Price Adjustments in the Almond World

The almond industry is one of the most booming ones in the world. With the demand for almonds rising, production has also exponentially increased and the price has risen. In fact, this nut is popular in all international markets such as India, Europe and China. Moreover, it is a known fact that Californian almonds are in demand throughout the year. In fact, the exports (domestic) has escalated 21.7 per cent. The shipments have been catalysed to a point where all previous records are being broken. Even though the year has not ended yet, the statistical data shows that production and exports have surpassed that of all other years.

With the demand for almonds rising, production has also exponentially increased and the price has risen. In fact, this nut is popular in all international markets such as India, Europe and China. Moreover, it is a known fact that Californian almonds are in demand throughout the year. In fact, the exports (domestic) has escalated 21.7 per cent. The shipments have been catalysed to a point where all previous records and price points are being broken. Even though the year has not ended yet, the statistical data shows that production and exports have surpassed that of all other years.

While the price of uncommitted inventory is up 29.4% to 326 million pounds (compared to last year’s 252 million pounds) this is now down to manageable levels with carryout volumes expected to drop below 600 million pounds following July’s shipments. Forward commitments for the 2021 crop are down 29% vs the same period last year with growers reluctant to sell at the same price. They are waiting to understand the potential impact of the drought on supply. Australian almond exports and prices Year on Year (March – April) are up 54%, with the South/Central Asia (India) market up 200%, Europe up 69% and North-East Asia (China) market up 9% during the period.

The US Department of Agriculture released the 2021 Objective Crop Price Estimate for the 2021 US almond crop of 2.8 billion pounds, down 12.5% on the 3.2 billion pounds Subjective Estimate released on 12 May 2021 (2020 crop volume was 3.12 billion pounds). With the California drought worsening in recent months, the Subjective Estimate has proven to be too optimistic.

Record almond shipments and the worsening Californian drought have led to a recent price appreciation. Demand for almonds, both in their natural form and as a value-added food ingredient, in products such as plant-based milk and yoghurts, continues to grow. Thanks in part to the December 2020 acquisition of Piangil Almond orchard, Select Harvests is set to achieve a record almond crop of 28,250MT in 2021. 

Article by: Hari Yellina (Orchard Tech)