Setting prices in a turbulent, nutty world
This year, with the full impact of the coronavirus still unknown, the Green Farms Nut Company (GFNC) announced its 2020 price offer to farmers at various meetings
LAST year the SA macadamia nut industry had to deal with uncertainty because of the United States and China trade war.
This year, with the full impact of the coronavirus still unknown, the Green Farms Nut Company (GFNC) announced its 2020 price offer to farmers at various meetings.
Meetings were held last Wednesday on the south coast, Thursday at the Umhlali Country Club and on Friday in Pongola.
Among the factors affecting the pricing is the impact of coronavirus on trade relations, markets and economies.
The Australian macadamia crop is also expected to be significantly down owing to drought.
Monitoring the situation
‘We are actively monitoring the situation, but a true representation of current and potential impacts of the coronavirus remain unknown at this stage,’ GFNC CEO Allen Duncan said.
‘However, we are pleased to say we are well positioned to represent our growers this year and hold strong confidence in the kernel market.
‘Our business has always invested into both the processing capacity and relationship aspects required for success in the kernel market,’ said Duncan.
‘China’s import duties on South African macadamias create further constraint in this market whereby, for example, Australia has a zero per cent duty in China.
‘Domestic macadamia production in China is on the rise – although at a slower rate than forecast – and this translates to increased consumption of local goods, further displacing external suppliers to this territory.
Nut pasteurisation
‘Recent strategic investment into leading Napasol pasteurisation technology, an African continent first, further bolsters our position to sustain trade relations with our largest macadamia export destination, the United States,’ said Duncan.
‘Together with European markets, the United States continue to be more stringent about food safety protocol, and irrespective of how AGOA negotiations shape, GFNC remain on the front foot to make the most of this opportunity on behalf of our growers.
‘Macadamias, relative to other tree nuts such as almonds and cashews, tend to be more price resilient owing to their smaller representation in the total tree nut basket.’
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