Strong Demand of California Almond Clears Backlog

The California almond industry is showing signs of recovery after facing significant hurdles during the COVID-19 pandemic. Challenges such as global shipping disruptions led to a historic oversupply, leaving the industry grappling with distribution issues. By the start of the 2022-23 crop year, leftover stock had reached 836 million pounds, a sharp increase compared to 608 million pounds the previous year and 450 million pounds the year before.

As logistical challenges began to ease, demand for almonds started to grow steadily. The current crop year began with 503 million pounds of carryover stock. According to Michael Easterbrook, managing partner at Stratamarkets, export markets clearing their inventories helped fuel this demand. Export prices rose from USD 2,45 per pound at the beginning of the year to USD 2,85 per pound, the highest level since 2020.

Strategic Marketing Fuels Growth

To address pandemic-era challenges, the Almond Board partnered with Deloitte Consulting to refine its marketing strategy. The focus shifted to regions culturally familiar with almonds, such as India and Morocco, where almonds already play a significant role in dietary habits. This targeted approach successfully boosted demand in key international markets.

Threats from Proposed Tariffs

Despite growing demand, potential hurdles remain. The incoming administration’s proposed tariffs on almond imports to key markets like China, Mexico, and Canada could disrupt export flows. While the exact impact of these tariffs is uncertain, they pose a risk to the industry’s ongoing recovery.

Despite a shrinking acreage base, global demand for California almonds remains robust. Strong export shipments reflect growing interest in high-quality almonds, even as production struggles to keep pace. This balance between rising demand and constrained acreage could support higher prices in the near term.

Conclusion

The California almond industry has successfully navigated pandemic-era challenges, with strong global demand clearing excess stock and lifting prices. While shrinking acreage and potential tariffs pose risks, strategic marketing efforts and consistent export growth offer hope for continued recovery. Buyers and stakeholders should monitor price trends and trade developments closely, as these factors will shape the industry’s outlook.





Click here to reach our trading platfrom CMBroker