Record Production of Almonds

The 2007/08 California almond crop is nearly over. By the end of April, the crop had reached 1.38 billion pounds, establishing a new production record. This crop surpassed the subjective and objective crop estimates of 1.31 and 1.33 billon pounds, respectively.

The 2008/09 crop is expected to surpass this season's crop, as more bearing acreage will be coming online, and the bloom period was very good this spring. The subjective estimate is 1.46 billion pounds, up 6 percent over last year. Bearing acreage is placed at 660,000 acres, up 45,000 acres, or 7.3 percent, from last year. The objective estimate will be released on June 30.

With all of the new acreage coming online, for 2008/09 NASS is using a yield of 2,210 pounds per acre, down from a record 2,240 pounds last year. Almond trees don't reach peak production until around their ninth season.

With the increase in production, inventory has been creeping upward, but the success of the almond industry has been its ability to sell what it produces. The industry has sold a record number of almonds month after month. In fact, net sales reached record levels for the last 11 months. The weak U.S. dollar has helped to boost sales because 70 percent of U.S. almonds are exported. Shipments to Europe, accounting for 57 percent of almond exports, are up 24 percent over last season, and shipments to Asia and the Middle East are up 17 percent and 45 percent, respectively.

Domestic deliveries also reached record levels in 10 of the last 12 months, up 8 percent to date versus last season. With the large crop coming and good supplies available, look for more of the same as almonds are a bargain in today's market, especially when you consider the increasing costs of other food ingredients. It appears almonds will remain a competitive ingredient for the coming years as production grows.

Please contact us if you would like to source almonds or if you have any questions about this topic.

McKEANY-FLAVELL COMPANY, INC.