Mac nut growers optimistic after last season’s rebound

Hawaii macadamia nut growers’ production rebounded last season from a two-year decline, with a 23 percent gain over the previous season, according to a federal report.

The 2011-12 utilized production of macadamia nuts is estimated at 49 million pounds net, wet-in-shell, stated the National Agricultural Statistics Service Hawaii Field Office’s “Hawaii Macadamia Nuts: Final Season Estimates,” released this summer.

Growers harvested and delivered approximately 58 million pounds of nuts from 1.2 million macadamia nut trees on 15,000 acres. Acreage has remained relatively unchanged over the past five seasons. The statistics service defines a season as beginning July 1 and ending June 30 of the following year.

The agency estimated processors rejected nearly 14 million pounds of nuts last season. More than 80 percent of the losses were attributed to immature nuts, koa seed worm, moldy or rotten nuts and stink bug. Low rainfall during the kernel development period likely affected the nut quality, and the crop is still affected by volcanic emissions, according to the report.

However, Hawaii’s 570 farms also received more rainfall, and at timely intervals, which is why production improved for the 2011-12 season. Additionally, early flowering and better pollination helped increase yields, the statistics service stated.

Even with a rebound, last year’s estimated production is low, especially when compared with total production over the past 10 years, which ranged from 50 million pounds to nearly 60 million pounds. This excludes the 2007-08 season that suffered high crop losses because of damage from insects, such as the koa seed worm, tropical nut borer and stink bug. Also plagued by bad weather, the 2002-08 season produced 40 million pounds.

The average price per pound of nuts paid to farmers was also up, from 75 cents prior season to 78 cents last season. This contributed to the total estimated production value of $38.2 million last season — a 27 percent increase.

Hamakua Macadamia Nut Co. president Richard Schnitzler agrees the industry bounced back last season.

Despite the climate stresses, such as too much rain in some areas and drought in others, macadamia nut growers were able to adapt to sustain productivity, and judging from the total production, everything seemed to balance out. Also helping with the overall yield was a double flowering event, Schnitzler said.

With the increase price paid to farmers, there was more motivation to take care of orchards and turn trees into tidy profits, he added.

Hamakua Macadamia Nut Co. grows, processes and markets 100 percent Hawaiian macadamia nuts — an unrelenting commitment and source of pride, as well as a demand by its customers. The company buys nuts from approximately 300 to 400 independent farmers. It also has fields, totaling roughly 800 to 1,000 acres, on the island, including in Hilo and Ka‘u, Schnitzler said.

The challenges for Hamakua Macadamia Nut Co. are making sure there are enough high-grade, Hawaiian-grown nuts, as well as dealing with the increase international competition. While Hawaii once dominated the world production of the nut, that dominance is now being challenged as other countries are planting their own macadamia, Schnitzler said. Hawaii grows only about a quarter of the world’s macadamia nuts, he added.

Nevertheless, macadamia nuts have long been synonymous with Hawaii and the demand remains strong, particularly with the Asian visitor markets. While the nuts from other countries may be cheaper and lower quality, nothing beats the taste of pure Hawaiian snack nut, which is creamy and rich in flavor, Schnitzler said. Also, most macadamia tree cultivars planted worldwide come from the Aloha State.

The main harvest period for this season is already under way and it’s shaping up to be quite good, Schnitzler said. However, he warned weather is always the issue, and the consequence of the predicted bumper crop from Australian macadamia nut growers is left to be seen.

The harvest season begins roughly in August and lasts until February or March, said Andrea Kawabata, University of Hawaii College of Tropical Agriculture and Human Resources extension agent for coffee and orchard crops.

Pertaining to this year’s outlook, Kawabata mentioned the June fire in Pahala as a possible challenge facing the industry locally. The 5,200-acre fire damaged several coffee farms and macadamia nut orchards. For those affected producers, that fire will affect their yields for the next five to seven years, she said. The first economical harvest of macadamia nuts is typically around six or seven years after planting. It takes about 15 years before the tree is fully mature.

Adequate rainfall is crucial for a high yield, and so far, it’s been sufficient at Macadamia Meadows Farm Bed and Breakfast, near Waiohinu, said co-owner Charlene Cowan.

Cowan said she’s optimistic about this year’s production on her 8-acre farm, of which 6 acres are macadamia nut orchard. Though the total varies slightly, her farm has continued to produce roughly 33,000 pounds of nuts annually.

Earlier this year, a processor told Cowan her nuts were in the top 10 percentile of those received — something she attributes to operating a pesticide-free farm and chickens being an integral part of the process, especially when dealing with insects. The only challenge has been dealing with the taking of nuts by unwanted pigs, Cowan said.

Cowan is confident that Hawaii will be a strong competitor and producer of macadamia nuts. The Big Island produces the majority of the state’s annual harvest of macadamia nuts, and Hawaii boasts most of the U.S. production.

Only recently did Australia overtake South Africa and Hawaii to become a world leader in macadamia production, and even then, it took Australia more than a century to realize the profitability of its native tree, she said.

Other local producers’ predictions for this season and the industry are unknown. Mac Farms of Hawaii and ML Macadamia Orchard LP could not be reached for comment at press time.