Global perspective needed to ease macadamia nut glut

Flooded with nuts following massive plantings in South Africa, Australia, China and several other climate-suitable countries in recent years, domestic markets have become flooded with the luxury snack food.

Last year prices stood at an incredible $7.50/kg nut in shell. Next year growers are staring down the barrel at possibly the lowest prices on record, perhaps as little as $3/kg.

For many smaller growers that is below the cost of production, amplified by rising inflation and global conflicts.

The message to the 450 delegates attending the AusMac 2022 conference on the Gold Coast in November was loud and clear: The macadamia industry needs to rapidly develop new markets, particularly in North America and Europe, based on its nutrition narrative.

Enter the World Macadamia Organisation, which currently has Australia, South Africa, China, Vietnam and Kenya as member countries.

RELATED READING

That organisation is promoting the nut as a superfood with a unique eating experience, a creamy taste, healthy monounsaturated fats, fibre, vitamins, minerals and antioxidants.

Industry identity Larry McHugh, the chief executive officer of Marquis Macadamias, said the rapid growth of the industry had seen supply outstrip demand in existing markets.

"We're seen 5pc year-on-year growth in the number of trees being planted and that production is coming online," Mr McHugh said.

"Now the challenge is to create new markets and increase demand."

Green and Gold Macadamias chief executive officer Brian Loader said the industry also needed to develop new uses for macadamias.

"The almond industry didn't develop almond milk because it wanted to improve everyone's health," Mr Loader said.

"It developed almond milk because it had a surplus of product and realised it had to act to ensure the viability of the industry.

"That's the type of thinking that could benefit macadamias."

Also on the industry's priority list is investing in R&D to maximise the quality of the nuts, particularly the percentage of whole kernels as opposed to halves, and lesser value chips and smaller pieces.

One grower also told Good Fruit and Vegetable the industry desperately needed a futures pricing system similar to those employed by other industries including grains and cotton.

"At the moment growers are simply given a price at the start of season," the grower said.

"That may be a workable system when prices are high, but of little use for growers wanting to manage risk."

Sign up here to Good Fruit and Vegetables weekly newsletter for all the latest horticulture news each Thursday...