Recent industry profitability data shows a mixed financial outlook across several fruit, nut, and potato sectors, with varying profitability levels and differing expectations for the next 12 months.
In the almond sector, producers are currently slightly profitable. The 12-month outlook is neutral, supported by a smaller-than-expected 2025 crop combined with reasonably strong demand, which is helping support prices.
Apple producers are currently operating at a loss. However, the outlook is bullish. While apple supply continues to exceed demand and has resulted in low prices, cost-cutting and acreage removal are expected to improve profitability over time.
Apple packers are in a slightly profitable position. Their outlook for the coming year is neutral. The large 2025 crop, combined with steady consumer demand, is expected to continue supporting packer profitability.
The lemon sector is currently slightly unprofitable, and the outlook is also neutral. Relatively weak demand and prices continue to challenge growers. Larger-than-ideal fruit sizes and mixed quality are expected to pressure prices for the 2026 crop.
Oranges are currently slightly profitable with a neutral outlook. The 2025–26 mandarin crop faces challenges due to excessively wet and cold weather, but strong quality, demand, and prices are expected to support the industry. Navel prices are mixed due to the large size profile, although the sector overall remains slightly profitable.
Pistachios remain profitable with a neutral outlook. Strong and growing demand, combined with a smaller-than-expected 2025 crop among both the U.S. and key global producers, is helping support prices.
In the potato sector, profitability differs between contracted and uncontracted production. Contracted potatoes are slightly profitable with a bearish outlook. Stable agreements and processor purchases of overages at US$2 to US$3 per cwt are supporting the market, although margins remain thin.
Uncontracted potatoes remain unprofitable. Their outlook is neutral, as oversupply continues to place pressure on the market. Despite high yields and quality, many growers are operating below breakeven levels due to the excess supply.
For more information:
AgWest Farm Credit
Tel: +1 866 552 9172
www.agwestfc.com
