AG Harvest Tab 2014

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HARVEST SATURDAY, OCTOBER 18 2014 MILK PRICING STATE DAIRY FARMERS FIGHT FOR FAIRNESS ORGANIC ELLIE AND CHARLEY’S NATURAL GARDEN ALMONDS NUT PASSES DAIRY AS TOP CROP STEWART & JASPER BUILDING LASTING RELATIONSHIPS

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An MNC Publication

Transcript of AG Harvest Tab 2014

Page 1: AG Harvest Tab 2014

HARVESTSATURDAY, OCTOBER 18 2014

MILK PRICINGSTATE DAIRY FARMERS

FIGHT FOR FAIRNESS

ORGANIC ELLIE AND CHARLEY’S

NATURAL GARDEN

ALMONDSNUT PASSES DAIRY

AS TOP CROP

STEWART & JASPER

BUILDING LASTING RELATIONSHIPS

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C O N T E N T SCalifornia dairy pricing ....................................................4

Stanislaus County top crops ...................................5

CSUS Ag Studies ...............................................................6

Ellie and Charley’s Natural Garden .....................8

Stewart & Jasper Orchards .................................10

Walnut, tomato record crops..............................12

Drought hits bees hard ............................................14

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AG HARVEST 20144

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Dairy prices hit record highCalifornia still at disadvantage

BY ALYSSON AREDASTurlock Journal

P rices paid to California dairy produc-ers for milk witnessed a record high in September, yet this record still fails to compete financially with prices paid

in states under Federal Milk Marketing Orders. With the current state pricing system, the

value of milk produced in California is capped at a significantly lower level than prices paid in other states under federal orders.

“The California pricing system signifi-cantly undervalues dairy farmers,” said execu-tive director of the California Dairy Campaign Lynne McBride. “This leads to losses for dairy producers in our state, especially with high costs of production, feed issues, and regula-tory requirements to run a dairy.”

Although there are different regu-lated classes of milk, the class experienc-ing the most dam-age is dairy used for cheese and whey protein powders, better known as Class 4b. In September, dairy producers under federal order were paid $24.60 per hundredweight, while California dairy farm-ers were paid $22.39 per hundredweight.

“Since 2011, dairy producers have lost approximately $100 per cow,” said McBride. “When you look at an average herd size of 1,200 cows, that’s an extremely significant loss.”

Due to this disadvantage in pricing, a sig-nificant number of dairies have closed in recent years. Since 2007, approximately 500 dairies have closed down. In the first six months of 2014, 30 dairies have already closed their doors

as a result of the accumulated losses from prices received in previous years compared to produc-tion costs.

However, remaining California dairy farmers do not intend to continue at this disadvantage and are taking the necessary measures in hopes of joining California with other states under FMMO. Spearheaded by three major dairy cooperatives—California Dairies Inc., Land O’ Lakes, and Dairy Farmers of America—Califor-nia is working on finalizing a FMMO proposal.

Under the United States Department of Agri-culture, FMMO establish regulations that apply to dairy processors upon purchasing fresh milk from dairy farmers who supplying a designated marketing area. By joining FMMO, all Califor-nia dairy farmers would be paid a uniform price for manufactured milk, including the milk used for cheese.

Once these dairy producers submit their FMMO proposal to the USDA, a formal hearing process will begin. During this time, dairy farm-ers throughout the state will have the opportu-nity to testify on the proposal. With this pro-posal, McBride hopes that there will be much greater transparency regarding how prices are set for different classes of milk.

“The more that dairy farmers in California learn about the federal order, the more they are in support of it,” said McBride. “This gives dairy farmers the chance to support and vote on this process and become engage in every stage moving forward. The success of this proposal rests on their involvement.”

The CDC is currently pledging its support of ongoing efforts by California dairy farmers as they go through the motions of becoming part of FMMO. According to McBride, this will be the first effort made by dairy producers throughout the state to begin reversing the significant losses that resulted from pricing inequities of recent years.

“California ranks last nationwide in the prices that dairy farmers receive in comparison to the cost of production,” said McBride. “We cannot afford to continue selling milk at these prices.”

'California ranks last

nationwide in the prices that dairy farmers

receive in comparison

to the cost of production. We

cannot afford to continue selling

milk at these prices.'

— California Dairy Campaign director

Lynne McBride

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BY ALYSSON AREDASTurlock Journal

S tanislaus County’s Annual Crop and Livestock Report for 2013 revealed yet another record-breaking year for agricultural commodities, mainly in

fruit and tree crops. The report, which was released in August, also marks the first year that the almond industry overtook milk pro-duction for the number one commodity spot.

The Stanislaus County’s Annual Crop and Livestock Report is a yearly account of the region’s agricultural production data. Com-piled from a myriad of sources, the report incorporates data that has been accumulated from surveys filled out by producers, associa-tions, and water districts.

Overall, the value of agricultural com-modities produced last year in Stanislaus County increased 12 percent from 2012. The approximate $400 million increase is primar-ily a result of the increase in the production of almonds, walnuts, and milk. Almond acreage, yield, and price saw an increase, while wal-nuts and milk solely experienced an increase in price.

This is also the first year that the almond industry has overthrown the dairy business for the number one commodity spot. The nut’s production value increased $389 million from last year’s $736 million to successfully earn the title as the county’s first $1 billion dollar crop. With these numbers, it was also announced that Stanislaus County is now the

number one almond producer in the nation. “We have the perfect climate for almonds

here,” said Agricultural Commissioner Mil-ton O’Haire, “they are not very hard to grow and the return on investments for almonds has always been very good.”

Milk’s unprecedented move down to the number two spot can likely be attributed to the industry’s decrease of dairies statewide. However, Milton stated that although the county witnessed a number of dairies closing down, the decline is most likely a result of increased pricing.

Even though the dairy industry lost its title as the number one commodity for Stanislaus County, the industry still experienced an all time high, increasing to $804 million, up from a 2012 value of $740 million. With the excep-tion of manure, all of the commodities in the livestock and poultry industry encountered a production increase, including eggs and wool.

When it comes to predicting what the crop report for 2014 will look like, O’Haire stated that he does not have all the information he needs to make a reasonable assumption, although he knows that the county will con-tinue to have more acres and permanent crops come into production.

“If we do get water this year, of course that’s going to help overall,” O’Haire said, “but this is the third year of a drought, so we would expect our row crop numbers to drop even lower than they did this year, which is just the reality of the situation.”

Almonds take top crops spot in 2013Report unveils another record-breaking year

#1 Almond Meats — $1 billion

#2 Milk — $804 million

#3 Walnuts — $248 million

#4 Cattle & Calves — $235 million

#5 Chickens — $235 million

#6 Silage — $153 million

#7 Deciduous Fruit & Nut Nursery — $78 million

#8 Tomatoes — $68 million

#9 Grapes — $62 million

#10 Almond Hulls — $57 million

Top Ten Commodities 2013

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Small ag program provides huge opportunitiesBY ALYSSON AREDAS

Turlock Journal

W ith only about 70 students, it is easy to underestimate the impact that the Agricultural Studies Department at Cali-

fornia State University, Stanislaus offers to its students and the community at large.

With an underlying mission dedicated to promoting the development of the agricultural industry throughout the state, the department offers more than just the average agricultural program to its students.

Department Chair Dr. Oluwarotimi Odeh says that the program’s primary focus is not

only to prepare students to be employed in their chosen disciplines once they graduate, but it also prepares them to be future employ-ers and leaders as well.

“The program prepares students for a very productive and enriching career in the food and agriculture industry, particularly for stu-dents who want to stay here in the valley,” said Odeh.

Through its program, the Ag Studies Department at CSU Stanislaus encourages students to examine various approaches to agricultural production, distribution, and management in changing economic and envi-ronmental settings.

The Ag Studies Department offers one minor in Agricultural Studies and four con-centrations, including Agricultural Biology, Agricultural Business and Economics, Per-maculture, and a special concentration that is tailored to a student’s specific preparation.

“A lot of the students who go through the special concentration do it to become agri-cultural teachers at the high school level,” added Odeh.

The department offers a number of courses, including Professional Development in Agri-culture, which gives Agricultural Studies majors an opportunity to develop leadership concepts and interpersonal skills through a

variety of formal instruction and events. Students can also opt to take a class in Sus-

tainable Agriculture, where they will study natural resource sustainability in agriculture by integrating theoretical aspects of agricul-tural sustainability with field-based exercises, or a class on Agriculture, Society, and the Natural World, which studies the sociology of agriculture.

The program is also unique in the sense that is requires every student to participate in at least one internship before they graduate. Finding an internship is not a difficult task for these students, since the program has partners

»SEE PROGRAM, PAGE 7

Area third graders learn about ag and food production at CSU Stanislaus at the annual AgEdventure Day.

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7AG HARVEST 2014

all across the state, including Hilmar Cheese and American AgCredit, which consistently provide internship opportuni-ties to students.

“Most of the time, students go for more than one intern-ship,” said Odeh, “and a majority of our internships are paid.”

Students involved in the program also are able to seek more growth and leadership opportunities through the Ag Ambassadors Club. Members of the club are an integral part of the Ag Studies program and participate in a number of events throughout the year, including the Ag Ambassador Conference and a Thanksgiving Food Drive.

“The Ag Ambassadors Club is a one-of-a-kind student organization on campus. All students in the department are members of the club by default. We have never had a student who was not interested simply because of all the opportuni-ties that the club offers them,” said Odeh. “Their goal is to promote awareness of agriculture throughout society.”

Although the program is relatively small as of date, stu-dents do not plan to keep it that way. Buzzing with ideas, programs, and events that will continue to promote the agri-cultural economy throughout the state, these students will undoubtedly draw in more interest to their department.

“It’s an honor to be in a developing program like this,” said Ag Ambassador Treasurer Alexandria Agresti-Assali. “One day we want to look back and see how much it’s grown.”

PROGRAMFROM PAGE 6

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AG HARVEST 20148

BY ALYSSON AREDASTurlock Journal

P atterson resident Charley Fernan-dez has never been a fan of junk food. Instead, the organic farmer has always placed the utmost

importance on his health and the health of others.

“I believe what is really important is not your 401K or your savings account, it’s the food you consume and essen-tially your health,” said Fernandez. “Don’t worry about the roads in Turlock, we’ll fix them. Worry about what you’re having for dinner.”

It is this mindset that Fernandez has carried with him all throughout his agricul-tural career and what ultimately prompted him to become an organic farmer alongside his wife Ellie. With produce grown at Ellie and Charley’s Natural Garden, Fernandez hopes to promote a similarly salubrious

lifestyle to his customers.Although Fernandez has been a farmer

for the majority of his life, it was not until he retired in 1991 that he began to focus more on cultivat-ing the garden he has today. When the couple’s grandchildren initially began to visit their farm 10 years ago, the producers made the business decision to become Califor-nia certified organic farmers by no longer using chemicals or pesticides to grow their produce.

Under the Organic Foods Production Act, which was enacted under Title 21 of the 1990 Farm Bill, the United States

Department of Agriculture’s National Organic Program sets national standards for producers in order to qualify as organic. These regulations provide guidelines for certification, production, handling, and labeling of organic products through the USDA.

Organic farmers must use farming prac-tices that prohibit the use of conventional pesticides, fertilizers made with synthetic ingredients or sewage sludge, bioengi-neering, or ionizing radiation. Any field from which harvested crops are labeled as organic must be certified as pesticide free for at least three years preceding cultivation.

Every week, Ellie and Charley have been at the Turlock Certified Farmers Market selling their organic produce. The cou-ple offers organic fruit, including plums,

8

‘Don’t worry about the roads in Turlock, we’ll fix them. Worry

about what you’re having

for dinner.'— Charley Fernandez

Organic farmer goes the extra mile to promote healthy eating

What is Organic?Certified organic foods are produced

according to federal standards set by the USDA National Organic Program. These standards were implemented in 2002 in the wake of the Organic Foods Production Act of 1990 and continue to be interpreted and developed by the National Organic Standards Board, a federal advisory committee appointed by the secretary of agriculture. Organic standards address many factors: soil quality, animal raising, pest and weed control, and use of input materials.

The use of sewage sludge, bioengineering (GMOs), ionizing radiation, and most synthetic pesticides and fertilizers is prohibited from organic production. Organic meat, poultry, eggs, and dairy products come from animals fed 100 percent organic feed and forage, given no antibiotics or growth hormones, and raised in conditions that follow their natural behaviors. As for the land — certified organic produce is grown on soil that has been free of prohibited substances for three years prior to harvest to ensure that the crops will not be contaminated. Focused on the use of renewable resources and conservation of soil and water, organic farmers enhance and sustain the environment for future generations.

National organic standards also include regulations for organic processed products, including prohibiting artificial preservatives, flavors, and dyes.

Learn more at: http://www.ccof.org/

organic

»SEE ORGANIC, PAGE 9

California certified organic farmers Ellie and Charley Fernandez decided to no longer use chemicals or pesticides in their farming practices when their grandchildren began to visit their farm ten years ago.

ALYSSON AREDAS/The Journal

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apples, and persimmons, as well as organic vegetables, including kale, tomatoes, and Brussels sprouts.

Fernandez utilizes his time at the market by encourag-ing others to maintain their health and eat the right food, and even goes the extra mile for his customers by prepar-ing simple recipes, including an organic Pac Choi Stir Fry Kit and organic salad mixes—all put together using his own produce.

When it comes to feedback, Fernandez reported that his customers both like the farm’s clean presentation and the fact that all of the organic produce is grown locally.

“We offer personal service alongside our organic produce,” said Fernandez. “We grow what we sell and we are here to offer any questions our customers might have.”

As a frequent visitor to Ellie and Charley’s booth at the market, Turlock resident Lin Yan offered nothing but positive things to say about the couple’s organic produce selection.

“I like their figs because I can’t find quality like this anywhere else,” said Yan. “Plus the fact that their pro-duce is organic makes it that much better.”

Ellie and Charley’s Natural Garden is based in Pat-terson. For more information on what they have to offer, visit ellieandcharleysnaturalgarden.com.

ORGANICFROM PAGE 8

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AG HARVEST 201410

Stewart & Jasper Orchards offers more than just almondsBY ALYSSON AREDAS

Turlock Journal

A s owner and president of Stewart & Jasper Orchards, Jim Jasper has always taken a more personable approach to the almond industry

by creating strong, long-term relationships with everyone involved in his business—from his growers to his customers.

“I always say that the greatest asset a com-pany can have is the people that it works with, so I like creating real, lasting relationships with people,” said Jim Jasper. “That is what has been our success all these years. We have to satisfy both our growers and our customers if we want to stay in business, so we will basi-cally bend over backwards to whatever extent to satisfy them.”

However Jim Jas-per’s friendly practice should not strike the approximately 175 employees that work for Stewart & Jasper Orchards as unfamil-iar, since the owner and president models his behavior after his two predecessors, his father Lee Jasper and Romaine Stewart.

A partnership that originally started in the poultry business, Lee Jasper and Stewart planted their first almond orchard in the mid-1950s. What started off as just one almond orchard quickly expanded into 2,200 acres—

representing an estimated 2 percent of the almond industry statewide.

Both his father and Stewart set the second generation Jasper up for a booming almond business on the west side of California’s Cen-tral valley that successfully controlled every aspect of production, including hulling, shell-ing, and processing. When Jim Jasper’s son Jason Jasper returned to work for Stewart & Jasper Orchards, he brought with him another aspect: retail.

With four locations in Newman, Modesto, Patterson, and Monterey, the operation does not just limit its inventory to almonds. Custom-ers who visit these locations can browse from a selection of dried fruits, gourmet sauces, salad dressing, popcorn, and more—with over

The Stewart and Jasper almond hulling and shelling facility is fully solar powered after the installation of a $5 million project several years ago which has reduced the company’s $350,000 electricity bill to virtually nothing.

»SEE ALMONDS, PAGE 11

‘For a long time, we have

grown with the industry. The industry has

doubled in the last 10 to 12

years and we’ve doubled our

capacity as well.'— Jim Jasper

At Stewart & Jasper Orchards, Jim Jasper and Jason Jasper ensure the quality of their almonds by controlling every aspect of production, including hulling, shelling, and processing.

ALYSSON AREDAS/The Journal

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50 percent of the store’s inventory pro-duced by Stewart & Jasper Orchards.

Additionally, customers are invited to taste over 20 wines at the Modesto location and over 16 wines at the Patterson location. According to Jason Jasper, the business has approximately 300 different California wines to offer consumers.

“We are California farmers and we fig-ured we should support California wine producers as well,” said Jason Jasper.

Jason Jasper added that he hopes to enhance the variety of wines in these two stores, and is looking to add more events, including monthly tastings. The work does not stop there for Jason Jasper, however, since he also has aspirations to enhance the business’s variety of products and flavor profiles.

“We want to continue with the exposure of what we are doing,” added Jason Jas-per. “We want to get out there more and increase our online presence.”

As for now, Jim and Jason Jasper have continued to reflect the ideologies of their two predecessors, ensuring the quality of their almonds from the orchards to the consumer.

“For a long time, we have grown with the industry,” said Jim Jasper. “The industry has doubled in the last 10 to 12 years and we’ve doubled our capacity as well.”

Jim Jasper predicted that the business would continue to grow with the industry, as long as they continued to get an adequate amount of water to farm with. In the big-gest challenge that Jim Jasper has ever faced in his time as owner and president of Stewart & Jasper Orchards, the drought has prompted the business to install highly efficient micro irrigation systems

“We are extremely aware of the shortage and the cost of water, so we have never wasted water,” said Jim Jasper. “It’s the economical thing to do and we don’t have any other choice.”

The main office for Stewart & Jasper Orchards is located at 3500 Shiells Road in Newman. For more information, visit stew-artandjasper.com or call 862-9600.

ALMONDSFROM PAGE 10

Jason Jasper holds up a bag of almonds in his retail store in Newman. With additional locations in Patterson, Modesto, and Monterey, customers can choose from a wide variety of dried fruits, gourmet sauces, marinades, salad dressings, and popcorn.

ALYSSON AREDAS/The Journal

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AG HARVEST 201412

T he 2014 California walnut pro-duction is forecast at a record 545,000 tons, up 11 percent from 2013's production of 492,000

tons. This forecast is based on the 2014 Walnut Objective Measurement Survey, officially conducted by the National Agri-cultural Statistics Service Aug. 1 through Aug. 22.

Despite a lack of chilling hours and a drought that has hit California, the 2014 walnut crop is forecast at a record level. Growers used surface water where avail-able and groundwater when necessary to provide adequate water supply to the trees. Weather conditions during the growing season were mild thus benefitting the crop. Crop quality is excellent with low disease and insect pressures. Overall, the 2014 crop is developing faster than last year and harvest is expected to start early.

The 2014 Walnut O.M. Survey utilized a total of 746 blocks with two sample trees per block. Survey data indicated an aver-age nut set of 1,372 per tree, up 11 percent from 2013’s record low average of 1,239. Percent of sound kernels in-shell was 98.7 percent statewide. In-shell weight per nut was 21.2 grams, and the average in shell suture measurement was 32.5 millimeters. The in-shell cross-width measurement was 32.4 and the average length in-shell was 38.1 millimeters. All of the sizing mea-surements were above average levels.

Contracted production of California processing tomatoes is forecast at a record high 14.0 million tons, averaging 48.61 tons per acre, according to a survey con-ducted by the National Agricultural Sta-tistics Service. The current forecasted production is 17.6 percent above the 2013 crop.

Harvest started the last week of June in the Southern growing areas and is expected to run through mid-October. The 2014 crop year has had low disease and pest pressure. The primary issue affecting yield has been availability of water. The extreme drought in California has forced growers to fallow land and cut back on the acreage for many crops, but the impact on tomato acreage appears to be limited. The projected harvested acreage of tomatoes is 288,000 acres, a 12.5 percent increase from 2013.

The shipping reports published by the Processing Tomato Advisory Board show that shipments through Aug, 23 are run-ning 13.7 percent above that of 2013.

Record highs forecast for walnut, tomato production

Page 13: AG Harvest Tab 2014

Watch.

TurlockJournal.com

Page 14: AG Harvest Tab 2014

AG HARVEST 201414

Record drought saps California honey production BY TERENCE CHEAAssociated Press

LOS BANOS — California's record drought hasn't been sweet to honeybees, and it's creating a sticky situation for beekeepers and honey buyers.

The state is traditionally one of the coun-try's largest honey producers, with abundant crops and wildflowers that provide the nectar that bees turn into honey. But the lack of rain

has ravaged native plants and forced farmers to scale back crop production, leaving fewer places for honeybees to forage.

The historic drought, now in its third year, is reducing supplies of California honey, rais-ing prices for consumers and making it harder for beekeepers to earn a living.

"Our honey crop is severely impacted by the drought, and it does impact our bottom line as a business," said Gene Brandi, a bee-

keeper in Los Banos.The state's deepening drought is having

widespread impacts across the state. More than 80 percent of the state is under "extreme" or "exceptional" drought, according to the U.S. Drought Monitor. Gov. Jerry Brown has declared a drought emergency, and residents now face fines of up to $500 a day for wast-ing water.

The drought is just the latest blow to hon-

eybees, which pollinate about one third of U.S. agricultural crops. In recent years, bee populations worldwide have been decimated by pesticides, parasites and colony collapse disorder, a mysterious phenomenon in which worker bees suddenly disappear.

The drought is worsening a worldwide shortage of honey that has pushed prices to

In recent years, bee populations worldwide have been decimated by pesticides, parasites and colony collapse disorder, a mysterious phenomenon in which worker bees suddenly disappear.

Journal file photo

»SEE BEES, PAGE 15

Page 15: AG Harvest Tab 2014

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600 E. Main Street.Suite 200

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209-634-9031

2620

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15AG HARVEST 2014

all-time highs. Over the past eight years, the average retail price for honey has increased 65 percent from $3.83 to $6.32 per pound, according to the National Honey Board.

Since the drought began, California's honey crop has fallen sharply from 27.5 million pounds in 2010 to 10.9 million pounds last year, according to the U.S. Department of Agriculture. And this year's crop is expected to be even worse.

California was the country's leading honey producer as recently as 2003, but it has since been surpassed by North Dakota, Montana, South Dakota and Florida. In 2013, California produced less than 10 percent of the country's $317 million honey crop.

On a recent summer morning in Los Banos, swarms of honeybees surrounded Gene Brandi and his son Mike, wearing white hel-mets with mesh veils, as they cracked open wooden hives and inserted packets of protein supplement to keep the insects healthy.

This year their colonies have only produced about 10 percent of the honey they make in a

good year, said Brandi, who is vice president of the American Beekeeping Federation.

Besides selling honey, beekeepers earn their living from pollinating crops such as almonds, cotton, alfalfa and melons. But farmers are renting fewer hives because the lack of irrigation water has forced them to tear out orchards and leave fields unplanted.

Like many beekeepers, Brandi is feeding his bees a lot more sugar syrup than usual to compensate for the lack of nectar. The supplemental feed keeps the bees alive, but it is expensive and doesn't produce honey.

"Not only are you feeding as an expense, but you aren't gaining any income." said Brandi's son Mike, who is also a beekeeper. "If this would persist, you'd see higher food costs, higher pollination fees and unfortu-nately higher prices for the commodity of honey."

Many California beekeepers, including Gene Brandi's brother, are taking their hives to states such as North Dakota where they can forage in clover and buckwheat fields.

The drought is hurting businesses such as Marshall's Farm Honey, which supplies raw honey to high-end restaurants, grocery stores and farmers markets in Northern California.

The Napa Valley business is having trouble

making and buying enough honey to meet the demands of its customers. Many varieties such as honey made from sage and star-thistle aren't available at all because it's too dry for their flowers to produce nectar.

"They keep coming back wanting more, and it's very painful to have to say, 'We don't have it,'" said Helene Marshall, who runs the business with her husband Spen-cer. "There's increased demand because of increased awareness of how good it is for you, and there is less supply."

Spencer Marshall, who maintains hives throughout the San Francisco Bay Area, said this is by far the worst year for honey produc-tion he's seen in five decades of beekeeping. When the drought ends, "the bees may come back, but the beekeepers may not," Marshall said.

Amelia Barad-Humphries, who owns a restaurant and floral business in Napa Val-ley, said she's concerned about the drought's impact on bees and honey supplies. She said she eats a teaspoon of local honey every day to keep her allergies in check and she relies on bees to pollinate her backyard garden.

"We need honeybees for everything," she said. "People should be paying attention."

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Sales: Dan DeJong (209) 380-2474 or [email protected]

Service: Nathan DeJong (209) 988-3591 or [email protected]

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