Nuts

Pecans: gap between supply and demand

June 15, 2022 at 3:47 PM, Der AUDITOR
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ATLANTA. With strong marketing in the wake of the newly formed American Pecan Promotion Board, growers are hoping for higher demand - but this also brings some difficulties, according to Pecan Report.

Advantages and disadvantages

Through the American Pecan Promotion Board (APPB), which was recently founded by US pecan farmers, a lot of money will flow into marketing and research in the future. The goal, of course, is to increase interest in pecans and thus boost sales. However, the experts at Pecan Report do not see only advantages in this tactic, because the gap between supply capacity and demand, which already exists, could widen considerably as a result. The problem is that although many growers have already increased their plantations, it takes eight to ten years for the trees to bear nuts for the first time. For several years, the American Pecan Council (APC) has been registering increasing buying interest, and already large quantities of raw nuts imported from Mexico have to be resorted to in order to cover this.

"June Drop" as an important factor

While growers in the southern hemisphere are busy harvesting and shelling, farmers in the northern hemisphere are currently monitoring their plantations for pest and mould infestation, as Pecan Report states. Particularly in view of the growing demand, they are striving for a large crop volume - the so-called "June drop" is also important in this context, in which the trees shed excess nuts in order to be able to adequately supply the remaining fruit. However, most producers in the south-eastern growing states have sufficient water reserves to withstand the drought.

Prices on the European spot market have risen noticeably in recent weeks. Fancy Junior Mammoth Halves from the USA are currently trading at EUR 13.40/kg.

Pecans, Fancy Junior Mammoth Halves

Origin

EUR/kg

USD/kg

USA

13.40

14.05

Mexico

13.20

13.84

Australia

13.50

14.15

FCA Spain

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