South Africa Macadamia Production

Prepared by: Phil McCarthy

Date: 15th October 2014

Resource Rich

• Huge resources of available land and water

• Large pool of accessible labour

• Increasing investor interest from other

industries to expand into macadamias.

• Some processors buying up as much available land with access to irrigation.

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Generational farming families

• Good general knowledge of farming practices

• Proactive farmers

• Positive response with managing the application timing requirements of their work programs

• Great work attitude in finding a way to get things done.

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Larger farms between 200 – 600Ha

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2014 AMS 40th Anniversary Industry Conference proudly presented by

Small farms 30 - 100Ha

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Growers planting out all available land

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Labour skills have developed

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All nurseries booked out for at least two years and up to four years

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2014 AMS 40th Anniversary Industry Conference proudly presented by

2014 AMS 40th Anniversary Industry Conference proudly presented by

2014 AMS 40th Anniversary Industry Conference proudly presented by

2014 AMS 40th Anniversary Industry Conference proudly presented by

2014 AMS 40th Anniversary Industry Conference proudly presented by

Micro grafted Macadamia seedlings

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From seed to planting in 12 months

• Seedling out in 6 months on a solid root system

• Than select and graft trees at 6 months

• Grown on for farmers in large bags and advanced tree planted out at 12months

• Just about to take this commercial

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New trial on an open hydroponic system with these Micro grafted trees

• On a continuous irrigation at 0.4lt/hr at 1 bar

• Goal is to bring the trees into production in 2 years

• High density planting

• No vigorous pruning but by tree manipulation

• Goal is 4 tonne per Ha in year 3.

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Advanced irrigation systems

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Fertigation with computer programming

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Mixture of sprinklers and drippers

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Very keen to learn

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Quick to pick up on central leader pruning

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Good tree health

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2014 AMS 40th Anniversary Industry Conference proudly presented by

2014 AMS 40th Anniversary Industry Conference proudly presented by

Accepting to change

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Spray application has improved

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Huge labour pool available

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Majority of nuts still hand harvested

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Modern post harvest equipment

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Labour has high management requirement

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Modern drying systems

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2014 AMS 40th Anniversary Industry Conference proudly presented by

Move in land values

• Old Tobacco lands under irrigation are in the high demand

• 2012 value:- $5,000.00/Ha

• 2014 value:- $10,000.00/Ha

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Plantation Values

• Established producing plantations;

• 2012 value:- $15,000.00/Ha

• 2014 value:- $30,000.00/Ha

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Main Varieties, SKR & Yields:

50% of plantings Beamont, 27 – 35% SKR,

4 – 6 Tonne/Ha.

30% plantings Nelmac 2, 35 – 40% SKR,

3 – 5 tonne/Ha.

Balance of small plantings some 816 & A4,

38 – 44% SKR.

Sales 50 / 50 NIS to Kernal.

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Last trip in 2006, tree training

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2014 AMS 40th Anniversary Industry Conference proudly presented by

Same trees in 2014

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2014 AMS 40th Anniversary Industry Conference proudly presented by

814 was best yielding at 6 - 8 tonne/Ha

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High density in 2006

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Nine years later starting tree removal

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Growers on a high

• Great SKR price

• Good yields

• Lower labour cost than us

• Sell on the same market

• Great return on investment

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Lowveld South Africa

• Includes, White River, Barberton and Nelspruit growing areas

• Macadamias are a key economic driver

• Makes up a big part of the country’s R2billion turnover in this industry

• Processor Joint venture with Australian company, Green Farms & Suncoast Gold

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Macadamia nuts represent only 1% of tree nuts globally

South Africa just recently surpassed Australia and now is the largest supplier internationally

Processors now with volume by passing traders on a volatile market, no middleman

This has raised growers prices significantly

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2014 Season

• Samac projects an optimistic figure of 43,000 tones

• Green Farms Jill Whyte says 40,000 tones may be a closer figure

• SA tonnage down due stress issues with the older, larger trees this season

• Also spraying is a constant challenge

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Still planting trees

• Within 4 – 5 years all the suitable land around Nelspruit White River areas will be planted out with macadamias

• East Cape Macadamia are planning to plant a 4000Ha farm

• Another group is planting out a 1000Ha farm in Natal

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Long term grower security??

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Yes Big risk but big returns

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Roadside sales everywhere

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Land claims

• Even though land claims could put uncertainties in producers minds – the macadamia industry's success story has left producers positive and gave them confidence

• Green Farm played a significant role in turning things around after joining hands with the industry, they raised prices significantly

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Go with the flow

• We need to work with the South Africa growers and producers to develop a bigger and better sales and marketing system and develop an foster grower information transfer

• If we work together to develop the industry and markets we can all get the rewards

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