SEPTEMBER | OCTOBER 2015
Almond Facts
7
Our recent history has been defined by drought driven
reductions in almond yields, almond supply shortages and
prices rising to new record high levels.
The 2015 crop will again be lower than last year or industry
demand. In July, the National Agricultural Statistic Service
(NASS) predicted a crop of 1.8 billion pounds. We expect the
2015 crop will deliver between 1.7 and 1.75 billion pounds,
less than 94 percent of the 2014 supply. With the benefit of
harvest data, the Nonpareil crop is likely 10 percent off of last
year’s 713 million pounds.
Lower market commitments for the 2015 crop were consistent
with recent pricing history. Many handlers were reluctant to
offer early, recalling the multi-year trend of prices climbing
throughout crop years. Last year, in particular, prices spiked
dramatically during a disappointing harvest. The winning
almond market strategy has been to sell later.
This year is different. Even with the 2015 crop falling short
of the NASS Objective Estimate, market prices declined
moderately. While California sellers offered sparingly, even
more buyers were reluctant to make early 2015 crop purchases
at prices equal to the peak prices paid for late 2014 crop. The
market is finding a new pricing equilibrium at levels above
similar timing to last year, but below the summer peak.
Market direction in the months ahead will be determined
by almond supply, global demand and whether California’s
winter snow and rain has a positive impact on the ongoing
drought.
Blue Diamond’s
value-added business model will
make sure that the cooperative’s available handle will be put
to the highest and best use, ensuring another year of strong
returns for our growers. Our emphasis on innovation will see
us through this drought and will remain a winning strategy for
Blue Diamond Growers
for the foreseeable future.
Blue Diamond
2014 Crop Returns
For the second year in a row, our crop
performance represents the highest
per pound payment in our history and
the greatest total dollar amount ever
paid to our growers. Once again, I
believe you will find that this payment
surpasses the value paid by most
other handlers in the industry.
In spite of tight supplies, demand for
Blue Diamond’s
products remains
strong. The success of our efforts has
been rewarded with unprecedented
growth in the number of new growers
and acreage committed to
Blue
Diamond
this year. We appreciate this
vote of confidence and look forward
to maximizing the returns of each
grower who entrusts
Blue Diamond
with their almonds.
Note: The above rates do not include Volume Premiums, Domestic Production Activities Deduction and IC-DISC advantages.
Variety
Overall
Average
Average of
High Quality
Maximum with
All Premiums
Nonpareil/Sonora/
Independence Inshell
$4.23
$4.25
$4.26
Nonpareil/Supareil
Meats
$4.16
$4.18
$4.20
Sonora/Independence
Meats
$4.10
$4.14
$4.16
Carmel
$3.98
$3.99
$4.01
Monterey
$3.94
$3.95
$3.97
California/Price/Fritz/
Wood Colony
$3.87
$3.88
$3.90
Butte/Padre
$3.84
$3.85
$3.86
Mission/Neplus
$3.78
$3.79
$3.81
Peerless Inshell
$1.35
N/A
$1.37
