Nuts

Pecans: US growers are dissatisfied

May 10, 2023 at 2:45 PM , Der AUDITOR
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ATLANTA. The extremely high demand for pecans should make farmers in the USA cheerful. However, the reality is different, as increasing acreage is proving difficult and support is lacking.

Lower inventories

According to Pecan Report, pecan stocks have decreased this season. Although growers are trying to increase production steadily, high demand is currently outstripping supply. Traders are therefore importing additional goods, mainly from Mexico, but current stocks are said to be 30% lower than last season. This is mainly due to the numerous sales this year; in December 2022 the difference to the previous year was "only" 21.33%, after the sales in January-March the estimate of 30% now applies. The experts reckon that this situation will continue for a while, as the steadily increasing buying interest is putting massive pressure on the market despite the increase in acreage.

Various difficulties for growers

Expanding the cultivation area, however, is not easy for the farmers, as high upfront investments have to be made and several years of care are required before the trees bear for the first time. In addition, environmental factors such as weather and tree diseases can cause considerable damage. Pecan Report states that producer prices are also too low. " The increased demand for pecans seems to only benefit a handful of people at the top of the supply chain while growers continue to see mediocre prices for their harvests", the website states. Even an abolition of the American Pecan Council was already being discussed, but could be averted. The fact is that the farmers are very dissatisfied with the current situation and want to become more involved in terms of financial support.

USA most important supplier for the EU

The EU imported a total of 13,098 mt of pecans in 2022, worth almost EUR 149 million. The average import price was EUR 11.37/kg. The most important supplier was the USA with 9,916 mt, followed by Mexico with 2,298 mt. Countries such as South Africa and Australia followed further behind.

Pecan* imports, EU, 2022

Supplier

mt

Mio. EUR

USA

9,916

111.245

Mexico

2,298

27.934

South Africa

388

3.821

Australia

254

3.098

Brazil

148

1.847

Others

94

0.966

Total

13,098

148.911

European Commission / Eurostat (Comext)

*08029910 Fresh or dried pecans

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