient producers
- Supermarket and food-service suppliers
Before preparing a quote, the buyer must confirm:
- Exact product specification
- Order size and frequency
- Packaging
- Destination port
- Required documents and testing
- Payment method
- Customs responsibility
- Procedure for damaged or rejected goods
How We Make Money
Our income could be structured as:
- A commission based on the shipment value
- A fixed fee for each shipment
- A margin included in the selling price
For example, a 2% commission on a $120,000 shipment would generate $2,400 in revenue. Margins in commodity trading can be thin. Repeat orders from dependable buyers will be more valuable than trying to make a large profit on one shipment.
Example Shipment Economics
The following is an example, not a current market quote.
| Item | Amount |
|---|
| Almond purchase | $104,000 |
| Packing, transport, testing, freight, insurance, and financing | $14,000 |
| Total cost | $118,000 |
| Selling price | $124,800 |
| Estimated gross profit | $6,800 |
This example assumes a 40,000-pound shipment. Gross profit is not take-home profit. It does not include company overhead, travel, samples, legal costs, taxes, rejected shipments, or unpaid invoices.
Why Work With an Established Export Partner?
A full shipment can require more than $100,000 before the buyer pays. The supplier may need payment before releasing the almonds, while the buyer may not pay until after delivery. Working with an established broker or exporter reduces our exposure to:
- Inventory costs
- Buyer nonpayment
- Price changes
- Shipping problems
- Incorrect documents
- Product rejection
- Food-safety and regulatory issues
We still need a written agreement protecting our commission and buyer relationship.
Shipping Responsibilities
International contracts use Incoterms to explain where the seller’s responsibility ends and the buyer’s begins. Common examples include:
- EXW: The buyer collects the almonds from the supplier.
- FOB: The seller is responsible for getting the shipment to and loaded at the named export port.
- CIF: The seller’s price includes ocean freight and insurance to the named destination port.
The agreement must include the exact term and location, such as: FOB Oakland, Incoterms 2020
Typical Documents
Depending on the destination, a shipment may require:
- Commercial invoice
- Packing list
- Bill of lading
- Certificate of origin
- Laboratory and quality results
- Phytosanitary or treatment certificate
- Insurance certificate
- Export filing
- Organic, halal, kosher, or other certifications
Requirements must be confirmed before accepting an order or loading the shipment.
Main Risks
- The buyer does not pay: Use deposits, prepayment, verified letters of credit, or other protected terms.
- The product is rejected: Agree on written specifications, samples, testing, and claims procedures.
- Prices change: Confirm supplier and buyer pricing at nearly the same time.
- Documents are incorrect: Use an experienced exporter and freight forwarder.
- The parties bypass us: Put commission and relationship protections in writing.
- Food-safety testing fails: Use reputable processors with testing and lot traceability.
- The buyer is not legitimate: Verify the company, owners, bank, address, references, and order history.
- Unexpected costs appear: Confirm freight, insurance, port charges, and responsibilities before quoting.
What We Have Done
We have already spoken with:
