Almond Farmers Reeling

U.S. almond farmers are getting crunched from all sides as they head into what is likely to be a record harvest season.

Prices for California almonds have fallen by more than 10 percent over the past two months, reflecting expectations for a bumper crop and tariffs imposed by China, which until recently was the second-largest importer of U.S. almonds. The European Union has been the largest importer.

In response to China’s tariffs, which now add a 50 percent tax to almond prices, some Chinese businesses say they are trying to buy more nuts grown domestically and from other producers such as those in Australia and Africa.

And in yet another setback for U.S. farmers, China has quietly closed a trading loophole that for years allowed large volumes of American almonds to be transported into the country via Vietnam without incurring import taxes.

The moves reflect China’s efforts to make its tariffs on U.S. agricultural products as effective as possible. Almonds are likely to be among the hardest hit, because the U.S. is the world’s largest producer and exporter of almonds, with 80 percent of the global supply coming from California.

“China is very, very important,” said Jim Jasper, owner and president of family-owned Stewart & Jasper Orchards in Newman, Calif., adding that demand from the country has “increased tremendously” in recent years.

U.S. almond exports to China in June were about half of what they were in the same month a year ago, and farmers have presold just 156 million pounds of almonds for the next season starting Aug. 1, according to data from the Almond Board of California. Around this time last year, they already had committed shipments of nearly double that.      Source: Wall Street Journal