30% 70%€¦ · increasing production, ground-breaking innovation, outstanding quality, and...

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As the world’s leading macadamia producer, the Australian macadamia industry supplies more than 40 countries globally. We support our product by investing in active product promotion in Australia, Japan, China, South Korea, Taiwan and Germany, reaching more than 100 million consumers in the last 12 months.

In October 2017, the industry launched a new initiative to drive innovation in the ingredient sector. This investment, coupled with the activities of Australian suppliers, will be a major factor driving demand around the world in the years to come.

Australian grown macadamias represent the pinnacle of quality thanks to our investment in research and development and the commitment of our growers and processors to world-class farming and post-harvest practices.

Australia’s reputation is built on consistent, high quality supply, and in 2017, our macadamia industry achieved 100% compliance in the Federal Government’s National Residue Survey for the 20th consecutive year. This record is unmatched by any other Australian fresh product.

26,000Estimated hectares under planting by 2020

OVER

$250MFarm-gate valueof Australia'smacadamia industry

ALMOST

$650MRetail value of Australia’s macadamia industry

OVER

48,000TONNESVolume of 2016 Aus macadamia crop (in-shell) / 3.5% moisture content

70%Proportion of Australian crop that is exported

ABOUT

22,000Number of hectares under planting

700Number of Australian macadamia growers

30%Percentage of Australia’s annual production sold as in-shell

$2.5MAnnual investment in Research & Development

BUNDABERGFastest growing macadamia farming region

AUSTRALIA’S MACADAMIA INDUSTRY IN NUMBERS

SHAPING AN INNOVATIVE FUTURE FOR AUSTR ALIAN MACADAMIAS

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COMMITTED TO CONTINUAL IMPROVEMENT

The Australian macadamia industry’s commitment to continual improvement delivers consistent and increasing production, ground-breaking innovation, outstanding quality, and long-term sustainability.

F O C U S E D O N P R O D U C T I V I T Y

New orchard management practices are driving productivity to help meet growing demand.

• Integrated orchard management (IOM): integrated management of canopy, orchard floor and drainage

• Integrated orchard nutrition (ION): increasing organic matter to achieve the right nutrient balance and optimise soil moisture

• Strategic integrated pest management (IPM): simultaneous management of multiple key pests using a number of different techniques

Several innovation projects are laying foundations for further growth to ensure our industry remains at the forefront of world production.

• Small Tree High Productivity initiative: trialling higher density plantings, trellising, limb bending and dwarf rootstock with the aim of boosting crop yield per hectare

• Pollination advances: increasing pollination through variety selection and planting, and increasing pollinators

• 20-year $10 million breeding program: four new varieties set for release in 2018. Trees are bred for increased and faster yields, higher pest and disease resistance and more manageable canopies.

S U S T A I N A B I L I T Y A N D C O M M U N I T Y

Our macadamia growers are committed to conserving the natural resources on which our world-class product relies. Many growers have regenerated remnant rainforest on their farms to protect the natural

topography and waterways of the region, creating a haven for native wildlife and insects, and improving soil health. Our industry leads the way in biological control on-farm and encourages growers to look to organic and alternative orchard management solutions. 100% of the harvested nut is used, with nothing going to waste.

We support the local communities in which our industry operates by sponsoring local food festivals, speaking at local schools and working with community groups to protect endangered species like the koala.

P R E M I U M Q U A L I T Y A N D F O O D S A F E T Y

Food safety is a top priority for Australia’s macadamia industry. Our approach is underpinned by sophisticated production processes, generations of knowledge about quality on farm and in factory, a commitment to biological pest control, and Australia’s reputation as a clean and green environment. We were the first macadamia producer to implement rigorous quality standards and testing protocols that remain unmatched by any other producing region. All processors are HACCP accredited and most have further quality management systems.

Our standing as the producer of the world’s most pristine macadamias is validated by the results of the Australian Government’s National Residue Survey, a program that screens Australian crops for a range of chemical pesticides and environmental contaminants.

C O M M I T T E D T O C O N S E R VA T I O N

The Macadamia Conservation Trust is a not for profit registered environmental organisation. The Trust aims to conserve remaining wild macadamia trees in their native habitat for future generations. It helps to fund Wild About Macadamias, a project that conserves and protects local wild macadamia species that are under threat.

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Macadamias are grown along the eastern coast of Australia from Nambucca Heads in the south to Mackay in the north. There are small plantings in Western Australia. Approximately 40% of the Australian crop is produced in Bundaberg and 40% in the Northern Rivers region.

Australia is home to approximately 700 macadamia growers and 6.9 million macadamia trees on 22,000 hectares.

In 2017 Australia is forecast to produce 44,000 tonnes, which is 10% lower than expected. Severe weather from Cyclone Debbie in March and record rainfall in the Northern Rivers in June disrupted harvesting and caused crop loss.

It is early days for the 2018 crop but so far conditions have been favourable during flowering resulting in

a strong nut set. Australian macadamia trees and orchards are in good health and October delivered a pleasing level of rainfall.

Over the next two years we expect plantings of 2,000 hectares a year in Queensland and 3,000 hectares a year in the Clarence Valley which is just south of the Northern Rivers in New South Wales.

Around one third of macadamia trees currently under cultivation are yet to reach full production.

AUSTR ALIAN GROWING REGIONS

W E S T E R N AU S T R A L I A

S O U T H AU S T R A L I A

N E W S O U T H WA L E S

TA S M A N I A

BUNDABERG

MACKAY

GYMPIEGLASSHOUSE

NORTHERN RIVERS

MARGARET RIVER

NAMBUCCA

EMERALD

N O R T H E R N T E R R I TO RY

Q U E E N S L A N D

VICTORIA

P R O D U C T I O N I S B R O K E N D O W N B Y R E G I O N A S F O L L O W S :

Table 1: Australian macadamia production by growing region for 2016. Tonnes in shell, 3.5% moisture contentSource: Australian Macadamia Handlers Association

BUNDABERG NORTHERN

RIVERS GYMPIE GLASSHOUSEMOUNTAINS

NAMBUCCA TROPICAL QLD/ MARGARET RIVER

19,900 19,250 3,480 2,820 2,350 800

41% 40% 7% 6% 5% 1%

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S E A S O N

The macadamia growing season can be broken down into three main periods:

September: Flowering beginsDecember – January: Nuts begin to form in clusters, their shells harden and

oil rapidly accumulatesFebruary – September: Mature nuts fall to the ground and are harvested with

purpose-built harvesting machinery

W E A T H E R C O N D I T I O N S

Weather conditions have been challenging for 2017, with two major events significantly impacting harvest.

P R O D U C T I V I T Y

The Australian macadamia crop has grown steadily since 2013, driven largely by sustained investment in productivity improvements. Growers have adopted new industry-wide productivity initiatives including Integrated Orchard Management and Integrated Orchard Nutrition, which are delivering better soil and tree health and higher yields. Average yields have increased from 2.4 tonnes per hectare to 3.2 tonnes over the last five years with the best Australian growers achieving 6.0 tonnes per hectare.

Innovative orchard practices, coupled with substantial investment in new plantings and the establishment of large new orchards, means the Australian macadamia crop is set for consistent, steady growth in the coming years.

2.4T/HA

2.8T/HA3.0T/HA

3.2T/HA

3.0T/HA

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

2013 2014 2015 2016 2017 FORECAST

VO

LU

ME

(M

T)

Figure 1: Australian production volume (in shell, 3.5% moisture) Source: Australian Macadamia Handlers Association

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A U S T R A L I A N I N D U S T R Y VA L U E

The Australian macadamia industry farm-gate value has more than doubled since 2013, translating to almost AUD$600 million at retail.

Figure 2: Australian production value (AUD, in shell) Source: Australian Macadamia Handlers Association

$106

$167

$246

$287 $260

$0

$50

$100

$150

$200

$250

$300

2013 2014 2015 2016 2017 FORECAST

FA

RM

GA

TE

VA

LU

E(A

UD

, M

ILL

ION

S)

M A T ( J U L Y - J U N E )

A U S T R A L I A N N U T I N D U S T R Y

Nuts play a vital role in Australia’s horticulture export program and their export value has more than doubled since 2013. In the 12 months to June 2017 the total export value of tree nuts was 40% of all Australian horticultural exports, with almonds and macadamias representing 89% of nuts’ export value.

Growth is being driven by strong prices, an increasingly health-conscious consumer mindset and rising consumption by emerging markets within Asia. Australian nut producers have invested heavily in expanding output volume while maintaining an unwavering focus on quality. Export markets in Asia, Europe and the US recognise Australia as a source of premium quality product.

$0

$100

$200

$300

$400

$500

$600

$700

$800

$900

$1,000

2013 2014 2015 2016 2017


VA

LU

E (

AU

D,

MIL

LIO

NS

) Nuts Fruit Vegetables

Figure 3: Australian horticultural exports (AUD, value) Source: Australian Bureau of Statistics

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G L O B A L T R E E N U T P R O D U C T I O N

In the 2016 season, world tree nut production was estimated at 3.8 million tonnes (kernel basis except for pistachios), and the forecast for 2017 is expected to reach 4.0 million tonnes, a 5.8% increase in worldwide production. Pistachios appear to be the crop that will experience the greatest growth.

Four products account for more than 70% of total global tree nut production: almonds, cashews, walnuts, and pistachios.

G L O B A L M A C A D A M I A P R O D U C T I O N

Macadamias represent less than 2% of global tree nut production.

Global macadamia production is on the rise, with established growing regions continuing to grow their plantings and emerging regions, particularly China, featuring heavily in production forecasts.

Production of macadamias is currently more evenly distributed than the major tree nut varieties, with no single producer representing more than 30% of production. However, this has not made the supply of macadamias immune to the effect of major weather events. In 2016, South Africa experienced the worst drought in 100 years, which saw production in South Africa and surrounding producing countries fall significantly. This resulted in flat total production growth, with the impact extending into 2017.

Established macadamia producing regions currently have some 90,000 hectares under planting, and this is expected to grow to more than 115,000 hectares by 2022. Emerging regions across Africa, South America and Asia are forecast to represent around 15,000 hectares by 2022.

China may be the game-changer. Estimates are that China will have around 200,000 hectares under planting by 2022, but some believe this figure could be as high as 300,000 hectares, setting the scene for global production to at least double, if not triple over the next six years.

G L O B A L M A C A D A M I A C O N S U M P T I O N

Globally around 35,000 tonnes of kernel are produced and consumed each year.

Producing origins United States and Australia are the largest consumers of raw macadamia kernel, Brazil is also a large nett consumer. Japan and Germany are the largest consumers of the non-producing countries and it is likely that total consumption in Germany is significantly higher once value-added products are factored in. At least some of the product attributed to the Netherlands and Luxembourg is likely to be valued-added in these countries and on-sold.

China consumes almost all the in shell macadamia product sold globally, estimated at 35,000 - 45,000 tonnes in shell per annum.

Figure 4: Top 5 macadamia kernel consuming countries, 2016

Source: Global trade atlas, UN Commtrade, INC international data collection, Australian Macadamia Handlers Association

United States51%

Australia16%

Japan15%

Germany12%

Brazil6%

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Until 2012, kernel represented more than 90% of Australia’s macadamia sales. This has changed in the last five years with a substantial increase in demand for in shell driven by China’s preference for this product format. Australian sales of in shell now account for 35% of total production.

Australia’s macadamia industry has a heavy export focus with approximately 70% of the crop sold to overseas markets. Asia takes the major share representing 44% of total kernel sales and almost 100% of in shell sales.

2013 2014 2015 2016 2017

2,500

5,000

7,500

10,000

12,500

VO

LU

ME

(M

T)

Figure 5: Australian kernel sales by market (volume): MAT Source: Australian Macadamia Handlers Association


AUSTR ALIAN MACADAMIA SALES

2013 2014 2015 2016 2017

MAT (JULY-JUNE)

2,500

5,000

7,500

10,000

12,500

15,000

17,500

VO

LUM

E (M

T)

Figure 6: Total Australian in shell sales (volume): MAT Source: Australian Macadamia Handlers Association

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Figure 7: Australian kernel sales distribution by market (volume): MAT Source: Australian Macadamia Handlers Association

34%38%

29%34% 32%

18% 13%

14%

17% 19%5%

4% 7%5%

4%7%

6%

5%4%

22% 15% 8%8%

7%

9%9% 11%

9%9%

5%6% 7%

8%7%

11% 15% 14% 10% 8%

0%

25%

50%

75%

100%

2013 2014 2015 2016 2017

VO

LU

ME

(M

T)

Domestic Japan China Korea Taiwan Other Asia Germany Other Europe USA Other


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A U S T R A L I A

Australia is the second largest consumer of macadamia kernel in the world behind the US and more than 95% of the kernel consumed in this market is Australian origin. Sales were stable over the past 12 months. Strong global pricing saw retail prices increase which has impacted the penetration of macadamias into Australian households. However, those households that are purchasing are actually purchasing increased volumes.

Snack usage dominates in Australia. Ingredient usage is broad across several categories including cereals, bakery, ice-cream and confectionery. There are many niche manufactured food products available.

- 500

1,000 1,500

2,000 2,500 3,000 3,500 4,000

MAT (JULY-JUNE)

VO

LUM

E (T

)

Figure 8: Australian macadamia kernel sales (volume) to the domestic marketSource: Australian Macadamia Handlers Association

2013 2014 2015 2016 2017

Figure 9: Macadamia kernel usage by segment, Australia

Source: Industry estimates

Snack65%

,

Ingredient25%

Foodservice

10%

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J A P A N

Macadamia imports to Japan in the last 12 months have been steady despite rising kernel prices exacerbated by a weakened exchange rate for the Yen. Australia continued to be the major supplier and increased its share of imports to 65%. This market is well established.

Ingredient usage dominates, and while traditionally this has been in confectionery, in recent years it has expanded to other products including bakery. There has been growth in the use of macadamias in snack products.

Figure 10: Macadamia kernel usage by segment, Japan


Snack20%

Ingredient70%

Foodservice

10%

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

2013 2014 2015 2016 2017

VO

LU

ME

(K

G)

Australia South Africa Kenya Malawi United States Guatemala Brazil

Figure 11: Macadamia kernel imports (volume) to Japan Source: Japan Ministry of Finance

MAT (JULY-JUNE)

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C H I N A

Total macadamia kernel imports to China and Hong Kong increased in the last 12 months with Australia the dominant import origin. Kernel use is still relatively low in China (compared with in shell) however it is expected demand for kernel will continue to increase in the

coming years as the product becomes better known and adopted by younger, mobile consumers. Online shopping is a key sales channel for kernel and in shell in China and macadamias are often used as a product to promote or elevate brands. Kernel consumption is spread across the year whereas in shell remains heavily focused on Chinese New Year.

0

10,000,000

20,000,000

30,000,000

40,000,000

2013 2014 2015 2016 2017

MAT (JULY-JUNE)

VO

LU

ME

(K

G)

Australia South Africa Zimbabwe United States Brazil Vietnam Costa Rica Guatemala

Figure 13: Macadamia in shell imports (volume) to China and Hong KongSource: China Customs, Hong Kong Census & Statistics Department

1,000,000

0

2,000,000

3,000,000

4,000,000

2013 2014 2015 2016 2017

MAT (JULY-JUNE)

VO

LU

ME

(K

G)

Australia South Africa United States BrazilVietnam Costa Rica Guatemala KenyaTanzania Malawi China (imports to HK) Others

Figure 12: Macadamia kernel imports (volume) to China and Hong Kong (summed)Source: China Customs, Hong Kong Census & Statistics Department

Total macadamia in shell imports to China (and Hong Kong) fell in the last 12 months primarily because of limited supply and a very poor crop from South Africa. Imports from Australia rose. Demand and interest remains high.

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S O U T H K O R E A

Total macadamia kernel imports to South Korea continued to rise again in the last 12 months with Australia remaining the dominant supplier. There have been many new products released in the last 18 months and further product launches expected in the next 12 months. Korea is now ranked in the top 10 highest kernel consuming markets in the world.

Figure 14: Macadamia kernel imports (volume) to South Korea Source: Korea Customs and Trade Development Institution

99% 90%97% 99% 99.5%

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

2013 2014 2015 2016 2017

VO

LUM

E (K

G)

Australia South Africa Kenya United States China New Zealand/Tokelau Vietnam

MAT (JULY-JUNE)

Figure 15: Macadamia kernel usage by segment, South Korea


Snack60%

Ingredient30%

Foodservice

10%

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T A I W A N

Total macadamia kernel imports to Taiwan fell in the last 12 months as a result of tight supply and rising prices. Australia retained a dominant market share. Macadamias feature primarily in the confectionary sector as an ingredient in nougat, as well as in the bakery segment.

58% 70% 47% 44% 41%

0

200,000

400,000

600,000

800,000

1,000,000

2013 2014 2015 2016 2017

VO

LU

ME

(K

G)

Australia South Africa Kenya Malawi United States Guatemala China Vietnam

Figure 16: Macadamia kernel imports (volume) to Taiwan Source: Taiwan Directorate General of Customs

MAT (JULY-JUNE)

Figure 17: Macadamia kernel usage by segment, Taiwan


Snack20%

Ingredient70%

Foodservice

10%

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E U R O P E

Total macadamia kernel imports to Europe remained strong despite tight supply and Australia maintained a solid market share of 21%. Germany remains the major user of macadamias in Europe however other markets are developing and 45% of Australian kernel is sold elsewhere. Macadamias are still primarily used as a snack product in Europe and there is considerable opportunity to increase usage in manufactured products.

Figure 18: Macadamia kernel imports (volume) to Europe Source: Eurostat

17% 21% 21% 19% 21%0

2,500,000

5,000,000

7,500,000

2013 2014 2015 2016 2017

VO

LU

ME

(K

G)

Australia South Africa Kenya Tanzania

MAT (JULY-JUNE)

,

Figure 19: Macadamia kernel usage by segment, Germany


Snack80%

Ingredient15%

Foodservice

5%

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U N I T E D S T A T E S

Total macadamia kernel imports to the United States fell significantly in the last 12 months following a record previous 12 months. A combination of inventory buildup in the prior year and higher prices are thought to be the main causes. Imports have begun to return to a more normal pattern in the most recent two quarters. The United States is the single largest user of macadamia kernel and there is further opportunity for development.

Figure 20: Macadamia kernel imports (volume) to United States Source: USDA

9%10% 13% 11% 8%

0

5,000,000

10,000,000

15,000,000

2013 2014 2015 2016 2017

VO

LU

ME

(K

G)

Australia South Africa Kenya Malawi

MAT (JULY-JUNE)

,

Figure 21: Macadamia kernel usage by segment, United States


Snack50%Ingredient

40%

Foodservice

10%

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HE ALTH AND MACADAMIAS

Promotion of the health benefits of nuts is driving the growth of the tree nut category globally. The importance of healthy eating is increasing and consumers are more frequently choosing nuts as a healthy snack option and incorporating them into their daily diets. There has also been a resurgence in support for healthy fats and this has seen consumers embracing foods such as nuts, avocado and olive oil as they shift away from the low fat diet movement of previous years.

Macadamias are the ‘all-round healthy nut’ and contain beneficial vitamins and minerals including thiamine (B1), manganese, magnesium and potassium. They also contain plant sterols, which help reduce cholesterol re-absorption by the body, as well as antioxidants.

Nuts are high in fat and energy dense. As a result, their consumption has traditionally been restricted in diets designed to manage weight and diabetes risk. However, there is now a growing body of evidence

that challenges these assumptions and instead makes a favourable case for daily nut consumption for management of weight, diabetes, blood cholesterol and heart health. Regular nut consumption has even been shown to reduce premature death from all causes by 20%1.

A 2016 market research study2 found a growing awareness of the key health benefits of nuts among both health professionals and consumers, in particular an increased understanding of the role of ‘healthy fats’ in nuts. The study also revealed a marked improvement in knowledge around the role nuts play in the prevention of heart disease, diabetes and obesity.

Results from Australia’s Health Survey (2011-13) found Australians are eating just 6g of nuts a day on average – well short of the Australian Dietary Guidelines’ recommended 30g serve. Around a 30g handful a day helps meet daily nutrient needs and maintains general health.

1 Bao Y et al, Association of nut consumption with total and cause-specific mortality N Engl J Med 2013; 369:2001-11

2 Health Professional and Consumer Market Research 2016, Nuts For Life

PREVENT

HEART

DISEASE

PREVENT

DIABETES

PREVENT

OBESITY

2015 (DEC)

2005

0% 25% 50% 75% 100%

GENERAL PRACTITIONERS 97%


CONSUMERS 81%

CONSUMERS 50%



CONSUMERS 62%

CONSUMERS 21%



CONSUMERS 58%

CONSUMERS 30%

Figure 22: Nuts For Life

Research: Understanding the

attitudes of nut consumption

held by health professionals

and consumers, December 2015

Source: Nuts for Life research.

Consumer Insights, December

2015

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WHY CONSUMERS LOVE MACADAMIAS

MACADAMIAS OFFER A POWERFUL PACKAGE OF PREMIUM BENEFITS THAT POSITION THEM

UNIQUELY IN THE MINDS OF CONSUMERS.

CONSUMERS ARE PREPARED TO PAY MORE FOR THE BENEFITS THAT MACADAMIAS

DELIVER, AND THEY FEEL THAT MACADAMIAS NATURALLY ADD PREMIUM APPEAL TO

OTHER FOODS, UPGRADING THEM TO MORE INDULGENT OR HEALTHY. IN FACT, CONSUMERS ARE PREPARED TO PAY UP TO 10% MORE FOR A

PRODUCT THAT CONTAINS MACADAMIAS.

TASTE A delicious, rich and multi-dimensional taste experience that is buttery, sweet and creamy

FORM

Their perfect, rounded

shape makes them more

aesthetically pleasing than

other nuts

TEXTURE Simultaneously soft and crunchy, their unique texture makes for a richer eating experience

NUTRITION

Seen as delivering more overall health benefits than

other nuts, especially in relation to good fats

MACADAMIAS ARE REGARDED AS A ‘GUILT-FREE INDULGENCE’. AT A TIME WHEN CONSUMERS ARE

INCREASINGLY HEALTH-CONSCIOUS, YET SEEKING OUT SMALL DAILY

PLEASURES, THIS IS A HIGHLY APPEALING PROPOSITION THAT

OFFERS THE BEST OF BOTH WORLDS.

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THE AUSTRALIAN MACADAMIAS CONSUMER PROMOTION CAMPAIGNS IN AUSTRALIA, GERMANY, JAPAN, CHINA, SOUTH KOREA AND TAIWAN HAVE DELIVERED A HOST OF PR, EVENT AND SOCIAL MEDIA HIGHLIGHTS OVER THE PAST 12 MONTHS.

PROMOTION HIGHLIGHTS

Blogger collaboration: Strawberry Macadamia Raw Cake with Acai

Beauty influencer video

Blogger collaboration: series of in-depth posts about health and beauty benefits of macadamias

‘Macadamia’ the baby koala born at Australia Zoo

Macadamia product road-tests

Parenting influencer video

Vogue Picnic media co-op

April Fools’ Day hoax: “Macadamia Bonsai Kit”

Chinese New Year

Facebook game

“Macadamia Experience” live cooking

event

Live ‘Macadamia Experience’ pop up events in 3 South Korean locations

‘Easter Happiness’ competition

CHINA

AUSTRALIA

SOUTH KOREA

JAPAN TAIWAN

GERMANY

K E E P U P T O D A T E W I T H T H E L A T E S T N E W S B Y S U B S C R I B I N G T O O U R T R A D E N E W S L E T T E R

FOR FURTHER INFORMATION PLEASE CONTACT LYNNE ZIEHLKE, AUSTRALIAN MACADAMIAS MARKET DEVELOPMENT MANAGER

T: +61 2 6622 4933 E: [email protected] W: australian-macadamias.org/trade

© Copyright The Australian Macadamia Society

30% 70%€¦ · increasing production, ground-breaking innovation, outstanding quality, and...

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