South African macadamia farmers set to gain from global rising prices | Food Business Africa - Africa's No.1 Food & Beverage Manufacturing Industry Magazine and Website
This leading producer of macadamia nuts, is expected to see a 7% increase in production this year, with harvesting beginning in March and continuing through midwinter. The increase follows strengthening demand and a recovery in prices after previous declines.
Global Macadamias, a marketing, processing, and export company, reports that the industry is seeing steady price improvements. The company recently announced price increases of up to 37%, depending on the crack-out style and quality of the nuts.
“Fervent marketing efforts are paying off as product manufacturers recognize the value of including macadamia nuts in their larger product lines,” said Shane Hartman, CEO of Global Macadamias. “Research further highlights their health benefits hence demand has become more stable.”
The shift follows years of price pressure caused by economic disruptions during the COVID-19 pandemic.
Marketing efforts have helped macadamias gain recognition among manufacturers, leading to increased consumer interest.
Macadamia nuts are primarily sold in two forms: inshell and kernel. China and Vietnam remain the dominant buyers of inshell macadamias, while kernel demand is growing in western markets, Japan, Taiwan, and South Korea.
Post-pandemic, inshell demand recovered quickly, but kernel demand has since gained traction. Unlike inshell macadamias, which see demand drop when prices rise, kernel sales have remained steady as product developers explore different applications.
Manufacturers in the ingredients and confectionery industries continue to integrate macadamias into their products. Once incorporated, these nuts contribute to long-term, stable demand. As prices stabilize, the market outlook appears more predictable after years of fluctuation.
Global Macadamias estimates that South Africa’s national crop will continue growing by around 8% per year as newly planted orchards reach maturity.
However, due to unfavorable weather conditions, the 2025 increase is projected to be slightly lower at approximately 93,000 tonnes inshell, reflecting a 7% rise from 2024.
Despite strong prospects, global market conditions remain uncertain. Australia, the second-largest macadamia producer, suffered damage to its crop due to Tropical Cyclone Alfred, which could reduce its harvest. Additionally, trade policies create challenges for the industry.
The possible revocation of Agoa (African Growth and Opportunity Act) in the US could introduce tariffs on South African macadamia exports. However, since the US produces minimal volumes of macadamias, it may avoid these tariffs.
The shifting global trade environment highlights the importance of strategic market diversification.
Industry organizations such as Samac (South African Macadamias) and the World Macadamia Organisation have played a key role in strengthening market positioning. Macadamias are now viewed as a competitive alternative to other widely used nuts, reducing market risk and supporting stable demand.
South African agriculture is seeing growth beyond macadamias. The country’s table grape industry has secured access to the Philippine market, creating additional export opportunities.
“We have been working on expanding market access for South African table grapes and are very pleased at this outcome. The Philippine market presents exciting opportunities for our growers and exporters,” said Mecia Petersen, CEO of the South African Table Grape Industry (Sati).
The South African Table Grape Industry (Sati) confirmed that the first shipment of table grapes will be sent once final administrative matters are completed. This development follows long-standing collaboration between the government and industry stakeholders.
South Africa ranked as the sixth-largest exporter of table grapes globally last year, with Europe and the UK remaining key markets. The expansion into the Philippines strengthens the country’s agricultural export potential.
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