EXECUTIVE REPORT
PETER HAYES Chair
The past year has featured some of the most challenging issues the industry has faced since emerging as one of the world ’ s major almond producers .
Record production out of California eased demand and lowered prices . In isolation the “ big crop ” scenario was nothing new to the world market but when combined with two and three-fold sea freight costs increases and widespread shipping delays , the impact was unprecedented .
Californian shipments to export markets that usually took 4-5 weeks were taking 8-10 weeks and sometimes longer , so utilising their time-honoured marketing machine to drive global demand proved impossible . It left buyers comfortable that with low prices and high inventory levels , there was no pressure to make long term commitments .
Here in Australia , the challenging marketing conditions were compounded by an unprecedented rainfall in the Riverina , high fuel prices , a wet harvest across most growing regions , hailstorms and high winds just after bloom and then the emergence of varroa mite in Newcastle just before June 30 .
A record crop in early 2022 also exposed an industrywide processing capacity shortfall that ensured longer wait times for on-farm stockpiles .
Despite all these headwinds , the 2021-22 season that finished in February boasted record export sales , up 12.88 % on the record of the previous year .
China and India sales drove this demand .
The free trade agreement with China continued to underpin the Australian export program , making up 40.7 % of the exports .
Exports to China were up 36 % on the previous year . Indian sales were also at record levels , up 43 %. Sales into this market were almost exclusively inshell and could not be replicated in the 2022-23 season due to rain damage limiting the crop potential for this product . It is hoped the bi-lateral trade agreement and new quota for Australian almonds could drive Indian demand for more kernel in the next 12 months .
The increased reliance on these two inshell markets
4 2021 / 22 ABA ANNUAL REPORT
TIM JACKSON Chief Executive Officer
has driven a diversification program of marketing activities within the ABA . A strong focus on building product awareness in emerging middle-class countries across South-East Asia has become a priority . Modifying proven domestic ABA awareness programs like “ educating professionals ” along with understanding the specific consumer priorities will underpin this phase of the ABA export marketing strategy .
The ABA ’ s Almond Centre of Excellence Experimental Orchard at Loxton emerged as a highly regarded industry resource for a range of research projects . Ongoing work on higher density plantings , rootstock suitability , modified tree architecture and ag-tech innovations were showcased on-site as the lifting of State borders and covid restrictions saw a return to field days and company-specific inspections . The vision of the former CEO Ross Skinner in establishing the facility will have long lasting benefits for the industry as ongoing research projects explore new and more efficient ways of growing almonds .
Formalising the industry ’ s sustainability credentials have also come into sharper focus over the past year . The board has identified the need to develop an industry-wide framework that allows stakeholders of all sizes and appetites to contribute .
Issues like irrigation efficiency , zero waste , greenhouse gas emissions , chemical use , pollination security and effectiveness , soil health and establishment of closed circle industry economies with independent verifiable measures is the basis of a new portal that aims to provide growers with a benchmarking tool that makes them more profitable while addressing any social or environmental vulnerabilities . More broadly , this initiative shall strongly support our advocacy and promotional issues and opportunities in relation to consumer expectations and our ‘ social license ’.
There is no quick fix , but our journey so far has highlighted that our industry boasts a lot of initiatives that can be considered well advanced on traditional perceptions around growing practises .
The bottom line is that there is a collective understanding that farmers understand the importance of sustainability and the benefits of always exploring new ways to do things better .
The ABA role in this journey will be one of support and facilitation . Our industry development team have started work on an industry-specific portal to assist growers and processors to meet the emerging expectations of those further down the supply chain . It will also assist the ABA in educating the public on just how sustainable a new-age almond farmer has become .
More work needs to be done around carbon sequestration calculations , given we are an industry of more than 18 million trees . This issue retains ongoing importance given the global focus on production and supply chain carbon accounting and issues of validation and credibility related to the plethora of schemes now emerging .
The ABA ’ s close working relationship with Hort Innovation Australia remains a critical plank in the organisation ’ s ability to deliver a range of services and research projects . Under the leadership of chair Julie Bird and new CEO Brett Fifield it has begun a “ reset and refresh ” restructure to build broader stakeholder confidence and engagement . As part of the review process , the almond industry is fortunate that former ABA CEO Ross Skinner has been selected as a member of the industry-wide working group that has been established to work alongside Hort Innovation and the DAFF in the process . Progress to date has been most encouraging .
The almond industry sits in the fortunate position where we have resources to help prepare for the industry ’ s growth and consolidation over the next 5-7 years . It is estimated that if scheduled new plantings occur , we shall have well in excess of 70,000 bearing hectares within this time frame . A recent trip to the Goulburn Valley revealed the emergence of what looks set to be a sixth growing region , with plans afoot to plant upwards of 4000 hectares on former dairy country north of Shepparton .
Industry stakeholders have long seen the benefits of being members of the Almond Board of Australia and in times where new markets need to be developed and advocacy on a range of issues required , the benefits of being part of a united voice have never been more relevant . The entry of many new industry players and the isolation experienced throughout COVID has signalled a need to intensify our focus on ABA member recruitment and retention .
Increasing the membership base of the board will involve educating new and existing members of the benefits of signing up . Ground-floor access to driving relevant research , being involved in industry-wide bench marking and advocacy work are among the benefits that bring value well beyond the nominal taxdeductible fee charged .
In the space of 20 years the Australian almond industry has gone from boutique to a horticultural powerhouse widely respected for its unity , initiative and professionalism . Long may that continue .
- CEO Tim Jackson and Chair Peter Hayes