February pecan shipments up 14.8% year over year. According to the latest data, pecan shipments in February increased by 14.8% compared to the same time period last year. Pecan shipments fell last year but have been on a recovery path this season.
Pecan inventory has been trending significantly lower this year as more growers have opted to hold inventory off market as prices inch upward. Prices are expected to continue to increase as demand continues strong while inventories continue to tighten.
Compared to last year pecan inventories are significantly down. In the February report, pecan inventories are down by almost 100 million pounds as compared to last February. Handler inventories have not been this low since monthly reporting began.
Inventories have been trending this low since last season and has only progressed to lower trends into this year. Last season saw lower inventories than reported prior and this season will again set new records for lower trending inventories.
As demand increases, pecan growers continue to plant new orchards across the southern US in an effort to keep pace. Supply continues to trial behind demand as new orchards take on average around 8 years to come into commercial production.
Increased demand is expected to continue for the foreseeable future as growers continue to work to enter new markets and develop emerging markets around the globe. A recent win for the industry developed in India with a reduction of tariffs on pecans being reduced from 100% down to 30% making the market now accessible to pecan imports. The country is already a huge consumer of nuts as a large portion of the populous follows a vegetarian diet.
The latest report can be viewed at the link below.