Macadamias: Kenya's farmers demand law change
September 4, 2024 at 12:43 PM ,
Der AUDITOR
Macadamia market under pressure
Macadamia farmers in South Africa are facing ever greater challenges, as Farmer's Weekly reports. Prices have fallen steadily over the last two years in particular, while production costs are continually rising – with no improvement in sight in the near future. Plantation management must therefore be rethought and appropriate strategies to ensure sustainable management are to be developed. Prices on the global market have fallen for three consecutive years following the coronavirus pandemic and continue to decline; macadamias are considered a luxury nut and many consumers simply can no longer afford to spend money on them due to the economic crises.
In the mid-2010s, the area under macadamias was expanded worldwide because prices were relatively high at the time. This is now making itself felt, as stocks are increasing by around 10% annually, which is putting additional pressure on the market. At the same time, demand is showing a degree of recovery. Farmer's Weekly refers to statements from market experts that Asian buyers, for example, are showing increased interest in shelled macadamias. This could provide some stability, but it is highly unlikely that the high prices of 2018 will be reached again.
Kenyan government must act
Growers in Kenya are currently pushing for a revision of the Agriculture and Food Authority Act, particularly Section 43, which bans the export of raw nuts. This is reported by the news website The Star. The controversial law restricts farmers to selling only processed nuts, which benefits some processors through low purchase prices. However, farmers report some cases where they had to sell their nuts for as little as KES 10/kg. In response, the law has already been temporarily suspended to ease the burden on farmers, who were already hard hit by global events, political tensions and currency fluctuations. Growers are now calling for the law to be lifted permanently and are also demanding that the government introduce further measures, such as specific harvest times, to protect the quality of the nuts. The potential of macadamia cultivation, which is compared to the higher yields in countries such as Rwanda, is emphasised as a missed opportunity under the current law. With over 60,000 mt of macadamias exported from Kenya annually, stakeholders are pushing for better conditions, according to The Star.
Malawi significantly increases exports to the EU
South Africa and Kenya are also by far the most important suppliers for buyers in the EU. In the period from 1 January to 2 September 2024, EU countries imported a total of 4,781 mt of macadamias, of which 2,366 mt came from South Africa and 1,289 mt from Kenya. However, both countries recorded declines in their shipments to the EU compared to the same period last year. The situation is quite different for Malawi; the East African country delivered an impressive 145.7% more macadamias to the EU than in the previous year. The list of EU imports is led by the Netherlands, which imported 1,890 mt of macadamias in the mentioned period, followed by Germany (1,530 mt) and Spain (664 mt).
|
EU macadamia imports, in mt |
|||
|
Supplier |
2023 |
2024 |
Diff. |
|
South Africa |
2,867 |
2,366 |
-17.5% |
|
Kenya |
1,322 |
1,289 |
-2.5% |
|
Malawi |
210 |
516 |
145.7% |
|
Australia |
761 |
326 |
-57.2% |
|
Guatemala |
371 |
146 |
-60.6% |
|
Others |
29 |
138 |
375.9% |
|
Total |
5,560 |
4,781 |
-14.0% |
|
DG AGRI TAXUD Customs Surveillance System, 01/01-02/09 08026200 Fresh or dried macadamia nuts, shelled |
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