Macadamia growers face lowest farmgate prices in over 10 years

Australian Macadamia Society chief executive officer, Clare Hamilton-Bate, said most growers spend 75 per cent of their production cost before they harvest.

But for others, the record low prices are influencing the decision whether to expend the final 25pc of their production cost by harvesting their 2023 crop.

Due to a global oversupply, farmgate prices have dropped from highs of more than $6 a kilogram nut-in-shell to below $2 this year.

Over the next five years, global macadamia supply is expected to grow by two-thirds to 500,000 tonnes a year.

Yet the price of macadamias in supermarkets has not dropped, with kernels retailing over $40/kg.

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"Macadamia production in Australia and overseas has increased rapidly in recent years, and demand creation activity had generally aligned with those growing volumes, until the pandemic precipitated a perfect storm," Ms Hamilton-Bate said.

"The lockdown of 2020 coincided with the beginning of the macadamia season, presenting supply chain challenges to an industry where traditionally over 80pc of the Australian macadamia crop has been exported."

Ms Hamilton-Bate said planned initiatives for existing market growth and new market and product development activity are significantly impacted.

Yet, at the same time the world crop grew at an unprecedented level.

She claimed this combination of factors has created a "perfect supply-demand storm", reflected in the farm gate prices seen today.

"In the midst of the most difficult season the industry has faced, there are some positive aspects we need to actively build on for the future," Ms Hamilton-Bate said.

"The focus is strongly on demand creation.

"Whilst the reduced price of macadamia is only just starting to flow through to retail shelves, that will come, and with it the opportunity to introduce more Australian consumers to their own native nut and drive demand in the domestic market.

"Similarly, with reduced price and surety of supply comes opportunity for new product developments and macadamia inclusion, again building foundations for the future."

Clunes grower Lindsay Bryen said these are very difficult times and each grower will have their own way of moving forward.

"But the big risk is that, unless we get a confidence boost by the end of July, to protect their crop and grow the next crop, then next year's crop will be a disaster as it'll be affected by pests and disease," Mr Bryen said.

"So we just need a confidence boost and some relief from these very low prices."

While the industry is in "a lot of pain", Ms Hamilton-Bate claimed they were navigating a storm where there were "many different boats" and many unique challenges for individual businesses across the NSW and Queensland production regions.

"It's difficult to make a sweeping generalisation in regards to long term industry impact, but undoubtedly the 2023 season will be see changes to both the industry, and the market for Australian macadamias," she said.

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