Macadamias still on a winning streak

COVID-19 has served up a number of challenges for the agriculture sector, and while the macadamia industry has not been spared, newly released prices for the season remain favourable.

Prices, based on individual nut styles and grades, have been increasing over the past few years; however, a reduction in prices of 5% to 10% is expected across the board in 2021. This year, the average price across kernel grades is expected to be US$17,60/kg (about R263/kg).

Alex Whyte, sales manager at Green & Gold Macadamias, said because the rand was stronger this year than in 2020, and a decline in the US dollar price was expected due to COVID-19, macadamia farmers could see prices softening.

“However, farmers will still get an excellent return on investment, as a slightly softer price does help in launching more macadamia products, which is very important for long-term sustainability. So, there is a silver lining,” he said.

Charles Cormack, general manager at Marquis Marketing in Australia, said the macadamia industry now had an opportunity to develop new markets, as lower demand for traditional ingredient styles had softened their prices, which would promote new product development and invigorate demand.

“Longer term, there are still many completely untapped markets to develop, including India (a potential trade agreement between Australia and India could facilitate this very quickly), Indonesia, Eastern Europe and Russia.”

Allen Duncan, CEO of Green Farms Nut Company, said the resilience of macadamias, notwithstanding the pandemic, was due to growing consumer demand.

“Customers understand the benefits of this product, and they steadfastly sustain and place value in making macadamias a part of their daily diet and lifestyle.

“As lockdowns spread throughout the world and people became evermore conscious of staying healthy while the virus rampaged, demand for premium macadamia kernels [snack grades] remained strong, as did prices.”

The South African industry was also aided by a smaller local crop due to unfavourable weather conditions, coupled with low inventory levels in China as that country was unable to stock up as usual. Duncan expected that this would lead to an increased appetite for the product this year. – Lindi Botha

FW ARCHIVE A softening in macadamia prices is expected this year, but it will help to launch more products.