BUMPER nut crops are set to deliver record profits for growers thanks to high prices in store despite industry increasing production dramatically in recent years.
Increased demand has been driven by consumers turning to nuts for health properties, coupled with emerging Asian demand.
Old and new players are now taking advantage of firm prices.
In 2013-14 the industry's export value was over $650 million, and is now approaching $1 billion, according to Australian Nut Industry Council chief executive Jolyon Burnett.
A perfect growing season has coincided with large swathes of new plantings maturing.
Happily, record production has coincided with record prices.
"It has been one of those unusual seasons where the conditions have been right for almost every nut," Mr Burnett said.
"To have rising supply and rising prices is a very rare occurrence, but that's what's happening."
Harvest time has rolled around for walnut growers Ross and Sally Smith, Wisemans Creek via Bathurst.
Mrs Smith said this harvest their nuts were "raining off the trees".
"It will be the best crop we've had in the five years we've been here," she said."
"It's overwhelming."
The majority of producers across the state find themselves in an enviable position among primary producers.
Mr Burnett said nut growers had spared little expense, buoyed by the good season.
"They haven't been shy about spending on fertiliser, buying new equipment, making sure their pest and disease control is very good because they know they're going to good return on anything they spend."
The newfound demand has spurred new plantings, particularly of almonds, walnuts and hazelnuts, in southern NSW, northern Victoria and in South Australia.
In northern NSW and southern Queensland many cane and tomato growers have made the switch the macadamias, Mr Burnett said.
The biggest growth in production had occurred in almonds.
"Five years ago the crop would have been 30,000 - 40,000 tonnes, and today it's 120,000t," he said.
Confidence in the nut market has been driven in recent times by kick-backs from the South Korean and Japanese free trade agreements (FTAs) which were signed last year.
Mr Burnett said the South Korea FTA would lead to a doubling of macadamia exports in the next five years through the removal of tariffs in as many years.
"We're expecting to see this market develop over the next five to 10 years into a market the size of Japan which is a 2000 tonne market."
Walnuts were not included in the South Korea FTA, and while they currently only have a small export market, Mr Burnett believed their future lay in China.
A China FTA is yet to come into effect, but has been mooted to include phasing out all nut tariffs across five years.
The Japanese trade agreement had helped Australian macadamias keep their market share, Mr Burnett said.
"Tariff reductions have made us more competitive against South African and Kenyan imports which has allowed us to maintain and to some extent grow our market share there."
Almond Board of Australia chief executive Ross Skinner said his industry was keen to see traction on an India FTA, which is currently still in negotiations.
"We're after a reduction on the in-shell tariff to zero. That mirrors the deal India did with the Association of South East Asian Nations (which came into effect in 2010)," he said.
The biggest challenge facing the Australian nut industry was supply, Mr Skinner and Mr Burnett said.
"We know how to export, we know how to manage our value chain, to produce and maintain quality, to get access and build market - but we need to grow more nuts to feed those markets," Mr Burnett said.
The cost of land, water, inputs and the lag-time between planting and production (seven years) were all factors that troubled potential investors, he said.
But the answer doesn't rest solely in new plantings, there was huge scope to farm existing farms better, he said.
"Best practice farmers can achieve six tonnes a hectare of in-shell nut, but the industry's average is only 2.8t/ha," he said.
"The opportunities to double our production are huge."
