W28: Macadamia Update

In W28 in the macadamia landscape, the macadamia nut market in Nairobi, Kenya, has experienced a significant change, decreasing prices in various locations. The ban on the export of raw macadamia nuts, lifted in April by the Trade Cabinet Secretary, has resulted in an influx of products sold on the streets. Macadamia nuts dropped to USD 0.35/kg (KES 50/kg). Farmers attribute this price decline to local processors taking advantage of the surplus and offering low purchase prices. Consequently, some farmers have resorted to selling their macadamia nuts to grocers as an alternative means of disposal. Also, Zimbabwean macadamia farmers are urging the government to review the 25% retention on macadamia nut export receipts, claiming it is too high and hindering their businesses. The government retains a quarter of farmers' foreign currency receipts, reimbursing it in local currency. Merchants have expressed concerns over the high retention threshold, stating that it is affecting their operations. Efforts are being made to engage the government and review the retention level to support sector growth. Merchants also noted that macadamia nut prices experienced a 30% decline between Mar-23 and Jun-23 due to oversupply in Europe and the United States. The main markets for macadamias are Hong Kong and South Africa, where prices range from USD 2/kg for dry nuts in shell and USD 7-12/kg for kernel.