Almond Industry Insights: A Comparative Analysis of Australia and Spain

Examining Australia's Almond Production and Market Dynamics

Introduction:

As an influential contributor to the global almond industry, Australia's almond production patterns have been shaped by several key factors. These include the constraints of irrigation, implications of water policies, cost inflation in cultivation, and almond price dynamics.

Upsides and Downfalls:

The pinnacle of new almond plantings in Australia was reached in 2016/2017, with the harvest from these trees contributing to present-day production. However, the momentum has since lost steam, with consecutive annual decreases in new plantings due to limited irrigation resources, ambiguity surrounding water policy outcomes, embedded cost inflation in cultivation, and depressed almond prices.

The 2019/2020 drought period saw water prices reach an all-time high. While the current scenario suggests a plentiful water supply, the situation could rapidly shift if drought conditions recur due to El Nino phenomena. Complicated cultivation and harvest conditions over the last two years have significantly affected quality in 2022 and yields projected for 2023.

Australia has reaped some advantages from duty relief into India and China. Despite this, Australia's domestic demand seems to have plateaued after a decade of impressive growth.

Scrutinizing Spain's Almond Production and Market Trends

Spain, a key global contender in almond production, has seen remarkable transformations in its almond yield over time.

Almond Crop Progression:

Spain has been experiencing a consistent uptick in almond production from 2017 to 2022. The yield was recorded at 53,119 tons in 2017, escalating to 61,684 tons by 2022. The anticipated yield for 2023 is 128,419 tons. Projections for the upcoming years forecast a continued upward trajectory, touching 270,000 tons by 2034.

Almond Market Distribution:

Spain's almond market supply is delineated between dry farming and irrigated hectares. Dry farming constitutes 83% of the total, yielding 55,398 tons, while irrigated hectares represent the remaining 17%, producing 73,021 tons.

Additionally, the production is also segregated between conventional and organic farming. Conventional farming covers 75% of the total yield, resulting in 108,433 tons, whereas organic farming makes up the remaining 25%, contributing 19,986 tons.

Source: ALMONDS Round Table, INC