Why There's No Almond Joy for U.S. Farmers

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July 11 (Bloomberg) -- Jeff Braverman, owner of Nuts.com, and Bloomberg's Alan Bjerga discuss the impact of the California drought on almond production and prices with Pimm Fox on "Taking Stock." (Source: Bloomberg)

Have been paying attention, there is a drought.

I'm joined by the owner of nonstock, and our agricultural expert.

Always great to have you.

Tell us about what is going on in california.

You have a state that is in a drought and that is bad news for almonds.

Almonds are the most valuable tree nut in the united states and california has 82% of the almond crop and just at a time when they are becoming more popular, you have exactly the weather conditions that discourage them from being grown.

It is a recipe for price increases and that is what you are getting.

Is that what we are going to see?

I am not so sure.

This is going to be the biggest crop ever.

I am hearing pricing is going to be flat and the crop is going to be up over 4%. will there be any long-term damage to the crop?

It is hard to say.

Nobody knows what is going to happen to the water supplies.

They are at their lowest level ever.

It is hard to say.

Alan, the use of almonds, it is used now to make milk and other kinds of food items.

Is that having an effect on the supply and demand?

Yes, and it plays well into the point about the large crop.

Even though you have an increase in supply, you also have a bigger demand that has been pushing up these prices.

They are used in china, india, people used to not like almonds because they were considered high in fat.

Fat is not considered to be bad anymore.

What about the farmers and the cooperatives that manage these almonds?

There is a lot of incentive to keep growing almonds.

They take a long time to grow.

You take a look at some of the urban areas in san francisco, you have seen editorials talking about these crops take a lot of water.

Why can't you grow some vegetables?

Jeff braverman, as the owner of nuts.com, what are the trends?

The most popular nut is probably almonds.

Almond flour has been a huge driver of our growth along the lines of the gluten free wave.

We see that continuing.

Do you think there is going to be any substitution from any other part of the world?

Alan said if you have a drought in california, you're going to have a difficult time sourcing almonds.

80% of the crop is from california.

They are planting more and more acres and the yields are up.

Whenever we think of agriculture, there is a supply chain and part of the cheney involved bees.

Yes, -- part of the chain involves bees.

Yes, colony collapse disorder has been in the use.

About half of all u.s. commercial beehives converge in california in the year.

As you have seen drops in the number of bees, you have seen pollination services become more expensive and that plays into the supply chain in a minor sense.

Almonds are a good bellwether to

This text has been automatically generated. It may not be 100% accurate.


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