Macadamia supply is increasing significantly in traditional origins (such as South Africa, Australia, Kenya, Brazil) as Trees come to fruition. Additionally China ( a major consumer) is also now producing its own crop in volumes similar to South Africa and Australia.
In recent years Inshell macadamias have been sold heavily into China but the Pandemic and economic down turn saw demand in this market fall dramatically. Whilst demand has started to pick up, prices paid are a fraction of those paid just a few years ago. Many handlers have therefore had to concentrate more on selling kernel and the market has been flooded causing a collapse in prices which now stand at around 50% of prices traded about 18 months ago.
Sellers seem desperate but there is concern about the sustainability of these low prices and particularly for small scale African farmers who are now being paid a pittance for their produce. We expect to see some consolidation of the farms and the supply chain in the medium term.