Applied Economics Education & Extension

an AAEA Journal

Agricultural and Applied Economics Association

Case Study

International Food Safety Regulations in the Almond Industry: Insights, Regulations, and Strategies

Mina Hejazi(a), Jeta Rudi-Polloshka(b), Karla Ahumada(a), and Amanda Lathrop(c)
(a)California State University, Chico, (b)Michigan State University, (c)California Polytechnic State University, San Luis Obispo

JEL Codes: F13, F14, Q17
Keywords: aflatoxin contamination, almond exports, California almond industry, food safety regulations, international agricultural trade, supply chain risk

First Published Online: March 11, 2026

View Full Article (PDF) | Request Teaching Notes/Supplemental Materials

Abstract

International food safety regulations play an important role in almond exports, particularly when exporting to trading partners with stringent food safety regulations. Almonds are the leading agricultural export commodity from California and the number one specialty crop export from the United States. The California almond industry is the leading producer and exporter of almonds globally.
While the California almond industry has strong international market power and an established global market share, it remains highly sensitive to weather disruptions and aflatoxin contamination. These factors have caused disturbances in the US export market, particularly in regions with stricter food safety standards, such as the EU and Japan. Aflatoxin is a toxic substance produced by certain molds commonly found in nuts and grains. Preventing aflatoxin contamination is crucial as no processing step can remove aflatoxin residues from finished products. Almonds contaminated with aflatoxin can lead to economic losses in several ways, including increasing the cost of production and regulatory compliance.
This case is appropriate for undergraduate courses such as Agricultural Business, Supply Chain Management, International Agricultural Business Trade, and Agricultural Policy. It offers detailed insight into industry structure, international aflatoxin regulations, and their effects on producers, trade, exporters, and regulatory strategies. The teaching note includes a lesson plan, discussion questions, additional readings, and a sample assignment.

About the Authors: Mina Hejazi (corresponding author; mhejazi@csuchico.edu) is an Associate Professor, Agricultural Business Program, College of Agriculture, California State University, Chico. Jeta Rudi-Polloshka is an Assistant Professor, Department of Agricultural, Food, and Resource Economics, Michigan State University. Karla Ahumada is an undergraduate student researcher, Agricultural Business Program, College of Agriculture, California State University, Chico. Amanda Lathrop is a Professor and Dean of Graduate Education, California Polytechnic State University, San Luis Obispo.

Acknowledgments: Funding support was provided by the Capacity Building Grants for Non-Land Grant Colleges of Agriculture (Project Award No. 2023- 70001-40994) from USDA NIFA. Funding support was also provided by the Education and Workforce Development grant (Project Award No. 2024-67037-43455) from USDA NIFA.

Copyright is governed under Creative Commons CC BY-NC-SA

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