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Macadamia: High Value Nut In Global Market

by Jacquiline Nakandi
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By Daniel Karibwije

Edible nuts have a great taste. Macadamia nuts have a rich buttery flavour and creamy texture.

They are rich in vitamins, minerals, fibre, antioxidants and improve gut health. Trees which bear these healthy nuts are climate-friendly.

Macadamia trees help reduce soil erosion, improve water retention and provide forest cover, contributing to environmental conservation.

To protect the planet, planting trees is the first line of defence to save mother earth. Planting macadamia trees supports reforestation efforts, enhancing biodiversity and ecosystem health.

Increased tree cover absorbs more than 17 tonnes of carbon per hectare annually. Sustainability and mitigating climate change are strategic market entry requirements.

The trend setter in commercial macadamia cultivation in Uganda is Amafh Farms Limited. The company, located in Nambale, Mityana district, has 700 acres and provides grafted high-quality seedlings, training and extension services.

The managing director of Amafh Farms, Asim Morvi, says the nut tree provides several economic benefits.

“The trees offer long-term agricultural sustainability, with trees living for 80-100 years, providing a continuous income source. Increased macadamia cultivation boosts the agricultural sector’s contribution to GDP, helping Uganda achieve middle-income status,” Morvi explains.

Farmers earn significant annual income from macadamia cultivation, with potential earnings over sh20m per acre.

A macadamia seedling is sold at sh11,000. Farmers require about 100 seedlings for an acre. The retail price per kilo is sh90,000.

Farmer earnings increase as trees continue growing through the maturity phase. Output per tree is high, benefiting out-growers on the farmer programme.

“Macadamia farming creates numerous job opportunities — from planting and maintenance to processing and export,” Morvi says.

Amafh farm has a vision of employing directly and indirectly 2.5 million people and supporting 250,000 farmers in Uganda.

This is highlighted in the Macadamia Outgrower Extension Project (MOGEP) initiative.

According to Tridge, a market intelligence site, the top importers of macadamia last year were; US ($90m), Germany ($40m), Netherlands ($22m), UK ($4.5m) and Poland ($4.2m).

South Africa led the world in macadamia exports, fetching $135m. In business, the growth trajectory of a product predicts market response. Sustainability of incomes for Ugandan farmers is important.

The tree is not delicate to maintain yet reaps. The US, which consumes the largest percentage of the world’s output, can obtain the nuts by air.

Exporters shall make profit and break even with airfreight considering the retail price. Farmers and the business community are encouraged to grow macadamia to improve household incomes.

High-value crops inter-cropped with other plants ensures socio-economic and financial sustainability. The profitability of the soils through higher yields, land and output per acre are increased.

This climate-friendly tree is not a water guzzler yet is an income earner.

Uganda’s advantage

Macadamia can grow well in most parts of Uganda. The trees require well-drained soils and moderate rainfall.

Perhaps the winner is they are resistant to pests and diseases, reducing the need for chemical inputs. For farm risk management, macadamia can be intercropped with other plants like legumes, which fix nitrogen in the soil.

Nitrogen-fixing crops are important for nut and bean producing trees like macadamia and coffee, increasing productivity and harvest quality.

Improving soil fertility and food security is important, so farmers are covered financially all year round. Processing macadamia fetches higher prices.

Uganda’s strategic location at the equator in the heart of Africa is within striking distance of major markets in Europe.

Daniel Karibwije is an Export Trade Specialist

dankarib@gmail.com

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