Pecan Market Update March 2022 Week 12

USA & Mexico have recorded a decline in year on year production due to weather conditions. Weather conditions in both countries had caused drought, which affected pecan cultivated regions this year. 

After sub-par production was recorded, it is now reported that there was a late start to the harvest due to further weather-related issues. This resulted in growers missing important holidays, including the Chinese New Year. Eventually, this has led to a decline in US exports of Pecans. It is estimated that exports of in-shell pecans from the US saw a 54% decline from last year. 

Due to drought, Mexico has also seen a decline in crop production of up to 34% from the previous year. This has led to a direct effect on exports. Unshelled pecans export to China dropped by half from 2019 levels. It is still being assessed the extent of the damage caused by the drought and how it may affect Mexico's production capabilities for this year. 

South Africa has enjoyed significantly good times in terms of quality and quantity. Interest from Chinese traders prompted much attention in South Africa. However, transport problems have stagnated the growth of the pecans industry in South Africa. It is expected that the country will be able to increase its crop volume by at least 25% this season, and the transport problems which appeared previously will be solved and settled. 

Brazil, like South Africa, has enjoyed competitive volumes in recent years. While Brazil was able to produce over 71% of Pecans in 2021 against 2020 numbers, it is improbable that Brazil would be able to replicate such numbers in 2021. This is primarily due to severe drought affecting the region. 

China has continued to surpass quantity production over the world. They have seen a 193% increase in crop volume in a year on year comparison. This has resulted from their high interest in the pecan crop, which resulted in the Chinese increasing their acreage over the past ten years. With demand still there, experts believe the Chinese crop can see further heights.