Macadamias: producer prices reach record low
May 16, 2023 at 11:42 AM ,
Global supply is increasing rapidly
The macadamia harvest in Australia is in full swing, but market players are facing various difficulties this season. Farmgate prices, which in recent years have reached record highs of more than AUD 6/kg, have fallen to just AUD 2/kg. FreshPlaza reports with reference to ABC News that the large amount of available stocks on the world market is the main reason for this, but the recession and other economic problems are also contributing. Growers who cannot even cover the cost of cultivation with the sale of their macadamias are currently suffering the most. As a result, many of them are either less able to supply their plantations or even have to give them up altogether. And for the time being, there is no end in sight: according to estimates, the worldwide supply will increase by two thirds to 500,000 mt annually in the next five years.
Entering new markets
According to FreshPlaza, Jillian Laing, CEO of the World Macadamia Organisation (WMO), also sees opportunities in the current situation. She cites the avocado industry as an example, which was in a similar situation and whose sales could be boosted by clever marketing. In the case of macadamias, the initial focus of the campaigns is to be on the large markets USA, China and India, but overall many new markets are to be developed and established markets expanded. "The industry is tracking to its forecasted doubling in supply from 2020 to 2025 and resulting price shifts have been long anticipated; this comes together with some other headwinds like recessionary times", says Laing. She encourages farmers not to bury their heads in the sand if possible. "The almost decade long supply-constrained macadamia market conundrum is being resolved, and that is thanks to our farmers! This has brought some short-term instability but certainly changes the game for the long term", Laing adds.
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