The latest data show pecan handlers inventory continues to trend lower for the last four months and farm gate prices firm as foreign interest continues to increase.
The latest pecan shipment data shows pecan shipments still off from last years highs. While the data does seem to fluctuate from month to month, we do see a trend of a later season and less pecans available as handler inventories continue to trend lower.
Exports have remained steady but have not seen much growth over the past season. The interest in pecans early season is quite encouraging. China has been beating the bushes looking for in-shell but have expressed concerns over the higher tariffs in place. Even with the tariff reduction available, pecans from the US still receive a higher tariff than other producing countries.
One desirable factor, pun intended, is the Desirable pecan. Chinese consumers tend to favor Desirable pecans and those come from the US, and are not available from other countries with any volume. Georgia pecan producers are the largest growers of that particular variety which makes a larger pecan that cracks out with a high percentage of pretty pecan halves.
Whether purchasing from the US or other countries, with minimal inventories, China will hopefully be taking significant quantities of pecans off the market this year. This may not last for US growers as the APC has opted to end marketing in China indefinitely citing lockdowns as one of the reasons.
While I am not a marketer and must defer to the opinion of the experts with the APC I personally do not agree with the idea to end or even slow marketing in the worlds 2nd largest economy housing the world’s largest concentration of middle class citizens with plenty of disposable income and a health focused diet, but I am not in charge. Hopefully we can take a closer look at marketing in China and find a way to make it work, the potential in China as has been undeniably proven in prior years, is too great to ignore.