In W35 in the almond landscape, in August, global almond prices experienced a decline as the Northern Hemisphere began its harvest season. The presence of substantial global inventories, combined with the harvest pressure, has exerted downward pressure on prices. Initial harvest assessments in the United States (US) and Spain have revealed poor production yields. While almond prices are forecasted to remain relatively stable with the progression of the Northern Hemisphere harvest, they may receive support if reports of subpar yields persist beyond the early harvest stages.
Spanish almond production faces a severe crisis for the second consecutive year, prompting urgent calls for intervention. Spain, the European Union's (EU) leading almond producer and the world's second-largest, is grappling with a sharp decline in almond yields. The Small Farmers and Ranchers Union of Andalusia (UPA) is urging the Ministry of Agriculture to address the alarming financial predicament of thousands of almond producers. In 2022, almond production plummeted by 46% compared to the previous year, falling below 200 thousand metric tons (mt). The situation has worsened in 2023, with a 70% drop in production compared to 2022, further exacerbating the crisis.
Challenges extend beyond reduced yields, encompassing quality issues and small fruit sizes. Additionally, the market is strained due to surplus stocks from the previous year's production and substantial imports from the US. Spanish almond prices are currently uncertain, with merchants and cooperatives refraining from offering definitive prices, leading producers to hold their products in anticipation of better market conditions. In Spain, over 5.20 million hectares (ha) are dedicated to almond cultivation, with 20% designated for organic production. The regions with the largest almond cultivation areas include Andalusia, Extremadura, Murcia, Valencia, Aragon, and Castile-La Mancha.
Lastly, Georgia's almond industry has witnessed significant growth, with exports accounting for approximately 10% of the recent 2022/23 season's production. This increase in local almond production is prompting Georgia to consider expanding its almond exports shortly. In the 2022/23 season (August-July), Georgia exported 130 tons of almonds in-shell, with all shipments destined for Uzbekistan and 23 tons of almond kernels to the United Arab Emirates (UAE). These exports generated USD 280 thousand in revenue, with almond kernels contributing 40% of the total.
Georgia primarily imports almond kernels, with 120 tons imported in the previous season, marking the highest import volume in the past eight seasons. This import surge is due to limitations in the local processing sector's capacity. Local industry sources indicate that Georgia produced 2 thousand to 2.5 thousand tons of almonds in the 2022/23 season, more than double the previous season's output. Projections from local associations forecast continued rapid growth, with Georgian almond production expected to exceed 14 thousand tons by 2027.
