Forum for Science, Industry and Business

Sponsored by:     3M 
Search our Site:


Effectiveness of state-level pecan promotion program evaluated

Texas program found effective in augmenting pecan sales

Pecans are the only nut native to the U.S. grown on a commercial scale. These popular nuts are "alternate" or "biennial bearers", a trait that leads to yearly production and quality fluctuations.

The annual instability in crop supply and quality can cause major problems for growers seeking to develop and maintain consistent pecan supplies in response to domestic and foreign market demand. To help growers address challenges related to promoting and marketing their finicky pecan crops, several state-level marketing initiatives have been established during the past two decades.

A recent study commissioned by the Texas Pecan Board evaluated the economic effectiveness of the state-level program in expanding sales of Texas pecans. A research team from Texas A&M University published the results of their evaluation in a recent issue of the American Society for Horticultural Science's journal HortScience. The TPB promotion expenditures were found to have effectively increased the demand for Texas pecans and the quantity of total pecans sold over the 8 years since the program's inception.

The pecan industry is the only U.S. nut industry with no national-level generic promotion program, legislation authorized by Congress to provide grants and funding for promotion of other farm commodities. Pecan growers rely instead on state-level pecan promotion programs such as the Texas Pecan Checkoff Program, administered by the Texas Pecan Board in an attempt to "increase the welfare of Texas pecan growers". Texas pecan promotion programs are financed through an assessment, or ''checkoff'' on pecan sales from growers to first handlers; growers with 500 pecan trees or more and at least 15 acres are required to pay the assessment. Historically, annual pecan checkoff collections in Texas varied from a low of $85,500 in 2005 to a high of $167,600 in 1999�. TPB spends the annual checkoff collections on promotional activities in seven different categories.

The research study focused on three areas: determining the effects of the Texas Pecan Promotion Program on sales of Texas pecans, assessing the level of effectiveness related to pecan variety (native versus improved varieties), and establishing the return on investment realized by Texas pecan growers from the promotion of sales of Texas pecans.

According to Marco Palma from the Department of Agricultural Economics at Texas A&M University, the Texas Pecan Promotion Program effectively increased Texas sales of improved pecan varieties. "The critical question", Palma noted, "is whether the cost of achieving the increase has been less than the revenues generated by the increased sales—in other words, whether the promotion program can be judged to be 'effective' depends not only on whether sales have been enhanced by the program, but whether and how much return on their investment contributors to the program have received." The evaluation showed that TPB pecan promotion programs generated a net revenue to the industry of $35 for every pecan checkoff dollar spent on promotion or $30.5 on a discounted, present-value basis.

The researchers established that the promotional expenditures of the Texas Pecan Board funded by the Texas Pecan Checkoff Program were effective in augmenting Texas pecan sales. Specific findings of the study showed that TPB promotion expenditures effectively increased the demand for Texas pecans and the quantity of total pecans sold over the 8-year period (19992007), and sales of improved varieties of pecans were the main beneficiary of the promotion program.

The report suggested that state-level pecan promotion programs are greatly underfunded and observed that "allocating state-level pecan checkoff funds away from promotion of sales for home consumption to the promotion of industrial uses might reduce overall returns from pecan promotion."

The complete study and abstract are available on the ASHS HortScience electronic journal web site:

Founded in 1903, the American Society for Horticultural Science (ASHS) is the largest organization dedicated to advancing all facets of horticultural research, education, and application. More information at

Michael W. Neff | EurekAlert!
Further information:

More articles from Agricultural and Forestry Science:

nachricht Algorithm could streamline harvesting of hand-picked crops
13.03.2018 | University of Illinois College of Engineering

nachricht A global conflict: agricultural production vs. biodiversity
06.03.2018 | Georg-August-Universität Göttingen

All articles from Agricultural and Forestry Science >>>

The most recent press releases about innovation >>>

Die letzten 5 Focus-News des innovations-reports im Überblick:

Im Focus: Tiny implants for cells are functional in vivo

For the first time, an interdisciplinary team from the University of Basel has succeeded in integrating artificial organelles into the cells of live zebrafish embryos. This innovative approach using artificial organelles as cellular implants offers new potential in treating a range of diseases, as the authors report in an article published in Nature Communications.

In the cells of higher organisms, organelles such as the nucleus or mitochondria perform a range of complex functions necessary for life. In the networks of...

Im Focus: Locomotion control with photopigments

Researchers from Göttingen University discover additional function of opsins

Animal photoreceptors capture light with photopigments. Researchers from the University of Göttingen have now discovered that these photopigments fulfill an...

Im Focus: Surveying the Arctic: Tracking down carbon particles

Researchers embark on aerial campaign over Northeast Greenland

On 15 March, the AWI research aeroplane Polar 5 will depart for Greenland. Concentrating on the furthest northeast region of the island, an international team...

Im Focus: Unique Insights into the Antarctic Ice Shelf System

Data collected on ocean-ice interactions in the little-researched regions of the far south

The world’s second-largest ice shelf was the destination for a Polarstern expedition that ended in Punta Arenas, Chile on 14th March 2018. Oceanographers from...

Im Focus: ILA 2018: Laser alternative to hexavalent chromium coating

At the 2018 ILA Berlin Air Show from April 25–29, the Fraunhofer Institute for Laser Technology ILT is showcasing extreme high-speed Laser Material Deposition (EHLA): A video documents how for metal components that are highly loaded, EHLA has already proved itself as an alternative to hard chrome plating, which is now allowed only under special conditions.

When the EU restricted the use of hexavalent chromium compounds to special applications requiring authorization, the move prompted a rethink in the surface...

All Focus news of the innovation-report >>>



Industry & Economy
Event News

Virtual reality conference comes to Reutlingen

19.03.2018 | Event News

Ultrafast Wireless and Chip Design at the DATE Conference in Dresden

16.03.2018 | Event News

International Tinnitus Conference of the Tinnitus Research Initiative in Regensburg

13.03.2018 | Event News

Latest News

A new kind of quantum bits in two dimensions

19.03.2018 | Physics and Astronomy

Scientists have a new way to gauge the growth of nanowires

19.03.2018 | Materials Sciences

Virtual reality conference comes to Reutlingen

19.03.2018 | Event News

Science & Research
Overview of more VideoLinks >>>