AGRICULTURAL NEWS - Alex Whyte, marketing manager of Green and Gold Nuts is convinced that the industry has potential for significant growth.
Green and Gold Nuts, a South African-based company, is the world’s largest, single marketer of macadamia nuts. It exports to the US, Europe, Australia, China, and other countries.
At the same time, South Africa is the biggest producer of macadamia nuts. The number of trees planted here increased from one million in 1996 to 6,5 million, over an area of 21 500ha, in 2016.
The global macadamia industry remains remarkably small, however, with these nuts comprising only 1,5% of total tree nut volume.
“The potential for growth in the industry is therefore significant, with South Africa standing to gain the most from any expansion,” says Green and Gold Nuts marketing manager, Alex Whyte.
“We need to commit to considerable capital expenditure at processing level and collaborate, possibly through a levy, on the development of new markets. Specifically, we should look at the food ingredient sector.”
Because of their taste and texture, macadamias are an ideal ingredient in food preparation.
“We could easily emulate the almond industry, in which 80% of the product is sold as an ingredient and only 20% as snack foods.”
The macadamia industry has benefitted from the recent increase in the number of people shifting from a diet high in carbohydrates to one high in ‘good’ fats.
“We’re proactively introducing macadamias as snacks to markets where they’re not yet consumed,” adds Alex.
“It’s now recognised that fat plays an essential role in keeping the body healthy. Plant sources of fat are healthier than animal sources because they’re high in polyunsaturated and monounsaturated fats. Nuts are particularly rich in them.”
The modern choice
Nuts fit comfortably into today’s lifestyles, where there’s a shortage of time, but an increase in disposable income.
“In 1950, the average European household was spending 25% of its income on food, most of it in the form of staples,” explains Alex.
“Now, because people are earning more, the cost of food constitutes only 8% of what they spend. They can therefore afford more expensive types of food such as nuts.”
Currently, industry growth is being driven by China, where the fast-growing middle class has become one of the world’s most avid consumers of tree nuts.
Indeed, says Alex, China is the SA macadamia nut industry’s single biggest market, importing 50% of the country’s output.
Dealing with this market, however, has proved to be a challenge. Due to widespread corruption, which China’s government is trying to stamp out, Green and Gold Nuts sees most of its product being sold on the ‘grey market’ – that is, through distribution channels that are legal but unintended by the original manufacturer.
“So, our largest market doesn’t adhere to trade policies. This is unacceptable and unsustainable,” says Alex.
At the same time, Australia, the world’s other main producer of macadamias, has negotiated far lower import duties with China.
At the same time, South Africa is the biggest producer of macadamia nuts. The number of trees planted here increased from one million in 1996 to 6,5 million, over an area of 21 500ha, in 2016.
The global macadamia industry remains remarkably small, however, with these nuts comprising only 1,5% of total tree nut volume.
“The potential for growth in the industry is therefore significant, with South Africa standing to gain the most from any expansion,” says Green and Gold Nuts marketing manager, Alex Whyte.
“We need to commit to considerable capital expenditure at processing level and collaborate, possibly through a levy, on the development of new markets. Specifically, we should look at the food ingredient sector.”
Because of their taste and texture, macadamias are an ideal ingredient in food preparation.
“We could easily emulate the almond industry, in which 80% of the product is sold as an ingredient and only 20% as snack foods.”
The macadamia industry has benefitted from the recent increase in the number of people shifting from a diet high in carbohydrates to one high in ‘good’ fats.
“We’re proactively introducing macadamias as snacks to markets where they’re not yet consumed,” adds Alex.
“It’s now recognised that fat plays an essential role in keeping the body healthy. Plant sources of fat are healthier than animal sources because they’re high in polyunsaturated and monounsaturated fats. Nuts are particularly rich in them.”
The modern choice
Nuts fit comfortably into today’s lifestyles, where there’s a shortage of time, but an increase in disposable income.
“In 1950, the average European household was spending 25% of its income on food, most of it in the form of staples,” explains Alex.
“Now, because people are earning more, the cost of food constitutes only 8% of what they spend. They can therefore afford more expensive types of food such as nuts.”
Currently, industry growth is being driven by China, where the fast-growing middle class has become one of the world’s most avid consumers of tree nuts.
Indeed, says Alex, China is the SA macadamia nut industry’s single biggest market, importing 50% of the country’s output.
Dealing with this market, however, has proved to be a challenge. Due to widespread corruption, which China’s government is trying to stamp out, Green and Gold Nuts sees most of its product being sold on the ‘grey market’ – that is, through distribution channels that are legal but unintended by the original manufacturer.
“So, our largest market doesn’t adhere to trade policies. This is unacceptable and unsustainable,” says Alex.
At the same time, Australia, the world’s other main producer of macadamias, has negotiated far lower import duties with China.
