Pecan love
Posted in China, commodities on April 21st, 2011 by Paul Deng – Be the first to commentAn interesting piece on how China’s insatiable demand for the US pecan drives up its price.
Pecans are as all-American as anything can be. Washington and Jefferson grew them. They are the state nut of Arkansas, Alabama and Texas. The U.S. grows about two-thirds of the world’s pecans and chews most of them itself. For generations, pecan prices have fallen with bumper crops and soared with lousy ones. But lately, they’ve only been going up. A pound of pecans in the shell fetched $2.14 on average last year, according to the U.S Department of Agriculture, nearly double what they brought three years earlier.
The reason: The Chinese want our nuts. Five years ago, China bought hardly any pecans. In 2009, China bought one-quarter of the U.S. crop, and there’s no sign demand is abating.
