Posted 1/10/2019 17:04 (#7235372 - in reply to #7235187) Subject: RE: Mfp payment and market prices
Reasons forpecans being so cheap would be.
1. Mexico shipping pecans to US for free and selling as US product, theyfarm them using banned chemicals and practices we can not use in US. Along with labor being cheaper in Mexico.
2. China tarriffs. They are up 571% at 47% from 7%. China was buying 100 million lbs of pecans annually. This year near or at 0. US produces 300million lbs.
3. Probably the biggest one is the big shellers who buy most of the pecans felt as if they werenot making enough the last few years and are taking advantage of the cheap prices. (Corect retail prices still the same) maybe 15 shellers buy 90% of all of the pecans.
To put into persective georgia grows alot of a patarcular variety, desriable, and before huricane micheal they had $1.70 in cost of fungicide alome per lbs of pecans. Those pecans are currently not even worth that much.
Edit to ad.
Also Pecan crop insurance outside of fsa office NAP insurance is pretty much non inexistent. Cost of covering crop is about half the yearly value. Such a small market there isnt alot out there.
Pecans are a small industry with only 300million lbs produced in the US and average price from year to year of about 2-2.25isless than a billion dollar industry.