The improvement in the outlook for global almond prices and demand has seen Australian grower Select Harvests upgrade its expectations for its 2021 crop.
The company said on Wednesday that 70% of its crop has been processed, with total almond volumes tipped to come in at 28,250 tonnes.
That’s a 22 per cent rise on the 2020 total.
Wednesday’s statement followed an upgrade issued on July 13.
In yesterday’s statement the company said current market prices have increased by 50 cents a kilogram to between $6.75 and $7.25 a kilogram (Kg).
(The company won’t get the full benefit of that price rise because 65% of Selects Harvests’ 2021 crop is already committed at prices in the range – $6.15 to $6.45 a Kg.
The uncommitted portion of the crop are the lower value grades
Chief executive Paul Thompson says the 2022 crop is progressing well with good tree health and all regions have had sufficient chill hours.
“The strengthening of current market conditions is pleasing with the demand for inshell almonds, almond kernels and value-added almond products remaining strong,” Mr Thompson told an AgFood Conference yesterday.
“We are looking forward to a strong performance in 2022 including the benefits of our Piangil Almond Orchard acquisition, the improving profile of our orchards and the recent strengthening of the almond price,” he said in his presentation.
“Our investment in new inshell optical sorters and the better crop quality has increased the inshell production for the growing China and India markets. Inshell production has already equalled last years’ full year volumes. The inshell market is trading at a premium to kernel,” he said.
“Since our last market update on the 13th of July 2021, the Almond Board of Australia’s May Export Position Report has been released. Australian almond exports Year on Year (March – May) are up 67%, with the South/Central Asia (India) market up 306%, Europe up 20% and North East Asia (China) market up 46% during the period.
“Market pricing has significantly increased since the release of the US Objective Crop Estimate forecasting a crop of 2.8 billion pounds, an 11% decline on the 2020 crop of 3.1 billion pounds. The current market prices have increased by A$0.50/kg to A$6.75/kg – A$7.25kg. Demand remains strong at these levels.
“65% of Selects Harvests’ 2021 crop is committed (including internal sales) at prices in the range of A$6.15/kg – A$6.45/kg. It should be noted that the uncommitted portion of the crop are the lower value grades. 90% of the crop is covered at 0.73AUD/USD.
“The 2022 crop is progressing well with good tree health and all regions have had sufficient chill hours. We anticipate pollination to peak in mid-August and beekeepers have commenced delivering hives to our orchards. The almond industry and the state governments have cooperated to ensure bees can be transported across the state borders,” the company told the ASX.
The shares rose 1.8% to $7.67.
