Pecan shipments outlook is positive as suppliers have reported an increase of over 15% from the same time last year in commitments to ship.
The American Pecan Council released pecan shipment data for December 2019 showing commitments to ship surging 15.6% over the same time last year. With a total commitment to ship jumping from 146,204,635 lbs in December 2018 to 169,081,226 lbs in December of 2019 representing an increase of 22,876,591 lbs or 15.6% increase over the same time last year.
This is good news for the pecan industry, with growth estimated at 6% annually for the foreseeable future, shipments play a big role in keeping the supply and demand in balance as the industry grows globally.
While the commitments to ship do not divulge the whole picture, it does give a very good indicator of the market and the demand in the coming months.
So far this year, domestic consumption here in the US is playing a big role in the pecan industry. For years domestic consumption had been static with little to no movement. The past couple of years have seen the domestic consumption increase, which would indicate effective marketing by the American Pecan Growers Council and staff.
Exports had been on the rise until recently with the EU leading the pack. China is expected to return to the market at some point, as part of the expected purchases in agreement with the 1st round of trade negotiations between the US and China.
Pecan exports started strong for the season, but have slumped since September, resulting in a reduction of approximately 3.8 million* pounds or 11% for the season to date. While current shipments have slowed, the future commitments to ship looks promising for the industry, and will definitely help move the current crop from growers into the hands of consumers. We will monitor the shipments as the year progresses and keep you updated as more data comes into the news room.
*C2i – converted to in-shell
*Fiscal year is from September to August