The shares of Australia’s second-largest almond grower, Select Harvests, are up by 9.2%, trading at $4.40 per share today as the company released its 2024 crop and market update to investors. After a tough 2022 and the first half of this year, the company battled low-quality almond crops and volumes. Of course, Australian growers faced many challenges throughout the start of the year. Share prices have struggled to recover to the $5.56 highs seen in September last year, with shares down 12.52% in the past 12 months as almond prices sit at a near-decade low.
For now, almond prices remain muted, but expectations of rising demand should match production, and with a strong El-Niño Summer predicted, the forecasts are looking sunny for this major producer.
Outlook for Select Harvests
Looking ahead, Select Harvests is targeting further growth in the coming years. The company plans to increase its almond production by 7,000 tons in 2024, which will be achieved through a combination of its own supply and increased grower volumes.
With the challenges faced throughout the past couple of years, leadership has refocused strategy. The company says it’s focused on achieving its strategic priorities, which include improving orchard yield and quality, securing water resources, reducing costs, and exploring lower capital-intensity growth options.
These efforts aim to ensure sustained profitability and long-term growth But for the time being, investors will be focused on the next six months of revenue from the company as volumes being to recover at a time where supply shortfalls from America could bring new opportunities.