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How is the Value Chain Process of Mexican Walnut (Pecan Nut)?

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Value Chain Overview
Oct 6, 2021
Edited By
Juan Carlos
Oct 6, 2021
Edited By
Juan Carlos
Value chain breakdown of the Mexican Walnut (Pecan Nut) described includes; Producers, Huskers & Distributors, Brokers, and Traders for international markets.

Producers:

  • The Harvest season is between October and February. However, there is availability all year round as Huskers keep stocks to be able to supply them all year.

  • Large producers might also be Huskers and Distributors themselves in a few cases where they own the entire value chain. In general, producers are focus on increasing productivity in their own land and sell their yearly production to Huskers.

  • Walnut production in Mexico is alternative each year, which means there is one high productive year followed by a low productive one. 

Huskers & Distributors

  • Huskers buy from producers depending on the quality and performance of each harvest, so the first thing is to do testing on farms before the harvest to assess each of the framer’s production. With that, they offer the Price to pay for each quality and is set per Pound.
  • The performance of the nut will mainly depend on the size of the nut without shell.
  • The farmgate price that Huskers pay is set depending on this valuation as this will be translated on the grading for commercial trade.
  • Once the walnut is acquired by the huskers, they own all the value-added processes on their facilities, from SIZE SELECTION, WET PROCESS, STONE DISMISSAL, NUT HUSK, SEPARATORS, AND PACKAGING for commercialization.

Commercialization

  • All Huskers will commercialize the product on their own after the value-added is finished so they get a larger profit margin from the product.
  • Size selection is important as this will set the domestic and international prices for each product. 
  • Sizes are divided into two major groups: HALVES and PIECES, with their different sizes on each. Please refer to the Sizing Chart.



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