Budget Planning

As the weather warmed this spring, ABC committee and Board activities culminated in the discussion, debate and ultimate setting of the next fiscal budget. Staff and committees begin working on the new budget as early as January, but the final recommendations don't come before the Board until the spring Board meeting, which this year was held on May 20. The new year's budget then becomes effective on August 1.

The ABC budget planning cycle is not really unique, but it is truly a group effort that entails the staff and committees coming together to strategize on what is the best use of funds for the industry: which research projects need to be commissioned to advance production efficiency; which educational efforts need to be executed to improve industry practices; which markets need expansion to absorb increases in production. After a comprehensive process of deliberation and consideration of multiple options, the committees approve their programs and budgets, and then they are advanced to the Board of Directors for final review.

A key prerequisite of the ABC's budgeting process is that every aspect of the proposed budget must be in sync with the industry’s strategic direction and objectives. In addition, meaningful measurements of performance against objectives are developed in order to gauge the effectiveness of Board programs and tactics. In this way, ABC staff, committee and Board members are held accountable for the budgets, program and tactics which they design, approve and implement. Later this year California Almonds Outlook will be reporting on new measurement tools which are under development and will be applied to ABC programs in the future.

Richard Waycott, President and CEO of the ABC, characterized the approved fiscal year 2009/2010 budget as putting our money where our mouth is. "Over the past couple of years, we have studied with great care where our market development funds should be invested and the new budget clearly endorses the conclusions of that effort," said Waycott.

Compared to the 2008/2009 budget, investment in the European Union, China and India is increasing by 30%, 120% and 179%, respectively. These increases do not represent incremental change. Rather, they represent aggressive and audacious change which the Board of Directors feel will result in putting grower funds to best use.

Overlaying these investment increases is the principal objective of moving more volume in the short term, and sustaining that growth in the mid to long term. Given current industry supply and generally lower pricing, the focus of many ABC programs has been modified, and funding shifted, to focus squarely on driving higher consumer consumption in the short term, especially in the mega markets of North America and the European Union.

The reputation of the California Almond with manufacturers and consumers around the world is strong and growing stronger. By investing the industry's money in a wise and timely fashion, the almond industry will continue to change behaviors, resulting in more people eating more almonds more often.