TREE NUTS MARKET REPORT - ALMONDS
The January shipment report broke the downward direction of the past months. The shipments of almonds from California did not crack the monthly year on year record for the first time this season and they also declined beyond the most pessimistic forecasts by industry players. It is clear that due to shipping delays and congestions, a combination of logistical problems are at work.
Beyond Easter, the shortage of dock workers and the long waiting lines for the vessel to berth could lead to delays. On the flip side, the European spot market is not yet saturated and product managers have definitely been inspired by the current situation to shift the recipe to more almond ingredients.
The logistical challenges listed above also lead to the spot tightness. With more rain and humidity in California, the new worries about the beginning of flowering have practically been put to rest. Farmers in Spain fear an unchecked plague of the almond wasp, which is capable of drastically reducing the almond harvest.
The larvae must be washed by hand in order to prevent the plague from spreading, taking advantage of the fact that the trees have no leaves yet. For organic processing, efficient removal is particularly important because chemical treatment is not feasible later on.