Macadamia prices will be dropping as a global glut, caused by COVID lockdowns and increased plantings, sent farmgate prices tumbling. Just a few years ago, growers were being paid highs of up to $6.00/kg for nut-in-shell. Now, many farmers have been offered around $1.70/kg for the new season's harvest, well below the cost of production.
Nutworks CEO Wayne Gersbach: "Due to COVID, there's a pretty large stockpile of kernel stocks in Australia and internationally and until that stock starts to move through the system things will be very tough." He added that driving demand is crucial to reducing a a global macadamia stockpile. "We're offering $1.70 at a 10 per cent moisture basis, that's a notional price, so that might go up or down depending on market conditions as the year progresses."
Macadamia nuts still represent less than 2 per cent of global tree nut consumption, meaning that billions of people have never tried them.
Source: abc.net.au