Mr. Huynh Ngoc Huy is the Chairman of the Vietnam Macadamia Association. He shared that now is the time for Vietnam to confidently and systematically accelerate the development of Vietnam macadamia trees. The industry is aiming for the goal of reaching USD one billion by 2030.
In fact, Vietnam macadamia trees were available in Vietnam 20 years ago. However, the past five years have marked a critical period. During this time, the Vietnam Macadamia Association, together with relevant authorities, has successfully conducted research and laid solid foundations. These foundations will enable the Vietnamese macadamia industry to “take off” in the coming phase.
Given its outstanding economic and social values, in November 2018, the Ministry of Agriculture and Rural Development officially recognized Vietnamese macadamia trees as one of Vietnam’s 20 main forestry tree species. This recognition serves as an important legal basis and a crucial prerequisite for the development of the macadamia industry.
Vietnam macadamia trees
Earlier, in August 2016, the Prime Minister assigned the Ministry of Agriculture and Rural Development to take the lead. The Ministry was tasked, in coordination with local authorities and scientists, with further evaluating the production efficiency of Vietnam macadamia trees. On that basis, it would propose appropriate, effective, and sustainable development solutions.
According to Nguyen Xuan Cuong, then Minister of Agriculture and Rural Development, global macadamia supply has failed to meet demand. Meanwhile, Vietnam has been researching and cultivating macadamia—a crop originating from Australia—for more than 20 years.
Globally, the trend of reducing red meat consumption and shifting toward nuts has become increasingly popular. At the same time, macadamia nuts—often referred to as the “queen of nuts”—are highly valued for their exceptional nutritional content. In Vietnam, the trend of consuming nuts and plant-based milk has also gained momentum since 2019. This trend promotes both health and environmental protection.
Experts note that beyond delivering significant socio-economic benefits by helping people escape poverty and build wealth, macadamia is also a forestry crop. It is capable of addressing various environmental issues, such as reforesting barren hills and mountains. At the same time, it contributes to national security and defense in border and mountainous regions.
Global demand for macadamia kernels has continued to rise annually. Also, macadamia prices on the world market have steadily increased over the past decade. In Australia, the price of fresh macadamia nuts is around VND 100,000 per kg. Meanwhile, the production cost of one kilogram of macadamia nuts in Vietnam is under VND 25,000.
Vietnamese macadamia kernels
Mr. Huynh Ngoc Huy stated that Vietnam’s macadamia industry has thoroughly prepared and is ready to enter a new phase of development. To date, macadamia seedling production capacity has reached approximately 2.5 million certified seedlings and can be scaled up immediately when needed.
The Association and relevant authorities have organized more than 60 training conferences across 23 provinces, engaging around 9,000 farming households and businesses. Leaders and local communities in many areas have recognized the effectiveness of macadamia cultivation and have placed strong confidence in this crop.
Regarding capital sources, LienVietPostBank has stepped in with a value-chain–based lending and cash-flow management model. The bank exercises strict oversight across the entire process, from seed selection and cultivation to harvesting, preservation, processing, and consumption.
The bank has launched a dedicated credit package for macadamia producers and businesses. To date, it has signed loan agreements with more than 50 enterprises and farming households, with a total outstanding balance of VND 420 billion. Many production and business models have generated strong profits from macadamia cultivation. This demonstrates that Vietnam macadamia trees can help farmers become prosperous.
Mr. Huynh Ngoc Huy further analyzed that Vietnam’s macadamia industry remains relatively small in scale. This presents an opportunity to adopt a systematic and well-structured approach from the outset, avoiding rapid but fragmented and spontaneous development seen in some other agricultural products.
Off-shell macadamia nuts
The strategic orientation is toward organic macadamia, sold at premium prices and targeted for export. Initial target markets include demanding regions such as Europe, the United States, and the Middle East. To achieve this, comprehensive strategies are necessary for raw material zones, production, processing, market development, product lines, and price regulation. These efforts aim to build a strong Vietnamese macadamia brand.
The Vietnam Macadamia Association has also developed product off-take policies to support domestic price stabilization. These policies aim to ensure that domestic macadamia prices reach at least 85% of Australian market prices over the next ten years. Recently, during the Covid-19 pandemic, cases of price squeezing against macadamia growers emerged.
In response, the Association arranged VND 7 billion in loans for enterprises to purchase macadamia nuts to stabilize prices, and the situation was immediately resolved. The price drop was not due to market demand. Instead, it resulted from chaotic buying and selling and deliberate price suppression.
According to the Vietnam Macadamia Association, data compiled from localities show that Vietnam macadamia trees are currently available in 23 provinces nationwide. This involves more than 10,000 farming households, with a total planted area of 16,553.8 hectares. Average yields reach 3 tons of fresh nuts per hectare, with total output estimated at approximately 6,570 tons of fresh nuts per year. Farm-gate prices range from VND 70,000 to 90,000 per kilogram of fresh nuts.
Experts assess that Vietnam has the potential to develop at least 200,000 hectares of macadamia. This would allow output to reach around 600,000 tons of in-shell macadamia nuts. According to Mr. Huynh Ngoc Huy, one of the current challenges is land access. This issue requires appropriate mechanisms and policies to address.
In-shell macadamia nuts
The second challenge is capital. With the goal of building a banking model aligned with a key agricultural crop, LienVietPostBank will provide capital for enterprises to build processing plants and working capital to purchase macadamia nuts. This aims to stabilize prices and ensure full consumption of farmers’ and producers’ output. The bank offers loans with a tenure of up to 15 years. Repayment only begins when macadamia trees reach five years of age, when harvesting starts.
However, while the current market scale allows a single bank such as LienVietPostBank to play a stabilizing role, this situation will change. In the next five to ten years, as the market expands, coordinated participation from the entire banking system will be necessary.
According to the Vietnam Macadamia Association, global demand for macadamia kernels has been increasing annually. Also, macadamia prices on the world market have risen continuously over the past decade. Nevertheless, macadamia currently accounts for only about 1% of total global nut consumption. This indicates substantial potential for market expansion.
Organizations such as the International Macadamia Society (IMS) and the Australian Macadamia Society are currently implementing promotional strategies to boost global macadamia consumption. Their goal is that by 2025, macadamia kernels will account for 5% of the global nut market.
“I have studied and worked in Australia. Also, I understand that Vietnamese farmers are extremely hardworking and resilient,” Mr. Huynh Ngoc Huy said confidently. “Everything is now in place for Vietnam’s macadamia nuts. If we move forward with a systematic and well-organized approach, the one-billion-dollar target will not be difficult to achieve.”
Vietnamese source: https://nhandan.vn/cay-mac-ca-san-sang-hanh-trinh-ty-do-post618344.html