Press release: Marquis Macadamia Africa selects TreasuryONE
Marquis Africa CFO Shane Hartman says they chose TreasuryONE for its exchange rate risk management services.
Marquis Macadamias Africa, part of the Marquis Group, one of the world’s largest macadamia grower and processor of superior quality macadamias, has selected TreasuryONE for exchange rate risk management services.
Established in 2018, Marquis Macadamias Africa uses state-of-the-art factories in Nelspruit and Lows Creek. The facility currently has the capacity to processes 18,000 tonnes per annum, and expansion plans include increasing its processing capacity to 33,000 tonnes per annum over the coming years for their 125 African growers.
Shane Hartman, CFO at Marquis Africa, explained:
“Approximately 50 percent of the world’s macadamia production is now grown in Australia and South Africa. Macadamia trees are produced by grafting a selected variety onto a root stock seedling, a process that is carried out in specialist nurseries. It takes approximately two years to produce a fully grafted macadamia tree that is ready for planting into an orchard. It then takes a further five years and more from planting an orchard to harvesting the first commercially viable crop.”
Marquis Macadamias Africa’s profitability is influenced by the risk in exchange rates and currency fluctuations. In order for the group to meet the demand in export, they buy produce from more than 100 local farmers and aim to do so at optimal value. TreasuryONE works closely with Marquis to protect the group from adverse movements in the exchange rate when the risk arises, ensuring that the company is effectively hedged, and negative exchange rate movements are avoided.
Hennie de Klerk, founder and CEO at TreasuryONE, commented, “For importers and exporters, market risk and currency volatility poses real risks to their businesses. A price agreed with a supplier on one day could rise or fall if the exchange rate changes. This is especially true in the current economic climate where currency is fluctuating on a daily basis. However, our dealing team can eliminate many of the key risks associated with exchange exposures. We look forward to working with Marquis.”