Select Harvest almond crop similar size to previous season

Select Harvests is expecting an almond harvest of similar size to last season but prices and profit are expected to be lower.

A wetter harvest has impacted on demand for Select Harvests’ almond by-product, hulls.

ALMOND producer and processor Select Harvests has hauled in a harvest equal to last season’s record, although wet weather has impacted on the quality of part of the crop.

Select Harvests managing director Paul Thompson said the harvest had been completed and with 60 per cent of it processed, the company estimated the crop at about 23,000 tonnes, similar to last season’s crop of 22,690 tonnes.

“Overall, the crop quality is good, however a portion of the crop has been impacted by late harvest rains and wet storage conditions,” Mr Thompson said.

He said the wetter conditions had driven down irrigation water prices, but had also negatively impacted the demand for almond hull from the stockfeed industry, as cheaper, lower quality feed sources, such as oats and hay, became more available.

He said it was too early to tell how much the wetter conditions would impact on irrigation water prices.

Last year, drought conditions across the eastern seaboard resulted in huge increases in water prices, with Select Harvests’ water costs rising by 75 per cent.

Mr Thompson said COVID-19 had disrupted export markets but Select Harvests’ customers were returning to normal buying patterns.

The Almond Board of Australia reported in its April position report that Australian exports of almonds were 29 per lower than the previous year.

The Chinese market was now stable but India had reduced its imports by 72 per cent and Europe by 16 per cent.

“COVID has caused a lot of disruption in the global market place,” Mr Thompson said.

“Markets closed down, there was disruption in the ports, and they have caused delays to shipments to those places.

“It also impeded (domestic) demand as people weren’t earning income to spend on almonds.

“But we’re now seeing markets come back on stream as their economies come back into play.

“We don’t have any concerns about the underlying demand.”

Mr Thompson said almond marketers across the globe had reduced their prices to stimulate demand.

Select Harvests had 80 per cent of its 2020 crop committed to buyers, at prices of between $7.25 and $7.75 a kilogram.

By comparison, the previous crop returned $8.20 a kg.

Mr Thomson said a lower price translated to lower profits.

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Peter Hemphill’s family holds shares in Select Harvests.