The Select Harvests Limited (ASX: SHV) share price is soaring in morning trade, up more than 15%.
Below, we take a look at the ASX agricultural share's latest crop and market update.
What crop update did the company provide?
Select Harvests' share price is rocketing higher after the company reported an estimated almond crop volume for the 2021 harvest of 28,250 million tonnes. That's 22% higher than the 23,250 million tonnes harvested in 2020.
The estimate includes crops from its acquisition of the Piangil almond orchard in Victoria. According to the release, the entire 2021 crop has been delivered to Select Harvest's processing facility, with more than 60% processed to date.
The company pointed to almonds as an exceptionally strong market, with demand growing across the world, particularly in India, Europe and China, its traditional markets. It said Australian almond exports increased 54% year-on-year, with Europe up 69% and India helping fuel a 200% increase in south-central Asia.
The continuing drought in California indicates almond production from the United States will fall 12.5% from last year's levels. That's helped drive almond prices 5-10% higher over the past 6 weeks and is likely helping drive the Select Harvest share price sharply higher today.
Commenting on the crop and market update, Select Harvest's CEO Paul Thompson said:
Record almond shipments and the worsening Californian drought have led to a recent price appreciation. Demand for almonds, both in their natural form and as a value-added food ingredient, in products such as plant based milks and yoghurts, continues to grow.
Thanks in part to the December 2020 acquisition of Piangil Almond orchard, Select Harvests is set to achieve a record almond crop of 28,250MT in 2021.
Looking to the year ahead, Thompson added, "With good progress being made on the 2022 crop, Select Harvests remains focused on the factors within its control, including almond volume, quality, value adding and operating costs."
Select Harvests share price snapshot
Over the past 12 months, Select Harvests' share price has gained 29%, edging out the 26% gains posted by the All Ordinaries Index (ASX: XAO) over that same time.
Year-to-date the Select Harvests share price is up 42%.
