Gene Likhanya's South African macadamia nut enterprise, originating from personal savings and evolving over two decades in Madimbo valley, is currently navigating challenges posed by U.S. import tariffs. South Africa, renowned as the leading global producer of macadamia nuts, views the U.S. as its second-largest market, with China as the first.
Likhanya, employing 78 staff and achieving an output of 25 tonnes this year, has set objectives to triple production over the next four years. However, U.S. President Donald Trump's initiative for increased tariffs introduces potential disruptions to this plan. The reciprocal tariffs, announced at 31% for South Africa on April 2, have been temporarily paused for negotiations. Despite the pause, Likhanya and other macadamia producers are exploring alternative market routes.
As Likhanya notes, "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." With India's population of 1.5 billion as a target, Likhanya sees available alternatives. Other industry representatives have issued warnings regarding the impact of these tariffs, with citrus growers highlighting potential job losses of up to 35,000.
Likhanya, a member of Macadamias South Africa, characterizes the tariff situation as a "lose-lose," expressing hope for a resolution. He states, "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."
Source: Reuters