The Mintec Benchmark Prices for macadamia nuts of South African origin (style 1, premium wholes), delivered on a CFR basis Northwest Europe, plummeted by 21% in the four weeks to 15th December, to USD 14.1/kg. The benchmark is also down 28% year-on-year (y-o-y), weighed by ample global supply and the cost-of-living crisis.
“Prices are all over the place, there is big oversupply in the market,” a European trader disclosed to Mintec. “Sellers want to move the stock and have been discounting material,” he continued.
A separate trader added, “Demand for whole style has slipped significantly. Macadamias are viewed as a premium tree nut, and with consumer budgets tightening amid rising inflation, sales on macadamia products have taken a hit.”
South African farmers are estimated to produce approximately 70,139 tonnes of macadamias in 2022, 12,400 tonnes more than forecast, and an increase of 32% compared to the previous 2021 campaign, according to Macadamias South Africa (SAMAC).
Production in China, the largest buyer of South Africa’s in-shell macadamias, is also expected to rise significantly in 2022 according to trade sources. This is primarily due to the recently-planted trees reaching maturity.
In Australia, the Australian Macadamia Society has recently published its production estimate for 2022, pegging output at 52,974 tonnes (+3% y-o-y) in-shell @ 3.5% moisture, higher than anticipated following the record rains and flooding in New South Wales and Southeast Queensland.