Select Harvests predicts almond shortage

Australia’s largest almond grower, Select Harvests Ltd, says the world won’t have enough of the nuts within five years and it is in the right product, in the right place, at the right time. Select Harvest chairman Curt Leonard (Curt Leonard) says global demand for almonds is growing and prices likely to go up.

« We remain of the view that the fundamentals of almonds are very strong, » Mr Leonard told shareholders at the annual general meeting on Friday. « From a global perspective, demand will exceed supply within five years, meaning room for both upward movement in prices, and opportunities for expansion in production, » he said in a speech lodged with the stock exchange.

« Australia is very well placed to meet this demand, and with Select Harvests as the leading producer and marketer in Australia, and a major global player, we are truly in the right product, at the right place, at the right time. » He said uncertainty over the ownership of collapsed Timbercorp’s orchards and the potential impact on Select Harvests’ management rights has no doubt depressed the share price, which was down 12 cents or 2.95 per cent at $3.95 at 1153 AEDT.

« This has been to some extent alleviated since the announcement of the sale of 20,000 acres of orchards to Olam International, and the commencement of the sale process for the remaining 9,500 acres of orchards. « We remain confident that Select Harvests is best positioned to retain management rights under the new ownership structures, as the sales process completes over the coming months. »

Select Harvests future will revolve around almonds, with earnings growth to come from continued management of existing orchards, developing an almond hub in the West Australian wheatbelt and potential expansion once Murray/Darling basin water supplies stabilise. The company posted a 10 per cent rise in 2008/09 net profit to $20 million.

Source : BrisbaneTime