“Across the board, we have seen higher reject levels at both on-farm and the factory this season,” he said.

Hailstorms, which hit Lismore and Dunoon, the country’s macadamia capital late last year, restricted production on many farms.

Frosts too, late in the winter in low-lying orchards also had a greater impact on present yields than were initially estimated, he said.

Agrimac agronomist, John Allen, Alstonville, said disease also played a big role in yield losses.

In an attempt to cut costs on the back of the farmgate price slump, many growers have completed fewer harvesting rounds this season and some have even opted not to pick nuts up at all.

The national price offered at the start of the season was up slightly on last year’s $1.50/kg returns but the second year, in a row of record low prices, was putting ‘severe financial strain on a lot of people,’ Mr Jones said.

“Banks have refinanced quite a few operations but there has definitely been an increase in the number of farms now on the market,” he said.

Although volume to the US, one of Australia’s largest export markets, has lifted from 1.1 million kilograms in 06/07 to 1.8 million this year, the rising Australian dollar has taken returns from $15.54/kg in 2006 to $8.56/kg this year.

Meanwhile, good rain since Christmas and high soil moisture levels in orchards have set up next year’s harvest well, although the heavy flowering happening in many orchards could hamper nut development, Mr Allen said.