We've seen a big price reduction in macadamias as a result of high volumes and slow market uptake. Has the global market for this crop simply become saturated?
We're facing economic headwinds in all of our major markets, with supply outstripping demand and low farm-gate prices. Macadamia products are usually a premium and discretionary purchase, which puts pressure on consumer demand in most markets. Anecdotally, macadamia retail sales are down between 6% and 10% in the US and Europe, while sales during the Mid-Autumn Festival in China were reportedly down between 40% and 50%. With high in-market inventory and prices falling, buyer sentiment is very low.
The global outlook for macadamia demand and sales has therefore become increasingly challenging.
