The latest industry report shows American pecan handlers future commitments to ship have increased for the month of May. Pecan handlers in the US are required to report future commitments to ship pecans both in the US and abroad, the latest report of May 2021 shows commitments to ship at 205,779,124 up 6% over the same time last year.
The most notable increase comes from the export market. Commitments to ship shelled meats into export markets have nearly doubled for the month of May when compared with the same time period last year.
The US Pecan Growers Council has worked over the last decade to increase that demand for pecans in various foreign markets and has done well with the b2b model in many of the countries most notably in Asian markets with the Chinese economy leading the way. India is another big market with more plant based consumers than even China.
While tariffs on pecans entering India are currently quite high, growers have been working with state and federal representatives to reduce those tariffs to reasonable levels that would match that of other tree nuts in India.
Tariffs in China are still higher than desired as a result of the trade war between China and the US, however the phase one trade deal has allowed for tariff reduction and has once again opened the flow of American pecans into China.
Domestic consumption here in the US continues to be the biggest driver of demand for pecans, however Chinese purchases could change that dynamic if export levels reach that of pre-trade war levels.