Macadamia is Tanzania’s next horticultural frontier, TAHA says
Investing $2,400 in a one-acre orchard can yield a staggering $12,000 annually.
MONDAY November 25, 2024
By Adam Ihucha
The Tranquility News Correspondent, Tanzania
Horticultural industry in Tanzania is on a roller coaster, as its captain eyes are now glued on macadamia nut – a perishable but nutritionally rich and commercially viable cash crop.
The champion of the multi-million-dollar industry has for years been working behind the scenes with strategic investors to develop a sustainable new value chain of macadamia in northern Tanzania.
The Tanzania Horticultural Association (TAHA) CEO, Dr Jacqueline Mkindi, has officially declared macadamia as a new value chain in the industry, after more than six years of dedicated research and investment.
“After more than six years of painstaking scientific experiments, sheer hard work, and considerable investors’ funding, the macadamia tree crop is now ready for commercial-scale farming,” Dr Mkindi announced over the weekend.
An optimal macadamia cultivation requires specific conditions with altitudes ranging from 1,000 meters to 1,500 metres above sea level, moderate rainfall, and temperate climates similar to those found in Tanzania’s Northern, Southern Highlands, and Lake zones.
“Tanzania is particularly well-suited for macadamia farming, with the potential for yielding an impressive 42 nuts per bunch, far exceeding the global average of 22 nuts, showcasing exceptional productivity,” she explained.
Establishing macadamia orchards, however, is an expensive endeavour, requiring a long-term commitment.
The journey to a substantial harvest spans approximately five years, during which farmers must also navigate challenges like pest management that could potentially increase production costs.
Financially, an investment in macadamia is equally compelling. Establishing a one-acre orchard requires a significant upfront investment of around $2,400, but can yield a staggering $12,000 annually once the crop matures.
Expanding this to ten acres would require $24,000 in capital, but could generate annual revenues surpassing $120,000, representing a lucrative opportunity for forward-thinking investors and growers.
After more than six years of painstaking scientific experiments, sheer hard work, and considerable investors’ funding, the macadamia tree crop is now ready for commercial-scale farming,” Dr Jacqueline Mkindi, Tanzania Horticultural Association CEO.
“Once the trees mature – typically taking about five years – returns can be substantial. A single acre can yield an annual income of $12,000, turning an initial investment into a lucrative venture,” noted the TAHA Chief, underlining:
“Similarly, a 10-acre plot could generate $120,000 annually, positioning macadamia as a future crop for Tanzania.”
Despite these challenges, the future looks promising for Tanzanian macadamia farmers, as they can count on support from TAHA, which provides tailored practical guidance to navigate complexities of commercial cultivation in this burgeoning industry.
If you are exploring a lucrative agricultural opportunity that also offers health benefits to consumers, investing in the macadamia nut orchard is worth considering, she said.
The global and domestic demand for this nutrient-rich nut is on the rise, offering promising economic prospects for local growers, with the potential for higher returns while bolstering Tanzania’s economic growth.
Despite their premium pricing, macadamias’ high cost is justified by their exceptional nutritional value and limited supply as noted by Mr Hussein Gonga, a pioneering Tanzanian investor in the crop.
Macadamia, like most nuts, grow on trees, which require a considerable lead-time from planting to harvest, Mr Gonga explained that it typically took between five and six years for macadamia trees to reach maturity and begin yielding nuts.
Mr Gonga, the founder and Managing Director of the Namwai Plantation located on the western slopes of Mount Kilimanjaro in Siha District, currently under macadamia trees, said the high-value nut is the most sought in China, USA and Europe.
He is also enhancing value addition by investing in technology, as he has imported a state-of-the-art roasting machine to improve the quality of macadamia nuts for health-conscious consumers.
His purchase of a macadamia oil production machine demonstrates his commitment to innovation. Macadamia oil, recognised for its skincare benefits, strengthens his position in the cosmetics industry.
Tanzania is particularly well-suited for macadamia farming, with the potential for yielding an impressive 42 nuts per bunch, far exceeding the global average of 22 nuts, showcasing exceptional productivity,” Dr Jacqueline Mkindi, Tanzania Horticultural Association CEO.
These strategic investments expand his product range and meet the demand for premium, natural skincare solutions.
With the TAHA guidance, macadamias are poised to become a leading cash crop in Tanzania, as the association is working overtime to support investors with production, land acquisition, investment procedures, market and financial access, value addition, and logistics and certifications.
“As a comprehensive member of TAHA, I’m deeply grateful for their support in navigating this less-traveled path and proving that investing in macadamia is worthwhile,” Mr Gonga said.
Echoing his sentiment, Mr Edward Massawe, the General Manager of Edelweiss Estate, emphasized the impact of macro-trends like veganism and plant-based diets, along with the recognised health benefits of macadamias, on the growing demand.
He also highlighted the increasing use of processed macadamia nuts across food, beverage, cosmetics, and personal care industries.
“The processing and snack industry continue being macadamias’ largest consumer,” Mr Massawe noted.
Edelweiss Estate is at forefront of this growth, having invested substantially in macadamia production at its 200-acre plantation in Karatu District, Arusha Region.
The estate has set up a state-of-the-art kernel nuts-in-shell sorting facility with the capacity of processing 1.5 metric tonnes at Njiro industrial area in Arusha – the Tanzania’s first of its kind – as part of a broad strategy for taping into the macadamia value addition venture.
“We’re now fully equipped to enter into the macadamia business. With this processing plant, we plan to produce macadamias on large-scale basis for both local and international markets,” Mr Massawe concluded.
By embracing macadamia cultivation, Tanzanian growers can tap into a thriving global market, significantly contributing to the nation’s agricultural and economic landscapeΩ
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Patty Magubira is an experienced environmental and business editor whose career started at the Tanzania's state-owned newspaper - The Daily News. He is a man of perfection. Aided by his extensive training as a community forestry expert before joining Tanzania School of Journalism. Magubira had successfully held various key posts in newsrooms, giving him an unmatched connections in media fraternity. Having worked as a bureau chief in Arusha and Mwanza, he managed to build a team work, boosting sales to the highest level ever. He was then promoted to a sub-editor after completing a training in Nairobi, Kenya. His incredible experience, critical thinking and exposure are critical to the quality of any media outlet.
