Macadamia Nuts Price Pressure

WASHINGTON - Mar 14/01 - STAT -- International macadamia markets should remain under pressure for much of the coming year as available stocks continue to exceed the needs of the market, believes the USDA's Foreign Agriculture Service.

In its latest review of international markets for this class of nut, the FAS said this will be the case even thought total world supplies are down 3% from the previous season at forecast at 107,635 tons.

Forecasted acreage and yield increases in Australia and South Africa, the world's first and third largest producers, respectively, are expected to increase world supplies to 117,730 tons in 2001-02. The lingering effects of the economic crisis in Asia, the largest regional market for U.S. exports, are disappearing.

However, stiff competition from other macadamia producing countries and a strong U.S. currency are weakening demand for U.S. exports. Exports from selected countries are forecast to increase 19% to a record 52,014 tons.

Australia remains the world's largest exporter of macadamias, accounting for 47% of total world exports. The United States, the world's second largest producer, is the largest single export market for Australia, South Africa, Guatemala, Brazil, and Costa Rica.

Subscribers can read the full text of the article by Clicking here

The subscriber version of the article is available by Clicking here