Green Farms Nut Company (GFNC) this month announces its annual price offer to farmers at a series of events hosted at the company’s factories throughout the country’s key growing regions.
Market complexity and global uncertainty bring a levelling of a 10-year run of record-level prices for macadamias. The GFNC price offer once more sets an industry precedent for competitor processing organisations to match.
“Current global economic conditions dictate caution, it is a buyers-market, not only for macadamias but for all produce, world round. During these times our long-term investment into trusted customer relationships will bear fruition for our farmers. We are proud to be confidently forward sold for this year, with no carryover stock from 2021,” says Allen Duncan, GFNC, CEO.
It is a charter of murky, choppy waters with China facing significant economic challenges and consumer debt, Russia invading Ukraine leaving the rest of Europe nervous, and a slow global recovery from the Covid-19 pandemic. Some tree nut (like almonds) prices have hit a ten-year low. Macadamia prices have dipped but emerged as one of the least impacted by this downturn.
“Spreading risk by selling product to customers around the globe has always formed the bedrock of our sales strategy. Through our sales and marketing business, Green & Gold Macadamias (G&G), we sell to all corners of the globe and are vertically integrated by having a balance of nut-in-shell, kernel, snack, and ingredient grade customers,” comments Alex Whyte, sales manager G&G.
GFNC’s price offer of $15 US dollars per kg is an average price across all nut grades and will be cushioned by exchange rate benefits. Prices vary considerably depending on style, quality, geographical area, and cultivar. Larger whole nut grades command a premium price, with ingredient grades presenting more of a challenge to sell.
This year GFNC farmers enjoy an average 5,9% bonus payment (“agterskot”) for 2021 kernel product deliveries over and above last year’s price offer.
Global production is anticipated to be slightly up (30 000 tonnes in-shell) last year with South Africa experiencing favourable weather conditions. In contrast, Australia is experiencing flooding, and the impact on the crop is yet to be seen.
“These are interesting times, and we look forward to watching the market change and take shape. GFNC is solidly positioned to navigate these times and it pleased offer stability and peace of mind to our farmers,” concludes Duncan.