Nov. 26, 2009 - As interest in locally-grown food rises, the demand for fruits and nuts is also growing. According to Texas AgriLife Extension specialists Jim Kamas, Dr. Larry Stein, and Dr. Ed Hellman, peaches, wine grapes and pecans offer the greatest market potential.
Texas is currently ranked in the top 10 in the national standings for all three types of produce. According to experts, there is opportunity for new small-acreage growers to jump into these markets, if they are willing to make the investment. Texas is ranked ninth in peach production, fifth in wine grape production and second in pecan production.
Kamas, said there are about 3,500 acres of peach orchards that are used for commercial produce, according to the Texas Crop Statistics Services.
"The Texas Hill Country is home to about 40 percent of the commercial peach acreage in the state," he said.
Growing opportunities for new peach growers exist, he said, because of an aging demographic.
"The orchards are getting older, and the growers are getting older, and some of these orchards just aren't being replanted as they age," he explained.
He advised that orchard sites be very well-drained. An ideal peach soil would be a top soil of sandy loam 12 to 24 inches deep, (which provides adequate water drainage during high rainfall events) and a red sandy clay subsoil, which has good water-holding capacity during periods of drought.
The leading cause of failure, according to Kamas, is spring frost, so he advised new growers to choose an upland site with good air flow.
He said growers should pay special attention to the variety of peach tree they chose, depending on the chilling requirements of the tree, versus the number of chilling hours that occur in the area(time with temperatures between 38 and 48 degrees).
In terms of orchard establishment, he said it costs approximately $2,000 per acre.
"These prices do not include either the land, high fence to protect against game, or the water well," Kamas said. "Land preparations and communication with nurseries should begin about one year before planting, to make sure that a site is fit to be planted and that you have the appropriate trees in line with your nursery to be delivered at the time of planting."
For those who opt to pass on opportunities in the peach business, pecans are another viable option. Stein, a pecan specialist, said Georgia is typically the only state over Texas in pecan production.
"Georgia is our big nemesis," Stein said. "Usually the way Georgia goes, the price goes, so when Georgia has a big crop, that tends to weaken the price a bit."
He said the Texas pecan industry is going strong and there is room for more growers as nurseries tend to sell out every year. New varieties are coming out and the cost of shelling equipment is getting cheaper.
"It has been my experience that if you are growing really high-quality pecans, then you are going to be able to market those," Stein said. "I think that is a great opportunity for a small guy."
Another benefit for potential pecan growers is the cheaper shelling equipment that has been released on the market.
"You are not selling pecans anymore, you are selling actual kernels," he said. "So that's the way of the future -- you're not going to be selling pecans, you are going to sell nocono kernels or Waco kernels."
As with peaches, Stein said the key detail when growing pecans is having a deep, well-drained soil and adequate water.
"You need to have deep soil. We tell you that need at least three feet, and it needs to be deeper than that," Stein noted. "If you have good soil, you can screw up a lot and still grow really, really nice trees."
While pecans and peaches are a relatively traditional part of the state's economy, wine-grapes are becoming more important to the state's agricultural landscape.
According to Hillman, the Texas grape industry is primarily a wine-grape industry, very little table grapes are grown in the state. He said the number of wineries in the state seems to be updated weekly.
"The last number I heard was about 194 wineries and growing, so the industry is continuing to expand, somewhere around 3,000 acres state-wide."
Wine-grapes, he said, are a very high-value crop. Growers can expect to get a gross income of between $6,000 and $8,000 an acre. However, they require a high investment cost that ranges from $15,000 to $20,000 per acre, not including the cost of land and possibly other necessities.
"Honestly every situation is different," he added. "You will also have equipment costs that are not built into that estimate. For a small vineyard, you are probably going to need equipment that would cost you about $30,000, new."
"You might think, 'Well, with a small acreage vineyard, I don't really need equipment, I can do a lot of this stuff manually.' Well, there is plenty of manual work for you to do regardless of the size of the vineyard, but you're going to need equipment particularly for maintenance of the vineyard, spraying the vineyard for disease and insect control, that sort of thing. So, there are equipment requirements that really can't be worked around."
Even though there is room for growth in all three industries, each come with significant investment and maintenance costs, as well as risks from weather, pests and disease. Potential growers should examine their region, market, weather and soil before making a final production investment, according to experts.
For more information, visit www.aggiehorticulture.tamu.edu .
