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Pecans: surge in prices

February 8, 2022 12:02 PM, Der AUDITOR
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ATLANTA. The prices for US pecans have surged in recent days. Issue is the off-year in production coupled with high quality. Exports also range lower, especially to Asia.

Georgia records massive slumps

The off-year in terms of production has certainly weighed on December exports, which range 45% lower than last year at 40.6 million lbs (18,415 mt). Monthly exports reached 73.4 million lbs (33,293 mt) in December 2020. Pecan arrivals ranged at 91.4 million lbs (41,458 mt) in the four-month period between September and December, which is 44% down on the 163.0 million lbs (74,343 mt) recorded in the same period in 2020.

Production has most notably declined in Georgia. As Pecan Report states there are many older trees here, that produce lower yields. Fungal investation caused further damages. Since Georgia is the leading producing state for pecans in the US, any shortfalls here have an enourmous impact on the entire industry.

Farmers cannot complain about prices

Although the farmers have been confronted with a much smaller crop this year, the quality is excellent. Lower supplies coupled with high quality have, in fact, driven farmgate prices up to USD 2.00/kg and higher. Prices have also risen in Europe in the last few days with shelled fancy junior mammoth halves trading at USD 14.20/kg FCA Spain.

US pecans

Type

USD/kg

EUR/kg

Shelled, Fancy Junior Mammoth Halves

14.20

12.60

Large Pieces

11.60

10.25

Small Pieces

11.55

10.22

FCA Spain

Exports to Asia more than 70% down

As the American Pecan Council (ACA) reports, overseas shipments only range at 143.6 million (65,135 mt) for September till December, which is more than 29% down on the same period in 2020. This, however, not only boils down to lower production but also to a smaller marketing budget as Pecan Report states. Exports have declined to nearly all destinations, most notably in Asia, where exports are 73% down. Europe is the noted exception as US exports to here have risen by 2.6%.

 

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