Higher prices for pecans this season

Chinese consumers may not debate whether to call them "PEA-cans" or "puh-CONS," but that doesn't mean they're not talking about one of Georgia's biggest exports.

The world's most populous nation has gone nuts for the pecan and, while that's mostly good for growers here, it could prompt some sticker shock in local supermarkets. Shoppers can expect to pay a dollar a pound more for pecans this year than last, about $2.34.

Because of the hot, dry summer and the fact that 2010 is an alternate, or lower expected production year for pecans, Georgia's supply will be only about 65 million pounds. That's a little more than half what falls out of the trees in a strong year, said Grantly Ricketts, Fulton County extension agent for the University of Georgia Cooperative Extension.

Pecans had not cracked the Chinese market 10 years ago -- nor had the Chinese market cracked pecans -- but now China has a voracious appetite for the nut.

"They didn't even know what pecans were," said Duke Lane Jr., chairman of the Georgia Pecan Commission. Now, in a high production year, about 35 percent of the state's pecans are exported, the vast majority to China.

The blooming Chinese appetite for pecans, coupled with this year's smaller pecan crop, is resulting in higher prices in the U.S., although growers say there should be sufficient supply for the peak holiday season. They also said that the quality of this year's crop should be good.

"Everybody wants them, and there's not enough to go around. There aren't as many pecans as in past years, so you have less supply but greater demand," said Lee Morehead, owner of Morehead Pecan Co. in Irwinville which has been in operation for 28  years.

Georgia pecan production peaked in 2007,  Ricketts said, at 150 million pounds. The low year was 2006 when the state's growers produced just 40 million pounds.

Lane said pecan export volume is being reduced to meet U.S. domestic demand.

"We've got some domestic customers who we've had for years," Lane said. "In these kind of [low production] years, you have to spread them around."

Georgia annually is one of the top pecan producing states in the U.S., so its growers stand to be among the most affected by increased Chinese demand.

The Chinese particularly like pecans during holidays, including new year celebrations -- the Chinese new year begins Feb. 3, 2011 -- and they're willing to pay more for what is to them a unique specialty item, growers said.