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Pecans: US exports to Mexico drop rapidly

June 29, 2021 at 9:13 AM , Der AUDITOR
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ATLANTA. The USA has exported large quantities of raw pecans to Mexico in recent years - but one should take a closer look at this data. Since this season, there have been significant declines in exports.

Just a brief stopover

Looking at the US export data of recent years, one quickly gets the impression that Mexico is the largest buyer of US pecans after the US itself. However, this is only partly true, as Pecan Report states. Fact is that a large quantity of pecans is shipped to Mexico, but only for a stopover. Producers take advantage of cheap labour wages in the neighbouring country to have the nuts shelled in shelling plants there before they are shipped back to the US. Since the US and Mexico have an open trade border, this is a fairly efficient and cost-effective way to have pecans shelled. While Mexico also imports US pecans for its own consumption, it does so much less than the data suggest.

Mexico changes procedure

According to the Pecan Report, however, the numbers could change in the future. More and more Mexican shelling companies are starting to market their own products, so the demand for US goods is decreasing. Especially in the northern states, the Central American country itself has large pecan plantations, and modern processing facilities are also available. While Mexico had purchased around 4,536 mt of raw pecans from the USA in the previous season up to May 2020, this quantity is said to have already declined noticeably in the current season with only 907 mt.

On the European spot market, prices for Fancy Mammoth Halves continue to decline and are currently at EUR 9.55/kg FCA Spain. Prices for Fancy Junior Mammoth Halves, however, have increased slightly.

US Pecans

Type

EUR/kg

Shelled, Fancy Junior Mammoth Halves

9.40

Shelled, Fancy Mammoth Halves

9.55

FCA Spain

View more information 
price charts

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