South African Macadamia farmers who recently held a symposium to look into challenges that the industry is facing, say they are optimistic about stronger trade agreements with China.
The South African Sub-tropical Growers Association say they are encouraged as China has reduced import duties. Farmers and businesses trading in Macadamia nuts continue to seek new markets globally. Since its growth locally, farmers have exported a large portion of the overall produce to China.
The association’s operations manager, Barry Christie, says they would like to build stronger networks in that country.
“All of those three people represent the nut industry association and they made an appeal to the Chinese government to reduce the import tariffs and it is also in their benefit and over the past two years we have been building stronger relationships with these role players.”
The meetings also discussed import tariffs. Christie says the tariffs have now been lowered.
“Towards the end of November, import duty was reduced from 19% to 12%, a 7% reduction is very significant and we’ll have a 7% saving for the South Africa Macadamia industry.”
China and other Asian countries also grow their own Macadamia nuts, a trend that can affect trade in the future. Over the years, hectares of macadamia trees have increased in China.
“Well the industry in China is growing at a very rapid rate they are growing about 10 000 hectares per year and they already have more than 100 000 hectares established in China so that is definitely something to take note of,” Christie says.
The theft of Macadamia products has affected this farming sector. South Africa is competing with Australia to be the largest producer and supplier of the nut.
Australia has negotiated a free trade agreement with China.
