Nuts

Pecans: demand on the rise

February 23, 2022 12:26 PM, Der AUDITOR
Play report as audio

ATLANTA. Buying interest in US pecans has risen steadily in recent years, according to data from the American Pecan Council. Meanwhile, producers are already getting creative to meet the high demand.

Trade war put shipments to China to a halt

The experts at Pecan Report have taken a look at the development of demand over the last four years, based on data from the American Pecan Council. It becomes clear that there has been a continously increasing demand; in the meantime, American producers are already struggling to cover this demand adequately. For example, deliveries in the 2017/18 season were just over 134,000 mt (296 million lbs). In January 2018, the trade war between China and the USA erupted, causing US pecan exports to China to come to an almost complete standstill. Domestic demand in the US had been largely stagnant in previous years; now marketing was boosted, resulting in offsetting the shortfall in shipments to China. As a result, deliveries in the 2018/19 season already reached just under 154,000 mt (339 million lbs), a 14.6% increase over the previous season.

Increased raw nut shipments from Mexico

The 2019/20 season also continued the upward trend, when exports of just under 168,000 mt (370 million lbs) were recorded. However, the biggest jump came in the 2020/21 season, when shipments climbed by 26% and reached almost 211,000 mt (466 million lbs). In the meantime, China had also re-entered the market and domestic demand was also able to maintain its high level. In the meantime, demand from China was so high that Mexico had to step in and cover the demand. By now, the USA is also increasingly sourcing raw nuts from its neighbouring country for further processing and shipping. US producers are working to increase their production, but the long period between planting new trees and the first harvest means that this is not possible in a timely manner.

Prices on the European spot market initially rose significantly in recent weeks, but have eased slightly in the last few days. Shelled Fancy Junior Mammoth Halves from the USA currently cost EUR 12.25/kg FCA Spain.

Pecans, USA

Type

EUR/kg

USD/kg

Fancy Junior Mammoth Halves

12.25

13.90

Large Pieces

9.75

11.10

Small Pieces

9.65

10.95

FCA Spain

German imports up by a third

German pecan imports increased significantly in 2021; overall demand rose by more than a third. With over 5,000 mt, the USA remains the most important growing country for shipments to Germany, which increased by almost 33% year-on-year. Mexico follows in second place with an increase of a good 9% and a delivered quantity of 306 mt. The Netherlands recorded a significant increase of almost 277%, while Peru's shipments to Germany fell by almost 19%.

Pecan* imports, Germany, in mt

Country

2020

2021

Diff.

USA

3,776

5,007

32.6%

Mexico

280

306

9.3%

Netherlands

52

196

276.9%

South Africa

71

75

5.6%

Peru

48

39

-18.8%

Others

28

72

157.1%

Total

4,255

5,695

33.8%

Federal Statistical Office of Germany / Jan-Dec

*08029910 Fresh or dried pecans

View more
-price charts on nuts, dried fruit, oilseeds, grains and more

View related articles

Go to the News Overview
Nuts
May 25, 2022
ORDU. Over the last few weeks reality has kicked in that sufficient supplies are available, and attention shifted more towards the new crop. At present, the mood is, however, shifting in Turkey’s hazelnut market. Issue are strange dynamics. The market may also have to adjust production estimates for the new crop.
Nuts
May 25, 2022
MADRID/SACRAMENTO. While almond production will range 4% lower in California at 2.80 billion pounds, things are also far from encouraging in Spain. According to the National Nut Board production will range 30% lower than last year. Judging by experience, however, the estimates presented by this organisation tend to be rather conservative.
Nuts
May 23, 2022
NEW DELHI. Although the prices for peanuts have fluctuated in a narrow range in India in recent weeks, traders reckon that this is about to change. Issue are global factors, especially since production is under the weather in Brazil. Recently updated production estimates, however, tell a different story.
Nuts
May 19, 2022
ORDU. Economists reckon that Turkey is witnessing an unprecedented economic crisis of epic proportions. Hazelnut suppliers report the inflation is much worse than official figures suggest, and exporters are dealing on slippery grounds. The production estimates issued at the International Nut and Dried Fruit Congress also illustrate some surprising trends.