Future Trends Of The Macadamia Industry
Like other nuts, the Macadamia industry has seen a boom since the pandemic. While initially, there was a decrease in demand, this has been overtaken by an increased interest in the nut over the months.
In fact, this has rendered many countries to invest in their macadamia crop. It’s quite an interesting incentive, and we were able to determine what’s been going on by looking at some of the market trends.
2020 Crop & Everything You Need To Know About It
Here are keynotes from the 2020 crop and what happened in the previous year:
South Africa
The 2020 macadamia crop declined due to climate change, specifically adverse conditions during flowering and early nut development, and insects.
Australia
The 2020 crop was materially impacted by the tail end of an intense 2–3-year drought. It was initially feared that this would reduce the crop tonnage by as much as 30% or 40%, but late-season rains threw a lifeline, and in the end, the crop came in only about 10% below a normal level.
China
Affected by wind disaster, hail, drought, and other weather factors, the continuous El Nino and La Nina exacerbate the uncertainty of climate, and the influence of epidemic situation in 2020 led to the neglect of orchard management.
Kenya
For the crop year 2020, the weather and climatic conditions were favorable, with generous precipitation and sunshine during the crop season. The harvest did not disappoint to reach a high of 42,250MT.
2021 Crops & What It Tells Us
Here’s what the 2021 crop is looking like:
South Africa
There has been quite a bit of good rain this year which will definitely positively affect the crop. In fact, it has helped the depleted the water tables to such an extent that all production areas which needed water last year don’t need it now.
Australia
In contrast to last year, the 2021 crop has been blessed by close to ideal growing conditions with good rains in all growing areas bar Bundaberg, which has experienced unusually dry conditions this season, mitigated by the fact that irrigation is the norm in central Queensland and water storages have been adequate to maintain the crop this year.
China
At the beginning of this year, some regions were impacted by weather factors such as wind disasters, hail, and drought. The nut set rate decreased slightly in some areas, but the harvested area is gradually increasing, so the total yield will increase in the future. The output of macadamias is expected to increase from 30 000 tons to 50 000 tons soon.
Kenya
Generally, the crop year 2021 was off to a good start with anticipation of new plantings coming into production. However, a notable extended period of flowering led to dispersed crop maturity, impacting the peak flow cycle. This could be attributed to intermittent rains.
As you can see, there’s been a massive difference in both years, and it’s primarily due to one key change in the market.
What’s Different This Time?
It is important to note that Macadamia nuts- like every other natural produce- have gained momentum in consumer demand due to the popularity of natural, organic ingredients during the pandemic.
People have become very conscious of their diets, which has led to an increased interest in fruits, vegetables, and nuts. The industry is basking in the rise in demand due to this. Since this new conscious mindset is expected to remain for the next few years, the industry is gearing up for increased production and supply of macadamia nuts.
