The largest processor of macadamias in Australia has frozen payments to growers, even as some of its suppliers confront the massive task of recovering from floods. Marquis Macadamias is the world's largest macadamia company and controls 43 per cent of Australia's production and 16 per cent of the global nut-in-shell. It is owned by growers from Australia, South Africa and Kenya, but it recently cut prices to growers here to just $2.50/kg (nut-in-shell), down from $6/kg two years ago.
Now it has advised growers that scheduled payments for the last crop due will not be paid. Growers receive an initial payment when they supply their crop, with more scheduled throughout the year.
The amount of scheduled payments can vary depending on how the crop is selling.
Rowan Liebmann, a NSW grower who supplies Marquis: "The cash flow has evaporated, there are flow-on impacts for property values, holidays are off [and] discretionary spending is squeezed.” He added that the decision to suspend payments is disastrous.
Meanwhile, consumers are paying about $36/kg in major supermarkets and Mr Lancaster-Smith believes that will not change until March.
Source: abc.net.au