Readers would know, from the numerous references in my articles, that I’m an oat latte girl.
That being said, I do appreciate a good almond cap. But you didn’t come here to read about my coffee order (or maybe you did… If so we’ll get along swimmingly), you came to read about Select Harvests (ASX: SHV), a fully-integrated almond business that consists of growing facilities, processing facilities and consumer products.
In their crop and market update, the Company announced the completion of their 2021 harvest with good results. The crop volume is expected to be over 28 tonnes, representing an increase of 5 tonnes on the prior year.
Processing productivity has also improved thanks to investment in technology and systems.
As the world shifts away from dairy and grows more health conscious, the global demand for almonds is increasing at a significant rate. California, a large grower of almonds, has seen domestic and export shipments up 21.7%, with forward commitments up 34% (from August 2020-June 2021). Australia is not far behind with almond exports year on year up by 54%.
The worsening drought situation in California has seen the US Department of Agriculture release an objective crop estimate for the 2021 season down 12.4%. This presents a significant opportunity for Australian growers to step in.
With 60% of Select Harvests’ 2021 crop already committed at prices in the range of $5.90/kg- $6.40/kg, the next season is predicted to be a successful one.
Paul Thompson, Managing Director and CEO of Select Harvests, said: “Record almond shipments and the worsening Californian drought have led to a recent price appreciation. Demand for almonds, both in their natural form and as a value-added food ingredient, in products such as plant based milks and yoghurts, continues to grow.”
“Thanks in part to the December 2020 acquisition of Piangil almond orchard, Select Harvests is set to achieve a record almond crop of 28,250MT in 2021. With good progress being made on the 2022 crop, Select Harvests remains focused on the factors within its control, including almond volume, quality, value adding and operating costs.”