Spanish Almond Prices Expected to Rise in the Upcoming Season

Published 2021년 8월 3일

Spain has been witnessing an upward trend in almond production for the last few years, but for the current marketing season, almond production will be at least 30% lower than the previous year due to severe climate conditions at the beginning of the year. Storms and cold winds dropped the temperature in the main almond-producing regions during the year’s first half, reducing the volume of almonds harvested. Due to limited supply, the prices increased from USD 4.6 per kg in February to USD 8.8 per kg at the end of August.

The European Union is one of the world’s leading producers and consumers of almonds in the world. The production is lead by Spain, the second-largest producer of almonds with a share of 9.7% in the global production. The country has witnessed an upward trend in almond production in the past few years. High prices of the almonds have motivated the farmers to increase the number of hectares dedicated to almond planting. In addition, several modern irrigation techniques and varieties have made crops more profitable for farmers and increased production levels. The almond season in Spain is during August and September, during which the nuts are harvested across all major almond-producing regions.

According to Almudena Vazquez, Country Manager at Tridge, almond production in Spain is expected to be around 30% lower than the previous year due to severe climate conditions at the beginning of the year. The abrupt drop in temperatures and frosts recorded during the third week of March in Spain affected nearly 38,000 hectares, mainly of fruit, almond, and wine grape crops. The frosts also affected eastern Andalusia and the Granada and Almeria region of Spain. It is estimated that the damage to almond trees alone exceeds 3,000 hectares.

During the first half of 2021, Spain witnessed storm Filomena in January, which caused abundant snowfalls, strong wind gusts, and reduced the temperatures to -20° C in inland areas and -6° C in parts of the Mediterranean coast. Following the storm, in March, the entry of cold air mass dropped the nighttime temperatures in Spain. It had a severe impact on almond trees which were flowering at that time of the year. As of May, Spain witnessed repeated storms accompanied by hail which further caused a loss in almond produce for the current year.

Due to limited supply, the almond prices in Spain are expected to be higher in the coming season. In the last six months only, the prices have increased from USD 4.6 per kg in February to USD 8.8 per kg at the end of August. It is expected that the prices will continue to rise in the coming months as the shortage exacerbates due to severe weather conditions.

Currently, the largest producer of Almonds, California is witnessing a bumper season and is leading the world export market by exporting record volumes to countries in Asia like India and China. The almond prices in the US are much lower than the prices in Spain, giving it a competitive advantage in the market. On 26th July 2021, almond prices in Spain were recorded at USD 8.8 per kg, while the price in the US was USD 4.4 per kg. With the inflated prices in Spain, it is highly unlikely that the country will remain the leading exporter of almonds in the world.