California’s Almond Groves shrink as water supplies dwindle
(Bloomberg) – California farms that provide 80% of the world’s almond production are shrinking for the first time in more than a quarter of a century as the state’s historic drought forced farmers to abandon their orchards. fruit or give up new planting altogether.
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The state of California was estimated to have 1.64 million acres at the end of August, down slightly from a year earlier, according to the Almond Board of California. In addition, the number of new trees planted from 2020 but not yet bearing fruit also decreased by 17%.
The driest three-year period on record in California prompted unprecedented cuts to conventional water supplies, driving up costs. That forces some producers to tear down orchards to plant other crops, or simply stop watering the trees. Production in the 2022-2023 crop is expected to drop 11%, according to the US Department of Agriculture.
It signals deeper pain for the $5 billion almond industry, which is already facing shipping bottlenecks that have resulted in backlogs of output and falling prices. That could ease somewhat next year as exports are expected to rebound to record levels. It could also increase the price for consumers of nuts along with butter and other products made from them.
Michael Easterbrook, chief executive officer of Stratamarkets, a research firm focused on the tree nut market, said: “The growing cost of water combined with falling almond prices is reducing profits and forcing growers to remove orchards. % from a year earlier. “The big question in California right now is how many more acres will be removed?”
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