A stronger rand is undermining what should have been good news for South Africa’s macadamia industry. Whilst the US dollar price for whole kernels rose 4.4% from US$13.50/kg to US$14.10/kg for the 2026 season, the exchange rate shift from R18.25 to R16.50 per dollar has eroded grower returns significantly.Prices for macadamia halves and pieces fell 8.7% to US$9.04/kg, pressured by higher volumes and a still-developing market for the product.
Global Macadamias Corporate General Manager,Graeme Taylor said the mood among buyers has nonetheless improved following tariff developments in key markets. “At the start of last year, macadamia sales were really gaining momentum but ‘Liberation Day’ tariffs and the volatility that followed, scared a lot of buyers. Now that the tariff has been reduced to zero, at least for this year, we are seeing a lot more interest in macadamias. Buyers are quite confident that the tariff debacle will settle down and as confidence in macadamia supply rises, so too will demand and potentially prices down the line,” said Taylor.
The industry has used the US slowdown productively, opening new markets across Asia, the Middle East and Europe. Taylor noted, “When the U.S. market paused, the rest of the world kept moving. We’ve been able to open markets and sales channels in previously unserved regions including those in Singapore, Kuala Lumpur and Japan. Sales to Europe are also expanding, both within traditional areas like Spain, Germany, the Netherlands and new countries like Poland and Lithuania.”
The expected removal of a 12% tariff on South African macadamias exported to China offers further upside, though Taylor cautioned against overreliance on a single market. Exports to the Middle East expanded last year, though the current regional conflict may create short-term headwinds. Rising production from new orchards means the industry is supplying growing volumes to international buyers regardless of where individual markets pause.
