Hilo-based ML Macadamia Orchards said yesterday it earned $68,000 in 2008, a significant improvement from the $4 million it lost in 2007.

The company said the improvements were the result of increased revenues, slightly higher nut prices, lower general and administrative costs and a third-quarter crop insurance recovery related to the 2007-2008 harvest.

Revenue rose to $17.5 million in 2008, a 55 percent increase over the previous year. Nut sales increased 78 percent and contract farming revenues rose 9 percent.

The company was paid an average contract price of 63.1 cents per pound (wet in shell) on sales of 18.1 million pounds.

That compared with an average price of 62.5 cents per pound in 2007 on sales of 11.1 million pounds.

The company said it was not able to sell all of its production in 2007 and carried over inventory for sale into 2008.

In general, macadamia nut demand and prices hit peak levels in late 2004, softened considerably over the next 36 months and have begun to strengthen in the past year, according to ML Macadamia Orchards.

Kernel prices reached about $6.50 per pound in 2004, before falling to about $3.50 in 2004. Kernel prices recovered slightly, reaching $4.00 per pound in 2008.

In 2008's fourth quarter, the company lost $156,000 on revenues of $6.5 million, compared with a net loss of $3.5 million on revenues of $4.0 million for the fourth quarter of 2007.

The improvement in the fourth quarter of 2008 was mainly due to the inability of the company to sell its crop or have it processed in 2007.

ML Macadamia Orchards is the world's largest grower of macadamia nuts, owning or leasing 4,190 acres of orchards on the Big Island.