California produces 80% of the world's almonds and 100% of the United States commercial supply. Although almonds are not native to California, a hot, dry Mediterranean climate and developed water infrastructure create favorable conditions for commercial cultivation of the crop. In 2020, there were devoted to almond farming in California, producing .
Almonds are the state's most valuable export crop. Farmers exported $4.9 billion worth to foreign countries in 2019, about 22% of the state's total agricultural exports, with the European Union, China and India as leading destinations.
California almond farms import the majority of US commercial bee colonies to the state of California during the almond pollination season. Almond production in California is the source of several major environmental problems, including high demand for water and abundant waste of almond shells. As of 2021, due to a historic long-term drought in California, production was forecast to decline, and many almond orchards were being abandoned. Shipping disruptions, reductions in consumer spending, and trade disputes during 2020-21 caused by the COVID-19 pandemic affected logistics and pricing of almonds.
Economic impact
Almonds were California's third most valuable agricultural product in 2019, accounting for $4.9 billion (about 11%) of agricultural output. Almond production increased from in 2000 to in 2017. Prices rose over the same period, fueled in part by overseas demand. Newly planted almond acreage has displaced more traditional cash crops, such as cotton.
In addition to consumer demand, the industry's growth has benefitted from mechanization. During the harvesting process, tree shakers are used to aggressively shake each almond tree, causing the nuts to fall to the ground. This reduces the need for labor relative to other crops, which has attracted farmers who are concerned with shortages of migrant workers.
A 2014 report commissioned by the Almond Board of California, an industry group, found that the industry directly employed 21,000 people and indirectly supported an additional 83,000 jobs statewide. Including indirect effects, the industry added about $11 billion to the state's GSP.
Exports
Almonds are California's most valuable export crop. Farmers exported $4.5 billion worth to foreign countries in 2016, about 22% of the state's total agricultural exports. The majority of these exports went to the European Union, China and India. While the EU is the largest consumer, the latter two countries are expanding markets where the state's Almond Board has actively marketed the nuts as a healthy snack.
As part of the 2018 China–United States trade war, China has imposed a 50% tariff on almonds. As a result, some Chinese businesses have resorted to importing almonds from other producers in Africa and Australia.
During the global supply chain disruption, shipping companies placed a lower priority on products that paid lower shipping rates resulting in various exports being delayed. More than three-quarters of the containers leaving Los Angeles were empty in July 2021 whereas about two-thirds of the containers leaving U.S. ports are typically filled with exports. Many of containers were going back empty due to the rush by shippers to bring in imports of back-to-school supplies and fall fashions from Asia. This impacted the almond growers along with Midwestern farmers who ship to customers overseas.
Environmental issues
Bees
Like many crops, almond cultivation requires cross-pollination. Although almonds can be pollinated by many insects, commercial almond farming is heavily dependent on honey bees. Commercial almond growers may rent hives during the blooming season to ensure pollination success. Starting in 2006, California almond growers began to suffer losses due to colony collapse disorder, a poorly understood phenomenon resulting in the decline of bee populations. While this increased pollination expenses for many growers, high demand for almonds created an incentive to transport bees from across the United States to California. The state's bee population has since partly recovered, and in 2018 accounted for more than half of all bee colonies in the United States.