Macadamia growers wait for fair crack at the farmgate

According to research published in a Queensland government report this year titled 'US grants new access for Australian roasted macadamia nuts', macadamia nuts are now our third most valuable horticulture export, but the price isn't reflecting the value.

Suncoast Gold Macadamias general manager Julian Lancaster-Smith said last year prices fell to "probably" the lowest on record.

"The industry has forecast a slightly lower initial target than last year, and that's for a few reasons," Mr Lancaster-Smith said.

"The official price that the Australian Macadamia Society gets every year from the DPI, is pretty much lineball with last year.

"The unknown is the effect the price had on the market from 2023, into 2024 and the inputs on various farms that would give rise to high yields.

"It was probably the lowest price on record last year at farmgate.

"It was an average price last year of about $1.85 versus an average price in 2022 of about $4.45, so a fairly big drop, and two years before that it was $6.00."

Mr Lancaster-Smith said growers were disappointed to see lower farmgate prices not reflected on supermarket shelves.

"The farmers are a little bit irate because the supermarkets haven't dropped their pricing," he said.

"From a farmgate price to a retail price... say this year is $3.50 per kilo, that is for the whole nut.

"Once we crack a whole nut there is only 30 per cent that is saleable, the other 65 percent is shell.

"So three times that is $11.50, which is the kernel cost you have got. Then you grade it, dry it, process it, store it, box it, ship it...there are a whole other bunch of costs."

"Whatever it gets wholesaled for basically retails at double (the price)."

Mr Lancaster-Smith said overseas markets were rapidly becoming strong competition to the domestic market.

SGM export 80 per cent of the macadamias that come in, with their biggest markets in China, Japan, Korea and New Zealand.

They have a diverse customer base, including manufacturing, retail, high end and mid range stores and people who wholesale their product into smaller market segments.

Mr Lancaster-Smith said they will be working hard to remain competitive against a growing overseas market.

"Pretty much anyone on the same latitude as us is growing them now, South Africa is the single biggest, Kenya, Malawi, Brazil, Vietnam, Guatemala, Hawaii and China," he said.

"There is now a fairly broad section of global markets that are competing with us, but we taught them how to grow macadamias."

He said historically, Australia had hung its hat on quality with experienced farmers and longevity in the industry, but advancement in technology had fuelled the strong international competition.

"Macadamias as an industry are relatively new, compared with other industries and with other origins coming on board now from around the world, there is a lot more investment in technology," he said.

"There is more equipment available, manufacturers can get a return because there are more origins producing significant volumes globally.

"AI tech is on farms is now helping to map the orchards, for spraying, pest control and moisture management."

He said to stay ahead of competitors they are trying to do things differently working closely with customers to develop their markets and help customers to grow their product range, which has a flow on benefit to them.

"We guarantee our shareholders that we will take 100 percent of their crop," he said.

"We have an aggressive growth strategy and plan in place.

"I need to make sure that we have developed markets and have products for a range of customers and diversifying the risk in the market, so our growers know they have a future."