South Africa’s macadamia processors are driving growth while farmers deliver a lower-than-expected harvest on the back of extreme heat during peak flowering in 2023.
The industry’s representative body, SAMAC, has released its latest crop estimates which represent a cut of as much as 15% on early season estimates.
In a statement released in mid-July, SAMAC told members that the estimate published in March at 90 135 tonnes dry nut in shell at 1.5% moisture content was now more likely at 76 753 tonnes dry nut in shell at 1.5% moisture content.
This estimate also represents a 1.74% drop in production against the 2023 crop, which totalled 78 110 tonnes.
William Davidson, who farms macadamias outside Empangeni on the KwaZulu-Natal North Coast, said extreme heat and early southerly winds had affected production significantly in the province. “On September 30 we had extreme heat at 43° and then again on October 6. That knocked our Beaumonts and A4s. Lots of farmers have Beaumonts and the A4s are starting to come through as quite a significant percentage of the crop now,” he said.
The heat had impacted heavily on pollination, as had an earlier than usual southerly wind, which brought cooler midday temperatures to the South Coast.
Barry Christie, Group Agricultural Technical Manager at Green Farms Nut Company, said similarly in the Lowveld, extreme heat was somewhat to blame for the cut in predictions.
In the SAMAC statement Marnus Erasmus said despite the reduction in the total crop expected, the quality of the nuts would assist in price recovery.
Industry in delicate balance
According to Christie, the country’s macadamia sector is in a balancing act between recovery from three years of rock bottom prices and increased production, which was putting massive pressure on processing capacity.
“Our industry is in a sensitive place at the moment. When times are tough, farmers tend to think that while they are struggling the processors are still making a lot of money. We aren’t, and the thing is that the growth in South Africa’s crop – regardless of prices – is requiring us to invest heavily in more processing capacity.”
Industry statistics indicate South African macadamia farmers planted more than 15 million trees between 2011 and 2023, with new orchard development peaking when prices went through the roof between 2016 and 2018. Those trees are coming into full production now, exerting exponential pressure on processors.
Expansion under way
Christie confirmed that Green Farms had acquired land near Tinley Manor on the North Coast for the construction of a depot, initially, and then later, the development of a processing plant. “It’s no secret that we have bought the land and what our plans are. Our growers know that it’s coming. But it’s early days so we are still deciding how we will proceed. I don’t think the depot will be ready for next year’s harvest,” he said.
The Macadamia is aware that a second processor has broken ground on land earmarked for a processing plant near Darnall, also on the North Coast.
A spokesman for the company said it was still too early to give details of the project.
The proposed macadamia processing facilities present a welcome fillip for the economy of the North Coast, which suffered a significant blow when embattled sugar group Tongaat Hulett mothballed its Darnall sugar mill in 2020. This put at least 400 people out of work, with a significant number of businesses e.g., logistics and maintenance companies in the value chain, having to shut up shop.
