Bagged pecans sit in a line on the bottom of a wooden shelf. The new pecan research and promotion program has the authority to collect assessments for domestic and foreign grown pecans imported into the U.S. USDA announced the industry members on the new APPB

Evaluating Capital Investments

Investment in physical assets that can increase business productivity and support long-term growth, referred to as “capital investment,” is an important part of business management. Expenditures on land, buildings, and equipment represent a significant part of most business’s overall costs and, as such, require careful evaluation to ensure that the investments are economically prudent. In...

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Chart showing pecan prices supply and demand by the cobweb theory.

Cycles and Seasonal Patterns in Pecan Prices

In March’s article, we indicated that agricultural producers are often interested in diversifying their production operations to reduce risk, increase income potential, or gain greater control over products or services within the supply chain. One of the examples we provided in that article was building and operating an on-farm cold storage facility. An on-farm cold...

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The check out counter at the Comal Pecan Farm retail store that grower Mark Friesenhahn installed to diversify his business.

Growing & Diversifying Pecan Production

Many agricultural producers are interested in increasing or diversifying their production operations. Both approaches have benefits and risks. Farmers increase their chance of success if they weigh these potential pros and cons before starting a new venture. So, let’s discuss some benefits and risks associated with different expansion and diversification strategies. Expanding Production Acreage From...

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A line graph showing the ups and downs of food inflation by year from 1948 to 2022. In 2022, food inflation hit near 10%. The last time it was this high was 1974.

The Connection Between Supply, Demand, and Pecan Prices

Consumer prices have received significant attention in recent months due largely to inflation observed throughout much of the economy, including food price inflation. In the most recent U.S. Bureau of Labor Statistics report, the 12-month change in food prices was up 10.9%, the highest year-over-year increase in food prices in almost 50 years (Table 1)....

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Large container ship loaded with refrigerated and standard containers approaching port, assisted by two tugs and followed by pilot cutter.

Supply chain woes and the pecan industry

The term “supply chain” describes the organization of participants that produce, process, and distribute goods to consumers. Supply chains, especially those associated with food and fiber, have seen increased interest over the last several years and even more in the last several months. Many factors, including weather-related issues, issues associated with the COVID-19 global pandemic,...

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A circle chart showing the 3 facets of Consumer Food Behavior: environmental factors, food factors, and consumer-related factors.

The ins and outs of consumer behavior

Understanding consumer preferences and corresponding behavior is vital for business success. This understanding is important regardless of where you are in the supply chain, although how the knowledge is used may differ. For example, pecan producers who sell inshell or shelled pecans that are, for the most part, homogenous may use knowledge about consumer preferences...

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Bagged pecans sit in a line on the bottom of a wooden shelf. The new pecan research and promotion program has the authority to collect assessments for domestic and foreign grown pecans imported into the U.S. USDA announced the industry members on the new APPB

Market and strategy tools for pecan stakeholders

Previous articles in this series have explored the pecan supply chain focusing on pecan producers and consumers. In this article, we shift gears to explore several tools that stakeholders within the pecan supply chain can use to consider opportunities to integrate within the supply chain. For example, a producer may be interested in expanding their...

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Pecan Producers—the Pecan Supply Chain

The previous articles in this series focused on the pecan supply chain and final consumers. In this third article, we’ll look at pecan production and producers in more detail. We’ll explore world pecan production, U.S. pecan production, and issues that pecan producers face. World Pecan Production  Pecans are native to North America, with the name...

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A graph showing the per capita consumption of almonds, walnuts, cashews, pistachios, hazelnuts, pecans, macadamias, and Brazil nuts.

Pecan Consumers

The previous article in this series focused on the pecan supply chain and the marketing channels used to move pecans from producers to final consumers. In this article, we’ll drill down and focus on the final consumers of pecans, both international and domestic. International pecan consumers (exports) The United States exported $150 billion of agricultural...

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Flowchart shows the potential paths pecans take through industry marketing channels.

Pecan Marketing Channels & Players

Most agricultural products, including pecans, make their way through several industry segments, moving from producers to final consumers. The paths these products take are referred to as marketing channels. In this article, we explore pecan marketing channels with an emphasis on better understanding the industry participants in each marketing channel. In future articles, we’ll discuss...

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