NUT growers in Australia are expecting to nearly double exports in the next six years and industry figureheads say SA could get a big slice of the action.
The Australian Nut Industry Council says the value of tree nut exports is expected to grow from $600 million in 2013-14 to $1 billion in 2020.
The industry is set to benefit from the combination of a lucrative free trade agreement with Korea and a prolonged drought affecting competitors in the US.
Australian growers have been unable to compete in the Korean market until now because of extremely high tariffs but that will change as imposts are gradually phased out.
The almond and macadamia industries have already begun moves to make the most of the change, which is expected to come into force by the end of 2014.
The Almond Board of Australia has booked a trade delegation to Korea for November 2014 to introduce Australian almonds to the $160m Korean almond market, while the Australian Macadamia Society plans to increase its promotional activity from the beginning of 2015 when major tariff reductions – from the present level of 30 per cent – start to take effect.
Almond Board deputy chairman Brendan Sidhu says almonds recently became Australia's largest horticultural export, with 60,000 tonnes of the annual 85,000t national production destined for overseas markets.
Apart from Korea, Mr Sidhu sees huge prospects in India, the UAE and a recovering European market, particularly given the difficult conditions that the US –Australia's biggest competitor – is facing.
"There's a limited number of places suitable for growing almonds, and the majority of the world's crop comes from the US, in particular California, which is suffering under a severe drought," he said.
Mr Sidhu expects SA to pick up a large proportion of the slack.
"I can see a big future for SA in particular," he said.
"There's $265m going into the state with the South Australian River Murray Sustainability Program to help irrigators, and one thing it includes is allowing people to diversify their crop.
"There's going to be quite a few people switching from winegrapes and jumping on the almond bandwagon, especially with the prices the way they are at the minute."
Mr Sidhu says growers are now pulling in about $7 to $8 a kilogram, up from $4.50/kg in 2012.
He said the number of almond tree buds sold from nurseries in the past year hit the one million mark, up from 150,000 the year before – a sign of a dramatic spike in growing activity.
Mr Sidhu said this year's harvest was about 10pc better than 2013, with favourable conditions marred only by minor issues with hull rot.
While big players such as almond and macadamia growers target overseas markets, smaller nut sectors are enjoying surging domestic growth.
The nut industry council predicts pistachios will grow fastest in the next decade. Production is tipped to grow 98pc from 1180t of in-shell product in 2014 to 2341t in 2025.
* Full report in The South Australian Grower April issue.
