Economic Importance of the Pecan Industry
Guide Z-501
Esteban Herrera, Extension HorticulturistCollege of Agriculture and Home Economics New Mexico State University
This publication is scheduled to be updated and reissued 5/05.
The U.S. is the world’s largest pecan producer. Other countries producing pecans include Australia, Brazil, Israel, Mexico, Peru, and South Africa.
Two types of pecans are produced in the U.S.: native or seedling, and improved varieties. Native pecans are varieties that developed under natural conditions. Seedling pecans are produced from seed (the nut) and have not been budded or grafted. Improved pecans are varieties that have been genetically altered through breeding and grafting techniques to produce more nuts, and nuts with a greater percentage of nut meat.
Pecan Production by States
Depending on the variety, pecan trees require 205?233 frost-free days for the nuts to reach maturity, thus restricting pecan production to southern states. The following states are most important in commercial pecan tree growing: Alabama, Arizona, Arkansas, California, Florida, Georgia, Mississippi, New Mexico, North Carolina, Oklahoma, South Carolina, and Texas (table 1). Kansas, Kentucky, Maryland, Missouri, Tennessee, and Virginia also grow some pecan trees.
The top five states, in order of native pecan production from 1970 to 1999, were Texas, Georgia, Alabama, Louisiana, and Oklahoma. The top five states, in order of improved pecan production from 1978 to 1986, were Georgia, Texas, New Mexico, Arizona, and Alabama. When total pecan production is included, Georgia remains the top producer, followed by Texas, New Mexico, Arizona, and Louisiana.
Pecan Production
From 1970 to 1999, 1981 saw the largest pecan crop, totaling almost 340 million in-shell pounds. Followed by 335 Million in 1998. The lowest pecan production was about 103.1 million in-shell pounds in 1976. The second lowest production was 146 million in-shell pounds in 1998. While this production variability exists for both native and improved pecans, improved pecan production ranged from 48% (1979) to 78% (1982) of total production from 1978 to 1999.
Pecan Prices
The U.S. average price for improved pecans has been consistently above the U.S. average native pecan price. In part, this price differential results from quality differences, meat yields, and differences in quantities produced.
From 1970 to 1999, U.S. average pecan prices ranged from a low of 29.8 cents (1971) per in-shell pound to a high of $1.14 (1992) per in-shell pound for native pecans, and from 35.4 cents (1971) to $1.57 (1992) per in-shell pound for improved pecans. During this same period, U.S. improved pecans averaged 78.2 cents per pound, while native or seedling pecans averaged 49.7 cents per pound—an average price difference of 28.5 cents per pound. Differences in prices from state to state reflect national and local difference in supply and demand, as well as differences in quality, nut meats obtained, and market outlets.
The annual gross value of pecans produced from 1970 to 1999 ranged from $60.5 million in 1970 to $309 million in 1991, changing dramatically over the years.
Pecan Imports/Exports
Historically, pecan imports and exports have been only a small portion of total U.S. pecan production. From 1970 to 1999, imports (shelled basis) ranged from a low of 0.2% (1981) of total U.S. production that year, to a high of 52% (1986), while exports reached an all-time high in 1990 with more than 9 million pounds (shelled) or about 9% of the total U.S. production. Imports from Mexico and exports to European countries have increased significantly since 1988.
Table 1. U.S. Pecans: Production, season average price and value.
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1997
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1998
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1999
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1997
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1998
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1999
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1997
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1998
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1999
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| Improved varieties | ||||||||||||||||||
| Alabama
Arizona* Arkansas California Florida Georgia Louisiana Mississipi New Mexico North Carolina Oklahoma South Carolina Texas United States |
7,000
18,500 1,200 3,000 600 77,000 2,000 2,600 45,000 900 3,000 2,100 40,000 202,900 |
3,500
13,000 300 1,700 200 35,000 3,000 800 32,000 1,500 200 800 20,000 112,000 |
8,000
19,500 760 2,400 1,500 80,000 4,000 3,000 50,000 1,000 3,000 800 55,000 228,960 |
0.760
1.250 0.750 1.320 1.000 0.904 0.900 0.844 0.940 0.950 0.760 0.840 0.863 0.933 |
0.954
1.590 1.150 1.660 1.100 1.240 1.000 0.870 1.490 1.000 1.220 1.240 1.300 1.350 |
0.780
1.250 0.790 1.170 1.000 0.870 0.950 1.050 1.000 0.800 1.050 0.730 1.010 0.970 |
5,320
23,125 900 3,960 600 69,608 1,800 2,194 42,300 855 2,280 1,764 34,520 189,226 |
3,339
20,670 345 2,822 220 43,400 3,000 696 47,680 1,500 244 992 26,000 150,908 |
6,240
24,375 600 2,808 1,500 69,600 3,800 3,150 50,000 800 3,150 584 55,550 222,157 |
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| Native and seedling | ||||||||||||||||||
| Alabama
Arkansas Florida Georgia Kansas Louisiana Mississippi North Carolina Oklahoma South Carolina Texas United States |
6,000
2,300 1,200 23,000 4,200 10,000 1,400 600 32,000 1,400 50,000 132,100 |
1,500
250 1,100 5,000 50 13,000 400 1,000 1,800 300 10,000 34,400 |
5,000
3,040 1,400 10,000 3,500 14,000 1,000 300 32,000 300 25,000 95,540 |
0.518
0.630 0.600 0.591 0.670 0.480 0.583 0.650 0.550 0.610 0.477 0.530 |
0.674
0.880 0.750 1.110 0.880 0.600 0.660 0.800 0.680 1.020 0.850 0.772 |
0.480
0.700 0.600 0.650 0.920 0.500 0.550 0.600 0.500 0.680 0.500 0.539 |
3,108
1,449 720 13,593 2,814 4,800 816 390 17,600 854 23,850 69,994 |
1,011
220 825 5,550 44 7,800 264 800 1,224 306 8,500 26,544 |
2,400
2,128 840 6,500 3,220 7,000 550 180 16,000 204 12,500 51,522 |
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| All pecans | ||||||||||||||||||
| Alabama
Arizona Arkansas California Florida Georgia Kansas Louisiana Mississippi New Mexico North Carolina Oklahoma South Carolina Texas United States |
13,000
18,500 3,500 3,000 1,800 100,000 4,200 12,000 4,000 45,000 1,500 35,000 3,500 90,000 335,000 |
5,000
13,000 550 1,700 1,300 40,000 50 16,000 1,200 32,000 2,500 2,000 1,100 30,000 146,400 |
13,000
19,500 3,800 2,400 2,900 90,000 3,500 18,000 4,000 50,000 1,300 35,000 1,100 80,000 324,500 |
0.648
1.250 0.671 1.320 0.733 0.832 0.670 0.550 0.753 0.940 0.830 0.568 0.748 0.649 0.774 |
0.870
1.590 1.030 1.660 0.804 1.220 0.880 0.675 0.800 1.490 0.920 0.734 1.180 1.150 1.210
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0.665
1.250 0.718 1.170 0.807 0.846 0.920 0.600 0.925 1.000 0.754 0.547 0.716 0.851 0.843 |
8,428
23,125 2,349 3,960 1,320 83,201 2,814 6,600 3,010 42,300 1,245 19,880 2,618 58,370 259,220
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4,350
20,670 565 2,822 1,045 48,950 44 10,800 960 47,680 2,300 1,468 1,298 34,500 177,452
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8,640
24,375 2,728 2,808 2,340 76,100 3,220 10,800 3,700 50,000 980 19,150 788 68,050 273,679
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| Source: Agric. Statistics Board, NASS, USDA, January 2000, Preliminary Annual Summary. | ||||||||||||||||||
New Mexico State University is an equal opportunity/affirmative action employer and educator. NMSU and the U.S. Department of Agriculture cooperating.
Revised May 2000
Electronic Distribution July 2000