December 2004 NEWSLETTER

8800 South Minturn Road
Le Grand California 95333 USA
Office 559-665-8500
FAX 559-665-8588

Almond Industry Position Report

Carry In August 1, 2004
2004 Net Marketable Crop (Received to date)

November 2004 (Million Lbs.)

148.9
874.2

274.1
427.3

Total Sold

Uncommitted Inventory (Not Sold)

701.4

(321.7)

Position Report

Almond shipments continue to soar to an altitude no one could have expected. November shipments broke the 100 million pound mark reaching 103.3 million pounds surpassing last years record November by 6.6 million pounds. Total shipments for the year now stand at 426.5 million pounds putting our industry 19.4 million pounds ahead of last years record pace. What makes this year’s record pace a bit more satisfying is that price levels have become substantially higher. The bad news is we probably will run out of almonds before this coming years harvest. To some that may not be bad news because obviously it puts our industry in a strong position going into the new crop. But for our new customers it makes their decision difficult not knowing what’s ahead. For the continued growth of our industry we need a big crop next year. Anything shy of a billion pounds will force pricing to levels that will truly discourage consumption. Good for the short term, not so good for the long term with record planting beginning to take place.

The Current Market

Like shipments, pricing continues to sail right on through levels unexpected. We now have hit price levels surpassing the 1995 crop year putting our industry in uncharted water. Prices have exceeded three dollars per pound into the market, where it levels off is anybody’s guess. Currently 75% of the 2004-05 supply is sold giving us seven months to sell the remaining 25%. Transitioning into new crop this coming year is going to be difficult with supplies being extremely tight. Prices should remain favorable regardless of next year’s crop size.

2004 Grower Pool Payment

The January Pool Payment will be mailed (or available for pick-up) on January 5th. This payment will bring the Nonpareil variety up to $1.50 per pound and bring all other varieties up to $1.38 per pound.

New Field Representative

Minturn Nut Company is happy to announce that as of January 1st we are adding Robert Borba to our field staff. Robert comes to Minturn Nut with 15 years experience in the tomato buying and processing business. He will be out “knocking on doors” in both the north and south areas of the Central Valley.

Holiday Office Hours

The office will be closed December 23rd & 24th and again December 30th & 31st. Your field representatives can be contacted by cell phone during this time at the following numbers.

The Owners and Staff want to wish All A Very Merry Christmas & Prosperous New Year

Buyer & Seller of Quality California Almonds