Pecan Analysis

By Jon Kennedy,2014-07-23 12:07
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Pecan Analysis



    Pecan Market Analysis

Pecan Produced Countries

    United States of America and Mexico have been the two major producers of Pecan Nut since the 17th century in the world.

Production Quantity

    The United States is the world’s largest producer of pecans. It is estimated that the United States

    produces 75 percent of total world production followed by Mexico with an estimated 20 percent (Johnson 1997). According to Intracen, 85.77% of the Mexican Pecan exportation was directed to USA.

Production Place in Mexico

    A majority of Mexico’s pecan production occurs in the states of Chihuahua, Coahuila, Sonora,

    Durango and Nuevo Leon.

Pecan Market in China

    1. Market Demand

    As China's economy continues to develop, the continuous improvement of people's living standards, urbanization and enhanced processing capabilities, China's total consumption of walnut and its products is rising, according to the State authorities’ prediction, domestic demand for

    walnuts will increase by growth of about 10% annual.

    Although China has triplicated its crop area of nuts, the low levels of production and the constantly growing demand, has forced China to import Pecan during the past years from United States. Now more and more Mexican businessmen find this potential market and are trying to do this business with China directly.

2. Target Price (In-shell Pecan)

    1) American Price: 2100 USD/MT (FOB USA)

    The American Pecan has a lower price but higher tax to export to other countries.

2) Mexican Price: 1900 USD/MT (FOB Mexico)

Pecan price is affected greatly by season and weather.

3. Market Chanel in China

    1) Pecan Importer ? Agricultural Trade Market ? Retailers ? Customers

    Pecan Importer: import pecan from USA.

    Agricultural Trade Market: Wholesale from big agricultural trade market to small, more

    than one intermediate merchant.



    2) Pecan Company (import, process, package, sell) ? Retailer ? Customers Retailers: market price about 13usd/kilo

Potential Customers:

    1. Pecan Company

    2. Pecan Importer

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