Meanwhile, shelled product exports gained almost 5 percent in international shipments over the same period in spite of a 5.6 percent reduction in domestic sales.

Other major international buyers of California walnuts including Turkey and Italy reduced their purchases of in-shell walnuts during the period as smaller customers like Germany, Brazil, Australia and Thailand reduced purchases by even greater percentages.

Some countries including Greece, Jordan and Kuwait purchased no in-shell product during the period; even though combined they purchased over 661,000 pounds in the same period last year.

On the bright side, Egypt boosted its in-shell purchases over 426 percent to 232,035 pounds on the period and bought over 221,000 pounds, nearly 250 percent more shelled product at the same time.

By volume, Vietnam purchased more walnuts than China during the opening three months of the 2014/15 season – 18.6 million tons versus 11 million – according to the report.

China is really a combination of three countries: China, Vietnam and Hong Kong, according to Tim Merrill, sales and marketing manager for Omega Walnuts in Orland, Calif.

Mainland China, Hong Kong and Vietnam combined during the period to purchase over 60.5 million pounds of walnuts from California, this compares to over 92.8 million pounds purchased during the same period last year.

Merrill says a sizeable portion of Vietnam’s purchases are smuggled into China because tariffs there are lower than in China.

“Vietnam simply cannot consume that many walnuts,” Merrill said.