The macadamia sector is witnessing a revival, driven by increased demand and value addition, following a period of depressed prices triggered by global economic downturns post-COVID-19 lockdowns. The industry saw a dip in prices as a result of an augmented global crop from new plantings amidst dwindling demand. In 2023, the average price for macadamia kernel dropped to US$8,25/kg, a stark contrast to the US$11,50/kg in 2022 and US$16/kg in 2021. Despite a forecast price uplift in 2023, expectations were set below the 2018 peak of US$20/kg.
Marquis Macadamias' Roelof van Rooyen highlighted a shift in pricing strategies, with variations in price increases based on nut styles and specifications, urging farmers to focus on crop quality. The industry's adaptation to lower prices has led to a significant demand surge, with most stock sold out, indicating a robust market response. The ongoing expansion of orchards has propelled the global crop size, with Macadamias South Africa reporting a 2023 yield of 77,532t, up from 68,849t, aligning with an anticipated 12% annual growth.
The 2024 forecast suggests a crop size exceeding 86,000t, despite potential impacts from volatile weather conditions, including thicker shells from temperature fluctuations, affecting kernel recovery and farmer revenue. Farmers are encouraged to maintain crop protection efforts to ensure high-quality outputs and favorable pricing.
Source: farmersweekly.co.za