W26: Macadamia Update

In W26 in the macadamia landscape, it was reported that the Australian macadamia industry is targeting India as a major export destination, with plans to increase macadamia consumption in the country. Australia and India are finalizing a free trade agreement, which will gradually reduce the trade tariff on macadamia nuts to 0% by 2028. With India's population of 1.38 billion, there is a significant opportunity to introduce Australian macadamias to Indian consumers. The Australian Macadamia Society aims to reach 80 thousand mt by 2030, coinciding with a projected doubling of the global macadamia crop. In addition, the Australian Macadamia Society (AMS) has adjusted the forecast for the 2023 Australian macadamia crop, lowering it by 11%. The crop is projected to be 53.16 thousand mt in-shell at 3.5% moisture. This adjustment is attributed to reduced global demand and an increasing global supply, leading to challenging market conditions. Although the overall crop quality is good with lower reject levels, there is a decrease in nut size and total kernel recovery. Various factors, including variable seasonal conditions, weather events, cost rationalization, and economic decision-making by growers, have contributed to the reduction. An increased amount of macadamia crop is being sold to the nut-in-shell market, affecting kernel supply. The AMS will review the crop forecast again in September and announce the final figure in early December. The forecast is based on factory receipts from the Australian Macadamia Handlers Association (AMHA), representing 85% of the country's macadamia crop. Lastly, macadamia farmers and exporters in Kiambu County, Kenya, are urging the government to ban the exportation of raw macadamia nuts to improve their earnings. Since the ban on macadamia exportation was lifted, farmers have experienced significant losses as prices have dropped drastically. Kenyan farmers requested to reinstate the ban to stabilize the market and prevent further financial hardship.