Macadamias grow best in moderate, well-drained, fertile soils. The soil should not be prone to waterlogging and have good nutrient retention.

Growing macadamias is suited to flat or sloping whenua (less than 7 degrees). If your whenua is sloping, you will need to carefully consider the layout of your orchard and planting density. This is to help with the access and operation of machinery.

Macadamias need a soil depth of at least 100cm to grow well. Their deep tap-root with a shallow lateral root system absorbs nutrients and water in the upper soil layers.

Macadamia trees are sensitive to some fertilisers, and are an Australian native related to banksia and grevillea, meaning they have adapted to low nutrient availability. It is recommended that you:

• improve soil at planting time by the addition of compost and decomposed manure.
• apply a slow-release fertiliser in spring, with liquid applications of fish and seaweed soil conditioning solutions periodically during the summer months.

It's important to test your soils before planting your crop. Many companies offer this service. This will help you understand the current fertility of your block and nutrient requirements. Optimal soil pH is 5.5-6.5.

For expert advice about growing macadamias in New Zealand we suggest that you contact the New Zealand Macadamia Society.

New Zealand Macadamia Society

Soil safe Aotearoa

In Aotearoa, macadamias grow well when temperatures are between 20 - 25°C. They need temperatures above 18°C and below 30°C for ideal growing conditions. Temperatures greater than 20°C from mid-November to mid-February are important. The mean minimum average temperature for bud bursting needs to be greater than 4°C from 22 Jun to 22 Sep.

Macadamias need a moderate amount of 1000 mm-1800 mm of rain annually. Young plants require irrigation and fruiting plants must have sufficient rain over the summer months while the nuts are filling out. Too much rain can lead to rot and too little rain can affect the size and quality of the nuts.

At harvesting, macadamias need dry weather to prevent rot and mould from damaging the crop.

If you're thinking about growing macadamias on your whenua, check the rainfall and rain intensity in your region. This is important while your macadamias are growing and before harvesting.

See NIWA for more information.

Macadamias are a perennial tree crop, meaning you will get one crop every year over the productive lifetime of the tree.

In Aotearoa, all commercial varieties of macadamia are grafted onto rootstock. You should consider planting a number of different varieties to assist with adequate pollination.

When planning to plant macadamias, you will need to consider your geographic location and the types of macadamia suited to this location. Different varieties of macadamia will grow better under different growing conditions.

For advice on what types of macadamias suit your whenua, talk to The New Zealand Macadamia Society.

The New Zealand Macadamia Society

Macadamias are planted in spring at a planting rate of between 200 - 1000 trees per hectare. Some form of shelter may be necessary to protect your plants from wind while they are young and establishing.

You may need machinery to prepare your whenua for planting macadamias.

Macadamias will be pruned over their lifetime to maintain a manageable height.

Most macadamia trees will grow for 3-5 years before they're ready for the first harvest. Nuts start to mature 6-7 months after flowering and must ripen on the tree.

To determine when your macadamias are ready to harvest you can follow the 3-step procedure;

1. Is the inner husk-lining brown?
2. Does the nut-in-shell sink in tap water?
3. Does the kernel (minus the shell) float in tap water?

If the answer to all three of these questions is yes, your crop is ready to harvest.

Harvesting macadamias can be done by hand or using machinery. This is dependent on what varieties of trees you have planted, the slope of your whenua, and the layout of your orchard.

Harvest time is usually between May - November.

After harvesting the macadamias from the tree, they should be husked immediately, and the drying process should begin.

After harvesting your macadamias, the storage of your crop is very important. This ensures you get the best return, and your crop can get to international and domestic markets in the best possible quality.

The macadamias must be stored for 8 - 12 weeks to assist with the drying process. Nuts must be dried to 1.5% moisture content before roasting and processing can begin.

Macadamias are relatively disease free but can be affected by pests like rats, possums and the green stink bug. You will need consider using pest management methods, such as:

• counting the number and species of pests weekly
• monitoring crops to assess plant health
• making the environment attractive to insects that can eat pests
• targeted use of fungicides and pesticides.

New Zealand Macadamia Society

The New Zealand Macadamia Society (NZMS) represents some 70+ growers, processors, and others interested in macadamias.

The NZMS provides information and support to members. It is developing the Macadamia Accreditation Quality Standards, Mac-acc program, for orchard best practice. This work is important for quality purposes, to comply with food safety standards, and to ensure traceability.

Adopted by growers it could also provide guidelines should industry-wide challenges present themselves such as has happened with PSA in kiwifruit.

New Zealand Macadamia Society

Torere Macadamias Limited

Is establishing a national organic macadamia growers co-operative. Torere Macadamias Limited has the only commercial macadamia nursery in New Zealand.

Torere Macadamias

Export market

The New Zealand macadamia industry is relatively small. It is estimated that New Zealand has 200 growers producing around 66 tonnes of kernel for the domestic market.

Scale

The industry is small in New Zealand and the largest producer, Torere Macadamias Limited, is playing a key role in helping to grow the industry. It is estimated that 3 hectares are required for a standalone operation, but 1 hectare may be commercially viable if equipment and infrastructure can be shared. Turning a profit from growing macadamias depends on several factors, like:

• your location - access to the market, or infrastructure, or to a packhouse
• your production practices - modern machinery and equipment or smaller scale efficiencies
• the market demand and access to the market

your operational efficiencies - larger orchards may benefit from economies of scale.

Equipment and infrastructure

There are various tools and equipment needed for growing and harvesting macadamias. These include:

• basic garden equipment, for example, mowers, weed sprayers
• implement shed
• irrigation
• chainsaws
• shelter belts, and
• fencing.

Specialised equipment may include:

• a harvester
• dehusker
• sorting, drying, and storage equipment, and
• an airblast sprayer for insecticides and fungicides.

It's estimated that you'll need to grow at least 3 hectares of macadamias to offset the costs of investing in machinery and equipment. Operating as part of a co-operative would be a practical way to reduce capital investment if you are producing on a smaller scale.

After harvesting your crop, you'll need a packing house and cool store to maintain the quality of your macadamias. You'll need to sort, grade, clean, and pack your macadamias into bags or crates, ready for the market. If you're located near a packhouse and can partner with them, they'll help you with this. Growers may choose to sell their nuts as Nut in Shell (NIS) or cracked kernels. NIS generates the lowest returns ($4-$5.50/kg), while raw cracked kernels sell for around 10 times this price ($45/kg).

Jobs and people

Your people and labour requirements are seasonal, based on key milestones, like planting. You'll need a mixture of unskilled labour, as well as specialists. It is estimated that 1 person could harvest the nuts from a 3-hectare orchard and the low labour input required could work around other land use activities. The specialists will help you with:

• managing the crop cycle,
• pest management techniques,
• harvesting and,
• post-harvest management.

The peak demand for labour and specialists by macadamia farmers is during planting and harvesting times.

Case study - Gisborne Macadamia Orchard

Here is an example of a macadamia orchard in Gisborne, let's imagine it had 3 hectares of macadamias produced last year.

It yielded 12 tonnes of Nut in Shell (NIS), bringing in a revenue of $48,000.

It had $40,500 in expenses, and the farm made a profit of $7,500.

It took 4 years for the trees to start producing nuts and by year 8 the trees were producing about 4 tonnes per hectare (variety-dependent).

Operational costs

The estimated operational costs to produce macadamias are around $13,500 per hectare per year. This depends on factors, like:

• scale of the operation
• level of mechanisation
• specific horticultural practices
• regional and locational factors
• market conditions.

Labour costs can be significant, especially when you're first setting up your orchard. Some other examples of costs that you'll need to consider are:

• root stock
• fertilisers
• pesticides and herbicides
• skilled and unskilled labour
• permits, licenses, or certifications
• compliance with regulations and food safety standards.

Development costs are estimated to be around $37,000/ha.

Costs to consider

There are some costs you will need to consider, and these will change with the amount produced. Here are some examples:

Yield (and time to profit)

It typically takes several years to establish a sustainable and profitable operation. By year 8 most macadamia varieties will be producing around 4 tonnes of nuts per hectare.

Maximising the amount of good quality nuts produced will increase the profits you earn. Factors that can contribute to higher nut yields include:

• crop management
• variety selection
• planting density
• nutrient management
• weed control
• harvesting at the right time.

Revenue

Returns from macadamia farming are influenced by a variety of factors, including:

• market conditions
• yield
• quality
• production costs
• pricing strategies
• events beyond your control, for example, weather conditions or market fluctuations.

Things that we can do to create better returns include:

• efficient practices to maximise yield and production.
• market demand and pricing
• quality and grading
• Cost management
• Storage and post-harvest handling
• Value-added opportunities

To help you make informed decisions and maximise returns, it's important for you to:

• stay informed about market trends through research.
• maintain good relationships with buyers.
• regularly assess your farm's production and financial performance through tracking costs.

Operating profit

To estimate your operating profit, you'll need to look at the amount of money generated from selling your macadamias, minus your production costs. Some factors may affect your revenue and influence your farm's operating profit. These include:

• farm size or the size of your macadamia crop area
• yield - the quantity of macadamias sold
• market conditions and fluctuations
• production costs and efficient farming practices
• pricing strategies
• weather conditions.

You will need to consider your production costs, which can include:

• labour
• rootstock costs
• fertilisers
• irrigation
• pest and disease management
• machinery maintenance
• storage
• packaging
• marketing costs.

These costs can be affected by having efficient farming practices and effective cost management.

Each farm will have factors specific to them and different market dynamics. Keeping accurate records of your production and financial records can help you see where improvements could be made and increase your operating profit.

Each farm will have factors specific to them and different market dynamics. Keeping accurate records of your production and financial records can help you see where improvements could be made and increase your operating profit.

The New Zealand macadamia industry is primarily focused on meeting domestic demand. The industry aspires to establish an export market in the future. The authorities can provide information on what's needed to export macadamias, including:

• procedures
• documentation
• fees or licences
• packaging standards
• biosecurity requirements.

By joining a co-operative like the New Zealand Macadamia Society, the co-op helps growers find processors, and markets and enables benefit from cost-sharing.

To export macadamias, you need to follow legislative requirements, including:

• meeting export requirements, like documentation and packaging standards
• ensuring food is grown so it can be sold under the Food Act 2014
• meeting regulations around risks to freshwater.

You must comply with National Programme 1 requirements under the Food Act 2014. This includes:

• following safe food practices, like checking for pests and using clean water
• registering your business with either your local council or MPI
• getting your business verified.

Learn more about National Programme 1.

You will need a freshwater farm plan, either now or by 2025 if your whenua will have:

• 20 hectares or more of arable and/or pastoral use, or
• 5 hectares or more of horticultural use, or
• 20 hectares or more of combined uses.

These plans identify actions to manage and mitigate risks of on-farm activity to freshwater. They must be certified and audited, then recertified every 5 years.

Learn more about freshwater farm plans.