We aren’t nuts yet

The local macadamia industry grew from around R800 million in 2012 to just short of R4,8 billion in 2021, with some 55% growth in total volume when measured nut in shell. The Bureau for Food and Agricultural Policy (BFAP) recently highlighted that South Africa is now the world’s largest macadamia producer and the world’s largest exporter of macadamias. But would an international visitor to our country know this?

Mariana Purnell

CONTRIBUTOR

Macadamias are produced in KwaZulu-Natal (43%), Mpumalanga (36%) and Limpopo (16%). With recent expansion in planted area that is still to enter production, substantial growth in total volumes and specifically exports are expected. Considering the lag between planting and production, this industry could well double over the next 10 years. Demand growth for these almost-niche nuts will be an important factor in price stability and farm level sustainability in the future.

Years ago, in 1986, I was fortunate enough to visit Hawaii as a young pineapple researcher. The aim was rapid clonal propagation of selected cultivars, but I also took the time to look around. Their pride and obvious success in processing of agricultural commodities was an eye opener. Six years later, I was back as an invited speaker at the very first international pineapple symposium.

I was amazed at the numerous upmarket shops in the foyer of the hotel. America's 50th state has perfected the marketing of brand “Hawaii”. In fact, everywhere you go promotes everything Hawaiian and the spirit of Aloha. Hotels, airports and high-volume tourist destinations like the aquarium and traditional village boast displays of Hawaiian products.

What left a lasting impression on me was their macadamia industry’s amazing approach to value adding. The interesting thing is that the marketing of their processed products has been so successful that many people think macadamias originate from Hawaii, but they are actually indigenous to Australia.

China is South Africa’s most important trade partner for uncracked nuts with an uptake of 80% of in-shell macadamia. There has been a gradual shift in macadamia exports, with a greater share going directly to China in the last five years, as opposed to Hong Kong while some 19% of nutin-shell macadamias are destined for Vietnam. In 2021, 57% of total macadamia exports were kernel based (shelled nuts), mainly destined for the EU, the US and the UK, with some shelled macadamias also exported to Vietnam.

Growing consumer demand for macadamia nuts in raw as nut-in-shell or shelled will play a critical role in sustaining current prices. Striking though, is the lack of South African macadamias in processed form. This is where huge potential lies for this industry that has expanded tremendously over the past decade, with an area growth rate around 200%, or a 13% average annual growth rate from 2012 to 2021. There is a latent opportunity for South Africa to, just like Hawaii, also develop an integrated macadamia value chain and add much needed jobs to the South African economy. Apart from the obvious natural and dry roasted macadamias, Hawaiian companies also coat macadamias in chocolate, chocolate-toffee, coffee-glazed, honey-glazed, mangochipotle or flavour the nuts with salt, onion & garlic, wasabi & teriyaki, and chili-spice. In addition to the traditional chocolate box presentation, a whole range of individual packaging types are used.

But that is not where it stops. Cookies, or biscuits as South Africans call them, is a frequent accompaniment to their famous local coffee. The macadamias are also transformed into macadamia cookies – macadamia and chocolate chip, dark chocolate macadamia, macadamia and coconut, pineapple and macadamia as well as macadamia nut shortbread and even macadamia pancakes.

Other products are macadamia nut butter, similar to peanut butter and macadamia oil.

In South Africa there is a glaring absence of macadamia nut products in areas that tourists frequent, in 5-star restaurants with exotic menus and even from local supermarket shelves. With on-line purchases and a world-wide distribution system being the norm after Covid, international gifts comprising healthy snacking and gourmet treats as well as offering new options to vegans could be a winner.

There could also be the possibility of gift packs with smaller packages in a variety of tastes, pouches and cans to tempt taste buds. Airlines flying into South Africa, wine estates and luxury game lodges could be major off-takers for sample-size packs of tasty flavoured macadamia nuts or even cookies.

South Africa needs to market macadamias as brand “South Africa”. Let’s do it to ensure price stability and farm level sustainability going forward. Let’s go nuts!