Macadamias Crop size is expected as 12.000-15.000 mton
This time we happily update you from the International Macadamia Symposium (IMS), which is currently held in Lincang, China. A well-organized symposium where roads are blocked like we are VIPS and a lot of friendly words are spoken.
At the same time a lot of information is shared, but to get a real good view is not that easy and sometimes even confusing. But one thing is clear that there is a giant awakening. For this season a crop of about 12.000-15.000 mton is expected, but there are quite some doubts about the quality in terms of the inshell product as well as the current capacity of the factories. Last year there were a lot of problems with unsound product and even though the Chinese are quick learners it seems the quality is still a bit of an issue. The commercial farms, however, seem to have it better under control, where the small scale farmers have rather poor trees and are pretty much uneducated. Anyhow, the Chinese inshell market is definitely going to use most of this product, which is currently quite attractively priced (USD 4.20-4.70).
There is also still a lot of stock of imported goods. This is not very strange for the time of the year, but it looks like it is a bit more than normal and the internet sales are not as vivid as they were the past three years. Interestingly, this situation seems to change a bit. Demand for merchandise is picking up since the Yunnan crop is not as good as anticipated in terms of quantity and quality. Moreover, the increased tariffs for US product might be a stimulation to focus more on macadamias again.
The kernel market remains quite strong with sufficient demand for practically all grades, but as is the case for the whole season in particular for Style 4L, where there has been a constant shortage. For kernel the recommendation remains unchanged to be covered till about July 2019.