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- Almond producer Select Harvest (SHV) has harvested 97 per cent of its orchards for its annual crop
- The company says 90 per cent of the harvested crop is in near perfect condition
- However, harvesting the remaining crop has been disrupted by rainy weather,
- Despite this, Select Harvests maintains that the quality has not been affected, as the almonds are enclosed by shells
- The remaining 2020 crop is expected to be harvested in the coming weeks
- While the U.S. market could soften almond pricing by bringing in a larger-than-expected almond crop this year, Select has reassured its investors that the majority of its 2020 crop is locked in on previous price guidance
- Select Harvest is down 3.92 per cent on the market today, selling shares for $6.87 each
Almond producer Select Harvest (SHV) has harvested 97 per cent of its orchards.
The company has reported that 90 per cent of the harvested crop is in near perfect conditions.
However, harvesting the remaining crop has been disrupted by rainy weather. Despite this, Select Harvests maintains that the quality has not been affected, as the almonds are enclosed by shells. Select Harvest is aiming to complete the harvest in the next few weeks.
Out of the harvested crop, 60 per cent has been delivered to the Carina West processing facility, where over 25 per cent of the crop has been processed. As a result, Select believes it will produce a similar crop size to last year.
“We are seeing benefits from the continued investment in our horticultural practices and new technology in the Company’s northern Victorian processing facility,” the company told the market.
“Our immature orchards continue to yield above our internal business case assumptions and industry standards,” it added.
Market Conditions
The crop harvesting couldn’t come at a better time; a February report from the Almond Board of Australia said year-on-year almond exports were up 26 per cent to 76,556 million tonnes.
Additionally, the North Asian market’s uptake spiked by 214 per cent.
However, the U.S. crop in California also experienced near-perfect growing conditions and is due to be harvested in August. So far, the U.S. has seen its year to date shipments increase by 5.9 per cent, while forward commitments have spiked 19.58 per cent.
Because of this, Select Harvests has seen the almond price soften. However, it believes some of the slump has been offset by the weakened Australian dollar. Additionally, Select Harvests says the majority of the crop is locked in for pricing at the” previously provided range of A$8.00 to A$8.50/kg.”
As a result, the company has commenced exporting its shipments to the rest of the world. It believes the demand for almonds remains strong and can still grow as distribution channels return to normal.
Select Harvest is down 3.92 per cent on the market today, selling shares for $6.87 each at 1:08 pm AEST.
