"Pecans: Prices, Demand, & Trends" Q&A With Trey Pippin of Shamrock Ranch LLC
Sunday, January 8th, 2012
The demand for U.S. pecans continues to expand as China’s taste for the healthiest (and tastiest) tree nut grows. Prices are at record highs. What are growers doing to meet that demand?
Growing Georgia contributing editor Chuck Strangward recently spoke with Trey Pippin, president of Shamrock Ranch LLC, located in Albany, Ga., the hub of the state’s pecan production.
Strangward: Let’s start off with prices, which are up this year. Is the increase part of an ongoing rise or is it due to more recent developments?
Pippin: It’s definitely part of a trend. The Chinese started buying pecans about five or six years ago and have gradually increased their buying. It’s tradition to eat nuts for good luck for the Chinese New Year. You ran into a situation where the gift-pack buyers were competing against the Chinese because everyone was worried they weren’t going to have enough pecans to fill their needs, so they started bidding up the price early on in the year.
Another area affecting the price is Texas, which was devastated by drought. They lost trees, not to mention the crop over there. Tough weather conditions in other areas pushed the supply down a little bit.
Strangward: Is the demand here to stay?
Pippin: As long as the Chinese demand stays there and there are no policies to negatively change exports, then I think the demand will be up. It takes eight to 10 years to bring a pecan tree into commercial production, so it takes quite some time to get the supply out there. Every grower I know is planting new trees. I think as growers we’re trying to do what we can to produce more pecans but it just takes time.
Strangward: What about domestic demand?
Pippin: I think it has stayed pretty solid considering the pricing. At the beginning of the year, in-shell pecans saw a high of about $3.33 per pound, and it stayed above $3 for a good portion of the year. But now it’s down to the $2.50 to $2.40 range, so it’s come down quite a bit.
Strangward: How has the crop faired overall?
Pippin: I think most pecan farmers had a great crop. This is what is called an “on year” crop, with next year expected to be an “off year.” Not the heaviest ever in Georgia by any means, but I think the state came in around 90 million pounds or so. But it was a good crop, especially here in south Georgia. Next year, of course, is an “off year,” so that’s one reason for pricing, since the supply is expected to be short next year.
Strangward: Talk about your operation for a moment – its beginnings and how you arrived where you are now.
Pippin: Our operation started with my dad. His dad moved down here during the Depression and ran a plantation nearby. So my dad was raised in row crops, and after college he decided to break off from that and start farming some pecan trees on the property; he planted additional acreage and farmed the trees he had. He grew our operation to what it is today. I came back into the business about five years ago. Prior to that, I was an engineer in Jacksonville, Fl. We farm about 2,000 acres, mostly Desirables, here in Dougherty County.







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