Macadamia Update 30.09.24

As the year's third quarter comes to a close, the 2024 harvest has concluded. Providing a clearer picture of market stock and the prices for the last crop is an important benchmark for the 2025 season. The global macadamia crop intake for 2024 is now complete, revealing that major production regions have fallen short of initial forecasts. In Australia, volumes are down by 9% from previous projections, while South Africa is 7% below expectations. However, both regions have produced larger crops than in 2023, as new production areas continue to boost overall crop growth.

The kernel market has remained strong, supported by increased demand throughout the selling season. In contrast, the inshell pricing is relatively stagnant. This is due to significant downward pressure from large Chinese online processors and direct off-farm sales by Chinese buyers. This direct sale approach is somewhat new to the macadamia trade but has been seen in other tree nut commodities like almonds, pecans, and walnuts. By opting for quicker payment terms, farmers are reducing the volume of inshell processed in South Africa and other production regions.

As the contracting season comes to an end, prices for both products have been influenced by previous lower prices. This has resulted in price increases for some, but not all, market segments. Kernel prices have experienced an upward trend across all markets and product styles. Meanwhile, inshell prices in key markets like China and Vietnam have only slightly risen compared to early 2023 prices.