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Foreword
Dear readers,
We recently announced that Kenyan suppliers have begun listing their kernel products on the MSM trading platform, just in time for Kenya’s 2024 late-season crop. We’re pleased to see yet more offerings being placed on the platform. We encourage you to explore these offerings on the MSM platform through the link provided below. The platform ensures the market is well-prepared for a surge in supply to match the increase in demand at favourable prices. Our platform enables suppliers to list kernel availability ahead of time and secure contracts with transparency around volumes, pricing, and market trends, providing a more stable environment for buyers. Most importantly, the platform alerts processors of market trends, assisting them in avoiding over-committing to low-yield NIS contracts while capitalising on more profitable kernel contracts.
Engage with us and find out more about the solutions MSM offers to your business’s adaptation to the changing macadamia industry.
We trust you enjoy the update below, which is offered less frequently at the moment but will return to weekly outputs as macadamia marketing heats up in the coming months.
MSM is in Europe for most of October
We’re looking forward to seeing many of you. Please contact us if we have not booked an appointment with you yet.
Market sentiment
The two graphs below compare average prices in reported trades for the most recent five-week period (Weeks 37-41) with the five-week period that preceded it (Weeks 32-36).
Upward average price movements in reported trades continued for most styles, although whole styles (Styles 1 and 1L) saw price declines between the two comparison periods. Kernel prices appear to be stabilising as buyers are reluctant to purchase at higher prices, but lack of supply is also keeping prices buoyant.
Average NIS prices remained the same across the two periods or declined. Demand for NIS is expected to rise again as the calendar approaches the Chinese New Year. With limited supply, NIS prices could recover towards the end of the year.
Available on the MSM Trading Platform
Explore the latest stock available on the MSM Trading Platform, as summarized in the table below. These offerings are currently open for bidding, allowing you the opportunity to negotiate and secure high-quality macadamia products at your desired price. If it’s not quite what you want, create your own contract for sellers to bid on, or contact us to negotiate on your behalf.
| Total of All Offers from Kenya Available on the MSM Trading Platform | ||
| Style | Quantity | Avg Price |
| 0 | 1530.9 | 13.56 |
| 1L | 47457.9 | |
| 1S | 30618 | |
| 4L | 67018.8 | |
| 4S | 70591.5 | |
| 5 | 1530.9 | |
Sign up on the MSM Platform today to access exclusive offers and make the most of a dynamic, transparent trading experience tailored to the needs of the macadamia industry
Market Sentiment
Central banks in key economies around the world raised interest rates in recent years to combat rising food and energy prices sparked by Russia’s invasion of Ukraine in 2022 and other post-pandemic disruptive events. With the cooling of inflationary pressures into 2024, central banks’ attentions have turned to stimulating economies. The change in monetary policy direction may have come a bit late as concerns for a recession in the United States persist into late 2024 despite rate cuts. Europe typically follows US monetary policy decisions and has also introduced rate cuts to deal with recession in the UK and Germany. China, similarly is contemplating stimulus packages and rate cuts to deal with a serious growth slowdown.
The upshot of the global slowdown is a concern with consumer prices and affordability.
It is still unclear to what extent interest rate reductions will restore growth, and retailers are looking to discount products to stimulate demand. US wholesale giant Costco recently announced price cuts to items marketed under its Kirkland Signature house brand. This included dropping its Kirkland Signature macadamias to $13.99 from $18.99. Zhang Liaoyuan, founder of Three Squirrels, a snack market leader in China, spoke at the recent China Nut Health Week saying the supply chain direction was pivoting towards making nuts more affordable and more accessible, squeezing out price inflation. With growing competition in China’s snack markets and sluggish consumption, Liaoyuan argued that low-priced nuts are the direction of the future. Market trends towards lower retail price increases are also seen in Europe. For example, nut and dried fruit consumer prices have actually declined year-on-year for most of 2024.
Trade Trends
Downward pressure on retail prices in key markets comes at a time when macadamia prices are recovering. Stock shortages are driving prices upwards, bringing relief to suppliers who have struggled through a number of tough seasons in recent years. However, buyers in the United States, Europe and China are facing intense pressure to keep price increases low in the face of recessionary environments. The recent rounds of rate cuts are expected to be followed by further cuts to stimulate growth and recover consumer spending. The extent to which they do is not yet certain, and growth trends may have an impact on supplier prices into 2025.
In The News…
15 October 2024: Tap into South Africa’s growing essential oils industry.
13 October 2024: [Australia] NRs Macadamia Farms: Breakeven at best last few years.
9 October 2024: Ever Wonder Why Nuts Are So Expensive? Read This Before Your Next Snack.
October 2024: Ofi Nuts Market and Crop Update – September 2024.
What does MSM Offer You?
MSM not only provides market information through these updates, we offer solutions. We’re continuously growing and improving the tools available for every stakeholder in the industry to better position themselves in this ever-changing landscape. Click the link below to read more.
Stratamarkets
In the past we’ve shared Stratamarkets Weekly Reports in this report to increase market transparency and encourage industry players to participate in the sharing of market information. Since the beginning of July 2024 this information is only available behind a Stratamarkets paywall.
Stratamarkets offer price reports for macadamias and other nuts. Please visit their website, and we encourage you to subscribe as a member. Stratamarkets offer a variety of subscription plans and incentives for access to valuable market information.
Disclaimer:
While we strive to ensure the accuracy and reliability of the information provided in our market review newsletters, we cannot guarantee its completeness or correctness. The data and insights presented are based on the best available sources and our thorough analysis. However, market conditions can change rapidly, and unforeseen factors may impact the accuracy of this information. Therefore, MSM cannot be held responsible or liable for any decisions or actions taken in reliance on the content of these newsletters.