Why Are Pecans So Expensive? (Explanation)

Demand for pecans has increased over the last few years and this continues to push up prices. Many nut lovers have appreciated their benefits, however, demand has not translated into increased production. In particular, with more people turning to natural foods and nuts, this has strained nut production.The price of pecans is determined by the forces of supply and demand in the market. When the nuts produced do not meet the market demand, prices increase, affecting the supply chain. However, this only partially explains why pecans are so expensive.

Factors affecting the price of pecans

As a consumer, you may not know what is involved in the growing, maturing, and harvesting of pecans. This whole process is labor intensive with high cost. These factors determine the price of the final product in the market. With half of the total pecans production located in the United States, most is exported abroad, while China imports the majority of this product. As China’s population is growing, so is the demand for this rare nut. From planting to harvest, many farmers choose nuts that ripen quickly.

Demand and supply of pecans Push and pull

Pecans are seasonal, and the tree takes over 10 years to mature and begin to bear prized berries. Harvest is sometimes interrupted due to the prolonged rainy season, which creates a distribution gap in the market and increases prices. Many retailers choose to buy produce during a good harvest and sell when the market is tight. This makes pecans expensive. If you want to get cheap pecans, the best time to buy is when the market is saturated. Read more: 5 surprising reasons God is silent in your life | Top Q&AH However, this turns out to be a supply-and-demand boost scenario causing the price of pecans to skyrocket.

Lack of support for pecan prices from the state

Despite the health benefits, the price of pecans is not supported by the government. Nuts are classified as luxury goods and let the market decide the direction of prices. If prices are centrally controlled, grain prices can be brought down significantly.When the pecan market lacks control, the price is determined by the middleman. You are left to decide whether to buy the product or not. Given the time it takes for a pecans to mature, the farmer must find a way to recover his investment in the shortest time possible, which partly explains why pecans are so expensive.

Advertising and Pricing Pecan

Pecans are packaged as a luxury nut. You pay a premium price to buy them from the local store. Pecan advertisements portray the nut as a premium nut, which has created a pathway to the market aimed at high-end consumers.Second, not all stores stock nuts; Its place is in stores frequented by their health-conscious heavy spenders. Furthermore, it is said to prolong life as well as an Alzheimer’s stave.

Pecans are increasing compared to demand

With the numerous health benefits that pecans offer, demand continues to grow and so does the price. Pecans are a slow growing crop, and demand is moving at a high rate, which is the natural catalyst for the price of this nut. lying about being pregnantFarmers choose to grow nuts that ripen quickly, thus avoiding pecans. This makes consumers rush for things that are less readily available in stores. On the other hand, pest pressure always affects the quality and quantity of pecans produced. This determines how expensive pecans will be when they hit the market.

Uncertainty in the pecan market

Most pecans are grown in the United States and sold in the Chinese market. With the current trade dispute between the two countries, the market has many uncertainties. This is made worse by the COVID-19 pandemic disrupting supply chains, driving up prices. In 2019, the average price of pecans was $1.29/lb but China’s market entry drove the price up to $2.17 prior to the imposition of trade tariffs. With the pandemic, many consumers are unwilling to buy due to market uncertainty. This has caused a deficit in the market, making pecans expensive. When the market is unregulated, pecans will remain expensive. However, the ripple effect doesn’t stop at the retailer; Farmers also benefit from buying this grain at a high price. Prices are controlled by sellers on the open market, with the target being the middle class.

Inference

Pecans are not one of those easy and natural plants to grow. The time they take to mature and produce makes pecans expensive and limits the growth of new pecans. As the global population continues to grow, the demand for pecans will continue to grow and so will the prices. If production does not meet demand, pecans will remain expensive.To control the skyrocketing price of pecans, a central authority is needed to control or support the price like in the sugar industry. However, the cultivation of pecans is labor intensive and the high investment cost is what drives up prices. , you don’t have to look at the price tag; focus on your value for money. Once you take a quick look at what’s involved in putting nuts on the table, you don’t need to ask why pecans are so expensive.

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