Promoting Central Highlands as Macadamia Capital of Southeast Asia

According to the Central Highlands Institute of Agro-forestry Science and Technology, among more than 450,000 hectares of coffee of the region now, there have been about 20 percent of old coffee trees and many kinds of outputs that are not stable, recoverable and transplanted. It is estimated that by 2020, more than 70 percent of the coffee in this area will have fallen into a similar situation.

 

Macadamia has been planted in Vietnam since the early 2000s, the Macadamia trees are gradually gaining advantages over coffee. According to research by the Central Highlands Institute of Agro-forestry Science and Technology, Macadamia trees H2 and 502 grown in the Central Highlands has the rate of flowering and fruiting in consistency with the conditions of the Central Highlands. This leads to high yield and less disease as well as high density of the trees. The Central Highlands is considered the most suitable place to grow Macadamia, while the Northwest and Northeast may also be chosen; however, growers need to handle problems such as the Laos wind, frost and vulnerability to storms in the spring that may effect the plants. Macadamia trees could be intercropped with coffee to meet the requirements for shading for the coffee trees. When this model is developed, it will bring the best economic effects. Macadamia trees promise to generate income of VND1 billion per hectare, and the income is even higher without costs of reclamation.

 

According to Dr Nguyen Duc Huong, Deputy President of the Board of LienVietPost Bank, Macadamia is opening more potential for enrichment of the Central Highlands and reduce the disadvantages that the coffee trees may bring. More importantly, the nutrition of the Macadamia trees helps this nut be more competitive than cocoa and many other nuts.

 

To develop Macadamia as a key agricultural crop, according to Mr Huong, Vietnam should have a clear plan to choose the right areas with good climate conditions to grow Macadamia trees. In addition to the requirements of high-quality seeds, the growers should improve their techniques and knowledge to grow and manufacture Macadamia. Besides, it is necessary to raise funds for the growers to make long-term investment in the planting, fertilizing and irrigation system before harvesting within 4 years. The growers are unable to get the funds for such a long time. The long-term loans could encourage the growers to switch crops towards more efficient direction, which helps replace or intercrop the coffee trees.

 

Currently, the government has implemented a mechanism to encourage farmers and businesses to invest in Macadamia growing projects of which every plant-scale of 50 hectares will get a state supporting amount of VND15 million per hectare to construct the growing fields and seeds, as well as 70 percent of the investment or less than VND2 billion for the yield scale of 500,000 seedlings per year. The Ministry of Investment and Planning also gives the guidelines for the implementation of Decree 210 to encourage the enterprises to invest in agriculture and rural development. The Macadamia growing projects receive many financial supports regarding electricity, transport, levelling of the buildings, water, sewage, fields, equipment, transportation, training, marketing, technology and seeds.

 

However, the farmers and investors are still reluctant to invest in growing Macadamia because they have not understood the economic value of the plant or have not equipped themselves with enough resources to grow Macadamia in large scale over the long term. There has not been an official project for growing the Macadamia trees in the Central Highlands. Many economists also said that the demands for Macadamia are high in the world, but Vietnamese enterprises have not reached this market. Besides, poor quality output would cut promised profits.

 

According to Huong, the LienVietPost Bank will propose solutions to lend VND10 trillion to the farmers of The Central Highlands to grow Macadamia. The bank will also invest directly into 5,000 hectares of the Macadamia trees through the Lien Viet Group Joint Stock Company to develop a closed process from production to processing to consumption.

 

Mr Huong also proposed that the Government should add Macadamia to the group of strategic industrial plants in the upcoming time; besides, it is necessary to have engagement of the competent authorities and scientists to give the right conclusions. Besides, according to Huong, the State Bank of Vietnam should give more credit incentives to support developing the Macadamia trees. At the same time, it is necessary to have a partnership between the commercial banks and the LienVietPostBank to initiate a typical credit package at low interest rates to help farmers overcome the shortage of capital and replace crops in the Central Highlands to ensure the social and economic efficiency, as well as contribute to the improvement of people's living standards.