Demand, drought drive up almond prices

Chicago

THE almond is having its moment. Though criticised for being a water-thirsty crop grown mostly in California, almonds are more popular than ever. And spreads made from the tree nut are increasingly supplanting peanut butter in US lunch boxes and pantries. Americans are eating about two pounds (one kg) of almonds per person annually, double the amount that they consumed just seven years ago.

Protein-rich Paleo diets, peanut allergies and evolving tastes have all fuelled demand. That has sent major US food makers such as Hain Celestial Group Inc and JM Smucker Co into the market, where they are vying against sm…