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Lower Macadamia Output and General Election in Kenya Lead to Short in Macadamia Nuts

Pubtime:2017-10-16Author:Source: Hits:

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.