Despite the hard times faced by many macadamia nut farmers as prices fell the past two years, the industry was emerging in better shape, said Global Macadamias, a South African processor and exporter.
Roelof van Rooyen, director of Global Macadamias said the tough years, as tough as they were, were also good to help streamline businesses and making them more sustainable.
He said when comparing macadamias to other commodities, the nut still offered a good return on investment.
“The industry as a whole is in a healthy state, despite the price dip last year. We have some of the best farmers in the world, excellent processing facilities and good demand.”
South Africa’s crop was expected to increase by nearly 14% this year – from around 78 000 tons dry-nut-inshell last year to 90 135 tons this year – keeping the country in the number one spot for macadamia nut production.
The company said macadamia prices were recovering from historic lows last year. As this year’s harvest was about to commence, there was optimism.
However, industry experts cautioned that now more than ever, the sweet spot for macadamia nut prices needed to be established to keep the sector as a whole sustainable over the long term.
Indications across the market were that inshell and kernel prices for macadamias were set to rise by between 10% to 30% depending on crackout-style, size and quality.
Van Rooyen said last year buyers especially in China rapidly bought up stock, clearing out warehouses.
“Since much inshell is being sent to China, demand for this segment is increasing, leading to higher prices. Kernel stocks on the other hand are set to remain low since more product is being sent inshell to China.
“As we kick off the 2024 season, many buyers are finding that the supply of macadamias they thought would be there is not, and as such prices are picking up in light of the low starting supply,” he said.
“Even with the increase, prices are still a long way off from where they ideally need to be for sustainability in the industry. Even at this higher-level they are still attractive for product development to happen,” Van Rooyen said.
According to Macadamias South Africa NPC industry data, last year’s crop of close to 78 000 tons was 12.6% higher than the 2022 crop of 68 840 tons. Compared to the 2022 crop, the industry’s production increased by 8 692 tons last year.
The industry body said about 98% of South Africa’s macadamia produce was exported. According to corrected figures received from the South African Revenue Service, the total value of macadamia exports in 2022 was R4.6 billion, it said.
BUSINESS REPORT