In this video I investigate what prices macadamias are being sold for, and discuss the potential reasons for the gap between them and what the farmer receives.
Hi Greg. I'm keeping an open mind as much as possible - the supermarkets do look like bad actors but I actually want to KNOW where all the money is going.
You hit the nail on the head Daniel. The system is driven toward sales that maximise margins within the worldwide market…and they have the audacity to call it a “free market system”🧐
It’s a tough gig for the primary producer to work with. I just hope the industry doesn’t have to bulldoze half its farms before the balance is restored.
Hi Daniel, great video as per usual! I have recently done some research into getting my product closer to the end user. And as hard as that appears to be and in all probability I very slow burn, I don’t see smaller growers having any other option! Interestingly the first stop off the processors seems to be accredited packaging/wholesale companies. Know I have been told by them that they are currently paying $11.20/kg for kernel in NSW and I know our local processor in QLD averaged $16.00/kg. And as I have previously been told that it costs a little over a dollar to produce 1kg of raw kernel from NIS. it really does beggar belief the price that the end user is paying! I really look forward to you making a submission to this new enquirer that has been announced (I would hope that the AMS would be jumping on this as well) it is also perplexing that at the prices that the processors are getting, there are never any dividends to the shareholders. (Or at least haven’t been for some time)
Thanks Sheldon. Interesting to know the shelling costs - my gut instinct was that it would be higher, so that made me sit up! I'd like to get the inquiry to dig into all stages between the farm gate and customer, but I'm sadly not confident they'll do that.
Interesting, thanks for video. I'm a bit surprised there aren't some growers selling direct to public for reasonable prices. I did find some but their prices seem to be much higher than the supermarket (eg. Brother Mountain Macadamias $70/kg !) Compared to the Farmer Coop factory price (in the middle of Macadamia territory), the supermarket price doesn't seem too bad at around 50% higher.
Good points George. I think there'd be more farm gate sales if shelling the nuts was a little easier - for either the farmer or the customer. Once processors get the nuts for shelling, you generally can't get them back.
Here in Ruawai Northland New Zealand,I can rock up to a farm and buy 1 tonne (trailer load) of kumara/sweet potato for 30-45$ .... countdown(Woolworths) have it around $5-$7 per kilo.its absolutely criminal ❤️👋🇳🇿
I don't see the price at the retail being the problem. It's the fact that the farmers are not getting a fair price for the nut. As you said $5 to $50 should be $15 to $50. $5 is below production costs.
Hi Christopher. If I could have my wish I’d like the retail price a little lower, to grow the market and compete better with other tree nuts. But the price to the farmer is my key concern, like you. I’m not convinced it’s 100% the supermarkets either, but they surely must be part of it.
@@christopherlawn1135 I appreciate your support. There isn’t a lot of advocacy from the AMS on farm gate prices so we could use some more public exposure of the issue.
Hi Dash. My bad there - the packs are actually only 200 grams. The price was correct at $45 per kg. I verified with the product link here: www.woolworths.com.au/shop/productdetails/229174/woolworths-salted-macadamias
@@nutkinfarm All good. The issue in buying macadamias anywhere in Melbourne is they are $50+ per kilo, more if you are buying less than a kilo. I guess this justifies a holiday to Ballina!
Aldi are selling 800 gram packets of maca nuts for $20. This is $25 a kilogram. We bought a packet of them. They are a centre isle special. If there are alternatives to Colesworth they should be investigated.
No, I didn't know, but then those crops aren't comparable in terms of base value, storage costs, perishability, sale volumes, packaging, processing and a whole bunch of other factors. This is why (as I said in the video) people can hurl all the accusations they want, but someone needs to get in there and see where the money actually goes - across a wide range of primary produce. It may be that a 10x or 12x markup isn't "insane" (your words not mine). Let's see what the inquiry finds.
This is encouraging when you see the production chain and its value chain as well
Thank you!
You are always welcome. This is encouraging
Good luck sticking it to the supermarkets 👍
Hi Greg. I'm keeping an open mind as much as possible - the supermarkets do look like bad actors but I actually want to KNOW where all the money is going.
You hit the nail on the head Daniel. The system is driven toward sales that maximise margins within the worldwide market…and they have the audacity to call it a “free market system”🧐
It’s a tough gig for the primary producer to work with. I just hope the industry doesn’t have to bulldoze half its farms before the balance is restored.
Hi Daniel, great video as per usual! I have recently done some research into getting my product closer to the end user. And as hard as that appears to be and in all probability I very slow burn, I don’t see smaller growers having any other option! Interestingly the first stop off the processors seems to be accredited packaging/wholesale companies. Know I have been told by them that they are currently paying $11.20/kg for kernel in NSW and I know our local processor in QLD averaged $16.00/kg. And as I have previously been told that it costs a little over a dollar to produce 1kg of raw kernel from NIS. it really does beggar belief the price that the end user is paying! I really look forward to you making a submission to this new enquirer that has been announced (I would hope that the AMS would be jumping on this as well) it is also perplexing that at the prices that the processors are getting, there are never any dividends to the shareholders. (Or at least haven’t been for some time)
Thanks Sheldon. Interesting to know the shelling costs - my gut instinct was that it would be higher, so that made me sit up! I'd like to get the inquiry to dig into all stages between the farm gate and customer, but I'm sadly not confident they'll do that.
I remember when that Cole’s used to be Bi-LO
Blind freddy can even see what's going on .Thank you and may positive change be just around the corner for you.
Thanks Golden - I know you’re on top of this issue.
Interesting, thanks for video.
I'm a bit surprised there aren't some growers selling direct to public for reasonable prices.
I did find some but their prices seem to be much higher than the supermarket (eg. Brother Mountain Macadamias $70/kg !)
Compared to the Farmer Coop factory price (in the middle of Macadamia territory), the supermarket price doesn't seem too bad at around 50% higher.
Good points George. I think there'd be more farm gate sales if shelling the nuts was a little easier - for either the farmer or the customer. Once processors get the nuts for shelling, you generally can't get them back.
Seems about the same price as in US
Here in Ruawai Northland New Zealand,I can rock up to a farm and buy 1 tonne (trailer load) of kumara/sweet potato for 30-45$ .... countdown(Woolworths) have it around $5-$7 per kilo.its absolutely criminal ❤️👋🇳🇿
I don't see the price at the retail being the problem. It's the fact that the farmers are not getting a fair price for the nut. As you said $5 to $50 should be $15 to $50. $5 is below production costs.
Hi Christopher. If I could have my wish I’d like the retail price a little lower, to grow the market and compete better with other tree nuts. But the price to the farmer is my key concern, like you. I’m not convinced it’s 100% the supermarkets either, but they surely must be part of it.
I have no problem with that. Like you, the farmer just needs a fair part of the value. Thanks for the video.
@@christopherlawn1135 I appreciate your support. There isn’t a lot of advocacy from the AMS on farm gate prices so we could use some more public exposure of the issue.
khu rừng xanh mát tuyệt vời
If the bag at Woolworths is 250g for $9, that is $36 per kg not $45. The snack tubs are a ripoff.
Hi Dash. My bad there - the packs are actually only 200 grams. The price was correct at $45 per kg. I verified with the product link here: www.woolworths.com.au/shop/productdetails/229174/woolworths-salted-macadamias
@@nutkinfarm All good. The issue in buying macadamias anywhere in Melbourne is they are $50+ per kilo, more if you are buying less than a kilo. I guess this justifies a holiday to Ballina!
Good plan@@dash.r - but are the supermarket prices that high in Melbourne too? I assumed the pricing was national.
Aldi are selling 800 gram packets of maca nuts for $20. This is $25 a kilogram. We bought a packet of them.
They are a centre isle special.
If there are alternatives to Colesworth they should be investigated.
I probably should have mentioned Aldi, Karl. I just wish they were prevalent enough to break the model of the big two.
That's actually NOT an insane mark-up compared to MOST thing. You realise peas are sold at 12 TIMES the price the farmer gets?
No, I didn't know, but then those crops aren't comparable in terms of base value, storage costs, perishability, sale volumes, packaging, processing and a whole bunch of other factors. This is why (as I said in the video) people can hurl all the accusations they want, but someone needs to get in there and see where the money actually goes - across a wide range of primary produce. It may be that a 10x or 12x markup isn't "insane" (your words not mine). Let's see what the inquiry finds.