The US Pecan crop has been growing over the past decade with growers planting more acreage each year however this year has seen the lowest levels of pecans in cold storage since November of 2017.
The global pecan market has been growing and with it the US has been planting feverishly in an effort to keep pace with growing demand. However the data shows that US growers are falling short and are unable to keep pace with the growing demand.
Pecan supply is on the rise but with a 7 year average wait period to bring orchards into commercial production, growers are having trouble keeping pace. The seven year window requires near complete inputs as if the orchard was already in production which puts a major financial burden on growers.
Even while the supply continues to grow, cold storage holdings have again dropped below the norm with total available supply dropping to the lowest point since late 2017. Pecan prices on the farm have increased slightly but have yet to recover to former highs.
India may be a changin factor for farmgate prices as India is expected to be an in-shell market similar to China. Most pecans around the globe are already shelled and many times have been roasted and flavored. However some buyers such as China prefer the nuts in-shell which opens up the in-shell market to more buyers which inevitably increases farmgate prices.
Now that the India market has been opened up via the work of the National Pecan Federation and several senators from Georgia and other southern states, we could see even more demand for pecans across the globe putting even more pressure on American growers to increase supplies for global pecan consumption.