Macadamias will be cheaper as a global glut caused by COVID lockdowns and increased plantings, send farmgate prices tumbling.
Just a few years ago, growers were being paid highs of up to $6.00/kg for nut-in-shell.
Now, many farmers have been offered around $1.70/kg for the new season's harvest, which is well below the cost of production.
Australians are being urged to help, by eating more of the delicious native nut.
"Due to COVID, there's a pretty large stockpile of kernel stocks in Australia and internationally and until that stock starts to move through the system things will be very tough," Nutworks CEO Wayne Gersbach said.
"We're offering $1.70 at a 10 per cent moisture basis, that's a notional price, so that might go up or down depending on market conditions as the year progresses."
From its headquarters at Yandina on the Sunshine Coast, Nutworks sources macadamias from about 100 growers in Queensland and New South Wales, traditionally exporting at least 80 per cent of its nut intake as nut-in-shell or kernel.
"It has been and will be a very tough season again for the growers this year," Nutworks international sales manager Sarah Leonard said.
"Out of that, though, I do see opportunity, the price for macadamias that will hit the shelf will be more affordable for the everyday consumer.
"We want to put the macadamia nut on the map."
Driving demand
Macadamia nuts still represent less than 2 per cent of global tree nut consumption, meaning that billions of people have never tried them.
Nutworks has heavily invested in expanding its retail product range with new snacking, chocolate, confectionery, health food and home chef products like macadamia oil, which has a high smoke point of between 210-234 degrees Celsius.
The gourmet range includes flavours like maple pancake, manuka honey, salted chilli, roasted garlic, salt and vinegar, wasabi, and rosemary and sea salt.
The Asian market loves abalone flavoured macadamias and Nutworks has been working closely with a retailer in Hong Kong that is buying a wider range of its packaged products.
"We need to be pushing the provenance of Australia as the birthplace of macadamias, they've been here for thousands of years," Nutworks grower liaison manager Chris Fuller said.
"In fact, 90 per cent of every tree in the world planted at the moment can be traced back to one mother tree in Australia, it's an incredible story."
Mr Fuller said it would be a very challenging time for growers, especially those who had invested heavily in young plantings, that after six years, are just starting to produce nuts.
"We know cost of production is probably up around the $2.80/kg mark [for nut-in-shell]," Mr Fuller said.
"We know [the current price] it's not sustainable, definitely not in the long term, not even in the medium term so we are hoping to turn that around as soon as we can."
When prices for macadamias boomed before the pandemic, millions of macadamia trees were planted around the globe.
"The world macadamia organisation forecasts the crop will double in the next five years and triple in the next ten, so that, culminating with the COVID increase in stock, has created the perfect storm," Mr Gersbach said.
Australian Macadamia Society CEO Clare Hamilton-Bate said the current market situation also provided opportunity.
"We want to introduce more consumers and markets to the wonderful taste, texture and versatility of macadamias," she said.
