Macadamia Nuts Market Update June 2022 Week 26

The primary macadamia sources are currently harvesting their crop. This year's harvest is expected to be between 270.000 and 275.000 MT in-shell, according to the INC (International Nut Council). This will increase by more than 10%. Due to rainfall and flooding, Australia's projection had to be revised from –5.000MT to 49.000MT. In 2022, the South African region will have grown by more than 10%, reaching approximately 60.000MT. Kenya's fragmented production, as well as its processing business, is expanding. Kenya's crop is expected to be approximately 42.000MT. Vietnam is a promising area, with a projected harvest of 7.700MT in 2022. According to the INC, the existing harvest might quadruple in the next eight years.

Every section of the nut business is affected by inflation. According to some sources, macadamia nuts will be less affected than other nuts. The price of Macadamia nuts will increase by a smaller percentage, and the predicted large crop will usually result in a lower price. This will bring macadamia nuts' prices closer to those of other tree nuts.

According to reports, China is expected to produce a bumper harvest this year. The crop will likely exceed 50,000 MT. At this rate, China will overtake the United States as the leading producer in just one or two years. If this trend continues, it is expected that China will be the top country in producing macadamias in 2023. 

Despite worries about quality, this massive expansion will significantly influence the export of in-shell macadamias from South Africa and Australia. For South Africa, in particular, production is expected to go up by 10% to 60,000 MT in 2022. Despite this development, macadamia growers are struggling with crop damages caused by heavy rains and floods in Australia.