2 days ago
South African macadamia farmers eye new markets after US tariff jolt
LIMPOPO, June 11 (Reuters) - 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 U.S. import tariffs that is 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 U.S. is its second largest market behind China.
Likhanya has big ambitions for a business he has already grown to employ 78 people and that has just produced 25 tonnes of nuts this year. He aims to triple output over the next four years.
But U.S. President Donald Trump's drive to impose higher tariffs could disrupt that.
Although 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 feel that there's so much more we can do internationally to explore other markets. There are markets we are busy 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 always an alternative plan."
Other South African farmer groups have warned of potential devastation from the U.S. tariffs. Citrus growers, whose annual exports to the U.S. average $100 million, have said that 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 kind of a situation, which I feel we do not want to get into," he said.
($1 = 17.7200 rand)
