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Pecans: short supply after low crop

April 20, 2022 4:16 PM, Der AUDITOR
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ATLANTA. After the North American crops in 2021 were lower than hoped for, some suppliers are now worried about whether they will be able to fulfil all their contracts. So far, growers are hopeful for 2022.

Georgia as the most important producer

In the southern USA, pecan trees are increasingly coming to life. As the experts from Pecan Report explain, the first small, green nuts are currently being formed and the growers are busy supplying the trees with nutrients, fertilisers and insect protection. Meanwhile, in the southern hemisphere, harvesting has begun in growing countries such as South Africa, Australia and South America. After last year's relatively low US crop of just over 117,000 mt, farmers are hoping for an "on-year" with better yields in 2022. It is certain that Georgia remains the most important growing state, and New Mexico is also in the focus of producers.

Prices on the European spot market have risen again in recent weeks, partly due to high freight costs, but also because of low availability. Fancy Junior Mammoth Halves from the USA currently cost EUR 12.63/kg FCA Spain.

Pecans, USA

Type

EUR/kg

USD/kg

Fancy Junior Mammoth Halves

12.63

13.65

Large Pieces

10.85

11.70

Small Pieces

10.75

10.60

FCA Spain

High farmgate prices

Supply is so tight this season that some suppliers even have to fear that they will not be able to fulfil their existing contracts. However, this also has advantages for some market players, as Pecan Report states: Farmgate prices have been higher than at any time in the last five years, as the low crop in the USA and Mexico has led to competition, allowing growers to charge high prices without hesitation.

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