Key Highlights

• Select Harvests (SHV) is one of Australia's leading almond growers, processors and food manufacturers.

• The company operates an integrated agribusiness spanning orchards, processing and value-added food products.

• Global almond prices, seasonal growing conditions and export demand remain major business drivers.

• Currency movements, water availability and operational efficiency continue to influence long-term profitability.

Select Harvests (ASX: SHV) is one of Australia's largest integrated almond businesses, combining agricultural production with food manufacturing and international exports. The company participates across the almond value chain, from orchard management and harvesting through to processing, packaging and branded food products, providing investors with exposure to both agriculture and consumer staples.

Unlike many food manufacturers that rely primarily on purchased raw materials, Select Harvests grows a significant portion of its own almonds while also processing crops from third-party growers. This vertically integrated structure creates opportunities to capture value across multiple stages of production, although it also leaves the company exposed to weather conditions, commodity-price movements and seasonal agricultural cycles.

This article examines Select Harvests' business model, industry outlook, key growth drivers and the factors investors typically monitor when evaluating one of Australia's leading listed agribusiness companies.

Understanding Select Harvests' Business

Select Harvests operates as a fully integrated almond producer, processor and food manufacturer.

The company owns and manages almond orchards across Australia's major horticultural regions, where climate, irrigation and orchard management play an important role in determining crop yields and quality. Once harvested, almonds are processed, graded and supplied to domestic and international customers.

Beyond agricultural production, Select Harvests manufactures a range of value-added food products, supplying branded and private-label customers while also serving ingredient markets. This combination of farming, processing and food manufacturing differentiates the business from companies focused solely on commodity production.

Its diversified operating model enables exposure to both agricultural commodity markets and consumer food demand.

Why Investors Continue to Watch Select Harvests

Select Harvests remains closely followed because its earnings are influenced by multiple interconnected factors.

Agricultural production depends on seasonal weather conditions, irrigation availability and orchard productivity. At the same time, the company participates in global almond markets where prices are determined by international supply and demand rather than domestic conditions alone.

Investors therefore monitor both operational performance and broader commodity-market developments when assessing the company's outlook.

Food manufacturing also provides an additional earnings stream, helping diversify revenue beyond raw almond sales while introducing exposure to consumer spending and retail demand.

Global Almond Market Drives Industry Performance

The almond industry operates within an increasingly global marketplace.

Australia is one of the world's significant almond exporters, but California remains the dominant producer, supplying the majority of global almond demand. As a result, crop conditions in California often influence international almond prices, regardless of local Australian production.

Strong Californian harvests can increase global supply and place downward pressure on prices, while weaker production may tighten markets and support pricing.

International demand continues to be supported by growing consumer interest in healthy foods, plant-based nutrition and premium snack products. Almonds are widely used across food manufacturing, dairy alternatives, bakery products and packaged snacks, creating multiple end-market opportunities.

Operational Performance Remains Important

Although global commodity prices influence revenue, operational execution remains equally important.

Orchard productivity, crop quality and harvesting efficiency all contribute to long-term profitability.

Water availability continues to be one of the industry's most closely monitored variables, particularly in Australia's major irrigation regions. Effective water management supports orchard health and production consistency, while changing weather conditions may affect yields from season to season.

Processing efficiency also influences margins by improving product recovery, lowering operating costs and supporting higher-value product offerings.

Financial Considerations Investors Monitor

Investors typically assess several financial measures when analysing Select Harvests.

Global almond prices remain one of the largest external earnings drivers, while crop volumes directly influence production and sales.

Input costs—including labour, fertiliser, energy, freight and irrigation expenses—also affect profitability across agricultural operations.

Currency movements remain important because export sales are generally linked to international markets. A weaker Australian dollar can improve export competitiveness, while exchange-rate movements may also influence reported earnings.

Balance-sheet strength, cash generation and disciplined capital allocation support ongoing investment in orchards, processing facilities and manufacturing operations.

Risks to Consider

Like many agricultural businesses, Select Harvests operates in an industry influenced by natural and economic factors.

Weather variability, drought conditions and water availability remain among the most significant operational risks affecting orchard productivity.

Global almond-price volatility can influence revenue even when crop production remains stable.

Cost inflation across labour, energy, freight and agricultural inputs may pressure operating margins during periods of rising expenses.

The company also faces currency risk through its export operations, while changing consumer demand, international competition and global trade conditions can affect long-term market dynamics.

What Could Shape Select Harvests' Future?

Several factors may influence the company's long-term outlook.

Continued growth in global demand for healthy foods and plant-based nutrition may support almond consumption over time.

Expansion of value-added food products could improve earnings diversification beyond commodity sales.

Operational improvements in orchard productivity, processing efficiency and manufacturing capability may further strengthen profitability.

Investors will also continue monitoring seasonal crop conditions, international almond supply, export demand and water availability, as these remain central to the company's future performance.