African farmers benefit from increased nut demand

Macadamia farmers in Mpumalanga are set to rake in huge profits this harvesting season, thanks to an increase in demand from the United States and Chinese markets. The harvest season is now in full swing and more nuts are being brought into factories for processing.Valley Macadamias Group's Alan Sutton says, “This year, it’s been a difficult year agriculturally for the farmers because the drought has obviously reduced the yields and affected the size and proportions of the nuts. But market conditions are looking pretty good with regards to the exchange rate; the rand/dollar exchange is in favour of farmers and the market conditions overseas are very good because the demand for the produce is high.”A kilogram of macadamia nuts sold at about five dollars this year, that’s over R75 in local currency. It was less than that the previous year. Buyers are, however, insisting on quality nuts.

Sutton says, "The emphasis is on the farmer to produce a better quality nut, which can be exported into the market, of which they will be prepared to pay for it. But obviously, they are not going to pay for rubbish. They want quality.”

Source: farmingportal.co.za/bizcommunity.com