ARUSHA: THE horticulture industry in Tanzania is experiencing an exciting transformation, with all eyes now on macadamia nuts a perishable, yet nutritionally rich and commercially viable cash crop.
The Tanzania Horticultural Association (TAHA) has been working diligently behind the scenes with strategic investors to develop a sustainable macadamia value chain in northern Tanzania.
After more than six years of dedicated research and investment, TAHA CEO Dr Jacqueline Mkindi has officially declared macadamia as a new value chain within the horticultural industry.
“After over six years of rigorous scientific research, hard work and significant investor funding, the macadamia crop is now ready for commercial-scale farming,” Dr Mkindi announced over the weekend.
Macadamia trees thrive in specific conditions, with altitudes ranging from 1,000 to 1,500 metres above sea level, moderate rainfall and temperate climates. These conditions are prevalent in Tanzania’s northern highlands, southern highlands and lake zones.
“Tanzania is exceptionally suited for macadamia farming, with the potential to yield up to 42 nuts per bunch far exceeding the global average of 22 nuts, demonstrating remarkable productivity,” she explained.
Establishing macadamia orchards, however, is a capital-intensive and long-term commitment.
The journey to a substantial harvest span approximately five years, during which, farmers face challenges like pest management, which could increase production costs.
From a financial standpoint, macadamia farming presents a compelling opportunity. Establishing a one-acre orchard requires an initial investment of around 2,400 US dollars (about 6.4m/-) but can generate up to 12,000 US dollars (about 32m/-) annually once mature.
Scaling this to ten acres requires 24,000 US dollars (about 64m/-) in capital, with potential annual revenues exceeding 120,000 US dollars (about 319m/), making it a lucrative opportunity for forward-thinking investors and farmers.
“Once the trees mature typically within five years returns can be significant. A single acre can yield 12,000 US dollars ((about 32m/-) annually, turning the initial investment into a profitable venture,” Dr Mkindi noted. “Similarly, a ten-acre plot could generate 120,000 US dollars (about 319m/), annually, positioning macadamia as the crop of the future in Tanzania.”
Despite the challenges, the future is bright for Tanzanian macadamia farmers, who can count on TAHA’s support. The association provides tailored guidance to help farmers navigate the complexities of commercial cultivation in this emerging industry.
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“If you’re seeking a lucrative agricultural opportunity that also offers health benefits to consumers, investing in a macadamia orchard is worth considering,” Dr Mkindi said. With increasing global and domestic demand for this nutrient-rich nut, Tanzanian growers have promising economic prospects, contributing to the nation’s economic growth.
Mr Hussein Gonga, a pioneering Tanzanian investor in the industry, highlighted the high cost of macadamias, which is justified by their exceptional nutritional value and limited supply. “Macadamias are in high demand, particularly in markets like China, the USA and Europe,” he said.
Mr Gonga, the founder and Managing Director of Namwai Plantation, located on the western slopes of Mount Kilimanjaro in Siha District, is already cultivating macadamia trees.
He is also enhancing value addition by investing in technology, including a state-of-the-art roasting machine, to improve the quality of the nuts for health-conscious consumers.
His purchase of a macadamia oil production machine strengthens his position in the cosmetics industry, meeting the growing demand for premium, natural skincare solutions.
“With the support of TAHA, macadamia farming is poised to become a leading cash crop in Tanzania. The association is helping investors with production, land acquisition, investment procedures, market and financial access, value addition, logistics and certifications,” Mr Gonga noted.
General Manager of Edelweiss Estate, Mr Edward Massawe, echoed these sentiments, emphasising the impact of global macro-trends such as veganism and plant-based diets, along with the increasing demand for macadamias due to their recognised health benefits.
He also pointed out the rising use of processed macadamia nuts across industries like food, beverages, cosmetics and personal care.
“The processing and snack industry remains the largest consumer of macadamias,” Mr Massawe noted.
Edelweiss Estate is investing heavily in macadamia production at its 200 – acre plantation in Karatu, Arusha. The estate has established a state-of-the-art macadamia kernel nuts-in-shell sorting facility in the Njiro industrial area of Arusha the first of its kind in Tanzania. This facility can process 1.5 metric tonnes of macadamias and is part of a broader strategy to add value to the crop.
“We are now fully equipped to enter the macadamia business. With this processing plant, we plan to produce macadamias on a large scale for both local and international markets,” Mr Massawe concluded.
By embracing macadamia cultivation, Tanzanian farmers have the opportunity to tap into a thriving global market, contributing significantly to the country’s agricultural and economic landscape.
