Nuts

Almonds: farmers to turn on ruthless buyers

November 9, 2022 at 3:04 PM , Der AUDITOR
Play report as audio

TOLEDO. Fair pay is crucial for Spain's almond producers. Trouble, however, is that it is difficult to assess all costs involved in production. ASAJA, an organisation of young farmers in Spain's autonomous Castilla-La Mancha community, and the University of Castilla-La Mancha have launched a project to make it easier for producers to demand fair prices.

Individual calculations

The project was kicked off with a study that calculated all maintenance costs involved in the agricultural usage of Castilla-La Mancha's groves in the past three years. In so doing the authors differentiated between the different cultivation areas and types as well as between rain-fed irrigation (traditional and intensive) and artificial irrigation (intensive and superintensive). On top of this, the study also considered different maintenance costs including fixed and variable costs as well as indirect costs (insurences, land use, family cooperation and wages). This enables farmers to calcuted production costs for a whole range of products such as grapes, almonds and pistachios and olives as based on yields. Intention is to further adjust these calculations in the second phase to include grains such as barley and wheat, sunflower seeds and vegetables.

Objective is to develop a practical solution to help farmers fend off buyers insisting on too low prices, especially since the law in Spain dictates that farmers should not be forced to sell below production costs. Every producer will be provided with a dynamic instrument to calculate costs flexibly and as based on scientific facts, which will enable them to negiotate contracts more successfully with industry representatives. Should producers be put under pressure to sell at prices below production costs, they have the possibility to file official complaints that may even lead to sanctions. 

Market under pressure

Producers have been far from satisfied with prices in recent months. Although production costs have risen and production has declined sharply this year, they cannot sell at the prices they would like to see. Issues are the record high US carry-in stocks and the rise in production in Australia. Demand is moderate.

Almonds

Type

EUR/kg

USD/kg

Valencia, 12/14 mm, natural, Spain

4.35

4.37

Valencia, +14 mm, natural, Spain

5.00

5.02

Nonpareil, Extra no 1, 23/25, natural, USA

5.60

5.62

Carmel, SSR, 23/25, natural, USA

4.35

4.37

California, SSR, 23/25, blanched, USA

5.70

5.72

FCA Spain

View more
price chart, almonds, natural, +14, Valencia
price chart, almonds, natural 13/14, Largueta
price chart, almonds, blanched, 27/30, California SSR
more price charts

Attached Files

File icon
price chart almonds natural Valencia 12-14 Spain

View related articles

Go to the News Overview
Nuts
May 26, 2023
ORDU. While Turkey is still in a mode of suspension, controversy has broken loose over the production estimates for hazelnuts in Spain presented at the Nut and Dried Fruit Council Congress in London.
Nuts
May 25, 2023
CANBERRA/MADRID. Australia started the new export season with record figures. Meanwhile, associations and companies from Spain and Portugal have joined forces to establish the "Iberian Almond" more firmly in the Western European market.
Nuts
May 24, 2023
ATLANTA. Demand for US pecans is so high that farmers are expanding their acreage as best they can. However, as they face various hurdles in doing so, supply remains tight.
Nuts
May 23, 2023
HANOI. Encouraging as Vietnam’s export figures for cashews sound, the industry is by no means out of the woods. Monthly exports, in fact, rebounded to 51,400 mt worth USD 305.48 million in April, which is the highest level seen since October 2021 as local media report in analysing official customs statistics.