Due to insufficient output caused by
predicted output reduction of macadamia in Australia and low macadamia nut
output in South Africa, and since many producing areas of macadamia face
problems of smaller nuts and lower SKR, the supply of style
0 and
style 1 nuts is short. However, many nuts processing factories in South Africa
and Australia will continue normal processing till December.
Kenya is the main area of global
macadamia nut supply. But many plants are closed down during the general
election to avoid violent events. The Supreme Judicial Court judged the
reelection in October, which may generate greatly negative impact on plant and
transportation system, and lead to short supply. Moreover, the quality of
macadamia in Kenya is not good, and SKR of most macadamia nuts is between 10-15%.
The cost pressure caused by surge of macadamia nut makes some buyers select commercial level nuts, which are slightly darker than excellent level macadamia nuts, but similar in other quality standards such as microorganism and tastes. The price of commercial nuts is about 5-10% lower than good quality level nuts.