Why are macadamia nuts expensive?

Growing macadamia trees explain the high price of their nuts. These subtropical evergreens take 5-7 years to fruit, even with grafting. They can only thrive outdoors in frost-free climates (like Hawaii and Australia), and this scarcity leads to even higher prices before they are harvested.

The process of harvesting macadamias requires daily attention. Employees scour the orchards to pick up fallen nuts before they are ravaged by rodents or mold. A Hawaiian farm reported a loss of 15% of harvestable macadamias due to prolonged time between pickups. Given the extra effort, the labor costs and activity can triple what is encountered with squeezing or shaking almonds through mechanical harvest.

Cracking shells demands $50,000+ industrial machines that can go through the rock-hard outer skin of the shell without shattering the fragile kernel or causing fragmentations. Homegrown methods using hammers only crack 60% of their nuts while commercial facilities can achieve 85% rates of whole-kernels, but this comes with a 20% rise in retail price due to the maintenance of these machines.

The risks associated with climate impact are costly; for instance, in 2022, a flood in Australia wiped out 40% of the crop in that year. In marginal growing zones, farmers have invested in windbreaks and frost cloths, which added an annual cost of $8,000/acre to their farming practices. Nut prices reflect the additional costs associated with these protection systems.

Global demand for macadamia is higher than supply. Asia's demand has doubled since 2018, whereas production has increased only 25%. Limited suitable land for new commercially viable orchards and years of waiting to grow inventory keep supply tight. Until more inventory is added through better yields, macadamia nuts will remain a sought-after luxury.

Read the full article: How to Grow Macadamia Trees: A Complete Care Guide