Macadamias in 2479

Driving around our 2479 rural areas lately, you may have noticed some mature Macadamia trees being taken out. This is unfortunately a sign of a major downturn in the industry. The very healthy prices of recent years, around $5 per kg nut-in-shell, have dropped to around $1.50. This is below the cost of production.

The downturn is due to an oversupply, largely from newer plantings in Queensland and overseas (China, Kenya, and South Africa). Lower consumption by world tourists during COVID is also thought to have contributed. While price swings in rural crops are normal, this one is severe and not seen here since 1991, when nuts were unsaleable for a time.

Many of the Queensland plantings, such as inland from Bundaberg and Maryborough, are on land which is both cheaper and easier to farm than our area. Their average plantations are larger, with flatter land, simplifying harvest and plantation maintenance and lowering costs of production.

Another factor for our area is that many plantings are now over 20 years old, with lower yielding varieties and trees in need of thinning or major pruning - costly! Some farm owners are also ageing and looking to retire. It is now very difficult for them to sell a working plantation, as most newcomers to our area are seeking a ‘relaxed rural lifestyle’, rather than learning how to run a complex business, currently for no profit.

With rural retreats so in demand, particularly in the hinterland from Bangalow towards Alstonville, prices for neat, cleared, blocks, in many areas more than cover the cost of the Macadamia removal. There are thought to be around 100 of the 600 nut farms on the NSW North Coast, seeking sale, with agents advising to clear.

Some people may also perceive positives in orchard clearing, for our rural landscape. Macadamia plantations are a monoculture and require spraying for insect and pest control. The less well-managed farms also experience erosion in heavy storms. New ‘lifestyle owners’ of cleared farms may mean more stable ground cover, including regenerative farming ventures and plantings of native trees. Hopefully not too many horses, with their hard hooves and unsuitability to most of our subtropical grasses.

Fortunately, there are also still many well- established Macadamia plantations in 2479, being run as environmentally responsible as possible, with owners planning to weather the storm. Larger farms, over 10,000 trees, are more likely to do most of their own harvesting and maintenance and be able to plan for future price improvements. One sign of confidence in such price increases is news of continued investments in new Macadamia plantings in Queensland, and some former sugarcane country near here. While the effect of poor prices on farm owners and share-farmers, is bad enough, there are flow-on job losses for staff on the plantations, and contractors. There are also many people involved in local production of value added confectionary. Here’s hoping for a quick recovery.

In the interim we can help by eating more local products such as Macadamia paste and oil, available at our Farmers markets and Sunday market. The oil, by the way, has a very high flash point, is so ideal for high temperature cooking, and has proven benefits in lowering the bad LDL cholesterol.