By Sharon Omahen


University of Georgia

Consumers are paying more for pecans this year. But Georgia
farmers aren’t profiting from the higher retail prices.

Pecan retailers, who sell to consumers, often buy pecans on
contract from shellers. These contract prices were set months to
even a year ago, said Wojciech Florkowski, an agricultural
economist with the University of Georgia College of Agricultural
and Environmental Sciences.

Retailers have control

“Once the contract is signed,” he said, “retailers are in control
of what they charge.”

Pecan prices this year have risen as high as $8 per pound for
retail shelled pecans, he said.

Tropical storms this fall battered Georgia’s pecan crop, knocking
limbs and nuts to the ground before they were ready for
harvesting. Farmers lost 30 percent to 50 percent of this year’s
crop. They’re expected to harvest about 40 million pounds.

“The retailers know there’s a short supply of the crop and they
are taking advantage of it,” Florkowski said.

Farmers are getting higher prices for their pecans this year, he
said. But the rules of supply and demand are working against
farmers in this case.

Few farmers seeing a profit

“If prices are high,” he said, “it’s because growers don’t have
anything to sell because the supply is down.”

But the lucky few farmers who weren’t hit hard by the storms are
making money. “It’s hit and miss and very spotty,” he said.

When the retail prices rise like they have this season, he said,
pecan farmers begin to worry about consumer loyalty.

“Growers and shellers don’t like this because it discourages
consumers from buying pecans,” he said. “They may turn to other
nuts as replacements. Consumers may change their preference and
view pecans as too expensive.”

But in the heart of the holiday baking season, some home bakers
remain loyal to pecans.

“I hate that they are more expensive, but I don’t care,” said
Ruth Jarret of Griffin, Ga. “I’ll pay the extra because they are
worth it.”