Wet weather has affected the almond quality for grower Select Harvests. Following a detailed assessment of inventory on hand for the remaining 15 per cent of the annual crop, Select Harvests stated that quality in 2022 is "the worst the company has experienced in the last ten years". This is largely due to a higher percentage of "manufacturing grade quality" as the wet harvest necessitated mechanical drying for a large portion of the almonds.
The group explains the combination of the weather and world prices reducing the fair value inventory sales price from $6.80/kg to $6.15-6.30/kg. This is despite a smaller crop from the world's largest producer, California.
With this price reduction and inventory write-off, Select Harvests is forecasting an $18-22 million cut to its 2022 crop fair value earnings before interest and tax.