The 2023 Australian macadamia crop forecast has been revised down by 11% from 60,000 tonnes in-shell to 53,160 tonnes in-shell at 3.5% moisture (from 64,400 to 57,000 tonnes in-shell at 10% moisture).

Australian Macadamia Society (AMS), CEO Clare Hamilton-Bate says the Australian macadamia industry has been experiencing unprecedented market conditions, due primarily to the combination of reduced global demand and a rapidly increasing global supply.

“Australian macadamia growers and the entire industry are facing a very difficult year, with the softest farm gates prices in more than a decade.

“Overall the crop quality is very good and reject levels are down, however nut size is smaller and there has been a decrease in total kernel recovery.”

Ms Hamilton-Bate said several factors have converged to contribute to the reduction in the 2023 crop forecast, including variable seasonal conditions and weather events as well as cost rationalisation and prudent economic decision-making by growers.

“Kernel supply will also be impacted because an increased amount of crop is being sold to the nut-in-shell market.”

The crop forecast will be reviewed again in September and the final figure for the 2023 Australian macadamia crop will be announced by the AMS in early December.

Ms Hamilton-Bate said the 2023 crop is based on actual factory receipts of the Australian Macadamia Handlers Association (AMHA). The AMHA represents 85% of the macadamia crop in Australia.

AMS industry development manager Leoni Kojetin said low prices for crops had caused frustration for growers as the high retail price in supermarkets doesn’t reflect the current prices paid to growers.

“Before it reaches the consumer, the crop has to first be picked, dried, cracked and sold in bulk kernel, so the supermarket prices still reflect the prices they paid for nuts last year.

“Contracts with retailers are usually an annual contract which is different to fresh produce that fluctuates on a weekly basis so the lag in price means most of the nuts coming through now are still from the previous crop.”

However, Ms Kojetin said the provenance of Australian nuts and their quality reputation provided some hope of improved export sales and increased demand moving forward.

“The government is starting to do some good work in India with the Free Trade Agreement, and we recently had some big Indian nut traders over here looking at a partnership arrangement, so the future prospects are looking a little brighter,” she said.