A Crunch for Macadamia Nuts?

Macadamia nuts are expected to face a potential supply crunch as the year ends, driven by a combination of weather-related challenges and an uptick in global demand. Australia, one of the world’s leading producers, revised its 2024 harvest estimates down by approximately 9% to around 50,830 tons (at a moisture content of 3.5%). Despite these challenges, this year’s total yield is still projected to be about 5% higher than 2023’s output, offering a slight increase in volume yet falling short of initial expectations.

The shift in supply largely results from unusual weather patterns. Prolonged heat followed by unexpected rain in key regions, such as Bundaberg—Australia’s largest macadamia-producing area—has impacted crop quality and reduced overall yields. As Australia produces around 50% of the world’s macadamias, these weather issues are set to influence the global market, where demand has steadily risen due to the nut’s popularity in plant-based diets and high-value foods.

In 2023, macadamia nut prices hit a historical low, a rare dip that experts expect to reverse as demand outpaces supply. The expected shortage, paired with increasing consumer interest, could soon push prices higher, making macadamias a more exclusive—and pricier—ingredient.

References

Australian Macadamia Society. (2024, May 17). Roundtable recap: Global macadamia production updates shared at 2024 INC Congress. Retrieved from https://australianmacadamias.org/industry/news/roundtable-recap-global-macadamia-production-updates-shared-at-2024-inc-congress

Associated Press. (2024, April 29). Hawaii is known for its macadamia nuts. Lawmakers want to keep it that way. Retrieved from https://apnews.com/article/a45ed035eb30b3406288fc524d13634d