Macadamia industry calls for greater efficiency

The macadamia industry is expecting to undergo a period of consolidation as low prices and high input costs push many farmers beyond the point of profitability, according to speakers at the Australian Macadamia Industry Conference AusMac) held recently on Queensland's Gold Coast in Australia.

- Lindi Botha

The macadamia market has faced many onslaughts over the past two years, including lower demand due to economic pressure on consumers, and logistical constraints as a result of the COVID-19 pandemic.

Speakers at the recent AusMac conference said the average price for nut-in-shell products had fallen to US$3,20/kg (about R57/kg) from the high of US$6,50/kg (R115/kg) reached in 2017. Processors had also started paying according to “the style of crackout of the nuts”, with the price difference between each category increasing.

At least half of the orchards in South Africa were planted to the Beaumont variety, which was notorious for its lower-quality styles, according to Roelof van Rooyen, director of Marquis Macadamias. He said there was pressure in the market, with much uncertainty about when “the movement of stock will return to a normal pace”.