26 March 2024
On the eve of the 2024 macadamia harvest, it seems prices for the nuts are poised to rebound after hitting a historical low last year.
After significant downward pressure on macadamia nut prices due to large carryover stocks since the Covid-19 lockdown period, it appears demand for unshelled nuts from China could give prices a significant boost this year.
Roelof van Rooyen, director of Global Macadamias, said in a statement that early indications from markets in Asia, the Middle East, Europe and America show strong demand for shelled and unshelled nuts.
This follows a difficult 2023 during which Chinese buyers took advantage by purchasing large quantities of nuts at record-low prices. However, it is the aggressive purchases from China that have contributed to the this year’s stronger demand.
Growers can expect price increases of 10% to 30% compared to 2023 prices, depending on quality, size, and whether nuts are shelled or unshelled.
With China as the main destination for unshelled nuts, many farmers delivered their nuts directly to Chinese buyers last year, especially when immediate payments were on offer.
This helped farmers’ cash flow but may not necessarily be good for the industry in the long run, says Van Rooyen. He warns that such transactions may not be sustainable.
Despite the increases so far this year, Van Rooyen says prices are not yet where they need to be for the long-term sustainability of the industry. Much work still needs to be done regarding product development and on the processing side of macadamias.
