http://money.cnn.com/2013/01/31/news/economy/china-pecan-exports/index.html?iid=SF_E_River
The article basically says that the Chinese are developing a thing for US pecans. The trend started a few years ago in 2007 when the price of China's previously favorite nuts - walnuts - rose significantly. Because of the rise in the price of walnuts, the Chinese had to look for a cheaper alternative and they found US pecans which accounts for 80% of worldwide supply.
Last year, over 20% of U.S. production went to China! Next year, this number is expected to increase to over 30%. This is fantastic news for pecan growers in the US, found in every state south of the Mason-Dixon Line but especially concentrated in Georgia, Texas and New Mexico. However, China's interest in US pecans has also kept the price of pecans high for both US consumers and European food companies that use them as an ingredient. That has essentially led to a number of US food makers having chosen to cut back on the use of pecans.
3 comments:
As the article mentioned, perhaps we will eventually see the decline in pecan in the United States as production is currently been cutback and substituted by other nuts. What I find interesting is how China wants them pecans in the shell to roast and add flavors to it which is what I'm familiar with in contrast to how the US just eats in plain. I do not see this trend going on in the long run because walnuts and other nuts preferred in China would stabilize and reduce the demand for US pecans.
I agree with Anuk here with his point that the possibility of pecan's demand decreasing as the price increases similar to walnuts. The question I would think that many nut producers are currently asking is whether China will go back to walnuts when the pecan's price is too high or will they find another substitute?
I believe it would be wise for U.S. producers and marketers of pecans and pecan products to try to establish pecans as a staple in Chinese culture and cuisine. If they can get chinese individuals, particularly young individuals, to prefer pecans to walnuts then the U.S. may have found an potentially extremely profitable export.
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