The ManicaPost
Luthando Mapepa Chipinge Correspondent
The oligopoly in the macadamia industry has led to an exploitative market system, with some local private buyers making super profits from desperate farmers.
For the past few years, the price for macadamia nuts has been on a free-fall as very few foreign buyers have come in to offer better prices.
The marketing season for the macadamia nuts is expected to officially open next month, with the Macadamia Producers Association of Zimbabwe (MPAZ) working round the clock to engage more foreign buyers.
Last year, the nuts were going for as little as US$0.80 per kilogramme.
Interviewed farmers told Post Business that the shortage of buyers has resulted in an oligopoly that has seen buyers making huge profits by exploiting farmers.
Mr Rekererai Sithole of Clearwater said they are calling for a win-win situation inorder to meet the high production costs for the nuts.
“As farmers, we are calling for fair prices from both local and foreign buyers. For the past two seasons we were being robbed by these buyers as they were using the Covid-19 pandemic as an excuse. Some of those buyers are back again and they are not short of excuses as they try to exploit us.
“We want these companies to at least buy the nuts at a break-even price of US$3 per kg,” he said.
Post Business understands that some foreign companies that used to swarm Chipinge and Chimanimani to buy macadamia nuts have shifted to other countries.
“Our company is winding up its operation here in Chipinge as they have secured contracts with other macadamia nuts farmers elsewhere,”said an employee of one such company on condition of anonymity.
MPAZ secretary general, Mr James Maisiri said so far there are no serious foreign buyers who have confirmed their participation this year.
“Currently, there are no serious buyers who have come on board. The local buyers are asking farmers to bring in their ripe nuts for storage while price negotiations are underway.
“Meanwhile, the foreign buyers who used to swarm this area are citing various reasons for not coming.
“We invited four foreign companies that had pledged to buy our nuts, but they are complaining over policy issues. Apparently, what they need to pay before bringing their money into the country is too high. For them to break-even, they also need to buy our nuts at low prices, which again leaves the farmers in a quandary,” explained Mr Maisiri.
Mr Maisiri said farmers are stockpiling their nuts pending an agreement on the minimum price.
