W10 Almond Update: California Almond Kernel Production Reached 2.35 Billion lbs, Australia Almond Expects Good Year in 2024

Published 2024년 3월 14일

In W10 in the almond landscape, standard almond prices in the US dropped below USD 1.80/lb for the first time in five weeks due to favorable bloom conditions and increased availability. In addition, California’s almond kernel production reached 2.35 billion lbs in 2023, surpassing 2.15 million lbs in 2022. Furthermore, Trinitas Farming has filed for bankruptcy due to record-low almond prices and high-interest rates. The company owns 7.86 thousand acres of almond orchards in five counties, and these orchards will be listed for sale as part of the bankruptcy proceedings. Lastly, the Australian almond industry is expected to grow in 2024 due to favorable market and environmental conditions.

Almond Kernel Production in California Reached 2.35 billion lbs in 2023

In 2023, California, United States (US), had a bumper season for almond kernels, resulting in abundant stocks in the market. The state's almond production reached 2.35 billion pounds (lbs), which exceeded the previous year's production of 2.15 billion lbs.

Almond Prices in US Dropped Below USD 1.80/lb in W10

Almond prices in the US declined in week 10, with standard prices dropping below the USD 1.80/lb mark for the first time in five weeks. On March 7, 2024, the Mintec Benchmark Prices for standard 5% almonds FAS US was at USD 1.77/lb, down by USD 0.09/lb from the previous week. Other varieties also saw a price decrease between USD 3 to 12 cents/lb, indicating a broader decline. The market sentiment was bearish due to favorable bloom conditions and increased availability as more growers began to sell almonds.

Trinitas Farming Declared Bankruptcy in Feb-24 Due to Record-Low Almond Prices

On February 19, 2024, Trinitas Farming, a large almond-growing conglomerate in the US, and its affiliated companies declared bankruptcy due to record-low almond prices and high-interest rates. The company owns 7.86 thousand acres of almond orchards in five counties, including Solano, Contra Costa, San Joaquin, Fresno, and Tulare. These orchards will be listed for sale as part of the bankruptcy proceedings. Over the past decade, prices for premium almonds have dropped from nearly USD 4/lb to about USD 2/lb or less.

Promising Future for Australian Almond Industry in 2024

According to Rabobank, the almond industry in Australia is likely to witness significant improvements in 2024. Almond producers anticipated a margin boost due to reduced input prices, affordable water, ample water availability, favorable climatic conditions, and increasing export prices.