Organic almonds net higher price, but transition is risky
ganicduring the last several yearsbecause of the “potential for slightly higher profit- ability per acre.”He said he thinks organic almond production is now “pretty close” tomarket demand. But he acknowledged production chal- lenges remain, with 25% to 30% lower yields for organic compared to conven- tional. Getting enoughnitrogen to the soil represents oneof thebiggest challenges to organic production, he said. Even thoughorganic almonds continue to earn a premium to help offset the low- er production, Koretoff said grower prices
last year “droppedsignificantly”alongwith conventional prices due to the larger crop. The decline in pricemade it “very difficult fora lotof growers tomakeaprofit,”hesaid. Though prices are expected to rise this year, he said growers now face soaring production costs in fuel, labor, materials and transportation. One of the best ways to bolster organic production, Koretoff said, is for growers to be successful. But with California agri- culture facing water shortages and other
ByChing Lee Lower market prices for convention- al almonds may motivate more growers to consider going organic, which still commands a premium. But p r o d u c t i o n c h a l l e n g e s and other eco- nomic factors continue to make the transition a risky endeavor for some farms. Demand is still increasing for organ- ic almonds, marketers and others in the business say. But state production remains tiny—and has been for years. Organic almonds represent about 1% of total state production of the nut, with bearing acreage in2019 at 15,206, accord- ing to the California Department of Food and Agriculture. Because supplies are small, Big Tree Organic Farms in Stanislaus County, which markets organic almonds, has consistently looked to sources outside California, often overseas, to satisfy de- mand, said SusanCook, a sales represen- tative for the company. California remains the world’s top al- mond producer. But with farmers remov- ing their treesdue towater shortages,Cook said she expects state organic almond acreagewill drop. Limited state production has ham- pered growth, she said, as it has resulted inpricingvolatility. Some foodcompanies looking touseorganic almondshavebeen reluctant to do so. “The market could go sky high,” Cook said. “The demand could go even further, but a lot of these larger companies say the production isnot stableenough for them.” That may be changing, however. With conventional almondprices lessprofitable for farmers in recent years and organic almond prices remaining “relatively sta- ble,” JoeGardiner of Treehouse California Almonds in Tulare County said he’s seen moregrower interest inproducingorganic almonds. He said he expects to see “sig- nificantlymore” organic almond acreage come online in the next few years as new plantings enter into production. “Whenyou’re lookingat $1.50(apound) return for conventional almonds com- pared to a $4 return on organic, it starts to incentivizegrowers tosay, ‘Maybe I should do a little bit into organic,’” he said. Gard iner ’s bus ines s grows and handles organic and conventional al- monds. His family jumped into organic “rather heavily” five years ago by con- verting several hundred acres, which he said will be tripled by next year. The transition represents a substantial , long-term financial investment, he said, with expectations of lower yields and higher production costs and ques- tions about whether stability of organic pricing will hold. Learning how to apply organic fertiliz- ers and get nutrients to the trees remains a struggle, he said. Dealingwith increased
disease pressure is another. “I think there’s still quite a few un- knowns that make it a risky transition or not avery comfortabledecision” for grow- ers, Gardiner said. Steve Koretoff of Purity Organics in Fresno County, which grows, processes and markets organic almonds, said he’s alsoseenmoregrowers transitioning toor-
See ALMONDS, Page 5
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September 8, 2021 Ag Alert 3
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