Jim Zion of Meridian Growers in Madera, California speaks about his reservations as he starts growing nuts for the next year. He states that he is “an optimist” but their problems that need solutions.
“It depends on the crop,” he says. “Almonds are down. They had a large carryover, a smaller crop than expected, and an uneven demand in a down market. However, low prices tend to cure low prices and when almonds get relatively expensive, everybody starts figuring out ways to use them so I imagine that market will cure itself eventually because we seem to have hit a bit of a bottom and are starting to see demand come on. We’re still trying to find a direction in that marketplace.”
In terms of stability, Pistachio is where it’s at Zion says, it’s boring. Zion feels that Pecans are doing well they have “demand and movement both good and prices relatively stable.”
“We could talk about inflation all day. Currency exchange rates definitely affect our overseas markets. There are ongoing concerns about the war in Ukraine. There are still tensions with China, one of the world’s biggest tree nut markets. We’re still concerned that the West Coast is still operating without a contract between labor and the ocean carriers. We’ve seen some sporadic strikes since the contracts ended in July and are not sure if they will increase. Bottom line — there’s never a dull moment.”
Zion describes the market and the industry as uncertain. Zion feels that the price for the product is unknown, it will get sold, but at what price? There are many uncertainties right now, one being the situation with California and water. Zion feels that California may have its peak when using existing mature orchards, rather than planting new almond groves. “Without water, you can’t grow nuts.”
