Macadamia CEO Jolyon Burnett departure marks a great era in nut expansion

Jolyon Burnet was the first CEO employed by the Australian Macadamia Society board back in 2008, at a time when the industry was in a slump.

Nuts were bringing a pathetic price well below the cost of production and farm owners going to market were advised by their sales agents that their land was worth more without trees, and whole orchards were being bulldozed.

"I knew I had a tough task in front of me," Mr Burnett said. "Even the good growers were losing money."

A lack of market data was at the core of the problem, as the fledgling industry had grown so quickly, overtaking the Japanese market from Hawaii and attracting a bevy of cashed-up investors.

After a glorious infancy it was time for maturity.

Mr Burnett realised the price crash was created in part from erratic supply and poor-sighted forecasting.

"We had no line of sight," he said.

"There was no way of knowing who was holding inventory. The market was operating blind."

Compounding the issue was discount supply from South Africa and Kenya, where low cost of production balanced poorer yield results.

"People stopped buying macadamias and simply waited until the price dropped," Mr Burnett said.

The first task for the former chief executive officer of the Irrigation Association of Australia, was to get a handle on supply; how much stock was being held.

"If you don't tell the market what it needs to know, it will make it up," he said.

"But if you do the right thing the market comes to trust you.

"We were proud of the fact that the Australian macadamia industry was led with a collaborative approach. We were quite open and shared our market plan. There is more to it than spread sheet forecasting."

The appointment of marketer Lynne Zielke was instrumental in balancing supply and demand and quashing instability in expectation, which in the past had been in a state of continuous fluctuation.

"The market hates price shock. It hates surprises," Mr Burnett said.

"Macadamias account for less than two per cent of the world total. They don't have to buy from us and if you jerk them around they won't."

To combat that issue the industry worked closely with the South African and Kenyan growers to reduce discounting.

Presenting the macadamia nut as a healthy food was another step towards building brand loyalty and trust through the "nuts for life" campaign, run through the Australian Nut Industry Council.

However it was clear that promoting the nut required greater investment.

As an example the Californian almond industry has spent $30 million to create 300 peer reviewed health studies. By comparison the macadamia industry has produced three.

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In 2010 the Australian Macadamia Society took the reins on its own marketing and that advantage combined with new knowledge of supply, started to make a real return for growers.

Growing new markets continued apace, with Korea and Taiwan and finally China, which exploded in demand from zero to a third of the Australian crop.

Along with South African money there was investment from PSP Canada, through Stahmann Farms which has interests in macadamia production and processing.

Domestic managed fund Arrow Investments created the largest single plantation in Australia - 800 hectares at Lawrence on the Clarence.

In the Burnett region there was Finasucre - the Belgian sugar giant that bought the Maryborough industry and transformed it into macadamia holdings.

Since 2008 Australian production nearly tripled to an expected 60,000 tonnes next year.

With the increased interest came new demand for flood plain production, growing trees on land formerly under sugar cane.

"The floodplain farms will carry on but I believe with peri-urban issues the Northern Rivers has reached its peak," Mr Burnett said.

"However, the industry is still growing around Maryborough, Rockhampton and Mackay.

"There is potential for an industry in the Ord, and there is also some evidence they can be grown on the Murray, with 300 trees some 40 years old growing at Dareton on the Victorian border.

"There are 300 trees growing in Tasmania. I've seen pictures of macadamia trees in China covered in snow.

"We really don't know where they will, or won't grow yet, For a long time it was thought they only grew on red soil and now they thrive in grey sandy soils around Bundaberg.

"Ultimately it is not about price. What will make a grower profitable and sustainable is their yield. If you're getting less than 3t/ha doesn't matter what the price is but at 4t/ha you can stay profitable."

FORMER Freshcare CEO Clare Hamilton-Bate has been appointed the new head of the Australian Macadamia Society.

Ms Clare took up the position of CEO in August, with a background in horticultural science, and extensive experience in executive roles in all sectors of horticulture.

AMS chair Craig Mills said Ms Hamilton-Bate is a passionate, accomplished, and engaging leader who will bring significant insight and a wealth of experience to the role.

"Clare has over 30 years' experience across all sectors of the fresh produce and agri-food supply chain, and a proven track record in leading member-driven organisations," Mr Mills said.

"She is well equipped to lead our industry into a sustainable and profitable future."

"As CEO of Freshcare from 2002 to 2019, Clare transformed it to a profitable, 5000+member, internationally recognised, compliance organisation.

"With this experience, Clare is acknowledged as an authority on delivering practical, industry focussed solutions to meet both market and legislative needs.

Ms Hamilton-Bate said she was really looking forward to using her skills and experience to deliver against the diverse requirements of the role.

"These are both exciting and challenging times for the macadamia industry, but with that comes the opportunity to review, prioritise and shape our future both domestically and on a global stage," she said.

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