Developing macadamia trees: enterprises - a key factor in a production chain

Macadamia trees bring high economic efficiency and bring job opportunities to people

Initial success

Macadamia trees come from Australia and was grown in our country in 1994. With the first 10 trees grown as experimentals in Ba Vi (Hanoi) by the Forest Seedling Research Center, Vietnam Institue of Forestry Science. After successful experimental, the trees were grown at large scale. Two regions with climate conditions suitable for the trees are the Northwest and Tay Nguyen.

According to data from the Ministry of Agriculture& Rural Developments, there have been 23 provinces growing macadamia trees in over 16.5 thousand ha: 9 provinces in the planned areas of the North-west and Tay Nguyen growing over 15.4 thousand ha- an increase of 55% compared to the planning, the rest of over 1,000ha located at other 14 provincees which has not been planned yet.

In 2020, provinces are expected to harvest nearly 6.6 thousand tons of fresh nut - an increase of nearly 24.5 times compared to that of 2015. With the price of VND 200m/ tons for dried nut product, 4,000 tons of dried product will be worth VND 788bn. 60% of them is for export and the rest for local consumption.

There have been 10 enterprises cooperating with people to grow macadamia trees, they mainly provide seedlings and consume products. A number of companies have been doing investment procedures for large-scale macadamia nut processing plants with modern technology in Dak Lak, Lam Dong, Lai Chau and Dien Bien. Pay from processes of growing, caring, harvesting and preliminary treatment of macadamia nuts brings stable income for laborers, improving their life.

Currently, Vietnam’s macadamia has been exported with the amount of over 2.4 thousands tons of dried product annually to markets of Japan, China, Korea, the U.S and France. Compared it coffeeVietnam’s field of export ranked 2nd worldwide- PM Nguyen Xuan Phuc said macadamia “came late but arrived early”- its initial steps in Vietnam have been successful.

In need of a strategy of development

According to the Vietnam Macadamia Association, there are around 78 million people using macadamia nuts daily. Currently, the amount of macadamia accounts for only 1% of the production of 10 kinds of high quality dried nuts. It is forcast in the next 10 years, the amount will probably increase up to 5% - 10% (that is, 620,000 tons pa).

Prime Minister required a new development strategy for macadamia trees: founding a production chain with enterprises as a core factor, associations as a main factor and people- an important factor

Besides traditional markets as those of the U.S, Germany, Australia, Japan and Taiwan, there have been new emerging macadamia consuming markets as those of Korea, China, India, and Middle East. The world’s macadamia market growth rate is around 12% pa. In China, the consuming estimatedly increases up to 50% pa.

In Vietnam, macadamia nuts have initially been welcomed. The number of macadamia product consumers has been increase thanks to improved life standards and awareness of benefits from macadamia.

The target set out was to have sustainabl development of macadamia in the North-west, Tay Nguyen and other areas with similar climate and geographical conditions to ensure efficiency in economy, society and environment. Then, a processing system connected to the material sources will be founded to produce products of high quality and value added serving local consuming and export. However, the development of macadamia trees has met no less difficulties.

Nguyen Xuan Cuong, Minister of the Ministry of Agriculture & Rural Development said the management of macadamia seedlings in some locales has not been paid much attention to, therefore, there are seedlings with no clear origin and bad quality. The work of choosing good seedling takes time and need large expenses. The approach of local consuming market and limited export market are also challenges.

According to Huynh Ngoc Huy, President of the Vietnam Macadamia Association, to develop macadamia plantations, connection among 4 parties should be paid attention to: the Government gives policies to encourage developments; farmers use land and labor force for production; investors provides capital, technology, buy products, process them and connect markets; scientists do research and transfer technology to farmers and enterprises. And the Association connects them all.

In the coference Result of Developing Macadamia Trees in Vietnam over the Past Time; Orientation and Development Solution for the Coming Time on the morning of September 29th, 2020, Prime Minister Nguyen Xuan Phuc said not many plants has growth up to 24% pa and is able to help people in remote area reduce provety and have contribution in environment and security protection as macadamia.

Prime Minister required a new development strategy for macadamia trees: founding a production chain with enterprises as a core factor, associations as a main factor and people- an important factor. And there should be a general view for better vision in planning, forecast, investment, processing and export… “Macadamia trees should be planned to develop in the North-west and Tay Nguyen, and be planted in experimental at other places before having them planted in large scale… Sectors of banking and finance should have assisting captials for people with particular policies on interests and necessary incentives… In the coming time, the Government will have a decree on macadamia tree to help the efficenct development of macadamia plantations” said Prime Minister.