Diamond food (NASDAQ:DMND) is a leader in the walnut industry but The company's once dominant position in the walnut industry is eroding
China's demand for nuts -- from almonds and pistachios to walnuts -- begins to soar as Chinese incomes grows. Demand has outstripped domestic supply and Chinese consumers typically judge U.S. nuts to be of a higher quality than those from China.
So China looks like a great opportunity for Diamond Foods to boost his walnuts business. It would be an opportunity for this company to restore a good relationship with walnut growers offering them for premium nuts a price at least 30 percent higher . Diamond strong marketing and experience and this business would help them to quickly gain market shares in China .
And Chinese companies loves American nuts : BHK Nut Corp for example . The company runs a custom walnut processing center in Orosi, California, a hamlet 150 miles southeast of Diamond's processing plant in Stockton.
Diamond foods, in troubled times, should seriously consider this business opportunity
Disclosure: I am long DMND.