Preventing Nut Theft in the California Industry

This assignment explores the issue of nut theft within California's thriving agricultural industry. It delves into the significant financial losses caused by theft at various stages of the supply chain, emphasizing its impact on farmers, intermediaries, and overall economic growth. The report proposes a range of strategies to mitigate this problem, including awareness campaigns and license checking systems at distribution points, aiming to reduce costs associated with nut theft and protect the industry's valuable assets.

Case Study

INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
A diagrammatic representation and written explanation of the Californian nut industry supply
chain.............................................................................................................................................3
Explaining vulnerabilities in the Californian nut industry supply chain and how these are being
exploited by thieves.....................................................................................................................3
Demonstrating the value of the Californian nut industry numerically........................................4
Stating numerical demonstration of the total cost of nut theft to the Californian nut industry;. .4
Cost of nut theft to the Californian nut industry at specific points of the supply chain..............5
Stating solutions for preventing nut theft at each point of the supply chain...............................6
Presenting cost savings to the Californian nut industry if your recommendations are adopted..6
CONCLUSION................................................................................................................................6

INTRODUCTION
The present report is based on the case study of nut theft in the state of California in
USA. In the recent times, more than 30 truckloads of almonds, pistachios, cashews etc have been
stolen from nut growers. Thieves are making off millions of dollars in California by stealing
drugs. There are several stolen nuts that have been tracked down within storefronts, bakeries and
farmer’s market around US. It is believed that organized criminal enterprises are sending cargo
loads of nuts to the export market. In this, report will provide deeper insight about the supply
chain aspects exists in Californian nut industry. Besides this, report will also shed light on total
cost of nut theft in the context of California. Further, report also depicts the ways through which
nut theft at each point of the supply chain can be prevented.
MAIN BODY
A diagrammatic representation and written explanation of the Californian nut industry supply
chain

California Nut industry
Nut industry of California is ranked one of the biggest industry providing nuts to
customers and satisfying international consumers through exports. Nut producers provide the
commodities by following supply chain management as depicted by the diagram. This is evident
from the chart that growers and breeders are the persons which sow the seeds of various nuts as
they get the same from suppliers. This in turn is provided to producers which are farmers, grazier
who carries on the process. Furthermore, when output is ready by the growers, they hand over
the same to processors which processes the nuts and make it worthy to eat. This means that
processors clean the output imparted by growers for making it healthy for eating.
This output is then provided to distributors as depicted by the supply chain management
diagram. The distributors are wholesaler, importer, exporter or even transport company
collecting the output. Furthermore, it is then provided to retailers at wholesale price and they
purchase the same. Finally, it is made available to purchase by customers. Thus, consumers are
able to buy the nuts within stipulated time and imparted to international customers by the

exporters. Hence, Californian Nut industry earns profit through effective supply chain
management.
Explaining vulnerabilities in the Californian nut industry supply chain and how these are being
exploited by thieves
In US, cargo or freight crimes are increasing with the very high pace. From evaluation, it
has assessed that as per Federal Bureau of statistics problem of cargo theft accounts for $15 to
$30 billion a year. The main reasons behind the occurrence of such undesirable event are high
level of demand for Californian almonds across the globe. In the last year, approximately $9
million’s worth of nuts grown in California was stolen by the organized network of thieves (A
$10 million nut heist is a window into the shady, lucrative world of large-scale food theft, 2018).
In this, majority of the cases are related to the disappearance of nuts truckload from warehouses.
This situation occurred due to the use of falsified information in terms of shipping documents,
schemes etc. In large number of cases regarding nut thefts organizations hack databases of
trucking with the motive to steal their identity. Along with this, for the purpose of net theft
emphasis is placed by them on sending drivers with false shipping papers for picking up the
loads of almonds and other nuts.
Demonstrating the value of the Californian nut industry numerically
From assessment, it has found that value of Californian nut industry is highly significant.
Moreover, such industry has placed positive impact on the economical aspects. As such industry
has provided or offered job to 100000 individuals. In addition to this, nut industry has also made
contribution in the Californian Gross State product by approximately $11 billion. Further,
Californian economic activity includes $21.5 billion of industry output. It has also assessed from
the evaluation that as compared to other state California produces more almonds, walnuts and
pistachios (This is Nuts: Crime Rings are Stealing Truckloads of Almonds Worth Millions,
2018). In the accounting year 2014, combined value of nuts accounted for $9.3 billion
respectively. In this, as per US department of agriculture value of almonds implied for $5.9
billion.

Stating numerical demonstration of the total cost of nut theft to the Californian nut industry;
(Source: This Is Nuts! Heist Nabs $400,000 Worth Of Walnuts, 2018)

The above depicted graph clearly shows that every year 30 loads of US nut cargo are
stolen via fraud. By doing research, it has also been found that value of US nut cargo stolen via
fraud accounts for $4 million. In US, cases in relation to tree nut loads stolen via fraud are
increasing to a great extent. As in the year of 2012, cost of nut stolen valued at $487790
respectively. On the other side, at the end of 2015 such value reached on $4 million’s that is too
higher.
Cost of nut theft to the Californian nut industry at specific points of the supply chain
Considering the trend of Californian nut sector it can be depicted that crime rings have
been focusing on high value nuts. From investigation, authorities found that nuts are usually
being shipped to Europe or Asia. In such areas, nut is sold for getting more dollars in the black
market. In the last year, nut thefts crossed a record as nuts loaded trucks were hijacked on
amounted to $4.6 million (US California cracking-down as crime-rings steal-truckloads-of-nuts,
2018). For example: Todd Crosswell, general manager of Caro Nut co presented that loss of
$1.2 million was suffered due to the six times robberies of nuts.
Stating solutions for preventing nut theft at each point of the supply chain
For the prevention of nut theft there is a need to introduce or provide thieves with harsh
punishment. Robberies of nut do not include any kind of violence so in the state of California g
such kind of activities is considered as misdemeanor offenses. Such undesirable activities or
offences pertaining to nut theft places negative impact on several authorities. From migrant
workers and their family members to the farmers etc are highly affected from the activities of nut
theft (Thieves are ravaging California's nut farms, 2018). Hence, for avoiding activities in
relation to nut theft there is required in relation to developing awareness among nut growers,
growing associations and distribution locations. When concerned authorities take caution while
supplying nuts with proper documentary aspects then it results into lower level of nut thefts. In
addition to this, by maintaining record pertaining to the copy of trucker’s driver license as well
as using fingerprint scanner etc level of nut theft activities can be reduced to the significant level.
Further, for the prevention of nut theft at each level of supply chain there is a need to frame and
introduce legal guidelines. Through introducing the system pertaining to the checking of driving
licenses fraudulent and undesirable activities can be prevented. Along with this, by undertaking

legal check system and strengthening guidelines nut theft at each level of supply chain can be
avoided.
Presenting cost savings to the Californian nut industry if your recommendations are adopted
By taking into account above depicted aspects, it can be mentioned that concerned
initiatives pertaining to awareness creation will offer high level of benefits to the firm in terms of
cost savings. Now, nut thefts account for approximately $1.5 to $4 million’s which in turn places
direct influences on the earnings of farmers and others (In sophisticated shell game, thieves hit
Central Valley nut growers, 2018). System regarding the checking of driving license accounts
for less cost. Hence, through undertaking and practising license checking system cost associated
with the nut thefts can be reduced significantly. By undertaking all the above recommended
strategies Californian nut industry can save within $1.5 to $4 millions.
CONCLUSION
By summing up this report, it has concluded that California nut industry is filled up with
the situation of high thefts. At each level of supply chain high theft exists in Californian nut
industry. Further, it has been articulated that value of Californian nut industry is highly
prominent from the perspective of both economical and other aspects. It can be seen in the report
that cost of nut theft in California accounts for $4 million that is too higher. This in turn places
direct impact on the earnings of farmers, other intermediaries and economic growth. Thus, there
is a need in relation to taking specific action for the prevention of nut thefts. It is advised that
campaigns need to be organized for reducing the level of nut thefts.

REFERENCES
Online
A $10 million nut heist is a window into the shady, lucrative world of large-scale food theft.
2018. [Online]. Available through: <https://qz.com/663152/a-10-million-nut-heist-is-a-
window-into-the-shady-lucrative-world-of-large-scale-food-theft/>.
In sophisticated shell game, thieves hit Central Valley nut growers. 2018. [Online]. Available
through: <http://www.latimes.com/business/la-fi-nut-theft-20160414-story.html >.
Thieves are ravaging California's nut farms. 2018. [Online]. Available through: <
https://www.cnbc.com/2015/12/01/thieves-are-ravaging-californias-nut-farms.html>.
This Is Nuts! Heist Nabs $400,000 Worth Of Walnuts. 2018. [Online]. Available through:
<https://www.npr.org/sections/thetwo-way/2013/11/06/243542985/this-is-nuts-heist-nabs-
400-000-worth-of-walnuts >.
This is Nuts: Crime Rings are Stealing Truckloads of Almonds Worth Millions. 2018. [Online].
Available through: <https://sputniknews.com/us/201604161038106750-nut-thefts-california/
>.
US California cracking-down as crime-rings steal-truckloads-of-nuts. 2018. [Online]. Available
through: <http://www.freshplaza.com/article/156553/US-California-cracking-down-as-
crime-rings-steal-truckloads-of-nuts-worth-millions >.