South Africa produces over 70,000 tons of macadamia fruit, China overtakes US as' number one buyer '!

According to the latest estimates from the Southern African Macadamia Growers' Association (SAMAC), South African Macadamia shell fruit production in 2022 reached over 70,139 tonnes (22,444 tonnes in kernel terms). Production is expected to hit another record high in 2023. Compared to other nut categories, macadamia nut exports had a strong year, with 21,555 tons of nuts exported, the second highest on record. Most of the macadamias are exported to China, where high-income consumers continue to favor high-quality nuts despite rising living costs.

The forecast for South African macadamia nut production in 2022, which has undergone a number of upgrades, is 12,414 tonnes higher than the original forecast, a significant 31.5% increase over 2021 production and 10,000 tonnes higher than the previous record of 59,050 tonnes in 2019. The increase was attributed to well-timed rainfall, favorable production conditions and an increase in the number of fruiting plants. In 2021, South Africa had 56,368 hectares of macadamia fruit orchards in production, with more than 5,000 hectares being planted for the fourth year in a row, with huge potential for future growth. The macadamia nut region is once again receiving decent rainfall during the flowering and fruiting season, and is expected to produce another record year in 2023.

South African macadamia exports were strong for most of 2022, with 21,555 tonnes worth $277 million in kernel terms. This makes 2022 the second highest year for exports, behind 2019's 23,043 tonnes. However, due to low export prices of South African macadamias, 2022 will only be the fourth highest year in terms of exports. Although prices were lower than suppliers expected, South Africa was able to sell most macadamias before the next production season to free up enough storage space.

Other nut-producing countries face an oversupply of nuts and consequent storage problems because of falling global demand. Although macadamia is one of the most expensive commercially available nuts, demand for macadamia remains strong compared to other nuts. In terms of kernel prices, macadamias typically retail for 3-4 times the price of almonds. China's macadamia consumers are typically high-income households, less affected by rising living costs and more resilient demand for macadamia. Demand in the US and Europe, by contrast, is more susceptible to price fluctuations.

The biggest export market for macadamias over the past decade has been the US or China, with Europe in third place. But China held on to the top spot with a large market share gap in 2022, accounting for 40 per cent of South Africa's macadamia exports, compared with 28 per cent the previous year. South African exports to China are growing despite an increase in domestic production of macadamia nut from 32,500 tonnes in 2020/22 to 62,500 tonnes in 2020/23. The U.S. market share fell from 31 percent to 29 percent, while Europe's fell from 22 percent to 19 percent. The South African macadamia industry is likely to continue targeting high-income consumers in China through 2023 due to falling demand in Europe and the United States.

According to Chinese customs statistics, in 2022, China imported 7,521,505 kilograms of South African macadamia nut, worth about 220 million yuan. 268,812 kg of imported macadamia nuts, valued at about 27.264 million Yuan.