August 25, 2014

Australian almond company Select Harvests announced that it is acquiring three properties for US$59 million after the company posted a record-breaking profit for 2014 as the price for almonds increased from A$6.38 to A$8.30 year on year.   This acquisition is an extension of a plan that Select Harvests initiated three years ago to double its production by 2018, and will advance the company’s acreage further south which will help combat adverse weather, disease, and pests.  Two of the properties are operating orchards – the first, Amaroo, is 2,046 acres and the second, Grewal, is 435 acres.  The third property is a greenfield property that will offer 1,600 plantable acres bringing the total acreage to 4,460.  US$10.4 million of the purchase price will be allocated to the acquisition of 6,215 megaliters of high security water entitlements.  Global demand for almonds is expected to increase by 8% per year as supply is forecast to increase by 4% per year.  However market dynamics could change depending on the continued intensity of the drought in California.

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