China Loves American … Pecans?

Published on Author howe

The newest American product the Chinese are snatching up is, suprisingly, pecans. The U.S. produces about 80% of the world’s pecans, and is exporting an increasing amount each year to China. The nuts are popular because they are a healthy snack, and a cheaper alternative to walnuts. U.S. pecan exports to Hong Kong last year increased by 64%, and the trend should continue. Twenty percent of American pecans went to China last year, and the number should near 35% this year.

According to one Illinois crop broker, Chinese businessmen literally came to American orchards with briefcases full of cash. They paid as much as 25% down, with the rest of the payments made after the pecans arrived in China. China’s entry into the market is good news for American farmers, but bad news for consumers, who should expect to see higher prices. A farmer in Texas said that he could continue to plant orchids to boost profits. American trade associations should continue to find buyers in China and encourage increased production and exports in the United States.

4 Responses to China Loves American … Pecans?

  1. I found this article very interesting, jhowe, and I’m actually somewhat surprised that the Chinese have such an immense desire for American pecans. While I find the Chinese demand for pecans to be a great benefit for US producers, my main concern is the rising price for American consumers. Hopefully the price increases will not be too significant, or we may have to resort to other less delectable alternatives for a nutritious snack!

  2. This article raises questions about the state of the Chinese economy and how much disposable income the Chinese people have. It must be expensive to import goods like Pecans from the United States to China. Therefore, the Chinese people must be making more money and can spend it on unnecessary consumer goods.

  3. My sense is that pecans are a very minor crop on a global basis. Hence a small increase in demand is quite visible. But remember that China is the world’s largest motor vehicle market, surely an indicator of a large middle class that can afford the occasional self-indulgent snack. It’s not as though pecans are a major part of anyone’s consumption!

  4. What a strange article, albeit informative. I would have never guessed that the Chinese possessed such an affinity for American pecans. You wonder where they would have developed it given their natural diet. And I think TJ raises a good point about this may mean for price of pecans for us.