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Why Are Macadamia Nuts So Expensive?

Nowadays, macadamia nuts are in demand because they are simply the best. They are considered one of the most popular nuts worldwide. And sometimes it is twice as expensive as other nuts. You might be wondering why.

Since macadamia has a creamy texture and flavor, it is often the most preferred ingredient or garnish for savory dishes. Also, most vegan dishes use macadamia as a substitute for butter and dairy.

Additionally, as more and more people prefer healthy oils to carbohydrates, macadamia’s popularity soars due to its valuable, nutritious fats.

In fact, every year, the demand for macadamia keeps growing. And most often, it even surpasses its supply. Here, we are going to explore why macadamia is the most expensive nut worldwide.

Rarely Farmed

Do you know that among the tree nuts worldwide, only one percent is macadamia? That is why one of the major reasons why macadamia nuts are expensive is due to a shortage of supply.

Keep in mind that macadamia nuts are produced on trees. This means that there is a delay from the planting stage to the harvesting stage. From planting the tree nuts, it could take years before they can be harvested.

You can find macadamia nuts grown all over the world. At the same time, they are exposed to various environments. Most probably, it will take about three to seven years before macadamia trees reach maturity. Hence, it is expected that farmers should take good care of these trees so that they can obtain a return on their investment.

The limitation of supply is also present since macadamia trees can only thrive in a narrow range of environments where there are favorable conditions. Originally, they came from the highlands of Queensland, Australia.

But later, they were imported for agriculture to various places, including Malawi, Kenya, South Africa, California, and Hawaii. In these places, macadamia only thrives in those areas that have high rainfall, high altitudes, and temperate climates, like where they originally came from.

The problem is that this land is quite valuable agriculturally. Most often, these lands are used for growing other crops such as coffee, tropical fruit, and avocados. The value of these lands will also keep increasing due to the pressure from tourism and real estate. In other words, it’s hard to look for the right places to plant macadamia.

At the same time, there is stiff competition for the appropriate spaces for growing them. Additionally, it will take some time before they start bearing nuts. Because of this, the land available for planting macadamia is limited. As a result, these nuts are very valuable, which can have great consequences.

Difficulties in Processing

The shelling process is another reason for the high price of macadamia nuts. As the saying goes, macadamia is a hard nut to crack.

The harvesting process can only be effective if it is performed on an industrial scale. Since the shelling will be done at kernel processing factories, the country or region will be required to invest in proper facilities.

Unfortunately, small-scale farmers, particularly those who are in developing countries, wouldn’t be able to afford this. Aside from this, there are other issues that the shelling process is facing, such as the following:
  • Premature Harvesting: Since there is no way that the farmers will be able to see what is inside the shell once they pick them, there is a tendency that they might be harvesting nuts that are still in the process of developing into oil.
  • Shelling Damage: There is a risk of damaging the shell of the kernels if it’s not done properly. Whole macadamia nuts consist of 50% or less shelled macadamia kernels, while the remaining are pieces or halves that were damaged during the shelling process.
Unfortunately, farmers are simply playing guessing games at the cost of high investments. The nuts can likely get damaged during the process, and this is the reason why there is a high demand for whole, shelled macadamia nuts. However, there is one huge factor that reduces the nuts’ supply and increases their price.

Emerging Markets

Due to the limited supply of kernels that macadamia processing factories can produce, an alternative macadamia market has started in East Asia. This is known as the nut-in-shell (NIS) market, where unprocessed macadamias are bought.

Then, they are boiled in water and sold as snacks. Because of the emergence of this macadamia NIS market, the supply of shelled macadamia was restricted. As a result, the price of this type of macadamia has gone up.

As discussed earlier, there is a problem in figuring out the maturity of macadamia kernels prior to shelling them. That is why the largest macadamia is chosen to be sold for the NIS market.

While nuts of lower quality are being designated for the processed kernel supply, this leads to an increase in the cost of shelling and sorting. In Kenya, it is predicted that at least 20% of their macadamia NIS is illegally exported. This can pose a threat to agricultural livelihoods due to the additional cost that comes with the shelling process.

What are the Health Benefits of Macadamia Nuts?

Aside from being eco-friendly, macadamia nuts are rich in antioxidants. Macadamias can also improve gut health, promote weight loss, and do much more. The following are some of the essential health benefits of macadamia nuts:

Keep Your Heart Healthy

Macadamia nuts are loaded with heart-healthy fats, such as monounsaturated fatty acids. The American Heart Association recommends that your diet include mono- and polyunsaturated fats since this can provide you with lots of health benefits when consumed in moderation.

Additionally, macadamia nuts are an excellent source of dietary fiber, which can help lower cholesterol levels and reduce the risk of heart disease. Apart from improving cholesterol levels, consuming at least two servings of these nuts every week can help lower the risk of heart disease and coronary heart disease.

Support Weight Loss

Even though macadamia nuts are rich in calories and fat, it’s fine to include them in your healthy diet for weight loss. Based on studies, tree nuts can help prevent weight gain due to their capability of boosting metabolism, reducing appetite, and improving the health of the gut microbiome.

Sustainable

Although all types of nuts require water to thrive, macadamia nuts are an eco-friendly alternative since they are grown in areas with constant rainfall. Nuts are also a more sustainable protein source in contrast to animal products.

Boost Gut Health

Macadamias are packed with fiber, which can help improve gut health and support its regularity.

Although there is no specific research conducted on digestive health and macadamia nuts, one review shows that they can help enhance the diversity of the gut microbiome, which plays a crucial role in the development of chronic conditions such as heart disease, obesity, and diabetes.

Nuts can also boost the production of butyrate, a fatty acid that can be beneficial to gut health. Aside from alleviating inflammation, research shows that butyrate can help promote healthy gut flora, boost immunity, and strengthen the intestinal barrier.

Conclusion

Macadamia is a unique nut with a high value across the world. While expensive, there is great potential for macadamia since it is considered one of the youngest agricultural commodities and was sold commercially only in Hawaii during the 1950s. Aside from providing nutritional benefits to consumers, it can also provide sustainable income and diversity to farming communities.

Dr. Paulo’s Kona Coffee and Macadamia Nut Farms offers macadamia nuts and Kona coffee. For more information, you can call us at 808-333-1959 or send us an email at drpaulosfarms@gmail.com.
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