As the US and Mexico begin to wrap up this year’s pecan harvest season, pecan prices start to inch upward as pecan supplies drop just over %6 from the same time last year. The USDA monitors the cold storage holdings for shelled and in-shell pecan supplies in the US, and last months report revealed a decrease in supplies when compared to last year.
What’s even more significant is that pecan imports from Mexico have not been able to fill the gap, as US shellers import Mexican pecans at all time record high levels. This of course part of the reason American pecan growers have grown more concerned over the “Board Disclosure” debate.
The “Board Disclosure” debate has American pecan growers asking if APC board members should disclose the amount of foreign pecans that they import into the US. American pecan growers claim that they have a right to know who’s representing them on the American Pecan Council and whether or not they are serving their own interests of the American growers.
The issue came to light when Dan Zedan of Navarro Pecan asked the APC staff about using the new “American Pecans” logo on pecans from Mexico, claiming that there was no way to separate the American and foreign pecan products.
Mexican pecan imports have continued to hit new record highs, however the demand created by the APC may still be outpacing the current supply. This could be pushing prices up in an industry that has been experiencing depressed, on the farm prices, ever since the onset of the China / US trade dispute.
Now with the phase one trade deal in place, several Chinese government officials have made reference to American Pecans being used to help fill the gap on the new commitments made by China to purchase some 50 billion worth of US farm goods.
If China does come back to the US pecan market, we could experience the lowest levels of supply in years putting even more strain on the current global pecan supply capacity.