Weekly Product Updates

W36: Almond Update

Almond Kernel
Italy
Published Sep 13, 2023
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In W36 in the almond landscape, the pollination of Australian almond orchards for the 2024 season proceeded relatively smoothly despite a late outbreak of varroa mites. Early projections indicate a potential crop yield of approximately 188.73 thousand metric tons (mt), with expectations of reaching 200 thousand mt by 2026. However, the almond industry's rapid expansion has encountered challenges, including concerns regarding water availability, climate change impacts, declining bee populations, and profitability uncertainties. The varroa mite outbreak, which affected pollination in 2022, has resurfaced in New South Wales and Victoria, raising concerns about a potential nationwide outbreak. If weather conditions remain favorable, the upcoming almond harvest in Feb-24 is anticipated to set new records.

Almond production in the Kashmir valley, India, has experienced a 30% decline this year due to adverse weather conditions, causing a one-month harvest delay. Despite the drop, production was considered satisfactory compared to previous years due to weather-related challenges. Farmers have shown increased attention to their almond orchards, but the extended harvesting season has posed challenges, such as the almond harvesting season being extended into September due to unfavorable weather conditions, typically concluding in August. The harvested almonds are being processed and sold locally, with the market demand for Kashmiri almonds remaining strong, unaffected by competition from California almonds. However, the almond industry faces sustainability challenges, as farmers are not planting new almond trees, and government support and technology for expanding almond tree gardens are lacking. Farmers also handle pesticides without government assistance. Many are shifting to high-yield hybrid apple trees due to government subsidies and support, contributing to the decline of almond cultivation in the region. Almond growers receive limited information about the challenges facing their industry, leading to concerns about its future viability.

Lastly, Italian almond production is facing a severe crisis as producers in regions like Sicily and Puglia struggle to cover production costs. Factors such as the lingering effects of COVID-19, slow post-pandemic recovery, and a surplus of unsold inventory have compounded the issue. The crisis is exacerbated by aggressive pricing tactics by California almond producers, who sell their products in the European market at significantly lower prices than before, making it financially unsustainable for Italian and Spanish almond farmers. As a result, many are abandoning their almond crops. Italian almond growers call for immediate action from various authorities and organizations to prevent the collapse of this sector.

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