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MORE PECAN ACREAGE NEEDED

This year is like any other year in the past decade in the pecan industry. For more than a decade, pecan growers in the know have been expanding their operations at a break neck pace. This means planting and lots of it. Pecan growers are expanding because pecan prices are at very profitable levels. Currently In-shell pecans prices (GCE:NPCN) are trading around $2.60 per in-shell pound, and with most commercial growers averaging well over 1,000 pounds per acre it’s easy to see why growers are expanding from a financial stand point. But another reason is that expansion is needed in order to maintain these prices as well. In the past, the pecan supply was not large enough or stable enough to allow for new product development, but that is slowly changing. With new plantings and better management practices the supply is becoming more stable, now with a steady market the pecan industry can focus on growth with new product development and entrance into to markets with confidence that the supply will be available year in and year out.