Global demand for macadamias remains strong across all markets for both kernel and

in-shell.

For 2018 the kernel market is looking very tight till July/August 2018. If you still have

uncovered positions, you really need to cover.

It is interesting to see how the volumes keep on moving around from kernel to NIS.

A big concern is security of supply for kernel buyers and delaying product development,

which is desperately needed.

On NIS there was interesting news about the lower import tariff for macadamias from

South Africa from 19 to 12%. This is good news in terms of competitiveness for South

Africa, which is still the most important source of NIS for China.

For 2018 we expect quality to play a more important role. In 2017 a lot of blending has

taken place to at least get some volume. Australian macadamia growers are investing

significant time and resources into nurturing the 2018 crop, with preparations well

underway for the next harvest which will begin in February.