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The future of macadamia farms in Lismore and the NRs

The Lismore App

Simon Mumford

30 September 2024, 9:01 PM

The future of macadamia farms in Lismore and the NRs

Lismore has a rich history of growing macadamias. The first commercial orchard was planted in Lismore in the 1880s.


Experts say the Northern Rivers is the perfect location to grow the crop due to its 'good annual rainfall and fertile volcanic soils'. 



Lismore's rich history led to many hobby/lifestyle macadamia orchards being developed, especially since the 1980s. The Northern Rivers is considered to be the heart of the industry, and growers here are leaders in sustainable, regenerative orchard practices. 


That 'heart of the industry' statement is being challenged today. The future of the Northern Rivers macadamia industry is being questioned because the macadamia industry in Australia has changed drastically since 2015.



Australian Macadamia said Bundaberg eclipsed the Northern Rivers for the first time in 2016 as the largest macadamia-growing region in Australia.


Local processing facility Marquis Macadamia, in its 2024 Annual Report, said Bundaberg produced 11,139 tonnes of macadamias compared to Lismore's 7,825 tonnes in 2023. This was the first time Bundaberg had produced more macadamia nuts than Lismore. Of course, Lismore was coming out of the 2022 flood and experiencing tough growing conditions.



Another telling statistic about the future of the Northern Rivers macadamia industry is the price that is being paid to growers. At its peak in 2020, growers were paid $6 a kg per 33% kernel recovery. It has since fallen to $1.70 in 2023. Anecdotally, the average break-even price for small macadamia farms is around the $2.80 to $3 a kg mark.


Can an area like Lismore and the Northern Rivers survive with its many hobby or lifestyle macadamia farms when compared to the large-scale macadamia farms in Bundaberg?


The Lismore App will publish a three-part series taking a closer look at the macadamia industry. We will talk to owners, managers, former owners and one of the largest processing facilities in the country to publish their thoughts.


Lismore and the Northern Rivers is made up of a number of macadamia farms that are 5,000 trees and under. One belief is that a farm needs to be 10,000 plus trees to be a profitable enterprise.



When we had a look at how many farms were for sale, we discovered 13. Here's a rundown;


  • The Channon: 75.54 hectares (ha) for $4.46 mill, sold in two lots. 17ha has approx 4,500 macadamia trees


  • Clunes: 24.85 ha incl 500 macadamia trees


  • Rosebank: 51 ha run as a commercial macadamia farm. There was no indication of how many trees were on the property.


  • Dunoon: 4 ha - advertised as a small, established macadamia orchard, which could be worked or removed.


  • Dunoon: 21 ha with 3,450 trees macadamia trees.


  • Dunoon: 32.4 ha, has approximately 4,000 and a dehusking facility. 


  • Dunoon: 43 ha, declares it is an established macadamia farm, but it doesn’t say how many trees.


  • Rous: 8.8 ha 2,132 macadamia trees. 


  • Rous: 20 ha with 5,400 trees, a dehusking plant and 8.980 shares in local processing Co-op.


  • Alstonville: 35 ha with approximately 9,000 mature trees. 


  • Alstonville: 33 ha 7,000 young to mature trees


  • Alstonville: 14.6 ha with a dehusking plant. There is no indication of trees, but the ad sells the land and location.


  • Dalwood: 32ha 3,000 mature trees.


There are macadamia farms for sale in Bundaberg. However, we are talking about well over 10,000 trees, with price tags of $7 to $10 million. Some do a mix of sugarcane, fruit trees and macadamia trees.



The big question the Lismore App wants to pose to owners, managers, and former owners is whether a lifestyle/hobby macadamia farm with 5,000 trees or under can survive? Or, will there need to be buyouts and mergers to create large-scale farms to survive? Is the value in owning a small macadamia farm about the land and the 'potential for residential housing than the macadamia farm itself?


We will explore the different opinions in Part II.


 

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