Lismore Macadamia Nut Property For Sale

Sydney Morning Herald

Tuesday November 29, 1988

By DANIELLE COOK

It is rare for a macadamia nut orchard to come on the market -particularly one in the prime NSW growing district of Lismore. But this Friday, an orchard near Lismore will be auctioned by Richardson and Wrench.

At Eureka, a small village halfway between Lismore and Byron Bay on the North Coast, the orchard is on about 72 hectares of land with about 18ha cleared but not cultivated. The property includes a four-bedroom Federation homestead and a second house also with four bedrooms.

The agent believes the property is worth about $1.6 million but it could sell for less, because the vendor is keen to negotiate a quick sale.

The orchard was established seven years ago when 1,500 trees were planted. Since then, 7,400 trees have been planted in four stages: 1,000 trees were planted five years ago, 1,300 were planted three years ago and 4,800 are now 18 months old. Recently 300 more were planted.

Considering that a macadamia tree needs to be at least four years old before it begins producing nuts, and at least 15 years old before it reaches peak production, this orchard is relatively young.

However, a macadamia orchard continues to produce nuts for between 40 and 50 years, according to Mr Keith Ainsbury, who is the vice-president of the Australian Macadamia Society Ltd and the general manager of Macadamia Plantations of Australia Pty Ltd.

"Someone who decides to become a macadamia nut farmer needs a deep pocket and a strong heart," Mr Ainsbury said.

"It takes at least seven years for a farm to show any return on capital, and at least 12 years for the farmer to recoup the money he has invested."

Another property at Eureka, 87ha of undeveloped land, is also on the market. It has been run as a cattle farm but could be cultivated as a macadamia nut orchard, according to the agents, Robert McLennan Nationwide Realty in Lismore.

It is expected to sell for more than $670,000 but, to turn this land into a macadamia orchard, the buyer would require a large amount of capital and could not expect returns for at least seven years.

In Australia, there are 1.5 million macadamia trees under cultivation. NSW has the largest number - about 800,000. Queensland is the other major producing area, with around 700,000.

In NSW, the major macadamia nut-growing area is Lismore, but Coffs Harbour and Nambucca Heads are also quite popular.

"Lismore was perceived as the best area because of the red soil loams and the large number of the trees which grew naturally in the area's rainforests,"Mr Ainsbury said.

The macadamia nut is the only Australian native crop being commercially farmed. Every other crop, including wheat, was introduced to Australia from other continents.

Large-scale commercial production of macadamia nuts did not begin in Australia until the 1960s. The nuts increased in popularity and price and, by the late 1970s and early 1980s, the industry was booming. However, during the early 1980s, the industry slumped and did not regain momentum until relatively recently.

This year, one of the best recorded in the industry, the farm gate price -the price for which farmers sell nuts in the shell to the three major Australian processors - was set at $3.70 a kilogram. Last year it was $3.17 a kilogram.

But the increase is not expected to continue. The strengthening Australian dollar will put some downward pressure on next year's farm gate price, due to be set next February or March.