The good news continues for macadamia growers, with the Macadamia Processing Company (MPC) at Alphadale today announcing it will pay an increased $0.30/kg nut-in-shell (NIS) bonus to growers who supplied in 2016. This brings the final 2016 price to a record high of $5.50/kg.
MPC General Manager Steven Lee said today the $0.20/kg NIS bonus announced in December 2016 would be increased to $0.30/kg due to the strong finish to the year.
The record price, including this bonus, will flow to all the 250 growers who supplied the processor in 2016 – representing more than 30 per cent of the Australian macadamia industry.
“The additional payment represents over $3.3 million in company profits being shared with our growers. As a 100% grower owned company we always work to return profits to growers and we are delighted with this result.
“Our continued investment in marketing and new technology, along with the strong international demand for macadamias and an export-friendly exchange rate have contributed to another strong performance. It’s great to share these profits with growers.” Mr Lee said.
With strong prices continuing to be offered in 2017, macadamia growers are re-investing in their farms with the confidence that they will have the income to pay for it.
“Unprecedented investment is going back into orchards,” he said.
Growers are undertaking significant Integrated Orchard Management works to lift their production, as well as improving the sustainability of their orchards, providing benefits to the wider community.
“For instance, the number of growers investing in drainage management to control water flow, applying mulches to improve soil health, and establishing groundcovers and beneficial insect reservoirs on farm is at an all-time high”.
Mr Lee said the strong demand for macadamias continues across the globe with many markets growing, especially in Asia.
“China is expanding as well as countries like Taiwan and Korea who continue to buy more Australian Macadamias.
“The demand has been driven by a number of factors including greater consumer awareness of the health benefits of eating nuts,” Mr Lee said.
“We have seen China grow from a small market to now represent about 30 per cent of the total market.
“Along with the growth in demand, the China market is maturing, with customers now looking for partners who can supply high quality and consistent volumes.”
This is the ninth year in a row MPC has paid a nut-in-shell bonus to growers and it will mean some growers with higher kernel recovery varieties will receive over $7.70/kg for consignments delivered in 2016 – significant returns.
Mr Lee said MPC was seeing growers expanding their operations and new growers entering the industry.
“At MPC we encourage the expansion of the industry to ensure its continued success,” he said.
“To ensure our growers’ future we need to continue developing markets and working with all supply chain partners to keep demand and prices strong.
“We are working on a number of new initiatives at the moment – with a focus on ensuring we continually improve all aspects of our business to meet the challenges that lay ahead,” Mr Lee said.