Another harvest is upon us and the outlook for the 2015 season is good with growers in all regions reporting reasonable crops. The fall in the Australian dollar, the strong demand in kernel markets and the ongoing demand for NIS from China are combining to deliver outstanding prices to growers.
The demand for all tree nuts across the globe is extremely strong. A shortage of supply and strong market demand has seen the prices of all nuts increase with little or no impact on consumer demand. The work carried out by Macadamia Marketing International (MMI) since its inception in 2011 has seen significant changes in the dynamics of the macadamia kernel market. The MMI team are now applying their supply chain management skills to the nut-in-shell market and are building relationships with customers who share in our ideology of sustainable markets and value chains.
MPC has, and always will, continue to support the kernel market. We believe it is critical to ensure we have a strong and vibrant kernel market. While demand and prices offered for NIS in China are high, past experience has shown that a balanced spread of markets is critical to ensure long term stability in the industry. We will be supplying some NIS to the Chinese market but will balance this with our strong commitment to the kernel market.
I’m pleased to announce that MPC’s 2015 Notional prices are:
- Standard NIS $4.40/kg
- Organic NIS $5.80/kg
- Organic-In-Conversion NIS $4.90/kg
All at 33% SKR and 10% NIS moisture content.
Our 2015 offer includes:
- Commercial grade at Premium prices
- No Reject penalties
- Free dehusking and sorting for deliveries with up to 10% NIH
- A radius based freight subsidy
- $2.20/kg upfront payment, 2 weeks from the week of delivery
- Anticipated final payment to the notional price by Christmas (cashflow allowing)
We have removed the whole kernel adjustment factor from our payment system this season. When the whole kernel adjustment was introduced it reflected the significant difference in prices between whole kernel and other styles. Currently that difference has reduced in kernel markets and wholes and halves receive the same price in the NIS market.
Many growers have expressed concern that the current high prices could slow market demand and result in a price crash. While no one can predict the future, the current feedback from markets is that there is still very strong demand for macadamias – even at the current pricing. Many other nuts are trading at near record prices as this food category continues to grow.
Remember, you don’t have to be a shareholder to supply MPC.