Pecans: US exports to Mexico drop rapidly

June 29, 2021 at 9:13 AM , Der AUDITOR
Play report as audio

ATLANTA. The USA has exported large quantities of raw pecans to Mexico in recent years - but one should take a closer look at this data. Since this season, there have been significant declines in exports.

Just a brief stopover

Looking at the US export data of recent years, one quickly gets the impression that Mexico is the largest buyer of US pecans after the US itself. However, this is only partly true, as Pecan Report states. Fact is that a large quantity of pecans is shipped to Mexico, but only for a stopover. Producers take advantage of cheap labour wages in the neighbouring country to have the nuts shelled in shelling plants there before they are shipped back to the US. Since the US and Mexico have an open trade border, this is a fairly efficient and cost-effective way to have pecans shelled. While Mexico also imports US pecans for its own consumption, it does so much less than the data suggest.

Mexico changes procedure

According to the Pecan Report, however, the numbers could change in the future. More and more Mexican shelling companies are starting to market their own products, so the demand for US goods is decreasing. Especially in the northern states, the Central American country itself has large pecan plantations, and modern processing facilities are also available. While Mexico had purchased around 4,536 mt of raw pecans from the USA in the previous season up to May 2020, this quantity is said to have already declined noticeably in the current season with only 907 mt.

On the European spot market, prices for Fancy Mammoth Halves continue to decline and are currently at EUR 9.55/kg FCA Spain. Prices for Fancy Junior Mammoth Halves, however, have increased slightly.

US Pecans

Type

EUR/kg

Shelled, Fancy Junior Mammoth Halves

9.40

Shelled, Fancy Mammoth Halves

9.55

FCA Spain

View more information 
price charts

View related articles

Go to the News Overview
Nuts
Nov 25, 2024
NEW DELHI/BUENOS AIRES. Prices for Indian peanuts are currently volatile and there is disagreement as to whether they will rise or fall in the coming weeks; both seem possible. Argentine market players are facing numerous challenges.
Nuts
Nov 25, 2024
FRESNO. Domestic demand is strong for US pistachios. Exports to China have slumped. Water is an issue in California.
Nuts
Nov 22, 2024
ORDU. While producers are patiently waiting for Ferrero to conduct the next move, producers are holding back incredible volumes of hazelnuts in Turkey.
Nuts
Nov 21, 2024
BRUSSELS. Eager suppliers are urging customers to act fast for pine nuts in China and Turkey. As recent import statistics show Russia’s export duties have failed to impress buyers in the EU this season so far..