By Clint Thompson
Pecan prices are historically low across the country. Growers are losing money if they sell their crop at the current marketed price.
“I heard (Monday) from a grower that was offered $1.50 for Desirables. You’re losing money big time at a $1.50 on Desirables,” said Lenny Wells, University of Georgia Extension pecan specialist.
Wells may have an answer as to why prices were marked so low at the beginning of harvest season and do not appear to be increasing any time soon. He talked to a sheller who shed light on why the law of supply and demand is not impacting the pecan industry.
Sheller’s Response
“Basically, there’s one or two big shellers that claim to have the volume out there to offer their customers on the other side – the candy companies, ice cream companies, Costcos, Walmarts – they’re offering nuts to them at a low price. That’s why when you go to sell your pecans to a sheller or accumulator, you’re getting low prices, because anybody out there that would buy them from growers is hesitant to offer a higher price when the market is set at a low price by others who have the volume,” Wells said.
“It’s not like they’re doing anything illegal. But what happens is, whether they have the volume on hand or not, if they can afford to sell them at that low price or are willing to, it brings everything down,” Wells added. “It makes everybody else scared to go up on the price that they offer growers because they’re not sure they’re going to be able to sell them on the other side for a higher price. It creates a lot of panic in the market. Nobody wants to make a decision and move forward.
“This is an explanation of what’s going on with the pecan market. I’m not happy about it, and I don’t think growers will be happy about it, but I think it is important that they know what’s happening on that side of the business. Until we have another market, besides the domestic shelling market here in the U.S., there’s really not a good answer for it that I can see.”