2023, Volume 26, Paper 4
ISSN: 2209-6612

Threats and Opportunities to Improve the Almond Value Chain

Vincent Kelly – Postgraduate student and Lecturer respectively, School of Agriculture and Food, University of Melbourne
Paul Deane – Postgraduate student and Lecturer respectively, School of Agriculture and Food, University of Melbourne

Abstract

The aim of this paper is to examine the current threats to the almond industry in Australia as related to the performance of the almond value chain, and to suggest ways to minimise these threats to ensure industry growth can continue. The almond value chain is vertically integrated, with a streamlined approach to operations, with only a few buyers and sellers along the chain. The key threats to the almond industry considered include the effect of varroa mite, irrigation water availability, a changing climate, labour shortages to perform essential on-farm tasks, a high reliance on export markets, (specifically Asia and the United States), and currency risk and the variable $US exchange rate.

Ways to minimise these threats are then suggested. By diversifying the pollination sources and regions where almond farming occurs, the issues of varroa mite and water availability could be managed successfully. Implementing water supply strategies for both price and availability has provided a successful way to manage a changing climate for Australia’s largest almond producer. Employee stock option plans and specialist training programs could be implemented to improve labour hiring and retention. Currency risk mitigation is a crucial strategy for the almond industry in Australia, as export supply outstrips domestic demand. To diversify market risk, the Australian almond industry and Australian government can continue to pursue free trade agreements to gain access and open up new markets to increase sales.

Key words: Almonds, Irrigation, Pollination, Currency Risk, Managing Climate, Labour Shortages, Varroa Mite, Export Risk

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