For years, the KwaZulu-Natal (KZN) South Coast’s local farmers have taken advantage of the area’s nutrient-rich soil, steady rainfall patterns, and high sunshine duration to grow and export quality bananas to domestic and international markets.
But according to Phelisa Mangcu, CEO of the South Coast Tourism and Investment Enterprise (SCTIE ), the growth of the macadamia nut sector along the KZN South Coast is bringing with it job creation and investment opportunities for both the domestic and international export markets.
While banana farming remains a strong investment option in this key sector, there was a definite shift to macadamia nut farming, with great investment opportunities emerging.
According to local publication, Macadamia, research undertaken by the International Nut and Dried Fruit Council (INC) showed that between 2012 and last year, global tree nut production grew at an average annual rate of about 229 221 tons year on year. The world market for macadamia nuts was valued at $1.53 billion (R28.2bn) last year, boasting an annual compound growth rate (CAGR) of 11.2% until 2032.
This demand has seen a number of South African farmers shift to macadamia nut farming, if not exclusively then combined with other agricultural produce.
On the South Coast James Miller, chairman of Kwa-Natal Banana Co-op, says demand patterns have definitely impacted the sector, leading him to convert 50% of his farm to macadamias, keeping the remainder as a banana plantation.
The demand for KZN bananas has been impacted by competing countries such as neighbouring Mozambique and Swaziland, which both grew bananas. The ongoing Russian-Ukraine war has also led to increased input costs, with fertiliser prices doubling.
Miller said around 80% of banana farmers by volume on the South Coast were members of the co-op.
“Most of these farmers have planted sections of their farm to macadamia nuts. Macadamias have a very high international demand, making them more profitable. Although banana farming is more labour intensive, the skill set required for macadamias is much higher,” he said.
Miller, who has 22 years’ industry experience, said most of the bananas were sold outside the province and almost all the macadamias were exported.
The macadamia industry has had a marked effect on agriculture along the South Coast prompting investment in companies that provide fertiliser, pesticides, equipment, security, and processing plants.
And though the national markets are over-supplied, the demand for locally produced goods means that local retailers and restaurants on the South Coast are considering local farmers.
Mangcu pointed out that the agricultural sector also boasted further investment opportunities in terms of agri-tourism ventures, with recreational and sports activities, as well as accommodation offerings supporting the growing tourism sector.
Examples of businesses thriving through their agri-tourism offerings, include Mac Banana in Munster (offering banana plantation tours among other activities); Beaver Creek Coffee Estate in Port Edward (the stages of coffee from crop to cup); Ubumbano Homestead in Scottburgh (on this farm, you can witness growing techniques, harvesting, and a chance to sample fresh produce); BBS Farm in Southport (including farm tours), as well as Mpenjati Coffee in Munster (coffee farm tour).
SCTIE’s launch of the agriculture tours has supported this initiative, providing visitors with a real taste of the local farmlands through on-site tours and outdoor experiences. The backing of local farmers continued through the launch of SCTIE’s “Buy Local” campaign.
This supported the inclusion of local businesses by developing platforms and business connections for SMMEs such as those between crafters, farmers, and growers with retailers. The attributes of buying local were also shared through ongoing marketing campaigns.
BUSINESS REPORT