Almond Market Update September 2022 Week 38

Unlike other food commodities affected by inflation and rising energy costs, almonds are defying industry trends. This does not sit well with the market players, especially the Spanish farmers' associations. Growers are being called upon to keep their goods to ensure higher prices. But the US almond industry is expected to have a good year, despite the 12% decline in production, and the pressure can be felt in the Spanish almond market.

Do note that US almond prices are fluctuating on the European spot market. Experts report that the crop is significantly smaller than usual, primarily due to the frost that occurred during the flowering period. Small almond kernels have also been reported due to the drought. Part of the loss is also due to limited pest infestation.

Meanwhile, the Spanish market reports a crop volume of 61,684 MT, nearly half of which was grown in Andalusia. It was announced in April that due to the frost, the region was expecting a 50% drop in production compared to the past year. About 40% of Andalusian almonds are grown in Granada. The total loss concurred is said to amount to 120 million euros. With continuous droughts and low rainfall, almond trees are drying out.

Overall, production has declined by 30% from last year. The price of Valencia almonds has remained firm, with offers being different depending on the supplier. Local media reports that production might actually be worse off than predicted. Of course, this will create more problems for farmers as production costs have risen sharply.

We will let you know how the situation will unfold.