Water Issues Affecting Almond Prices

California’s water situation is affecting many growers. Amongst those who are suffering the most are California’s almond growers. Around eighty per cent of the whole world’s almonds are supplied from California. The other countries that also produce and export these nuts are Australia and Spain. At the present moment, water scarcity has negatively affected the production of this popular snack item. According to reliable sources, almond production was a lot greater in the previous years. Hence, it seems that the water flow is hampering the production rate.

Simultaneously, the demand for almonds is also on the rise. Even though the production has fallen due to water issues, the exporters have shipped 10 per cent extra nuts than the previous year. In fact, the United States is the biggest consumer of these nuts. Nevertheless, other countries are also scouring for different sources of protein. This increase in demand is due to elevated consumption of manufactured products, like water sliced and cut almonds.

Due to this issue, almond prices have gone down significantly. Even though it would be normal for the prices to stay the same, the great supply is causing the prices to decrease. When the owners look forward to the upcoming season, they are wary of the water scarcity. The state produced a 3.1 billion lb. crop this year and they’re saying that next year it will be like a 3.0 billion lb. crop–so slightly less supply.

The allocation of water is a big issue right now. With fewer almonds and water issues, the prices may get better. However, this is also not something that can surely be assured. Like many California crops, at this point, the almond crop looks to be starting approximately a week later this year. However, that is also still a long way off. It’s going to get hotter so the situation could change any moment.