Why is china buying pecans

The variety, known for its large, well-filled nuts sold at good prices, used to be a favorite of Chinese buyers. With fast shipment and proper processing, the "Desirable" nuts were usually fast sellers during the Chinese New Year shopping season.

This year, however, Hudson must look for domestic or alternate foreign buyers to receive his products. After the US unilaterally imposed massive tariffs on Chinese imports last year, China added retaliatory tariffs on US goods, making pecans currently subject to around 47 percent tariffs, up from 7 percent in early In , Hudson brought the nuts to the Chinese market when Chinese consumers knew little about pecans native to the US and often confused them with walnuts.

But now, he and his fellow pecan growers and exporters, as well as their Chinese partners, have managed to grow the business in China, with an increasing number of consumers interested in the nut's health benefits. The machines they use to produce this uber-popular snack require that the pecans be fairly uniform, which means orchards filled with uniform trees.

I decide to go ask them about the native nut. Last year, he bought 50 percent. When I arrive, the delegation has just finished a traditional Texas barbecue. Weather events had already damaged the industry in damaged the industry in —— widespread enough that the USDA stepped in to assist farmers in the widespread enough that the USDA stepped in to assist farmers in the hardest hit areas. Then the very next year hardest hit areas. Then the very next year saw the trade war with China.

However, American pecan aw the trade war with China. However, American pecan growers do have an advantage. The US pecan industry is also represented by the US Pecan Growers Council which has lobbied successfully worldwide for over a decade on behalf of American growers. While the trade war has caused some hardship for growers, the industry itself is resilient and there is every expectation has caused some hardship for growers, the industry itself is resilient and there is every expectation things will begin to normalize again.

As the trade dispute escalated, tariffs increased and demand for certain US ag products into China decreased. Soybeans prices took dip in the first months of the trade war and have been slow to recover, still holding around a dollar per bushel lower than pre-trade war levels. After a nearly 2 year long negotiation the two countries announced a phase one trade deal had been reached in January of ,and in February the phase one trade deal went into effect.

Since the announcement in January the trade deal has been on shaky ground and has not been able to instill markets with any confidence as of yet. However China has been purchasing US ag products, while purchases are still hovering around 7.