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The price of almonds and walnuts is falling. In question, overproduction in California, high stocks from the previous year, and insufficient demand.
Californian almond and nut producers are depressing. Prices are falling. And the logistical difficulties mean that their fruits no longer even manage to be present on the European market for the Christmas holidays. For two or three years they have been missing this moment of high consumption and giving way to dried fruits from France or Chile, Chilean nuts being harvested earlier in the year, they have time to be prepared and shipped for the month of December.
A third of the 2021 almond harvest did not sell
The Extra quality ‘Nonpareil’ kernel is currently selling for 50 cents less than last year – or $2.50 compared to $2.10 from California. Ditto for walnut kernels, a reference to more than three dollars in 2021 – known as “half clear 80%” – today sells for just over two dollars.
If prices are falling, it is primarily because of the climate, which has been favorable to the production of trees, and the craze for walnuts and almonds, which were very profitable a few years ago. As a result, American, Chilean and even Spanish producers have planted more than necessary. Opposite, demand has not followed and today, in a period of inflation, dried fruits are not a priority in the household basket.
A third of the 2021 production which did not sell had to be carried over to 2022. This year’s harvest, which was only partially marketed, should in turn increase stocks in 2023.
The nut of Indian origin is no longer competitive
In the short term, American producers will want to sell and may be tempted to lower their prices further. Especially since they cannot bet on building up stocks in view of a small harvest to come, since “unfortunately” they should still have a good harvest next year. Some Californian producers who work at a loss do not exclude the uprooting of trees.
As a result of these low prices, India, which was traditionally a nut exporter, may not be so this year, explains a trader. ” The Indian Kashmiri nut used to be cheaper than the American, but today it is worth around 1 000 dollars more per ton – on Arlequin quality – “, explains our interlocutor who decided to do without this origin.