The signing of the phytosanitary protocol with China at the end of 2024 has transformed the landscape of Peru's pecan industry. For the first time, farmers can export directly to China without brokers, marking a significant step toward increasing the sector's income.

"Now we're on display. We're in fashion and in a position to tell the world's largest buyer: we have the only variety that China pays more for," says Ysmael García, technical manager and founder of the Peruvian Pecan Consortium.

The Chinese market, known for its demand for exclusive products, has shown interest in the Mahan variety of Peruvian pecans. This variety, grown in the lands of Ica, Chincha, and Pisco, can fetch up to $3 more per kilogram than other common varieties on the international market.

García explains, "In other countries, this variety is hard to produce, but it's easy to grow in Peru. If the country decided to eliminate this variety, it would disappear from the market."

Direct access to the Chinese market means better prices and the elimination of intermediary costs. Before the agreement, Peruvian exporters depended on brokers in third countries who charged between $2 and $3 per kilogram to repackage and reprocess the pecans for entry into China. Now, those costs translate directly into profits for the farmers. With annual exports reaching 1,000 tons, the economic impact is substantial.

The price of pecans, which barely reached 3 Peruvian soles per kilogram two decades ago, has climbed to 50 Peruvian soles per kilogram thanks to international demand. García says the opening of the Chinese market could double the country's annual cultivation area from 50 to 100 hectares per year. Peru currently has about 3,700 hectares of pecans, mainly concentrated in Ica, Chincha, and Pisco.

However, the sector still faces challenges, particularly the lack of cooperation among producers. "Each average orchard has between one and five hectares, which makes it difficult to fill a 27-ton container to export to China. This means coordinating with 54 farmers, which isn't easy without associations," García explains. He also highlights the need for government investment in agricultural and commercial education to encourage teamwork.

Another obstacle is the limited technology available for growing pecans in Peru. Although pecans are a hardy crop that requires minimal maintenance, pruning and harvesting are expensive due to the lack of specialized machinery in the country. Importing these tools could significantly reduce costs and increase productivity.

The ace up Peru's pecan industry sleeve

The Mahan variety is the key to Peruvian pecans' success in China. While countries like Argentina and Brazil can only export shelled pecans, Peru has opened the market for in-shell pecans, which, according to García, "takes other countries years and enormous financial investments."

This variety is valued for its taste, size, and exclusivity, as it is challenging to produce in other regions of the world.

"The international price of other varieties is between $6 and $8 per kilogram, but China pays up to $3 more for Mahan because they have no other option. This variety's quality can only be found in Peru, making us competitive despite having a smaller production than giants like Mexico or the United States," García emphasizes.

Peruvian pecan

The rise of pecans is also a key driver of Peru's agricultural sector. Recent agricultural training and extension initiatives from the Ministry of Agriculture, where Ysmael García is involved, have improved pruning, irrigation, and fertilization techniques, elevating the capabilities of small and medium-sized farmers. "This not only increases productivity but also opens the door to new export opportunities," García highlights.

Despite its family-based nature, with orchards often no larger than 20x20 meters, pecan farming is attracting increasing investment. Many orchard owners view this fruit as a form of long-term savings, investing in their orchards with hopes of high future profitability.

The agreement with China marks a turning point for Peruvian pecans, not only because of the immediate economic benefits but also because it will boost the sector's development. The opening of this market could be the catalyst that finally propels pecans into the major leagues of agro-export. But there are still challenges to address.

Pecan farming is distinguished from other fruit crops by its long-term nature, presenting both advantages and challenges for producers. García explained it clearly: "Right now, this is still small compared to blueberries, citrus fruits, or grapes. Why? On average, pecans achieve liquid and net profitability after 10, 11, or 12 years. On the other hand, with citrus fruits and avocados, you can expect a return by the third or fourth year."

That said, if there is a clear path toward cooperation, access to modern technology, and government support, the future of pecans in Peru looks brighter than ever. And it's all thanks to a variety that puts Peru in a unique position in the international pecan market.

It’s worth noting that Ysmael García, a technical manager and founder of the Peruvian Pecan Consortium, will be in Argentina in March 2025 to speak about pecans at what he describes as "the greatest pecan event in all of South America," the Pecan Cluster Conference. The event will take place in Entre Ríos and will host experts from countries such as Brazil, Uruguay, Argentina, Mexico, and the United States. García will represent Peru.