W49 Almond Update: Financial Support in Spain, Growth in Portugal, and Decline in California

Spanish Government Announces a EUR 18 Million Subsidy to Support Fruit and Nut Growers

The government of Catalonia, Spain, has announced a resolution to provide financial support to agricultural holdings specializing in the cultivation of fruits and nuts, such as citrus, almond, hazelnut, pistachio, walnut, and chestnut. This aid is intended to compensate for losses resulting from severe droughts and the conflict in Ukraine. The total aid amount is USD 19.44 million (EUR 18 million), with a potential increase, subject to budgetary availability. However, the extension of the subsidy by the government depends on securing sufficient credit.

Portugal Anticipates 20% YoY Rise in Almond Production Despite Challenging Harvest Conditions

Almond production in Portugal is forecasted to increase by 20% year-on-year (YoY) in 2023 despite a challenging harvest due to drought and heat waves. The production is estimated to reach 20 thousand metric tons (mt) in kernel equivalents, driven by the new orchards in Alentejo. However, producers faced difficulties, particularly in irrigating, where heightened water requirements increased costs. Constraints on water allocations from the Alqueva dam further compounded these challenges. Concerns have arisen about the need for post-harvest irrigation, with many producers potentially requiring assistance, posing a potential impact on next year's production.

California's Almond Farmland Faces Consecutive Decline Amidst Global Challenges

California's almond farmland has experienced a second consecutive annual decline in 2023, as indicated by a report from the Almond Board of California, signaling a diminishing appeal of almonds among growers. The report reveals a more than one-third increase in almond acreage removed from production and a nearly equivalent decrease in new plantings compared to the previous year. The decline can be attributed to weak global demand and a surge in production. Furthermore, the report forecasts a continued reduction in almond acreages in California in 2024. The state's almond farming landscape has decreased by 74 thousand acres, bringing California's current dedicated almond farming land to about 1.56 million acres.