Domestic Pecan Consumption Continues to Increase
July 23, 2014
Normally I would not post two Pecan Market Updates within a week of each other, but due to numerous calls I’ve received since the release of the June Cold Storage Holdings yesterday, I felt it would be helpful to do so.
When looking over the cold storage report, and after converting everything to inshell, it would appear that June 2014 shipments were 3.4 million pounds less than June 2013 shipments; 15.9 million pounds vs 19.3 million pounds respectively. However, when one takes into consideration the disappearance figures in light of what came into the US from Mexico, the figures look much different. During the month of June, Mexico exported over 5 million pounds of meats to the US. Subtracting the increase in meat inventory for the month and then converting the balance of the imported meats to inshell, consumption was actually 27.3 million pounds (inshell basis); the same as last year! Considering that China played a significant role in last year’s consumption and has purchased 34% fewer pecans during the same period this year, to have shipped the same amount suggests a significant increase in consumption and not the reduction that the raw cold storage figures would indicate. Further, thru July 16th gross Mexican imports to the US have set a new record; over 165 million pounds (inshell basis). Adding the Mexican export figures to the USDA’s recently released 2013 crop data and the 2012 carry-out indicates that domestic consumption continues to increase. With the prices of almonds, walnuts and pistachios expected to stay at or near current levels, and barring a natural disaster in the pecan belt, pecans should continue to see increased consumption while remaining the best value for the nut dollar.
As always, should you have any questions, please do not hesitate to contact me at 630-879-5200.