Almonds: “We need to understand that prices have to increase”
December 23, 2024 at 11:00 AM ,
Der AUDITOR
Which were the main difficulties faced by the almond market in 2024? What has changed compared to the last two years?
Always under my point of view and focused on the Spanish almond market, the crops of the last years were not very good because of the lack of water. Depending on the weather, every year is different when it comes to quality. For example, last year it was difficult to get big sizes and this year it is more complicated to get small ones. However, this current crop seems quite good in general.
With several global political tensions, the war between Russia and Ukraine and the import tariffs on Russian agricultural commodities for shipments to Europe significantly increasing, will this also have an impact on the almond market?
Yes, because whenever the dollar exchange rate is affected, not only Californian almonds are affected, but also the development in Spanish almonds as they go hand in hand.
In 2024, climate change and its impact on global commodity production was once again a major issue. How should growers and market players act to be prepared for the coming years?
This is true, water supplies in Spain are something to keep in mind for the future. Almond varieties are always in evolution and are subject to natural selection. Some of them need less water to produce better crops, others are losing power in the general volume of crops.
Once again commodity prices have risen significantly in many markets, some being at all-time highs or close to. Inflation and higher production costs are leaving their mark; the international almond market is no exception here. Do you think consumers will look for cheaper alternatives in the long run?
I do not think so. I believe that almonds are a very healthy product and important in our diets. We will not stop using them. But we need to understand that prices have to increase, because we have now the lowest prices of the last 10-15 years. And growers are not able to cover their minimum costs to get big crops of good quality.
Looking at the current market situation, what challenges might the almond market face in the 2025/2026 season?
As mentioned before, mainly a general increase in prices.
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