Nuts

Pecans: market gains momentum

November 16, 2022 at 4:10 PM , Der AUDITOR
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ATLANTA. With the harvest still ongoing in the US growing regions, trade is only now slowly starting to pick up. Farmers are not willing to sell their goods below value, especially as there is plenty of space in cold stores for the new crop due to low stocks.

Plenty of room for new crop

With the harvest still in full swing in most North American growing regions, trade is only now really picking up. Pecan Report states that stocks are low due to a smaller production last year and record shipments the year before. This now brings the advantage that growers can take this year's crop directly into cold storage. Buyers had expected cheaper prices, but farmers are watching the markets closely and have not yet complied with these requests.

Imports are necessary

Since the US market could not meet the large domestic consumption as well as export demand with its own cultivation, imports from Mexico have been increasing for many years. Pecan Report states that although US exports are also increasing, they are nothing compared to domestic consumption. The American Pecan Council (APC) had set itself the goal of boosting domestic consumption through strategic marketing campaigns, and it has succeeded well. Therefore, imports of shelled goods in particular continue to follow their upward trend. In 2021, US imports were 46,266 mt of shelled Mexican pecans, while US domestic production averaged 140,614 mt, assuming no natural disasters.

In contrast, imports of unshelled pecans from Mexico have declined. Pecan Report suspects the cause to be the trade war between the USA and China; Chinese buyers then began to switch to Mexican goods, which were subject to lower tariffs. As a result, a large part of the unshelled nuts that would otherwise have been shipped to the USA are now going to China.

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