Executive Report
Peter Hayes , |
Tim Jackson , |
ABA Chair |
Chief Executive Officer |
The year 2023-24 will go down as one of the most challenging in recent history of the Australian almonds .
The biggest positive from a year full of surprises , was that the industry managed to sell more than it grew for the first time . Sales of more than 131,000 tonnes came off the back of an official intake of just over 110,000 tonnes .
This continued to highlight the many positives around growing almonds . The non-perishability of the product ensured that processors were able to clear warehouses of stock carried over from previous seasons and improve volumetric returns , albeit in a market where pricing had bottomed out to the lowest in 10 years . Value adding markets like Turkiye , Spain and to a much lesser degree California itself took more product than ever before . There are very few horticultural products than can be stored in ambient temperature for more than 12 months and still be in a viable condition to be sold and boost grower returns .
This unheralded achievement further emphasises the sustainability of the industry and our ongoing drive to be recognised as a zero waste crop .
Before the 2023-24 harvest it was predicted that the crop would be 156,000 tonnes . Much to everyone ’ s surprise the crop failed to deliver , down by almost 30 % in a season .
It placed many growers in foreign territory , struggling to cover costs , as the lower yield conspired with soft pricing to severely impact the bottom lines of growers hit with increased costs of production . The positive was that it could have been worse , had water prices and the Australian dollar not been so weak .
On farm wet conditions , led to lower prices and a smaller intake of inshell during processing . This reduced the amount of stock suitable for the highly lucrative Chinese export market , which ultimately was down 30 % on the previous record year . The upside is that India emerged as the perfect alternative . The introduction of the AI-ECTA induced 50 % tariff reduction on all Australian almonds products , buying interest skyrocketed and Indian exports doubled . The biggest amount of kernel ever sold into India was combined with renewed demand for inshell of varying qualities .
The trade agreements with China and India were lifelines in tough times for the industry and continue to be the backbone of Australian export activities .
The ABA work on the advocacy front was shared equally across two key issues : biosecurity and water .
All attempts to eradicate varroa mite in Australia were curtailed and a transition to management plan was developed in consultation with affected industries like almonds . As the year unfolded it became clear that the hysteria around varroa mite was slowly replaced with an acceptance that beekeepers and all pollination dependent industries were entering a new world where managing varroa was inevitable .
ABA ’ s Industry Development Manager Deidre played a pivotal role in representing the interests of industry in key strategic meetings around building a commonsense plan that focused on business continuity and transparent expenditure . As a result of this national response the industry rolled through the 2023 pollination season fully stocked compared with the disaster of border lockdown and limited hive access the year before .
Almost all almond orchards are located within the Murray Darling Basin and legislation to reduce the amount of water available to irrigators presented a significant threat to all irrigated industries . Despite one of the most unified and co-ordinated ag campaigns , the NFF failed to sway the Australian Senate to vote down adjustments to the Murray Darling Basin Plan that would pave the way for more environmental buybacks and water down the socio-economic impact criteria around such market intervention .
The ongoing demonising of the agriculture sector by the environmental sector has continued since the legislation passed in December and it now seems inevitable that as buybacks roll out the cost of water will increase and further reduce the viability of many irrigated crops , including almonds . Never before in Australia has the connection between food producers and consumer been so disconnected . Ideological stances around saving the planet , while admirable , are often accompanied with an ignorance around how and where food is produced . In a world where environmental outcomes such as a net zero emission status are being increasingly expected across all sectors of the supply chain , there is a wonderful opportunity to collaborate across the basin and deliver outcomes that improve our river system while also producing affordable food for all .
The ongoing scourge of carpophilus beetle also continued to be identified as the industry ’ s major threat to quality and grower viability . Ongoing work with AgVic researchers led to the development of an effective attract and kill lure which is now in the process of being commercialised .
It will not be a silver bullet to the problem , but promises to be an effective tool in managing the pest on farm .
The decline of the Monterey variety on orchards to the east has also sparked a series of investigations to ascertain the key cause of problems in this late maturing variety . More work is being undertaken to address the issue which in some cases has left trees unproductive .
The almond industry also successful negotiated a new advisory mechanism to anchor all investments in research and development to an industry base . While the Hort Innovation RDC administers the statutory levy that every tonne sold attracts , this new advisory mechanism is designed to represent the interest of industry and ensure that R and D priorities continue to reflect the absolute needs of the industry . We thank all members of our industry committees for their contribution to this new system .
4 | ALMOND BOARD OF AUSTRALIA