Case Study: The Strategic Effect of Californian Nut Industry Theft

This case study examines the strategic impact of nut theft on the Californian nut industry. It begins with a background to the case, highlighting the increasing incidents of walnut, almond, and pistachio thefts, costing millions of dollars. The analysis identifies vulnerabilities in the supply chain, exploited by organized crime, and estimates the financial impact across various stages, including transit, retail, shipping, and export/import points. The study proposes solutions such as establishing an industry task force for highway patrols, installing street lights, and implementing a comprehensive eight-step checklist across the supply chain to mitigate these thefts. The reference list includes sources from reputable news outlets, reinforcing the credibility and scope of the analysis.

THE STRATEGIC EFFECT OF CALIFORNIAN NUT INDUSTRY THEFT
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The Strategic Effect of Californian Nut Industry Theft
Background to the Case
In 2017, millions of dollars’ worth of walnuts, almonds, and pistachios disappeared in
California. This strange occurrence perplexed farmers and confused cops as the thieves enriched
themselves. Last year alone, approximately 621,694 pounds of tree nuts were stolen (Purtill,
2016). Since 2013, more than 35 truckloads of nuts worth approximately 10 million US dollars
disappeared from the California region only (Purtill, 2016). Even before these incidences, petty
theft of walnuts in the region was not uncommon (Vigneron, 2017). However, the incidences and
magnitude of these thefts increased significantly creating great interest in the matter (Garcia,
2016). The people who committed the crime appeared to understand the tracking business,
computer security and identity theft. All indicators point towards an organized crime group
(Dier, 2017). After being stolen, these nuts move through corrupt brokers and end up in
independent stores such as bakeries and grocery stores in the country. The severity of the case
called for federal investigations.
Cost of nut theft to different points of the supply chain
Supply Chain Cost of theft
Transit Approximately 2014- $450,000
2015- $4,000,000
Retail Approximately $10, 000,000
Shipping Around $500,000
Export/Import points About $1,200,000

Source: (The Guardian, 2017), (CNN, 2016).
Solutions for preventing nut theft
The nut thefts in California can be prevented through the enactment of an industry task
force to patrol the Californian highway. Such patrols would significantly reduce the prevalence
of these heists. In addition, installation of street lights along the highway would go a long way in
reducing the number of nut thefts along the highway (Vigneron, 2017). As such, the bright lights
would discourage these cartels from conducting these heists along the highway. Furthermore,
farmers and transporters should establish an eight-step checklist that runs across all levels of the
supply chain.
Reference List

California cracking down as crime rings steal truckloads of nuts worth million. (2016). [Online]
The Guardian. Available at: https://www.theguardian.com/us-news/2016/apr/14/california-nut-
thefts-agriculture-shipments-almonds [Accessed 21 Apr. 2018].
Dier, A. (2017). Thieves Are Getting Nuts in California. [Online] Newser. Available at:
http://www.newser.com/story/243360/nut-thefts-are-big-deal-in-california.html [Accessed 21
Apr. 2018].
Garcia, D. (2016). Nuts, by the truckload, make appetizing targets for thieves. [Online] CNN.
Available at: https://edition.cnn.com/2016/07/31/us/nut-thefts-california/index.html [Accessed
21 Apr. 2018].
Purtill, C. (2016). A $10 million nut heist is a window into the shady, lucrative world of large-
scale food theft. [Online] Quartz. Available at: https://qz.com/663152/a-10-million-nut-heist-is-
a-window-into-the-shady-lucrative-world-of-large-scale-food-theft/ [Accessed 21 Apr. 2018].
Vigneron, A. (2017). The Curious Case of the Disappearing Nuts. [Online] Outside Online.
Available at: https://www.outsideonline.com/2186526/nut-job [Accessed 21 Apr. 2018].