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Pecans: challenges for growers

May 24, 2023 at 4:48 PM , Der AUDITOR
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ATLANTA. Demand for US pecans is so high that farmers are expanding their acreage as best they can. However, as they face various hurdles in doing so, supply remains tight.

Supply gap widens

Demand for pecans continues to grow unabated - Pecan Report writes that US shipments last year were 21,772 mt higher than the previous year. The reason for this high buying interest is targeted marketing that highlights the health benefits of pecans, as well as increased use in the snack industry. Meanwhile, the nut is also increasingly used as a base for oils and flours. Market experts forecast demand to continue to rise next year. Growers are trying to increase supply by planting new trees and expanding their farms, but they face several hurdles in doing so.

The biggest problem is probably the long waiting period between planting and commercial production. The financial burden is so high that most growers can only expand their plantations to a small extent, according to Pecan Report. A lot of money from growers has also gone into marketing in recent years - for example, funding studies highlighting the health benefits of eating pecans to boost purchases in the long term. However, this means that demand continues to outstrip supply for the time being. The ongoing drought in some US growing regions is also widening the supply gap, so prices could climb significantly. The most important customer for US pecans is still the domestic market, but the marketing strategies abroad are also pushing buying interest here.

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