Recall my post from Sep 2007 regarding the bubble in Almonds. Keep in mind that 80% of the worlds almonds are grown in the Valley. I sure hope John Madden doesn't lose too much money...
That said, more than a few growers are sweating over a recent dip in the price of almonds, which had previously risen enough to fuel explosive growth in plantings.
Almonds were Kern County’s fourth largest agricultural commodity last year, according to the Kern County Agricultural Crop Report.
Tejon Ranch Co., the Lebec ranching and real estate development company, said in a quarterly report filed with the Securities and Exchange Commission that it received $1.78 per pound for almonds in September. That’s down from a peak of $3.80 in the last three years.
Today, almonds are going for $1 to $1.25 a pound, said Mike Young, an almond grower and president of the Kern County Farm Bureau.
Unable to find sufficient buyers, Young has been reduced to warehousing nuts, which keep for about a year.
“We’re just experiencing the global economic downturn like everybody else,” he said. “Nobody’s buying anything right now.”