Macadamia Nuts

The U.S. macadamia nut industry, centered in Hawaii, is the world's second largest producer behind Australia. Since 1992, U.S. production of macadamia kernels has grown significantly, by 21 percent in volume to 26,309 metric tons, valued at $43.5 million, in 1997. However, the U.S. share of world production declined during the period from 50 to 36 percent. The U.S. production increase resulted mainly from the maturing of macadamia orchards planted in the 1980s and early 1990s, following a period of rising prices in U.S. and world markets. By 1997, U.S. and world supplies were expanding faster than demand and grower market conditions deteriorated: grower and processor prices fell, and unsold inventories accumulated as world production increased from recent record U.S. and Australian harvests. Further, near- and longer-term supplies will continue to grow as ever-expanding world orchard areas, particularly in Australia, Africa and Latin America, begin commercial production, and add to existing world supplies...