FROM THE EXECUTIVE
From the Executive ...
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There is no doubt that the ongoing low prices have had a massive impact on the viability of almond growing in California . LandIQ are reporting a downturn in plantings for the first time .
Peter Hayes , ABA Chairperson and Tim Jackson , ABA CEO
California connections to remain strong
THE annual Californian Almond Conference brought together growers , buyers and service providers from across the globe in Sacramento earlier this month . A small delegation from the ABA attended the event and met with the ABC ’ s new CEO , Clarice Turner , along with the experienced executive team and retiring CEO , Richard Waycott . It was evident during our meeting and through many of the presentations during the conference that we share many of the same challenges . The ABA made it clear to all that the collaborative leadership provided by Richard Waycott during his time was appreciated by all in our industry . His willingness to attend and present at conferences and always host ABA staff and directors has established strong ties between the two boards . We look forward to fostering the same relationship under Clarice ’ s leadership in the years to come . There is no doubt that the ongoing low prices have had a massive impact on the viability of almond growing in California . LandIQ are reporting a downturn in plantings ( ie : 70,000 acres ) for the first time and have also quarantined another 40,000 acres that are yet to be clarified as either mothballed or abandoned in subsequent groundtruthing tours . Headwinds in driving demand on the domestic market and abroad has led to a detailed review of ABC marketing
plans and a reset on where the ABC moves in 2024 and beyond . The ABA and many within the Californian industry shared their frustrations off-line during the conference that shelf pricing of snacking almonds in many major retail chains in key markets around the world has not followed down the trading price of almonds and helped drive demand . We know from previous times of low almond pricing , that lower shelf prices have increased demand and sped up the correction of the supply-demand imbalance . Not all parts of the globe are using the lower prices to drive profit margins . During a recent Australian visit by a leading Turkish retailer , he was staggered at some of the onshelf pricing compared to back home . “ We would also struggle to sell almonds at those prices ,” he said . The Turkish procurement manager indicated that his company ’ s formula for success was not about protecting huge margins but increasing the customer base , especially in tough economic times . “ Our growth has far exceeded our expectations ,” he said . “ If you deliver a quality product at an affordable price , the number of consumers will increase and so will consumption .”
Marketing plans
The ABA has launched its threeyear strategy to drive demand and grower returns with a balanced promotional campaign that focuses on key established markets while also turning our eye to the future and the potential in South-East Asia . Consumer studies and proven educational programs to enhance the profile of the health halo almonds deliver are all part of a concerted campaign to sell more almonds closer to Australia . While advantageous trade agreements in China , India and Turkiye are helping drive demand for Australian almonds off-shore , the price is still largely governed by the Californian industry . Attempts to drive consumption in new markets where the whole industry can benefit will inevitably assist the Australia grower . There is no doubt that a buoyant and prosperous Californian almond industry is in the best interests of the Australian industry . Opportunities to cross promote and educate in new consumers on both the health benefits of consuming a handful of almonds a day and the sustainability story that almond growing can deliver are certain to be explored by both boards in the year ahead .
Water and pollination
As we head into 2024 , the cost of water for growers and the availability of beehives in Victoria and SA will be
4 In A Nutshell - Summer 2023 Vol 24 Issue 4