Macadamia Market in Kenya And in The Export Market 2021

Macadamia Market Updates

The year 2020 was the worst for macadamia farmers in Kenya, obviously because of the Covid19 pandemic that affected logistics and markets worldwide. Macadamia nuts prices in Kenya went down to the lowest in the recent past, with the companies that remained operational buying in-shell nuts for as low as Ksh40 per kilo. 

Now the Covid restrictions have eased up in many countries and the distribution channels are finally resuming so we expect that the macadamia business to recover as global markets reopen. Prices are also expected to rise to an all time high considering that the market was seriously underserved last year. 

Macadamia Production in Kenya vs the Market Demands

Macadamia farmers in Kenya are currently producing just about 42,000 tonnes of in-shell nuts, according to the Nut Processors Association of Kenya (NutPAK). This constitutes only 20% of the global supply.

However, there is a remarkable growth in the production volumes, something that has earned Kenya recognition and the chance to host the 9th International Macadamia Symposium in August 2021.

This event which brings together major industry players from all over the world is held after every 2 years. During the last even that was held in 2019, the symposium’s message to all macadamia nuts producing countries was to scale up production in order to meet the growing demand in the world market.

Small Scale Macadamia Farmers Play an Important Role in Production

In Kenya, the majority of macadamia nuts are produced by small scale farmers mainly in Embu, Muranga, Meru and other parts of central. The country currently has over 200,000 small scale producers of the nuts.

A well done macadamia tree plantation

The production capacity of these farmers is still very low and does not even meet the local demand. While we had only 4 macadamia nut processors in Kenya in the year 2009, we now have 30 such established factories.

According to NutPAK, the processors in the country currently have the capacity to process 90,000 tonnes of in-shell nuts. That means they are forced to operate at only 50% of their capacity due to lack of supplies.

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Increasing Macadamia Nut Production in Kenya

In an effort to fill this supply gap, several organizations have come up to support the small scale farmers of macadamia. For example, the Agriculture and Food Authority (AFA) is planning to supply at least 3 million macadamia seedlings to small scale farmers in the country.

The areas targeted by this effort are those that have traditionally not been producing the nuts but have conducive climate for their growth. These include Uasin Gishu, Taita Taveta, Elgeyo Marakwet and Nandi Counties.

De-shelled Macadamia Nuts Have Great Demand

Kenyan macadamia are mainly exported to China, Europe and America. Since the year 2009 when the government banned the export of in-shell nuts, the country has been processing all its produce and before taking it to the market. China is a major importer of the Kenyan nuts with an ever increasing demand.  

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The demand for the macadamia nuts has been increasing a lot over the past years, according to Marco Russo, managing director of Macadamia Brazil, a company that exports both in-shell and deshelled nuts from Brazil. “There is currently more demand than production, but it is difficult to quickly increase the volumes for the macadamias in order to meet this increasing demand. The macadamia trees take up to eight years to mature and reach optimum production, so it is really a long-term investment.”

The price for in-shell macadamia nuts hit Ksh 200 a kilo last harvesting season and this has encouraged more farmers to take care of the trees they have an plant more in order to increase production. AFA projects that with proper support, macadamia production in Kenya will reach 61,000 tonnes in the next 5 years.

With the projected future of the crop, macadamia farming is a great way to invest for your future. If you would like to invest in it and you need support, call or email us any time through the contact us page. 

Professional Macadamia Farming in Kenya: Full Guide

Have you noticed that there is renewed energy in macadamia production by farmers in Kenya? This is because the agribusiness trends in the country are nowadays influenced a lot by the export market.

Macadamia farming activities in Kenya

The demand for these nutritious nuts and their products is on a sharp rise worldwide. Our country is reacting by exporting more of the produce; that is why processing companies have set up shop in Murang’a, Embu, Taita Taveta and now expanding to Bungoma.

Is this the right time to invest in Macadamia farming?

Yes, this is actually the best time to invest in commercial production of this brown gold. So far, the country has over 30 industries buying the nuts from farmers. Most of them simply process the produce for export. That means there is now ready market for your produce.

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And it is a fact that the farmers currently producing macadamia in Kenya do not have the capacity to satisfy the demand from these processing companies. That is why the price is currently on an upward trend.

How long does grafted macadamia take to mature?

Grafted macadamia trees start fruiting after 2 years and reach an economic production in the third year. At this time, a tree would give you 20 to 30 kilos of nuts per harvest. The production increases steadily over time and by the 7^th year, each tree should give an average of 100 kilos per harvest. Buy grafted macadamia seedlings from Richfarm Kenya.

The rate at which your tree grows and reaches maturity (full production) is also dependent on how well you water it and feed it with the right minerals. Macadamia trees require a lot of water especially in the hot areas since they have a high transpiration rate – losing water through the leaves.

Where are macadamia best grown in Kenya?

Macadamia nuts are mainly grown in the central part of Kenya such as Muranga, Kiambu, Kirinyaga, Embu and Meru. These are the places that the tree was first introduced when it came into Kenya. With time, the tree has spread to other areas of the country such as Bungoma, Kakamega, Kitale, Machakos and Taita Taveta.

Macadamia trees, especially the Muranga 20 variety, are highly adaptive to different climatic conditions. As such, they can be grown in most parts of the country. However, the cooler and rainy areas seem to be more favorable. The key ingredient in successful macadamia farming in the lower parts of Kenya is irrigation. The trees will need a significant amount of water especially when they are young in order to grow well.

How much do macadamia nuts fetch in the Kenyan market?

While macadamia are the most expensive nuts in the world, it is unfortunate that Kenyan farmers are not yet being paid fairly for their raw nuts. A kilo of the nuts was bought at the highest price of Ksh 230 at the close of the harvesting season in 2019. This is much lower compared to what farmers in other places in the world get. For example, farmers in Australia earn as much as Ksh 600 per kilo of raw nuts.

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So is macadamia farming in Kenya profitable?

Well, the macadamia farmers in Kenya still make some good amount of money as profits. We could do a quick calculation here: Mature macadamia trees produce an average of 100 kilos per year. An acre holds about 80 trees hence a total production of 8000 kilos per acre in a harvest. If this farmer sells their produce at an average of Ksh 150 per kilo, he will have a turnover of Ksh 1.2 million. The cost of maintaining a mature macadamia orchard will hardly get beyond Ksh 100,000 so the farmer has a cool million to walk home with.

How much water do macadamia trees need?

In Kenya, farmers essentially produce macadamia without ever having to irrigate them. But of course you know what that means: their yields are always below the optimum.

For optimum production, a macadamia tree will need at least 40 liters of water every day throughout the flowering and fruiting period. Irrigation should be stopped when the nuts mature to allow them to harden off. This is a critical fact that anyone seeking to commercially produce macadamia in hot areas that have rains below 800 mm annually.

Which is the best macadamia variety in Kenya?

We consider Muranga 20 the best variety of macadamia in Kenya. This is because it adapts well to both cool and hot climates and yield just as high in whichever climate you plant it. The nut quality and weight is also higher compared to other varieties. Its vigorous growth also means that the farmer does not have to wait for so long before getting their first fruits.

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Macadamia farming is rather a secure form of investment: it will call on your attention less often than most other crops and is definitely a life-long income generator. We have helped a good number of people establish their macadamia farms and you can also reach us on 0724698357 to have yours started.