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Pecans: smaller crop in Georgia

December 9, 2021 at 12:44 PM , Der AUDITOR
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ATLANTA. Now that the US growing regions have recovered after the massive storm damage of 2018, a relatively small crop is nevertheless being reported from the most important growing state of Georgia. However, this was to be expected.

Domestic market has gained in importance

American pecan producers have had a difficult few years: the trade war with China, hurricane "Micheal" and low prices have made life tough for them. Nevertheless, demand and production have steadily increased, as Pecan Report states, referring to the Federal Marketing Order, which was launched in 2016 and provides accurate data on production, supplies and shipments. One change is particularly obvious. Just a few years ago, a large part of the US crop was shipped overseas, but now the domestic market is the biggest buyer. Following China's renewed entry into the market, however, the Asian country is once again an important buyer as well.

New plantings replace old trees

According to Pecan Report, when Hurricane "Micheal" hit the growing regions in Georgia, Alabama and North and South Carolina in 2018, enormous damage was caused from which farmers had only recovered two years later. More and more growers are now planting high hedges in their plantations to protect the trees from further storm damage. In Georgia, the harvest was delayed this year and many growers report a lower yield than hoped for. According to the Pecan Report, this is mainly due to the fact that some older plantations are being replaced piece by piece by new trees. A decline in production was therefore to be expected; the extent of this decline should become clearer in the coming weeks.

Prices on the European spot market have continued to rise slightly in recent weeks. Fancy Junior Mammoth Halves, origin USA, are currently trading at EUR 11.85/kg FCA Spain.

Pecans, USA

Type

EUR/kg

Shelled, Fancy Junior Mammoth Halves

11.85

Large Pieces

8.80

Small Pieces

8.70

FCA Spain

Germany significantly increases imports

Pecan imports to Germany in the period January-September increased by more than a quarter year-on-year. Imports totalled 4,560 mt, of which 4,067 mt came from the USA alone. This means that the United States was able to increase its shipments to Germany by 25.4%. Looking only at September, the higher imports become particularly obvious: compared to September 2020, the USA increased its exports to Germany by 172.6% to 428 mt.

Pecan* imports, Germany, in mt

Country

2020

2021

Diff.

USA

3,242

4,067

25.4%

Mexico

260

268

3.1%

Netherlands

34

142

317.6%

South Africa

40

30

-25.0%

France

9

17

88.9%

Peru

12

12

0.0%

Others

15

24

60.0%

Total

3,612

4,560

26.2%

Federal Statistical Office of Germany / Jan-Sep

*08029010 Fresh or dried pecans, whether or not shelled or peeled

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