When it comes to the most profitable crop per hectare land in South Africa, macadamia nuts are hard to match.
The average export price for macadamia kernels in 2017 was R224.15/kg, according to statistics from the SA Macadamia Growers’ Association (Samac). The average price for nuts in the shell was R75,58/kg.
Depending on the species, a single mature macadamia tree can produce anywhere from 16 to 32 kg of nuts in the shell. At the very least, that equates to an R1,200 yield per tree.
That should yield R374,400 per hectare, based on 312 trees per hectare. Even after subtracting production expenditures of roughly R25,000 per acre per year (for irrigation and fertiliser), that’s still a lot of money.
With 19,500 hectares under cultivation and over 50,000 tonnes per year, South Africa is the world’s largest macadamia grower. Macadamias from South Africa are exported in large quantities, with China being the most important market. According to SA Revenue Service estimates, R3.2 billion worth of macadamia nuts were exported last year, increasing nearly 20% from the previous year.
In November 2017, the Chinese government cut its import duties on South African macadamias (from 19 percent to 12 percent).
According to Barry Christie, a representative for Samac, the demand for macadamia nuts is increasing. Macadamia nuts account for less than 1% of worldwide tree nut production, and demand in China is projected to remain strong for the foreseeable future. According to Christie, predicting when the market would become saturated is challenging.
There is currently a three-year waiting list for trees at authorized nurseries due to the great demand. According to Samac, planting a hectare of macadamia trees might cost up to R100,000, depending on soil preparation requirements.
