South African macadamia farmers eye Asian markets after US tariff jolt

Gene Likhanya's macadamia nut farm, started with personal savings and built up over two decades in South Africa's picturesque Madimbo valley, faces a sudden challenge from US import tariffs causing him to look for other markets.

South Africa is the world's top producer of macadamia nuts, known for their distinctive buttery flavour and cherished by some for their perceived health benefits, and the US is its second largest market after China.

Likhanya has big ambitions for a business he has grown to employ 78 people and which produced 25 tonnes of nuts this year. He aims to triple output over the next four years.

But US President Donald Trump's drive to impose higher tariffs could disrupt that.

Though the “reciprocal” levies announced by Trump on April 2 — set at 31% for South Africa — have been paused to allow for negotiations, Likhanya said he and fellow macadamia nut farmers were already looking for alternative markets.

“I believe there's much more we can do internationally to explore other markets. There are markets we are talking to. We're talking to India,” Likhanya, 40, told Reuters in an interview at his farm. “India has 1.5-billion people that are also looking for macadamia. So there's an alternative plan.”

Other South African farmer groups have warned of potential devastation from the US tariffs. Citrus growers, whose annual exports to the US average $100m (R1.77bn), have said tariffs could potentially hit 35,000 jobs in their industry.

Likhanya, a board member at Macadamias South Africa, the main industry body for growers, described the tariff stand-off as a “lose-lose” situation and hopes it can be resolved.

“America imports kernels which they further process. Those [processing] jobs are threatened. So it's a win-win or lose-lose situation, which I believe we do not want to get into,” he said

Reuters