Kenya now targets India to drive its macadamia exports to limit the risks of overreliance in just five traditional markets, new disclosures show.
The Agriculture and Food Authority (AFA) revealed that Kenya plans bigger forays in the Indian market to help deal with fluctuations in its current macadamia exports, including the US, Germany, Japan, the Netherlands, and China.
The regulator said that Kenya is developing a special strategy for exploring the Indian market.
“The strategy will provide a specific, accurate, and clearer path that the Kenyan macadamia industry ought to take. The strategy will include, but not be limited to, Business to Consumer (B2C) and Business to Business (B2B) activities and will be guided by in-depth research of the macadamia market in India,” AFA said as it recruited a consultant to guide expansion in the Indian market.
India is ranked as an early, high-growth phase market for macadamia due to an expanding consumer population lured by rising health consciousness and increased affordability due to reduced import tariffs.
The Kenya macadamia industry is export-based, with 95 percent of the annual production shipped to international markets.
Kenya’s macadamia nuts are mainly exported to the US, Asia, and European countries, where they are predominantly used in the confectionery and snack food industries.
“Despite the increasing potential for macadamia nuts, the industry faces several challenges, including international price fluctuations, inconsistency in production, immature harvesting, and insect damage,” AFA said.
The regulator said that while Kenya is the world’s third largest macadamia producer, the country remains vulnerable to market shocks due to overreliance on traditional markets that control about 75percent of its total export volume.
For example, in 2024, out of the 20 tonnes of Kenya’s kernel and nuts in shell exported, over 70percent were bought by the US, Germany, Japan, the Netherlands, and China.
“The over-reliance on these five markets results in high vulnerability of Kenyan macadamia prices to emerging market challenges. Further, Kenya’s macadamias are largely used as a raw material in manufacturing. As a result, it fetches lower prices, resulting ultimately in diminished revenue to farmers and processors, and a low foreign exchange income for the country,” AFA said.
The regulator noted that despite several trade missions and interactions organised in other macadamia-consuming countries, reports indicate that many consumers are still not aware that Kenya produces some of the best macadamias in the world.
“To counter the stated negative effects, Kenya needs to develop and implement a research-based market expansion strategy for high-potential, non-traditional markets that will result in a reduction of over-reliance, thereby reducing the vulnerability of Kenyan macadamia prices. The strategy will provide a specific, accurate, and clearer path that the Kenyan macadamia industry ought to take,” AFA said.
Official data shows that the total annual production of raw nuts in shell (RNI) for macadamia in Kenya rose to 49,183 tonnes in 2024, rising from 44,364 tonnes in 2023.
This 10.9 percent increase in production is largely attributed to improved kernel recoveries and the export of nuts in shell, which has led to better farm gate prices for farmers.
In 2024, macadamia prices in Kenya improved significantly to Sh98 per kg, rising by 68.9 percent from Sh 58 per Kg in 2023. “This price increase is attributed to competition between processors and exporters of nuts in shell (NIS), as they maximised their purchases to secure enough raw materials for processing and fulfill exporter orders,” AFA said.
As a result of the higher farm gate prices, the total value of NIS at the farm gate rose from Sh2.66 billion in 2023 to Sh 4.95 billion in 2024.
