RECORD macadamia prices - courtesy of insatiable Asian demand - are flowing through to the agribusiness sector across northern NSW, fuelling growth in both the farm supply and nut processing sectors.
Macadamia equipment suppliers in Lismore have reported increases in sales of up to 50 per cent during summer, while millions of dollars have been spent by processors on everything from value-adding to upgraded sorting technology and increased storage capacity.
The Macadamia Processing Company (MPC), at Alphadale just outside Lismore, set a record in April with almost 1000 tonnes, or $4.7 million worth of crop, purchased from growers in one week.
MPC has just lifted its farmgate price to $4.70 per kilogram for 2015 deliveries.
Most processors are offering prices up 10 to 15 per cent on last season, which means the average macadamia nut is now worth 16 cents to growers.
It's a long way from the $1.20/kg macadamias were returning just seven years ago, when many growers clawed their way through continuous years of prices below the cost of production.
The price boost, coupled with good seasonal conditions, has meant the 2015 harvest, currently at the halfway mark, is forecast to yield the second biggest crop on record of 47,000t in shell at 10 per cent moisture.
Processors said crop quality was improving as the season went on and growers had reported little damage or loss from storms this year, although rain now was proving a nuisance to harvesting efforts.
Australian Macadamia Society chief executive officer Jolyon Burnett said the increased crop could also be attributed to massive lifts in individual farm productivity in recent years.
Such is the scale of that, there were examples of farms that in previous years had produced 10t and would this season turn off 50t, he said.
"The single biggest impact has been improved crop protection from pests, with orchards now monitored and controlled much better.
"There has also been an increased focus on soil health, with much more composting happening, which is leading to improved crop nutrition and reduced erosion."
Along with work on improving farm productivity, during recent years the industry has poured big dollars into market research and development with the aim of stabilising profitability and addressing the looming supply challenge.
Interest from potential new growers has trebled since 2013 but the most encouraging sign was that significant new plantings were happening this season, Mr Burnett said.
Between 1500 and 2000 hectares will go in around Bundaberg, Queensland, and 500ha in NSW.
For macadamia equipment supply specialists Ongmac, Lismore, the booming industry has fuelled a $1m investment in the parts department and the employment of new mechanics.
Agriculture sales consultant Brendan Disson said growers were looking to invest in gear that would increase productivity and decrease their labour requirements, in order to "get more done" and take advantage of the good returns.
Zero-turn mowers moved like hotcakes into macadamia orchards during summer, he said.
Ongmac has doubled its exhibition space at next week's big agricultural field days at Casino, Norco Primex, and expects trade to be brisk, particularly with the federal budget tax initiatives which provide immediate write-offs for purchases under $20,000.
Real estate agents specialising in macadamia farm sales also said there had been increased inquiry and a speeding up of the time in which properties were selling, with prices starting to edge up.
New demand boots upgrades
STRONG demand in high-end global markets for Australian-grown macadamias has laid the foundations for the world's largest processor of the nut, the grower-owned Macadamia Processing Company (MPC), near Lismore, to invest in cutting-edge technology and factory upgrades.
Those improvements have led to operational savings that in turn have helped drive up prices further for suppliers.
An energy-efficient $4.5 million system that uses macadamia shell to dry the crop was installed last year, creating savings of more than $800,000 since.
The state-of-the-art system provides drying under low temperature, computer-controlled conditions which significantly improves the quality, shelf-life and taste of the product.
MPC has also upgraded its electronic sorting capabilities and at the end of this year will introduce a $1.5m pasteurisation system, with the view to improving food safety.
MPC general manager Steven Lee (pictured) said Asia's increasing discovery of Australian macadamias, coupled with improved exchange rate conditions, was driving demand and resulting in improved returns to macadamia growers.
In the past five years, the company's revamped supply chain strategies, implemented by its marketing arm, Macadamia Marketing International, had seen vastly improved demand and returns for its products, he said.
