Sixty percent of the state of California is now rated as being in a state of ‘exceptional drought’, and these ongoing conditions are beginning to cause concern about the future stability of California’s $5 billion almond industry. Almond prices are at a nine-year high reaching $3.45 per pound, the highest since 2005, as the drought reaches its third year. Growers are quickly depleting wells and groundwater to irrigate their almond trees, keeping estimates for this year’s almond crop at 1.2 billion pounds, but rain later this year is critical for next year’s pollination. Original estimates for an El Nino weather event caused hope for increased rainfall but forecasters have now downgraded the chances of such an event to 50%. If the state suffers another dry winter as it did in 2013, it could cause significant fallout for the industry.
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