Macadamia value dips by half on low demand

The value of macadamia nuts fell by 52 percent last year on reduced global demand due to Covid-19’s restrictions.

Data from the Agriculture and Food Authority (AFA) shows that the value dropped by Sh2.9 billion to Sh2.7 billion last year, from Sh5.7 billion in the preceding year.

Low demand for macadamia kernels globally drove processors away from fields after it dropped from Sh150 per kilo to Sh50 per kilo under the review period.

“Consequently, the value of macadamia nuts reduced by more than a half from Sh5.6 billion to Sh2.7 billion as a result of the low farm gate prices. Market access was constrained by lockdowns and travel bans across the globe necessitating a decline in demand from traditional consumers such as airlines and the hospitality industry,” the AFA report shows.

As processors shy away from buying the nuts from farmers, the annual production of raw nuts in shell (RNI) of macadamia decreased by 1.7 percent from 39,814.9 tonnes to 39,134 tonnes in the period.

“The slight reduction in production is attributed to reduced farm activities, delayed harvesting storage losses during the year under review.

“During the year, most processors kept off new purchases due to uncertainties in the consumer markets, some exporters were stuck with crops from the previous season.” AFA said.

However, the area under macadamia grew marginally to 17,642 acres from 17, 589 acres.

Macadamia is mainly produced in Muranga (10, 823 tonnes), Embu (6, 801 tonnes), Meru (6, 614 tonnes), and Kiambu (4, 711).

Other counties are Busia (1.1 tonnes), Elgeyo Marakwet (41 tonnes), Uasin Gishu (44 tonnes) and Makueni (45 tonnes).

In April last year, processors suspended buying of the commodity, citing uncertainty due to the shutdown of industries in various parts of the world as governments imposed lockdowns to stop the spread of coronavirus.