“We Need to Focus on Continuing to Drive Almond Consumption and Promote It Worldwide”
Interview with Javier Carrasco, Almond Division Manager at DAFISA
What is DAFISA and how is its almond division structured?
DAFISA was founded in 2001 in the heart of the Córdoba countryside, an ideal location for almond cultivation and development thanks to the climate and geography of the Guadalquivir River Valley.
The company has grown steadily thanks to the commitment of its shareholders. Starting with its seed business in 2001, it later expanded into cotton ginning for fiber production (2004), olive oil (2008), and almonds (2017).
Today, DAFISA shells and markets natural almonds. Its facilities are equipped with state-of-the-art technology to deliver products of the highest quality. The company guarantees strict traceability from the tree to final packaging, supported by quality certifications such as IFS.
We use a wide range of electronic sorting machines to ensure rigorous optical selection. In addition, manual sorting further guarantees optimal quality standards.
Could you explain the pricing situation we have experienced over the past two years? What has driven the price increases we are currently seeing, and where do we stand today?
Over the last four to five years, we have experienced an unusually low-price environment—extremely low prices.
Pre-pandemic
Before the pandemic, we enjoyed relatively stable prices at reasonable levels and continuous year-over-year growth in consumption. Although production was growing faster than demand, the outlook remained very optimistic.
During the pandemic
Then the pandemic arrived, and consumption growth came to a sudden halt. Not only did growth stop, but consumption actually declined. At the same time, harvests continued expanding regardless of market demand, leading to a clear imbalance where supply significantly exceeded demand.
The result was a drop to historically low prices, aimed primarily at recovering lost consumption. This was not an easy process and could not happen overnight. Many nuts that compete with almonds were also trading at historical lows.
Rebalancing supply and demand takes time, and there are only two ways to achieve it:
- Increasing consumption
- Reducing supply
Post-pandemic
Focusing specifically on the 2023/24 campaign and how we arrived at the current 2024/25 season:
The 2023/24 campaign began with very low prices, largely due to U.S. almonds trading around $1.40–1.50/lb. Unlike previous years, when prices declined after harvest, the trend remained slightly upward throughout the season.
Looking at the current campaign, prices have followed a clear upward trajectory since week 32 of 2024. Several factors explain this trend:
- A significant reduction in almond acreage in California
- Price increases across other tree nuts, which influenced the almond market
- Strong sales and shipment volumes despite rising prices
However, over the last month, the U.S. almond market has weakened somewhat, correcting to approximately $2.80/lb for Standard 5% almonds, after reaching levels of $3.15–3.20/lb. This adjustment is mainly due to lower sales caused by prices that demand has not fully accepted.
At current price levels, California has historically felt comfortable and has maintained acceptable sales volumes. The key now is to find a fair price that keeps demand active while ensuring profitability for growers.
Setting aside the recent price increase, what margins does an almond grower need today to remain profitable?
At this point, growers should focus on what they can control: production costs.
In our region, irrigation-based almond production costs typically range between €3,500 and €4,000 per hectare. Harvesting and post-harvest operations represent the largest share of expenses, accounting for approximately 25–30%. Irrigation costs can represent around 20%, depending on the irrigation system, water costs, and energy prices. Crop protection products and fertilizers rank third and fourth, representing roughly 15–20% each.
For rainfed orchards, production costs generally range from €1,800 to €2,000 per hectare, mainly due to lower harvesting and post-harvest expenses.
As for margins, growers must optimize production while reducing costs as much as possible. The market will take care of the rest.
With average yields of 1,500 kg/ha under irrigation and 750–800 kg/ha under rainfed conditions, and a minimum price of €4/kg, profits can reach approximately €2,000–2,500/ha for irrigated orchards and €1,000–1,200/ha for rainfed systems in our area.
If current prices remain strong, what strategies are needed to achieve greater market stability?
As I mentioned earlier, from an agro-industrial perspective, everything comes down to finding a fair price where growers, processors, traders, and end consumers all feel comfortable.
Artificial price increases that completely suppress demand serve no purpose.
Markets are governed by supply and demand.
On the supply side, U.S. almond acreage has been declining in recent years. We need to capitalize on this reduction and position ourselves as the world’s second-largest almond-producing country.
On the demand side, we must continue working tirelessly to generate consumption. This means investing heavily in promoting Spanish almonds in emerging markets and focusing our efforts strategically.
A good example is the work carried out by the Almond Board of California, which dedicates substantial resources to promoting its product worldwide.
We must also continue working toward the creation of a Spanish almond interprofessional organization that can defend our interests while serving as a tool for information, promotion, and market development.
For many consumers, Spanish almonds remain largely unknown. There are still many markets to explore and countless opportunities to increase awareness. This year has provided an excellent opportunity to position Spanish almonds, as the price differential with U.S. almonds has been significant. Many customers have now tried and become familiar with Spanish almonds, but there is still much work ahead.
Stability and sustainability are often discussed together. From an economic, environmental and social standpoint, how sustainable is almond production? Could sustainability become a competitive advantage against U.S. almonds? What role do water and carbon footprints play?
The answer depends on which aspect of sustainability we are discussing.
Some markets place tremendous value on sustainability, while others pay much less attention to it. For example, sustainability is generally less important in Middle Eastern markets. The same has traditionally been true in Spain, although consumer awareness continues to grow.
In contrast, in Central and Eastern Europe sustainability is not only important, but often decisive when choosing a product. Environmental stewardship and minimizing impact on the planet are increasingly considered essential values.
In this context, European origin offers a major advantage. Shorter transportation distances mean a lower carbon footprint. An almond that must cross an ocean, such as those from California or Australia, cannot compete in this regard with a locally sourced European almond.
Water efficiency is another critical factor. Spain uses water more efficiently and requires fewer cubic meters of water to produce one kilogram of almonds.
It is extremely important that we communicate and capitalize on these advantages to become more competitive in specific markets and better position ourselves against U.S. almonds.
Once almonds arrive at the processing plant, what type of almond is most valued?
The answer depends on who you ask.
From an industrial standpoint, we seek a homogeneous almond that breaks easily, generates minimal waste, produces few fragments, and peels efficiently.
The variety must also be agronomically stable, offering consistent yields over time, strong disease resistance, and enough profitability to motivate growers to plant it.
Equally important is ensuring a sufficient and year-round supply to meet customer demand.
Being able to offer lots of the same variety throughout the year has opened many doors in marketing and commercialization. The current trend is toward a smaller number of varieties with reliable availability.
In our facility, Lauranne is the flagship variety. This season, nearly 85% of the 6,000 metric tons processed at our plant have been Lauranne. We have finally found a variety that performs exceptionally well commercially, both as natural and blanched almonds.
Across the Guadalquivir Valley, Extremadura, and Portugal, Lauranne performs extremely well. It is highly adapted to local chilling requirements, shows excellent disease resistance, and delivers very stable yields compared to other varieties.
What production systems best support the development of the sector? Does hedge-row cultivation offer advantages compared to traditional systems?
When comparing hedge-row systems with traditional orchards (higher-density systems with wider spacing), one factor plays a particularly important role: labor availability.
Finding agricultural labor is becoming increasingly difficult, and this challenge is driving the conversion of many hectares to hedge-row systems, where management is almost entirely mechanized.
From an industrial perspective, our facility receives several batches from hedge-row plantations. These almonds are highly uniform and exceptionally clean.
Depending on moisture levels at harvest, over-the-row harvesting machines effectively perform a preliminary cleaning process that improves efficiency in our hulling operations.
Because the almonds never touch the ground, they arrive free of stones, which can cause significant damage to processing equipment. Ground-harvested almonds often bring stones and dust that create serious operational challenges.
Looking ahead, how do you see the future of the almond sector, and what factors will define it?
In the medium term, I believe almond production will remain profitable wherever agronomic conditions are favorable—adequate water supplies, professional management, and the ability to achieve strong average yields.
Almonds will continue to be an attractive crop within diversified farming systems.
We already know that prices are cyclical across all agricultural commodities.
I believe we are entering a new cycle characterized by stronger returns for growers.
One positive outcome of the recent years of low prices is the restructuring that has taken place within the sector. Like many industries, difficult periods tend to leave only the most professional and efficient producers standing.
During the past two or three years, while olive oil prices soared and many farmers and investment funds shifted toward olive production, we met outstanding growers who continued investing in almonds despite the challenges. If the almond sector is entering a new price cycle, those growers may soon be rewarded for their commitment.
Furthermore, it is clear that nuts are in fashion—and they will continue to be. Consumers are increasingly concerned about their health, and nuts are widely recognized as healthy foods.
We must continue working to generate consumption and promote it worldwide, while exploring new market niches.
I firmly believe that almonds are, and will remain, a crop of the future, provided they are planted in areas with the right agronomic conditions and managed by skilled professionals.
