A combination of heavy rain this year in Spain, drought conditions in California, and growing demand from Asian countries, (China in particular) has driven up the global price of almonds. Spain, which accounts for 6% of the world’s almond supply experienced heavy rains during the growing season resulting in a crop only one third the normal size. In California, which produces 80% of the world’s almonds, there are 260,000 acres of orchards in the western part of the state that is experiencing significant drought and is also dealing with the problem of dwindling number of bees available to pollinate the crop. According to Mintec as many as 30% – 40% of bee colonies have been lost to colony collapse disorder tripling the cost to rent hives and driving up the cost of production. At the same time, over the past five years demand from Asia has increased 109%. At global markets the wholesale cost of almonds is up between 30% – 70% since last year. Although retailers are paying the most for almonds than in the last 50 years, they are unable to raise retail prices because of strong competition – though this will likely change next year as prices will have to be raised.
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