The American Pecan Council released the April 2020 Pecan Position Report showing exactly how the global pecan market has been affected by the recent Covid-19 pandemic and the resulting closures of economies around the world.
The pecan position report shows the monthly as well as cumulative season totals for shipments and future shipments of pecans from reporting handlers across the US from North Florida all the way to Southern California. Pecan handlers in the sixteen pecan producing states report inventory, shipments, commitments to ship, and inventory of pecans each month. That data is then reviewed and compiled by the central office in Dallas Texas and then released to industry participants once a month.
This latest release, April 2020 Pecan Position Report, has been highly anticipated in order to better see the effects of the Coronavirus pandemic and the resulting effects on the pecan industry. Many industries have seen significant issues as the virus causes shut downs and supply chain issues. Many buyers and sellers alike have questioned whether an industry with thousands of growers spread across so many states would be able maintain a steady supply chain, and whether marketing strategies would hold up to an unprecedented event such as what we have all been experiencing over these past five months.
So far, it seems, the global pandemic has had very little, if any effect on the pecan industry. Both the global supply chain as well as the marketing strategies currently undertaken by the American growers have been able to continue the historic rise in demand for pecans. Last year pecan growers saw the largest demand in the history of the pecan industry, and were able to supply that demand without sending pecan prices soaring. Pecan prices have continued to remain stable through the historic rise in demand.
The global pandemic that has spread throughout the world and especially here in the US, had some buyers and sellers concerned about future demand of pecans and the growers ability to supply the current and future demand, but both have seen steady growth, right through the pandemic. Supply chains have remained stable and demand has continued to rise even when compared to last year’s record breaking sales.
Last season the April 2019 report shows American pecan growers had shipped just over 103 million pounds of shelled pecans and just under 31 million pounds of in-shell pecans for of year to date total* of 237,183,990 pounds shipped for the season. This year, the April 2020 report shows just over 107 million pounds of shelled pecans and just over 44 million pounds of in-shell pecans shipped for a season total of 259,414,659 pounds shipped for the season, representing an increase of 9.4% year over year.
But that’s not all of the good news for the industry, future demand continues to rise as well. Last year, April 2019 commitments to ship were reported at approximately 87 million and 4 million pounds of shelled and in-shell for a total of 178,228,806 pounds of pecans. This year, April 2020 commitments to ship are reported at approximately 102 million and 8 million pounds of shelled and in-shell pecans for a total of 212,822,430 representing a whopping 19.4% increase in commitments to ship year over year.
The increase in both shipments and commitments to ship are proof that the American growers marketing order is working and working well. Even in the face of a global pandemic and global economic shutdowns, American pecan growers have managed to maintain steady increases in the demand and supply of their products and have been able to do so without huge price fluctuations to destabilize the growth in demand for their pecans.