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Growth drives expansion at Blue Diamond

The board of directors at Blue Diamond Growers approved a plan to purchase 88 acres in Turlock, CA, as part of a 15-year capacity expansion plan that includes ongoing operations at the Sacramento and Salida-based plants, with upgrades planned at both facilities.

The Turlock location will serve as the major expansion location required to meet the company’s increasing global market opportunities and crop supply. Insufficient land was available in Sacramento and Salida, CA, to add the required manufacturing capacity to either existing location. The three-phased project is expected to provide training and other new opportunities for current employees in Sacramento, Salida and, eventually, in Turlock.

“After an exhaustive site selection process, we chose Turlock because not only is it an ideal location for our long-term expansion plans, but the Turlock city council demonstrated great leadership by dedicating the resources necessary to provide the required infrastructure,” Mark Jansen, president and chief executive officer of Blue Diamond Growers, said in an Oct. 3 press release. “They also expedited entitlement processes necessary to meet or exceed our operations timeline. Turlock is exactly the pro-business partner we need to meet the difficult regulatory challenges in California. Turlock has shown it can provide the economic climate we seek so that we can grow together.”

The phased project is designed to minimize initial construction costs and to build Blue Diamond’s growing consumer brand and ingredient business at a significant compounded return to the grower-owners of the cooperative over the next 15 years and beyond.

This investment is focused on new automated technologies that will increase yields and reduce handling to provide additional cost savings at all locations. It will also provide additional opportunities to achieve the highest levels of a safe food environment for producing premium-quality almonds.

“The unprecedented growth in our Blue Diamond consumer brand and ingredient business requires us to expand our capacity beyond our Sacramento and Salida operations,” Mr. Jansen added in the press release. “The California almond crop has doubled over the last decade. Global demand continues to climb: 2010 crop shipments exceeded previous shipments by 14 percent for a five-year annual growth rate of 13 percent. This plan will provide the capacity we need to grow as global markets expand and U.S. consumers demand more nutritional almond products.”