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Experts urge diversification in macadamia exports amid China market uncertainties

In 2015, China experienced market disruptions that led to a halt in operations, causing a significant backlog of macadamia nut shipments from South Africa and delays in payments at Chinese ports.

At the Macadamias South Africa (SAMAC) conference in White River, Mpumalanga, experts emphasized the need for a diversified marketing strategy. Prof Ferdi Meyer, director of the Bureau for Food and Agricultural Policy, highlighted the uncertainty in China's macadamia production due to unverified governmental claims of a 300,000-ha plantation area. This could potentially lead to China's self-sufficiency in macadamias.

Jillian Laing, CEO of the World Macadamia Organisation, suggested that a sustainable export quota to China is 33%, drawing from her experience at Fonterra where dependency on the Chinese market had led to challenges.

Alex Whyte, director of Green Farms Nut Company, underscored the importance of maintaining macadamias' premium status and focusing on long-term stability. PJ Venter, director of Mayo Macs, pointed out the competition from China in kernel markets, which could lead to a shift in market control.

Mike Benjamin, CEO of Golden Macadamias, reported a 43% growth in kernel sales in the Middle East since 2019, highlighting the region's potential due to its proximity, spending power, and favourable import tariffs.

Source: Farmer's Weekly

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