2017 Crop Update
Low inventory levels at the beginning of 2017 combined with drought conditions has resulted in significantly reduced availability of macadamias.
The Australian crop is likely to be slightly smaller than first forecast, mainly due to the rain events caused by cyclone Debbie. Drought in many of the African macadamia growing regions has resulted in significantly reduced production. The South African crop is similar to last year, but a high percentage of that crop is being sold as Nut In Shell to China due to the high demand and favourable pricing in that market. The Kenyan drought has affected the crop more than was first thought and, although there are no firm numbers, it appears that their crop may be down by 25%.
Strong demand for kernel and NIS combined with low availability is putting pressure on prices. Much of the 2017 world crop is already contracted and we expect that later season offers will be limited. Prices have escalated from the opening of the crop season and we expect pressure to remain on pricing throughout the season.
It is a challenging season for the macadamia industry with unfavourable weather conditions hindering the development of the market. We encourage you to look to 2018 when we expect supply to increase enabling the development of new products and the expansion of existing ranges.
MMI are committed to assisting our customers with accurate market information to ensure you are well informed during this difficult season. Please contact us if you need more specific information related to your business.
Thank you for your support in building business together in your market.
The Macadamia Marketing International team.