Macadamia farming has become a significant agricultural industry in South Africa, known for its high-quality nuts and favourable growing conditions. However, the commodity faces challenges, and farmers have still not survived the knock-on effect of Covid-19 and other local challenges.
Khanyisa Shezi, a macadamia nut farmer in Durban and co-founder of ZenMacx, said many of the country’s macadamia products, which were in high demand internationally, saw a significant drop in market value.
Shezi said although it has been three years since the pandemic shocked the entire globe, the aftermath is still felt today as they battle for survival.
Knock-on effect of pandemic
“The restrictions imposed during the pandemic, almost three years later, have led to a substantial decline in global demand, forcing local farmers and supply chains to rethink their strategies.
“For ZenMacx, this means securing a minimum of two tonnes of macadamia nuts to maintain trade relations. Last year, with our limited yield, ZenMacx managed to sell raw and roasted nuts through door-to-door and word-of-mouth marketing,” she said.
Shezi explained that the pandemic not only reduced the market price of macadamia nuts but also disrupted ZenMacx’s initial business plan and financial projections.
Despite these setbacks, Shezi and her team have developed several remedial plans. They had initially hoped to use their first harvest profits to purchase a shareholding.
“Besides our traditional door-to-door and word-of-mouth marketing, we are now planning to enhance our presence with social media marketing strategies. Our efforts have been boosted by positive feedback on our current harvest’s sampling and grading, which meets next year’s targets.
“ZenMacx has also introduced a spraying, maintenance, and monitoring programme to increase our harvest to four tonnes, aligning with the supply chain’s minimum target,” she said.
Challenges of certification
Meanwhile, Limpopo macadamia nut farmer Lutendo Maumela, who has spent nine years in the macadamia industry, shared her experiences and challenges. She said she started without essential certificates.
“I faced difficulties in finding buyers willing to pay market prices. Without the required certifications, my business struggled to compete with others who had all the necessary papers.
“My business is still limited by the lack of a proper warehouse and necessary health inspections, which are crucial for obtaining the required certificates,” Maumela said.
She said despite the big mountains she has to climb, her passion for farming has not been dented and she is even more determined to push through even when the odds are against her many times.
Her strategies now involve targeting buyers who need large quantities of nuts. Despite not having all the required certifications, Maumela also pointed out that exporting is on the cards for her in future. “It is something that is definitely on the pipeline despite its stringent customs, certification requirements, and regulatory compliance.
“I advise new farmers to start small and persevere despite the challenges. While the profit margins might not always meet expectations, continuous effort and adaptability are crucial to keeping the business moving forward,” she said.
Maumela said macadamia farming in South Africa is a thriving industry with significant economic potential. While there are challenges to overcome.
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“The combination of favourable growing conditions, increasing global demand, and ongoing industry support bodes well for the future of macadamia farming in the country.”
Meanwhile, Thokozani Nxumalo, technical manager at Du Roi Multiplan, explained that for macadamia farmers, whether operating on a small or large scale, success begins with obtaining membership with the South African Macadamia Growers’ Association (Samac). He added that Samac plays a crucial role in the macadamia industry, providing numerous benefits and resources to its members.
Market development and international relations
“The organisation Samac is instrumental in formulating comprehensive market development strategies for South African macadamias. This includes fostering and maintaining relationships with international stakeholders such as importers and industry associations.
“It helps with collaborating with retailers, processors, and distributors to enhance the market for macadamias within South Africa. They assist farmers in navigating regulatory requirements and compliance standards for both local and international markets. This includes guidance on obtaining South African Good Agricultural Practices (SA-GAP) certification, a crucial step for farmers aiming to meet national market demands,” he said.
Understanding the importance of regulatory bodies, Nxumalo highlights two key certifications which are Global GAP and SA GAP.
According to Nxumalo, the Global GAP Certification is an internationally recognised certification system that is often a prerequisite for exporting produce to many countries.
It assures global buyers of the quality and safety of the produce, and the SA GAP Certification is a national certification programme specific to South Africa, focusing on local market requirements and conditions. It ensures that farmers meet the standards necessary for the domestic market.
“To meet these preferences, farmers benefit from partnerships with nurseries, facilitated by SAMAC, that provide access to macadamia varieties tailored to market demands.
“Modern consumers are increasingly conscious of socio-environmental issues. They prefer products sourced from areas where human rights are respected and fair trade practices are upheld. Eco-friendly and fair trade certifications add significant value, offering growers a competitive advantage in the market,” he said.
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