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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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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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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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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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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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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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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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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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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