Macadamia Market Update 05.12.24

The 2024 season was marked by more confidence, stability and sustainability in the macadamia market.

Inventories quickly ran empty as the market sought to secure supply before volumes were committed, as carry-in stock or excess volumes were not available like in previous years. Major processors in various regions end the year on depleted stocks. Interest in orders for next year's crop is already annexing much of the supply.

There is a heightened interest in securing volumes for the 2025 calendar year. This means that all buyers should be aware that there will be an anticipated short supply window in the new year. The styles still in high demand are S1, S2s, S4 and S4L. It would therefore be prudent for sales teams to finalise and communicate their volume and shipping requirements for the new year as soon as possible.

Such buying behaviour returns to buying norms, where buyers traditionally secured volumes in long positions for the year ahead. This ensures supply for their clients and processing facilities. As volumes started rising due to orchard expansion globally, and the effects of the Covid-19 pandemic that left the market in turmoil, buyers started taking shorter positions, making spot purchases when prices were deemed to be favourable. As the industry has stabilised and confidence in the product has grown,  long positions in the market once again should become the norm in the buying patterns for the season. This bodes well for long-term market sustainability for both growers and buyers alike.

Another trend witnessed this year was the changing market dynamics for the different kernel styles. Those who struggled to move last year quickly found a home this year. The continual innovation in the macadamia and food space has led to a wider scope for macadamia nuts. All individual styles now hold their own.

Regarding the 2025 crop in South Africa, adverse weather in spring will likely result in a smaller than-anticipated crop. Volumes look to be similar to 2024. Crop estimates will be released in the new year and we will keep you updated on any changes.

via Global Macadamias