Big Australian-South African macadamia partnership breaks up

The South African business, previously known as Global Macadamias, joined with the Brisbane-headquartered processing and export business in October 2020, just as the global coronavirus pandemic began to destabilise demand and the supply chain.

The partnership had effectively merged the world's biggest macadamia nut growers and processors under one multinational brand with manufacturing, wholesale and retail customers in more than 45 countries.

Their joint venture had four processing plants and sold more than 20pc of the world's traded macadamia kernel, including about 40pc of the Australian crop for growers producing about 42pc of the national harvest.

Although no precise reason behind the split has been revealed, the company said it came down to the shareholders having "a different culture and different attitudes to approaching the market".

Those differences appear to have ranged from attitudes to risk and new market investment, to crop quality, customer service and price setting strategies.

Both groups found the different expectations were not allowing either to achieve their aims.

Increasing production in the South Africa and Australian industries was tipped to produce a combined 96,000 tonnes of crop in the years soon after the merger.

Global production of the Australian native nut is tipped to treble by the early 2030s.

"Without having to compromise, we are now able to focus all our attention on selling our products in the markets most able to pay the highest prices and invest in new markets, such as India, which will benefit Marquis and its Australian shareholders 100 per cent," a company representative explained.

The company also tipped this month's notional price for the coming season's crop would reflect "signs of recovery in the industry, after a difficult couple of years"

Marquis management expected no significant change in its marketing arrangements as a result of the joint venture dissolving.

In fact, global marketing agreements with kernel suppliers in South Africa, which had been in place before the merger, would even continue in the future if needed.

The restructure means Marquis Macadamia's chief executive officer, Ben Adams' role has expanded to lead the group's sales and marketing division.

"WE are excited about the opportunities this strategic change brings to our shareholders, customers and staff", Mr Adams said.

"With a solid foundation and past experiences to draw upon, Marquis is well-equipped to navigate through challenging market conditions," he said.

"We anticipate an improved 2024 season and remain confident in the group's capabilities and outlook."

Marquis would be dedicated to its growers' long-term return and would enhance its product range and sales force to make the most of its robust global brand.

"This move positions Marquis to focus more intently on the Australian macadamia industry, poised for significant growth in the coming years," Mr Adams said.

As a 40-year-old macadamia industry pioneer, Marquis was focused on continuously investing in quality improvements and processing capacity.

The farmer-owned business began life as the Macadamia Processing Company (MPC) in 1983, processing 53 tonnes of nut-in-shell from NSW North Coast producers at Lismore.

It now processes more than 28,000t a year at Lismore and Bundaberg in Queensland, and employs about 320 staff.

MPC acquired the eight-year-old Bundaberg-based Pacific Gold Macadamias in 2019 before rebranding the entire business and its marketing arm as Marquis Macadamias in early 2020, eight months before the South African partnership emerged.

The Australian operations generated annual revenue of $214 million last financial year.