Macadamia farming has experienced a significant surge in Kenya, driven by its lucrative returns and a thriving market. Kenya has emerged as a crucial contributor to the global nut market, renowned for the exceptional quality and widespread demand of its macadamia nuts.
Despite being a profitable agribusiness, macadamia farming in Kenya is underappreciated by many farmers. However, nut processing companies in the country offer a direct market for these nuts at competitive prices. Macadamia nuts find use in confectionery, cakes, ice creams, and cookies, while their shells serve as a fuel source for boilers. Additionally, macadamia cake, a by-product of oil extraction, is utilized as livestock feed.
Over the past decade, traditional cash crops like coffee, tea, sugarcane, and cotton have disappointed farmers due to declining prices, inorder to address this financial gap, many farmers are turning to lucrative alternatives, and macadamia farming has emerged as a promising solution.
The price of macadamia nuts has seen a significant rise since the 1980s, with a kilogram trading at Ksh 7 and current prices exceeding KSH 200 per kilo. Kenya stands as the world’s third-largest macadamia producer, ranking just behind Australia and South Africa. In terms of quality, Kenyan nuts hold the second position globally, following Australia.
Currently, Kenya commands a 13 percent global market share, solidifying its position as the third top macadamia producer worldwide. Macadamia’s role as a cash crop for foreign exchange earnings has steadily grown in recent years.
The production cost of macadamia per acre in Kenya ranges from Ksh. 200,000 to Ksh. 400,000, influenced by factors such as farm size, labor costs, inputs, and technology level. Farm-gate prices for a kilogram of macadamia nuts range from Ksh. 80 to Ksh. 200. This implies that a farmer can potentially earn a profit of up to Ksh. 1 million per acre annually.
While production costs have risen due to increased labor and input expenses, the farm-gate price escalation ensures that farmers continue to enjoy substantial profits.
In 2022, Kenya achieved a record-high macadamia nut production of about 70,000 metric tons, attributed to favorable weather conditions and expanded plantings. The government aims to reach 100,000 metric tons by 2025, a feasible target given the industry’s current growth rate.
The future outlook for macadamia nut farming in Kenya appears promising, with a rising demand both domestically and internationally. The country’s comparative advantage in macadamia nut production positions it well to capitalize on this growing demand.
Challenges of Macadamia Farming in Kenya
While macadamia farming in Kenya presents lucrative opportunities, it is not without its share of challenges. Macadamia farmers in the country grapple with several issues:
- High Cost of Production: The process of planting, maintaining, and harvesting macadamia trees involves substantial expenses. The slow growth rate of macadamia trees and their demanding care contribute to the overall high cost.
- Pests and Diseases: Macadamia trees are vulnerable to various pests and diseases, including the macadamia nut borer, macadamia root rot, and macadamia scab. These threats can inflict significant damage on the trees, leading to reduced yields.
- Weather Sensitivity: Macadamia trees are sensitive to weather conditions, especially drought and frost. Drought can lead to tree mortality, while frost can adversely affect the quality of the nuts.
- Inadequate Infrastructure: The macadamia nut industry in Kenya is still in a developmental phase, resulting in a lack of essential infrastructure such as processing and storage facilities. This deficiency can hinder farmers from obtaining favorable prices for their nuts.
- Lack of Skilled Labor: Due to the relatively new nature of macadamia nut farming in Kenya, there is a scarcity of skilled labor. The absence of a large pool of experienced workers can pose challenges in effectively managing macadamia farms.
- Limited Access to Land: Acquiring land for macadamia farming can be challenging and expensive in a country where land is a scarce resource.
- Financial Barriers: Commencing a macadamia farm requires a substantial initial investment, making it challenging for farmers to secure financing from banks.
- Marketing Challenges: Marketing macadamia nuts, both domestically and internationally, can be problematic. There is a lack of awareness about macadamia nuts in Kenya, and established marketing channels are insufficient.
- Government Regulations: Macadamia farmers are subject to a range of government regulations that can be intricate and time-consuming to comprehend and adhere to.
In the face of these challenges, macadamia farmers in Kenya must navigate a complex landscape to capitalize on the potential profitability of the industry. Addressing these issues through strategic interventions and support systems can contribute to the sustainable growth of macadamia farming in the region.
How to Overcome the Challenges of Macadamia Farming
- Select the ideal location: When deciding on a site for your macadamia farm, it is crucial to consider factors influencing tree growth and productivity. These considerations encompass soil type, rainfall patterns, and altitude.
- Opt for top-quality seedlings: Planting resilient macadamia seedlings that resist pests and diseases is essential. This proactive approach helps minimize the risk of losing trees to potential threats.
- Provide diligent care: Successful macadamia cultivation demands meticulous care, involving regular watering, pruning, and effective pest and disease control measures.
- Engage in the macadamia nut industry: Numerous organizations and associations exist to facilitate your entry into the macadamia nut industry. These entities offer valuable information, training, and support.
- Exercise patience: Macadamia trees exhibit slow growth, and it takes several years for them to commence nut production. However, by maintaining patience and offering diligent care, your macadamia trees will eventually yield a substantial nut harvest.
- Connect with fellow farmers: Networking with other macadamia farmers provides an excellent avenue for industry insights and support. Kenya hosts several macadamia farmer associations, offering opportunities for networking.
- Participate in research and development: The macadamia nut farming sector in Kenya is subject to ongoing research and development. Involvement in such initiatives keeps you abreast of the latest practices and technologies.
- Cultivate patience and perseverance: Macadamia farming constitutes a long-term investment. The process of macadamia trees maturing to nut-producing stages takes several years, and building a successful business requires even more time. Demonstrating patience and persistence ensures that your efforts will eventually be rewarded.
Varieties of Macadamia in Kenya
Macadamia cultivation is most successful at elevations ranging from 1400 to 2000 meters above sea level (a.s.l.). KALRO, the Kenya Agricultural and Livestock Research Organization, has introduced four primary varieties—MRG-20, KRG-15, KMB-3, and EMB-1—for cultivation in the country. These improved varieties exhibit earlier yields and produce superior-quality nuts and kernels compared to their un-grafted, non-improved counterparts.
1. Muranga 20 (MRG-20) Hybrid Macadamia Variety in Kenya:
MRG-20 is a pure Macadamia integrifolia variety well-suited for the marginal coffee zones situated at altitudes between 1500 and 1600 meters above sea level. Noteworthy features include white flowers and rounded leaves without a distinct leaf apex.
Widely favored among Kenyan macadamia farmers, MRG-20 is an excellent choice for those seeking an early-bearing, high-yielding, and pest- and disease-resistant variety. A mature MRG-20 tree can yield over 80 kilograms of nuts annually, and a hectare of MRG-20 trees can produce over 2,400 kilograms of nuts per year, making it a highly profitable option for farmers.
For individuals contemplating macadamia cultivation in Kenya, MRG-20 stands out as a promising variety. Its early-bearing nature, high yield, and resilience to pests and diseases make it an ideal choice for farmers looking to maximize profits from macadamia farming.
Additional Details:
- Harvesting Months: All year round, with peak harvests in May and June.
- Kernel Recovery Percentage: 33%
- First Grade Ratio: 91%
- Twin Nut Ratio: 2.16%
- Cluster Size: 13, Cluster Count: 6
- Shell Thickness: Less than 3.0mm
2. Embu 1 (EMB 1) Hybrid Macadamia Variety in Kenya:
EMB-1 is a pure Macadamia integrifolia variety suitable for the primary coffee zones at altitudes ranging from 1550 to 1650 meters above sea level, with an annual precipitation above 1200 mm. This variety features white flowers, curly leaves with few spines, and perfectly smooth and round nuts. The trees have a cone-shaped structure.
Mature EMB-1 trees can yield over 70 kilograms of nuts per year, and a hectare of EMB-1 trees can produce over 2,100 kilograms of nuts annually. This establishes EMB-1 as a highly profitable choice for farmers. It is a crossbreed of MRG-20 and KRG-15, self-pollinating, drought-tolerant, and late-blooming, making it less susceptible to frost damage.
For those contemplating macadamia cultivation in Kenya, EMB-1 stands out as an excellent variety. Its early-bearing nature, high yield, and resistance to pests and diseases make it a profitable option for macadamia farming.
Additional Details:
- Expected Yield at 15 Years of Age: 70kg/tree/year
- Harvesting Months: All year round, with peak harvests in May and June
- Kernel Recovery Percentage: 35%
- First Grade Ratio: 93%
- Twin Nut Ratio: 2.41%
- Cluster Size: 5, Cluster Count: 17
- Shell Thickness: Less than 3mm
3. Kirinyaga 15 (KRG 15) Hybrid Macadamia Variety in Kenya:
KRG-15, a pure Macadamia integrifolia variety, thrives in the sunflower-maize zone, marginal coffee zone, and main coffee zone at altitudes between 1550 and 1650 meters above sea level, with precipitation above 1200 mm annually. The trees feature white flowers, an open tree formation, moderately spined leaves, and an apex.
Mature KRG-15 trees can produce over 80 kilograms of nuts per year, and a hectare of KRG-15 trees can yield over 2,400 kilograms of nuts annually. It is a crossbreed of MRG-20 and KMB-3, self-pollinating, drought-tolerant, and late-blooming, making it resilient to frost. KRG-15 is a profitable choice for farmers seeking early-bearing, high-yielding, and pest- and disease-resistant varieties for macadamia farming in Kenya.
Additional Details:
- Expected Yield at 15 Years of Age: 80kg/tree/year
- Harvesting Months: All year round, with peak harvests in May and June
- Kernel Recovery Percentage: 39%
- First Grade Ratio: 91%
- Twin Nut Ratio: 0%
- Cluster Size: 8, Cluster Count: 11
- Shell Thickness: Less than 3mm
4. Kiambu 3 (KMB 3) Hybrid Macadamia Variety in Kenya:
KMB-3, a pure hybrid variety suitable for the coffee-tea zones at altitudes between 1650 and 1900 meters above sea level, with precipitation above 1500 mm annually. It features distinct pink shoots and flowers, long leaves with numerous spines, and a pronounced apex.
Popular among macadamia farmers in Kenya, KMB-3 is an excellent choice for those seeking an early-bearing, high-yielding, and pest- and disease-resistant variety. A mature KMB-3 tree can yield over 70 kilograms of nuts per year, and a hectare of KMB-3 trees can produce over 2,100 kilograms of nuts annually.
For individuals considering macadamia cultivation in Kenya, KMB-3 proves to be a profitable variety, characterized by its early-bearing nature, high yield, and resilience to pests and diseases.
Additional Details:
- Expected Yield at 15 Years of Age: 70kg/tree/year
- Harvesting Months: Once a year (May—August)
- Kernel Recovery Percentage: 35%
- First Grade Ratio: 90%
- Twin Nut Ratio: 0.1%
- Cluster Size: 5, Cluster Count: 13
- Shell Thickness: Less than 3mm
The Ecological Requirements for Macadamia Farming in Kenya:
For successful macadamia farming in Kenya, consider the following ecological requirements:
- Altitude: Macadamia trees thrive at altitudes between 800 and 2000 meters above sea level, with a preference for 1200 to 1800 meters above sea level.
- Rainfall: Macadamia trees require at least 1000 millimeters of annual rainfall, ideally distributed without prolonged dry spells.
- Soil: Macadamia trees prefer deep, well-drained soils with a pH of 5.5 to 6.5 and are intolerant to waterlogging or alkaline soils.
- Temperature: While macadamia trees tolerate a range of temperatures, they prefer 18 to 28 degrees Celsius and are not frost-tolerant.
- Sunlight: Macadamia trees need full sun exposure for nut production.
Macadamia Field Establishment:
For successful macadamia field establishment, follow these steps:
- Prepare the Land: Begin land preparation 2-3 months before planting during the dry spell. Dig holes of dimensions 60cm x 60cm x 60cm and add 20kg of manure per hole, along with 100g of TSP.
- Separate Topsoil and Subsoil: Keep the topsoil and subsoil separate.
- Backfill the Hole: Backfill the hole with topsoil mixed with 2 debes of manure.
- Apply Fertilizer: Apply 300g of compound fertilizer NPK 20:10:10 or its equivalent.
- Plant the Seedling: Place the seedling in the hole, cover with topsoil, and firm it.
- Create a Basin: Make a basin around the seedling and apply water.
Mulching and Training Macadamia Trees
Utilize organic materials like grass for effective mulching.
It is crucial to initiate tree training within the initial three years post-transplanting. This training aims to foster the development of robust, well-balanced, low-branching trees, forming wide angles with the trunk.
Intercropping Macadamia Trees
Implement intercropping strategies to maximize land usage, enhance unit production, and minimize weed competition.
Avoid perennial crops and grass families as intercrops for macadamia.
Consider intercropping with crops such as French beans, green peas, common beans, Irish potatoes, sweet potatoes, and groundnuts.
Manure Application
Opt for manure as the preferred method for nutrient replenishment.
Ensure that a mature tree receives approximately 2 debes of manure annually or 2.7 kg of fertilizer.
Caution against excessive nitrogen application, which may lead to vegetative growth at the expense of fruiting.
Fertilizer Application
Apply fertilizer in two split applications just before the short and long rains.
Distribute fertilizer under the canopy, along the drip line, and away from the trunk.
Incorporate fertilizer into the soil surface to prevent runoff and volatilization. Adjust fertilizer application rates as the tree grows in size and age, reaching a maximum at ten years.
In case the soil pH is below 4.5, mix 120 g of lime (calcium carbonate [CaCO3)] and 60 g of single superphosphate (SSP) with soil at each planting hole.
Profitability of Macadamia Farming in Kenya
Suppose I am planting 110 macadamia plants per acre on 67m spacing or 66m with a production of 80Kgs per acre on a variety like MRG 20, which currently performs well in most parts of the country. (This is based on field observation by Farmers Trend in Muranga and Embu County)
It is essential to note that these are estimates, and the actual cost of production, yield, and profitability per acre will vary depending on several factors.
Given:
- Average yield per tree: 80 Kgs
- Number of trees per acre: 110
- Market price per Kg: KES 100
- Total Variable Costs: KES 40,000
- Total Fixed Costs: KES 20,000
- Property and administrative costs: KES 10,000
- Depreciation of equipment and infrastructure: KES 8,000
Calculations:
- Total Cost of Production per Acre = Total Variable Costs + Total Fixed Costs
Total Cost of Production per Acre = KES 40,000 + KES 20,000 + KES 10,000 + KES 8,000 = KES 78,000 - Estimated Yield per Tree = 80 Kgs
Total Yield per Acre = 80 Kgs * 110 = 8,800 Kgs - Revenue = Total Yield per Acre * Market Price per Kg
Revenue = 8,800 Kgs * KES 100 = KES 880,000 - Total Costs = Total Cost of Production per Acre
Total Costs = KES 78,000 - Profit per Acre = Revenue – Total Costs
Profit per Acre = KES 880,000 – KES 78,000 = KES 802,000
In this scenario, the profitability per acre would be KES 802,000. Please remember that these calculations provide an estimated overview, and real-world values can differ based on market fluctuations, actual costs, and yield variations. Note also that prices of macadamia in Kenya per Kg can go as high as more than KES 200.
Macadamia Market in Kenya
The macadamia market in Kenya is experiencing rapid growth. Kenya stands as the third-largest producer of macadamia nuts globally, following Australia and South Africa. The country’s conducive climate for growing macadamia trees, coupled with governmental support, contributes to the industry’s success.
The demand for macadamia nuts is escalating in both domestic and export markets. Domestically, macadamia nuts find use in various products, including confectionery, ice cream, and cosmetics. Internationally, there is substantial demand for Kenyan macadamia nuts in Europe, North America, and Asia.
The price of macadamia nuts in Kenya remains relatively stable, averaging around 750 KES per kilogram. However, prices can fluctuate based on market supply and demand dynamics.
While the macadamia industry in Kenya faces challenges such as pests, diseases, and limited access to credit, it also presents opportunities like exploring new markets and introducing new macadamia tree varieties.
Overall, the macadamia market in Kenya holds promise. The industry is expanding rapidly, with robust demand for macadamia nuts in both domestic and export spheres. Government support, coupled with various growth opportunities, positions the sector for continued success.
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