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Assisting Specialty Crop Exports: Low Oxygen Storage and Packaging Systems for U.S. Tree Nuts with Phytosanitary Traceability

Agency: Foreign Agricultural Service

Assistance Listings: 10.621 -- Assisting Specialty Crop Exports

Last Updated: August 24, 2026

The occurrence of insects as well as pesticide residuals can be significant barriers for U.S. horticultural exports. Each importing country can have unique phytosanitary and maximum residue limit (MRL) requirements, which creates operational and logistical challenges. To maximize return to growers, U.S. shippers need tools that can universally address all such requirements while maintaining product quality. Currently, tree nuts and many other durable specialty crops require fumigations or freezing, which are both expensive and create bottlenecks in marketing.

More and more tree nut handlers are using a modified atmosphere (MA) or controlled atmosphere (CA) technology in which low-oxygen conditions (<1% by volume) are maintained during storage and/or in packaging. Low-oxygen conditions are known to control insect pests, leave no chemical residuals, and result in high quality products since the lipid oxidation that causes rancidity is markedly suppressed. While this approach is being used as a condition of sale, there is currently no efficient way for shippers to validate the low-oxygen conditions for customers, let alone importers with phytosanitary requirements for insect control. Technically and economically viable, verifiable, and preferably traceable technologies are critically needed before low-oxygen storage and packaging approaches can be used for export to most countries.

Currently, the existing low-oxygen technologies do not incorporate digital mapping or official record-keeping during the packing or storage process, so there is no non-invasive manner to verify the oxygen content over time within the gas-impermeable liners and/or confirm seal integrity. This limits the ability to verify that a low-oxygen environment has been maintained at a specific oxygen level over a certain period of time, which would be necessary to ensure the conditions were met to act as a phytosanitary treatment. Counties such as India, Korea, and Japan require phytosanitary treatments, such as fumigation, for post-harvest pest management before many types of U.S. tree nuts can be imported into the countries. Additionally, buyers in other markets also request pest management treatments as a condition of sale in commercial transactions.

Eligibility

Eligible applicants

Miscellaneous

  • Other

Additional information

This opportunity is available to U.S. academic institutions, state governments, nonprofits with or without 501(c)(3) designation, U.S. trade associations, U.S. agricultural cooperatives, international organizations, foreign entities, and any other entity including private sector businesses.All applicants must have an active registration in the U.S. Government System for Award Management (www.sam.gov) before the date of award. Applicants with inactive, expired, pending, or excluded listings will be deemed ineligible. Exceptions, waivers, or extensions will not be considered. More information about SAM.gov registration can be found in this document in Section 9, Other Information.

Grantor contact information

Description

Angel Gonzalez Angel.Gonzalez@usda.gov 202-615-1742

Email

USDA Email

Angel.Gonzalez@usda.gov

Documents

File nameDescriptionLast updated
USDA-FAS-10621-0750-106-27-0001FINAL_NOFO.pdf
FULL NOFO
Aug 24, 2026 12:15 PM UTC

Link to additional information

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Closing: October 26, 2026

Application process

This site is a work in progress. Go to www.grants.gov to apply, track application status, and subscribe to updates.

Award

$2,000,000

Program Funding

1

Expected awards

$--

Award Minimum

$2,000,000

Award Maximum

Funding opportunity number:

USDA-FAS-10621-0750-106-27-0001

Cost sharing or matching requirement:

No

Funding instrument type:

Cooperative agreement

Opportunity Category:

Discretionary

Opportunity Category Explanation:

--

Category of Funding Activity:

Agriculture

Category Explanation:

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History

Version:

1

Posted date:

August 24, 2026

Archive date:

November 25, 2026

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