[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.