2020

Macadamia F. Muell is an evergreen tree of subtropical and tropical origin indigenous from Australia. Constituted by four species, Macadamia is endemic to the lowland subtropical rain forest of eastern Australia and has a discontinuous distribution from south-east Queensland to northeast New South Wales.
 
Macadamia is unique in the sense that is the only member of the Australian flora that has been developed as an international horticultural food crop. The species Macadamia integrifolia and M. tetraphylla produce a high-valued and oil rich edible kernel; initially a component of the diet of the indigenous peoples of Australia, it is today the basis of a growing international industry and consumed as a snack, confectionery, bakery products and ice cream, or as oil.
 
M. integrifolia, although native from Australia, was introduced in Hawaii (USA) in the late 19th century. The commercial expansion began at the beginning of the 20th century with the establishment of first’s seedling orchards followed by the development of grafting techniques in the mid 1930’s, and the subsequent clonal propagation of elite trees and release of commercial cultivars. Currently, the majority of industry cultivars are derived from the M. integrifolia cultivars or hybrids of M. integrifolia and M. tetraphylla. The cultivars developed in Hawaii as well as the A series from the Australian Hidden Valley Plantations breeding program, of the Bell family, are the base of the contemporary breeding programs. The A series includes the A16, A38 and A203 cultivars that have been widely planted due to their higher kernel recoveries.
 
From the 1970’s to today, the macadamia industry has experienced a rapid growth, reaching a global crop of 230,000 metric tons (MT) in-shell basis/60,000 MT kernel basis (at 3.5% nut in-shell moisture content (NIS mc)) in 2019. Following this increasing trend, total macadamia crop for 2020 is forecasted at 232,120 MT in-shell basis /60,900 MT kernel basis (@ 3.5 NIS mc) and this annual increment is anticipated to be sustained throughout the present decade as the planted areas keep expanding in some of the major as well as in the emerging producing origins (Figure 1).

Australia is one of the world’s biggest macadamia producing origins, accounting for about 30% of the world production (2009-2019 average) along with South Africa and Kenya. The crop is also produced commercially in many tropical and subtropical regions throughout the world: Asia (China, Vietnam), America (Hawaii, Guatemala, Brazil, Colombia) and other regions of Africa (Malawi) (Figure 1)[1234].

The industry has grown spectacularly in just 45 years. In spite of the seasonal variations, the macadamia crop in Australia clearly followed a growing trend over the last 25 years. Production levels doubled up between 1995 and 2019 and sustainably increased over the last five years, ranging between 43,000 and 49,300 MT in-shell basis (@3.5 NIS mc). Due to extreme high temperatures and drought events during the 2019 spring and early summer, the 2020 crop is forecasted at 36,500 MT, below the recent seasons’ average (Table 1).

In Australia, macadamias are grown mostly along the East Coast by 800 growers, covering 28,000 ha with 8.7 million macadamia trees (2019). In Queensland, the Bundaberg region adds up to 41% of the country production; Northern Rivers, in New South Wales, accounts for the following 35%. The rest of the growing areas are distributed from Mackay (QLD) to Nambucca (NSW) plus a small share in Margaret River in Western Australia (Figure 2).

New area under plantation is largely being converted from former cane land. Bundaberg has recently experienced the fastest production growth, equally owing to both new growers entering into the industry and established growers expanding their orchards. The Australian Macadamia Society reported that significant new plantings are expected over the current and the next year in Queensland and in New South Wales and to reach up to 35,000 ha by 2025. Besides, considering that one-third of the planted macadamia trees have not yet reached full production, the crop is anticipated to keep growing up to 70,000 MT (3.5% NIS mc) in 5 years’ time (Table 1)[5].

The Australian Macadamia Society has been promoting and coordinating the industry’s research and development, innovation and marketing actions since 1974. With over 700 individual and business members, the organization accounts for more than 85% of Australia’s macadamia production

Apart from the planting expansion, there are many elements significantly contributing to the Australian macadamia industry production leadership:
 

• Australian macadamia is a relatively young, yet well-coordinated industry through its peak body, the Australian Macadamia Society.
• Huge involvement and commitment of Australia’s macadamia growers and processors to good and sustainable agricultural and post-harvest handling practices. Some examples are the integrated orchard and pest and disease management. These holistic approaches allow to improve productivity and the environment simultaneously while promoting biodiversity.
• Implementation of innovative technologies conducive to higher productivity per unit of land area. For instance, tree shaking technology has been adopted in the region of Bundaberg, improving harvest efficiency and quality. Automation is expected to expand to other producing areas as well. Water use efficiency is also being improved through precision agriculture tools.
• Conservation of genetic diversity: Australia’s rare wild macadamia trees are the world germplasm reservoir and, in the case of macadamias, this is especially relevant as most commercial cultivars come from a very narrow genetic base. Therefore, these wild genes need to be protected and conserved as they hold the potential for future breeding programs and further development of the industry. Therefore, aiming to conserve the remaining wild macadamia trees in their native habitat, the industry established the Macadamia Conservation Trust (MCT), a not-for profit organization. In 2019, the MCT launched a new macadamia variety with a smaller and more open canopy which enables excellent light penetration and is a good producer[6].

Trade

Being one of the top world macadamia producers, Australia is also one of the largest exporting and consuming origins.

Around 80% of the macadamia produced in Australia are processed to be sold as kernels (shelled macadamias), with an average international/domestic sales ratio currently around 70/30.

Australia accounts for about 20% of the world macadamia kernel international shipments. During the last decade, annual exports have amounted to 6,500 MT on average, reaching the last decade record of over 7,800 MT in 2019 (Figure 3).

According to the last 5-year average (2015-2019), about 10,400 MT of macadamia kernels are sold annually, from which, 33% accounts for domestic sales (Figure 4) and the remaining 67% are exported. Around 61% of Australian kernel exports are bound to Eastern Asia, being Japan (27%), China (15%) and South Korea (9%) the main destinations. Europe imports add up to the following 22%, from which, Germany, as the leading importing country, concentrates half of the volume. With 17% of the share, USA is another of the Australian macadamia top importers (Figure 4).

When analyzing the international kernel shipments in terms of average annual growth over the last five years, the biggest increments in imports were observed for Japan, South Korea, China and the USA (Table 2). Europe, as a mature market, presents a more stable volume of imports.

In spite of being a well-established market, imports to Japan have shown a sustained growth trajectory throughout the last decade, ranging from over 1,100 MT in 2010 to the 2,300 MT record of 2019. In this origin, macadamias are traditionally used as an ingredient in chocolate confectionery, although the snacking and bakery category has expanded in recent years. As for the in-shell market, China and Hong Kong are the top importers for Australian macadamia (Figure 5).

In China, in-shell usage predominates over kernels. As per the AMS data, currently, although the kernel segment is expected to be strongly developed in the coming years, 95% of macadamia usage accounts for in-shell, while only 5% is used as kernels.

Free Trade Agreements: Macadamia as well as other goods and services trade has been enhanced by several Free Trade Agreements (FTA) that entered into force during the last decade. FTA can improve market access across all areas of trade –goods, services and investment– and help to maintain and stimulate the competitiveness of Australian firms (Department of Foreign Affairs and Trade, Australian Government).

Consumption

Globally, macadamia kernels are mainly consumed as a snack (60%), followed by its use as an ingredient (30%) in confectionery, bakery, etc.[7] From producing origins, Australia along with the US, China and Brazil are among the top consumers. Germany, Japan and South Korea rank first as non-producing consuming countries.

Australia is the most established market for macadamia and it remains as the top raw macadamia kernel consumer per capita. It shows the highest annual per capita consumption in the world –160 g per capita (2019)– ahead of the US –40 g per capita– and every other market, meaning that Australians eat on average 4 times as many macadamias as the next top consuming country, the US. That is principally because macadamias in Australia are mainly a snack product, while in other mature markets, such as Japan, the bulk of macadamias is still used in confectionery. Another main difference between Australia and the rest of the world are the pack sizes: in Australia, there is a big range of macadamias packages, up to 500 g, whereas throughout Asia and Europe they are much smaller (125 g, 40 g or 8 g). Furthermore, in Japan for example, macadamias are sold as part of nut mixes, whereas in Australia it is possible to buy macadamias separately. Besides, macadamias are sold locally with the fresh produce, side by side with fruits and vegetables in the supermarkets and this has increased the domestic consumption drastically[8].

Australia, Keys to the highest domestic consumption of macadamias in the world:
• High availability in the markets.
• Individual and big packages.
• Sold side by side with fresh produce.
• Mainly consumed as a snack.

References:
[1] Hardner, C., Costa e Silva, J., Williams, E., Meyers, N., & McConchie, C. (2019). Breeding New Cultivars for the Australian Macadamia Industry, HortScience horts, 54(4), 621-628.
[2] Hardner, C. M., Peace, C., Lowe, A. J., Neal, J., Pisanu, P., Powell, M., et al. (2009). “Genetic resources and domestication of macadamia,” in Horticultural Reviews, ed. J. Janick Hoboken (Hoboken, NJ: John Wiley & Sons), 1–125.
[3] Nock, C. J., Hardner, C.M., Montenegro, J. D., Ahmad Termizi, A. A., Hayashi, S., Playford, J., Edwards, D, and Batley, J. (2019) Wild Origins of Macadamia Domestication Identified Through Intraspecific Chloroplast Genome Sequencing. Front. Plant Sci. 10:334.
[4] INC Database
[5] Australian Macadamias Yearbooks (2018 and 2019 issues). Australian Macadamia Society.
[6] Australian Macadamias Yearbook (2019).
[7] Australian Macadamias Yearbook (2019).
[8] In Australian Macadamia Society, personal communication (May 25, 2019, Boca Raton, Miami, USA).
 

Denise Bond is an Environmental Scientist with a passion for trees and the synergy of people with trees and forests. She has worked to protect forests through inclusion on the World Heritage List, with villagers in Nepal and Uganda to manage communal forests and with farmers in Australia to integrate trees into farming systems.

The AMS gathered a coalition of organisations and individuals with an interest in conserving wild macadamias to establish an independent Macadamia Conservation Trust, an environmental organisation dedicated to the support and conservation of Australian wild macadamia trees in their native habitat and in all other ways. Coordinated by the Trust, industry members go above and beyond the production of macadamias to find innovative ways to contribute significant resources to macadamia conservation.

Wild macadamias are a largely untapped genetic resource for the development of productive, resilient trees and delicious, nutritious nuts –so protecting wild macadamia habitat is an investment in the future of the macadamia industry. Because macadamias are one of the few new food crops in our domestication history, every commercial variety today is no more than two generations distant from its wild ancestors. The rainforest home of wild macadamias is also intrinsically valuable for its species richness and capacity to sequester carbon and protect water-catchments.

This is wild macadamia habitat –idyllic sub-tropical rainforest along a short (350 km) stretch of Australia’s east coast within 50 km of the Pacific Ocean, seldom far from a fresh-water stream. The area is prime real estate so the majority of accessible land has been cleared for farming and housing over the last 180 years. As a result, 80% of wild macadamia habitat has been lost. Although many Australians still think macadamias come from Hawaii,  the Australian macadamia industry is well aware that macadamias are native to Australia and of the importance of preserving the macadamia gene bank. The AMS includes a conservation objective in its constitution: to promote and facilitate the conservation of the wild species of Macadamia.and has led the field in macadamia conservation over the last two decades. Ground-breaking initiatives supported by the AMS include commissioning the first Macadamia Species Recovery Plan and employing conservation project officers to implement the plan. Threatened Species Recovery Plans detail the actions needed for the conservation of threatened native species in Australia. Plans are developed by interested parties and published by the Australian Government in partnership with the relevant State Environment Department. The AMS is the only horticultural industry body to have developed a Threatened Species Recovery Plan.

In 2006, to raise funds for conservation activities, the AMS created a not-for-profit Trust Fund (www.wildmacadamias. org.au) authorised to collect tax-deductible donations and collaborate with other partners on conservation projects. 

Threats to wild macadamias are immediate and on-going. The rare Macadamia jansenii made international headlines recently after 50 of the 200 existing trees were burnt in the 2019 wildfires. Too many wild trees now survive in small remnant patches, vulnerable to weed invasion and wildfire. Trees retained for a hundred years on farmland as a source of nuts, can disappear overnight to make way for a housing development. Any one of these trees might contain genes that could rescue or revolutionise the industry, and it is this potential that the AMS wants to protect.

An exciting industry partnership involves the donation of long-term hosting and management of two wild macadamia arboreta. These will house the largest collection of wild macadamia genetic diversity, in trees that will be able to supply cuttings for restoration of natural habitat as well as samples for genetic research.

Other industry members provide valuable regular sponsorship and, through a partnership between growers and processors, growers are able to donate income from nut-inshell sales directly to the Trust. A list of supporters can be found on the Trust’s website (www.wildmacadamias.org.au).

The latest initiative to finance macadamia conservation is from one of the industry’s most passionate champions, Ian McConachie who was awarded a Lifetime Achievement Award at the 2018 International Macadamia Symposium (not to mention a Golden Nut Award from the INC in 1994). Ian has developed one of the most promising commercial varieties of macadamia ever to be released, projected to increase kernel yields by up to 50%. In an action characteristic of their generosity and devotion to the macadamia industry and the species on which it depends, Ian and his wife Jan made a momentous decision to gift Plant Breeder Rights for the new variety to the Macadamia Conservation Trust. Royalties from sales of the new variety, named MCT1 after the Trust, will provide a base of funding to employ conservation specialists, finance recovery actions and leverage additional funds to undertake larger projects such as establishing the wild macadamia arboreta, researching the geographic distribution of genetic diversity and increasing public knowledge and appreciation of macadamias. Anyone interested in contributing to these major initiatives should please contact me directly (Denise.Bond@macadamias.org).

Conservation of Australia’s wild macadamias is part of the Australian macadamia industry’s commitment to sustainability: understanding how macadamias evolved and adapted to their natural habitat helps inform the development of increasingly sustainable farming practices that work with nature rather than against it.

Nowadays, consumers are more interested in their health and wellbeing. Therefore, nuts have become one of the most relevant foods for today’s consumer thanks to their nutrient profile. Macadamias, in special, are high in monounsaturated fat, fiber, magnesium, copper, manganese and thiamin, and are a source of vitamin B6, niacin and minerals such as iron, phosphorus, potassium and selenium[1,2]. In addition, there is a body of scientific evidence that supports the following health benefits for macadamia nuts.

Macadamias are a natural source of omega-7 fatty acids, aka palmitoleic acid. Thanks to their content in monounsaturated fats (oleic and palmitoleic acids), macadamias may help to modify favorably the biomarkers of oxidative stress, thrombosis and inflammation, risk factors for coronary artery disease[3].

In addition, macadamia nut consumption may lower plasma total and LDL cholesterol levels in hypercholesterolemic men [4,5]. In 2015, a systematic review and meta-analysis around tree nuts and heart health showed that eating tree nuts, including macadamias, every day lowers total cholesterol, LDL “bad” cholesterol and triglycerides[6].

Tree nut consumption, including macadamias, was also associated with lower body mass index (BMI), waist circumference, systolic blood pressure, insulin resistance, and HDL “good” cholesterol, compared with no consumption[7].

Macadamias may help lower bad cholesterol which could help your heart health.

Scientific studies have identified flavonoids in macadamias. Flavonoids are a group of natural substances found in plants with anti-oxidative, anti-inflammatory properties[8]. Flavonoids have been detected in all tree nuts, and pecans, macadamias, almonds and pistachios have the highest concentrations[9].

Skin health has lately been linked with macadamias, specifically, with macadamia oil, which is used in many cosmetic formulations. Emerging evidence indicates that macadamia oil may be associated with skin health, especially anti-aging effects, by improving the appearance of water content, pore size, melanin and wrinkles[10].

In 2017, the INC launched the Macadamia Health Research Grant on behalf of the macadamia industry. It is the first of its kind in the macadamia industry and the first time that multiple origins have contributed to such a project. It is considered critical to the industry’s ability to continue to market macadamias as a premium product.

Key macadamia-producing countries Australia, South Africa, Kenya, Brazil and Malawi have made a substantial financial investment into the research, and the project has been supported by the International Nut & Dried Fruit Council (INC) and INC World Forum.

The global macadamia health research project will be a large scale, long term randomized cross-over intervention study directed by acclaimed researcher Professor Joan Sabaté from Loma Linda University Medical Centre (USA). The study will compare the effect of a diet enriched in macadamias versus a control diet on insulin resistance and insulin secretion in individuals with insulin resistance. It will assess the effect of macadamia nut consumption on lipid profile (total cholesterol, LDL cholesterol, HDL cholesterol and triglycerides) and other emergent risk factors of cardiovascular disease as well as on central obesity and body composition.