Crop Status: 2024 California Walnuts
The 2024 California walnut crop faces significant challenges, with initial estimates predicting 670,000 tons—a sharp 19% drop compared to the 824,000 tons harvested in 2023. As of October 31, walnut handlers reported receiving 484,377 tons, a staggering 29.75% decrease from the 689,547 tons recorded at the same time last year.
If this trend continues, growers may produce only 577,000 tons in 2024, marking a 30% decline from last year’s total yield. This downturn signals a difficult season ahead for California’s walnut industry.
Walnut Prices Surge in 2024
Walnut prices have steadily risen since the crop estimate was released in early September. Packer reports indicating actual yields may fall below the forecast have fueled this price increase.
The October 2024 position report revealed a decrease in walnut shipments, especially in the domestic market. However, this drop has not matched the steep 30% decline in crop receipts. If these low yield reports are confirmed, walnut prices are expected to remain high and may rise further in the coming months.
Market Implications: Walnut Shortages Expected
The tight walnut supply could lead to shortages of certain products, particularly those requiring a high proportion of halves. Industry stakeholders, including buyers and processors, should closely monitor market conditions and prepare for potential supply constraints.
What This Means for the California Walnut Industry
The 2024 California walnut season presents serious challenges, with lower crop yields and increasing prices reshaping the market. Tight supplies, especially for premium walnut products, will likely put pressure on buyers. Stay informed and adapt your strategies to navigate these market shifts.
