[PRODUCE REPORT] In the face of the ongoing trade war between China and the U.S., many of China’s pecan buyers have shifted their purchasing habits to neighboring Mexico. In fact, Mexico’s pecan exports to China increased by more than 3000% in 2018 relative to the previous year, with a total value surpassing $19.5 million. Mexican pecans exported to China benefit from a customs tariff of only 7%, in contrast to the tariff of 47% now applied to U.S. pecans. These increased tariffs have also reduced the exports of U.S. almonds and hazelnuts to China.
Pecans are native to northern Mexico and the southern U.S. and have a long history of being consumed and cultivated in this region. Mexico is currently the world’s largest producer of pecans and harvested 147,000 tons, 48% of the global supply, in 2017. The U.S. accounted for much of the remaining production (46%) in 2017, with most of the remainder originating from South Africa (4%) and Australia (1%). Read the full article on Produce Report.
Chinese Buying More From Africa
The increased Chinese buying of nuts from countries like Mexico mirrors what’s also been happening in Africa where the Chinese have stepped up agricultural purchases in 2019:
- Citrus: South African Citrus Reaches China via New Shipping Methods
- Beef: Namibia launches beef exports to China and Boost for SA’s economy as China lifts its beef ban
- Avocados: Kenya signs agreement to export avocados to China
- Coffee: China’s Market Open to Rwanda’s Tea & Coffee Exports
While it’s difficult, if not impossible, to determine if the increased accessibility to the Chinese market is due entirely to the ongoing U.S.-China trade or if it’s just coincidental timing, it’s clearly a benefit for African agricultural exporters who will no doubt benefit from entering one of the world’s largest consumer markets.
Separately, allowing more African food and agricultural imports will also provide Beijing with the political cover it needs in response to criticisms about China’s gaping trade deficits with most African countries. Although agricultural products will not be sufficient to close the gap, it will nonetheless the help, even just a little.
