Hawaiian Macadamia Nut Orchards, L.P. operates as a producer and distributor of macadamia nut-based products.
Segments
The company operates through two business segments, Orchards and Branded Products.
Orchards
This segment grows and farms macadamia nuts for sale as wet-in-shell (WIS) and dry-in-shell, and for sale as macadamia nut kernel to the company’s wholly owned subsidiary, Royal Hawaiian Macadamia Nut, Inc. (Royal), for the sale of bulk kernel and the processing and sale of branded pr...
Hawaiian Macadamia Nut Orchards, L.P. operates as a producer and distributor of macadamia nut-based products.
Segments
The company operates through two business segments, Orchards and Branded Products.
Orchards
This segment grows and farms macadamia nuts for sale as wet-in-shell (WIS) and dry-in-shell, and for sale as macadamia nut kernel to the company’s wholly owned subsidiary, Royal Hawaiian Macadamia Nut, Inc. (Royal), for the sale of bulk kernel and the processing and sale of branded products. This segment also provides contract farming services and leases orchards.
Majority of the company’s WIS nuts are dried, sent to a third-party processor for shelling and then sold as bulk kernel or used in the company’s branded products. The company also sells to Mauna Loa Macadamia Nut Corporation (Mauna Loa) pursuant to three long-term agreements.
Nuts retained by the company for use in its Branded Products segment are dried and then sent to a third-party processor for shelling.
Macadamia Farming: The company farms approximately 5,010 tree acres of orchards that the company owns or leases, including 641 tree acres that the company owns and leases to another party. The company also farms approximately 433 tree acres of macadamia orchards in Hawaii for other orchard owners.
Branded Products
This segment sells bulk kernel to customers worldwide directly and through brokers and marketed branded products under the ROYAL HAWAIIAN ORCHARDS brand name.
Customers: Royal sells bulk kernel to nut brokers and companies who use the kernel in their products. The branded products are sold to wholesale customers in the United States.
Dispositions
In March 2018, the company sold its Branded Products snack business.
Customers
Mauna Loa is the company’s major customer. WIS nut sales to Mauna Loa represented approximately 33% of the company’s nut production in 2017. In 2017, two other customers, Golden Peanut Company, LLC and Specialty Commodities, Inc., both owned by Archer Daniels Midland Company, purchased bulk kernel which together represented 15% of net revenue.
History
The company was founded under the laws of the state of Delaware in 1986. It was incorporated in 1986. The company was formerly known as ML Macadamia Orchards, L.P. and changed its name to Royal Hawaiian Orchards, L.P. in 2012. Further, the company changed its name to Hawaiian Macadamia Nut Orchards, L.P. in September 2018.