Macadamia Prices in South Africa Fell 28% YoY in W50 Due to Oversupply

Mintec Benchmark Prices for premium whole macadamia nuts from South Africa, delivered CFR, decreased by 21% to USD 14.1/kg in the four weeks to December 15, representing a 28% YoY decline. This is mainly due to oversupply in the market and tight consumer budgets amid rising inflation. South African farmers are anticipated to produce roughly 32% more macadamias in 2022 compared to 2021. The updated forecast for 2022 is 70,139MT of dry nut-in-shell, which is an increase of 12,416MT from the initial prediction of 57,723MT. According to trade sources, production in China, which purchases the most in-shell macadamias from South Africa, is also anticipated to increase dramatically. This is primarily due to the recently planted trees reaching maturity. This situation will further aggravate the oversupply in the South African market.