During the COVID-19 pandemic, the almond industry faced unprecedented challenges due to shipping issues, leading to a historic oversupply. The 2022-23 crop year began with an excess of 836 million pounds from the previous year, a significant increase from the 608 million pounds the year before and 450 million pounds the year prior. This situation created a buyer's market, as difficulties in shipping almonds abroad due to container shortages and port shutdowns made it challenging to distribute the product globally.
However, as the backlog began to clear, demand for almonds has seen consistent growth. California started the current crop year with 503 million pounds. According to Michael Easterbrook, managing partner with Stratamarkets, foreign markets clearing out inventories have contributed to rising demand, with export prices increasing from $2.45 a pound at the beginning of the year to $2.85 a pound, marking the highest price since 2020.
To navigate the challenges of the pandemic, the Almond Board engaged Deloitte Consulting for a marketing strategy, which emphasized focusing on markets culturally familiar with almonds, such as India and Morocco. This strategy aimed to leverage the cultural familiarity and dietary habits in these regions to bolster demand.
The industry has also been monitoring potential challenges, such as proposed tariffs by the incoming administration against major almond-consuming countries like China, Mexico, and Canada. The impact of these tariffs remains uncertain, but they could pose new hurdles for the almond export market.
Despite a forecast for a large crop year, the actual size appears to be smaller than anticipated, with bearing acreage increasing by only 9,000 acres, the smallest growth in two decades. The Almond Board reported three consecutive years of decreased acreage and significant orchard removals, indicating a trend towards lower overall California almond acreage. Nevertheless, the demand for California almonds continues to grow globally, as evidenced by strong shipment numbers.
Source: GVWire