2014 Australian Macadamia Society 40th Anniversary Industry Conference

1. South Africa Macadamia Production
Prepared by: Phil McCarthy
Date:15thOctober 2014

2. Resource Rich
• Huge resources of available land and water
• Large pool of accessible labour
• Increasing investor interest from other
industries to expand into macadamias.
• Some processors buying up as much available
land with access to irrigation.
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3. Generational farming families
• Good general knowledge of farming practices
• Proactive farmers
• Positive response with managing the application
timing requirements of their work programs
• Great work attitude in finding a way to get things
done.
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4. Larger farms between 200 – 600Ha
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6. Small farms 30 - 100Ha
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7. Growers planting out all available land
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8. Labour skills have developed
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9. All nurseries booked out for at least two years
and up to four years
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15. Micro grafted Macadamia seedlings
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16. From seed to planting in 12 months
• Seedling out in 6 months on a solid root system
• Than select and graft trees at 6 months
• Grown on for farmers in large bags and advanced
tree planted out at 12months
• Just about to take this commercial
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17. New trial on an open hydroponic system with
these Micro grafted trees
• On a continuous irrigation at 0.4lt/hr at 1 bar
• Goal is to bring the trees into production in 2
years
• High density planting
• No vigorous pruning but by tree manipulation
• Goal is 4 tonne per Ha in year 3.
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18. Advanced irrigation systems
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20. Fertigation with computer programming
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21. Mixture of sprinklers and drippers
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22. Very keen to learn
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23. Quick to pick up on central leader pruning
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26. Good tree health
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29. Accepting to change
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30. Spray application has improved
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31. Huge labour pool available
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34. Majority of nuts still hand harvested
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35. Modern post harvest equipment
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37. Labour has high management requirement
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38. Modern drying systems
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41. Move in land values
• Old Tobacco lands under irrigation are in the
high demand
• 2012 value:- $5,000.00/Ha
• 2014 value:- $10,000.00/Ha
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42. Plantation Values
• Established producing plantations;
• 2012 value:- $15,000.00/Ha
• 2014 value:- $30,000.00/Ha
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43. Main Varieties, SKR & Yields:
50% of plantings Beamont, 27 – 35% SKR,
4 – 6 Tonne/Ha.
30% plantings Nelmac 2, 35 – 40% SKR,
3 – 5 tonne/Ha.
Balance of small plantings some 816 & A4,
38 – 44% SKR.
Sales 50 / 50 NIS to Kernal.
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44. Last trip in 2006, tree training
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47. Same trees in 2014
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49. 814 was best yielding at 6 - 8 tonne/Ha
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50. High density in 2006
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53. Nine years later starting tree removal
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54. Growers on a high
• Great SKR price
• Good yields
• Lower labour cost than us
• Sell on the same market
• Great return on investment
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55. Lowveld South Africa
• Includes, White River, Barberton and Nelspruit
growing areas
• Macadamias are a key economic driver
• Makes up a big part of the country’s R2billion
turnover in this industry
• Processor Joint venture with Australian company,
Green Farms & Suncoast Gold
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56. Macadamia nuts represent only 1% of tree nuts
globally
South Africa just recently surpassed Australia
and now is the largest supplier internationally
Processors now with volume by passing traders
on a volatile market, no middleman
This has raised growers prices significantly
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57. 2014 Season
• Samac projects an optimistic figure of 43,000
tones
• Green Farms Jill Whyte says 40,000 tones may be
a closer figure
• SA tonnage down due stress issues with the older,
larger trees this season
• Also spraying is a constant challenge
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58. Still planting trees
• Within 4 – 5 years all the suitable land around
Nelspruit White River areas will be planted
out with macadamias
• East Cape Macadamia are planning to plant a
4000Ha farm
• Another group is planting out a 1000Ha farm
in Natal
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59. Long term grower security??
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60. Yes Big risk but big returns
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61. Roadside sales everywhere
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62. Land claims
• Even though land claims could put
uncertainties in producers minds – the
macadamia industry's success story has left
producers positive and gave them confidence
• Green Farm played a significant role in turning
things around after joining hands with the
industry, they raised prices significantly
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63. Go with the flow
• We need to work with the South Africa
growers and producers to develop a bigger
and better sales and marketing system and
develop an foster grower information transfer
• If we work together to develop the industry
and markets we can all get the rewards
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