apparently the chinese started to consume pecans when walnuts were expensive in 2007. they favored the taste, discovered the health benefits, and found them less labor-intensive than other nuts. chinese demand for the thanksgiving nut has skyrocketed and prices have almost doubled over the past three years. we now export 28% of our domestic supply to china.
source: wsj
according to the wsj article, the u.s. grows about two-thirds of the world's pecan supply. regarding u.s. domestic pecan market structure:
"...growers of walnuts, almonds and hazelnuts are organized into groups, or cartels, that can essentially set prices and decide how many nuts to sell and how many to save for the following year. Pecan growers don't have such groups, and so have no collective strategy for dealing with the Chinese or other unexpected shifts in the market."
interestingly, i found this exporting-to-china brochure from the texas pecan growers association.
hmmm maybe i should get involved in the pecan futures...
source: wsj
or, better yet, buy a pecan farm.
