australian-producers-protected-from-almond-price-drop

http://mobile.abc.net.au/news/2016-...cers-protected-from-almond-price-drop/7104668

Australian almond producers are not concerned about a recent 20 per cent fall in the US dollar price of the popular nut, predicting the drop will boost demand at a time when the US dollar is strengthening.

Californian growers produce 80 per cent of world supply, and prices for the common nonpareil variety have fallen from a record of $14.50 a kilogram (US$4.5 a pound).

The last decade has been highly profitable for all almond growing regions, with prices in recent years rising sharply.

Prices remain well above the 10 year average of $8 a kilogram, and Rabobank America's food and agribusiness research and advisory group's Vernon Crowder says this season prices should remain above that average.

"We saw a combination of the strengthening US dollar and the short crops increasing the price, so many buyers ended up changing their ingredient mix, or the amount they were buying, and that helped ration the shorter crop," Mr Crowder said.

"But the crop last year was much larger than expected, the forecast from the United States Department of Agriculture was for 794,000 tonnes and it turned out to be around 862,000 tonnes."

Local growers and producers agree the price drop will bring back food manufacturers and consumers who were priced out of the market when prices peaked.