Two trends are shaping California's tree nut sector. Almond acreage is decreasing after several years of pressure, while pistachios are moving from a high production year into a lower crop cycle.
Producer William Bourdeau said the reduced almond supply may support price movement as demand increases.
"You know, I'm optimistic that almond prices will improve, and there's a lot of acres that came out of production. There are a lot of acres that were deficit-irrigated. They're a sensitive crop, and so I do think supply and demand equilibrium will start sorting itself out. And as demand increases and supply goes down, the price should improve. And so I'm optimistic."
Pistachio prices are currently stable, despite expectations for a smaller crop following a high-yield season.
"Pistachios, we still have a decent price," Bourdeau said. "I think this is an off year. So we had a really big crop last year. It's going to be a more modest crop this year. So I think prices will remain close to the same as last year. And so I'm very optimistic that pistachios, if we don't have some strange weather events or something that adversely impacts the yield, I feel really good about pistachios in the near term."
Market outlook indicates stable pistachio pricing, subject to weather conditions affecting yield.
Source: RFDTV
