Jim Zion, managing partner of Meridian Growers, highlights the current status of U.S. pistachio supplies, noting that the remaining stocks are earmarked for Asian festivals as the harvest approaches. India remains a key market, especially for its Diwali festival, necessitating supplies from the previous year's harvest due to timing constraints. Zion states, "Most processors are probably at 90% sold right now."
Predicting U.S. pistachio yields poses challenges, with last year's estimates fluctuating before settling at 1.1 billion pounds. Unlike almonds, the pistachio industry lacks a USDA-backed survey for yield predictions. However, with increased acreage, this year's crop might reach a record 1.6 billion pounds, with expectations to surpass two billion pounds in the coming years.
California dominates U.S. pistachio production, particularly in the southern San Joaquin Valley. Arizona's pistachio acreage is expanding but may be limited by processing and irrigation constraints. Other U.S. growing regions include New Mexico, West Texas, and areas in Utah and Nevada.
U.S. pistachio demand is robust, driven by health-focused marketing. Zion identifies tariffs and trade tensions as potential challenges, noting, "We do see some growth potential in South America – primarily Brazil."
Globally, Iran and Turkey are major pistachio producers, with Spain increasing its acreage. Zion points out that water issues cap Iran's production, while Turkey's output is unpredictable. Spanish production is under U.S. observation, with Europe being a favorable market due to its focus on sustainability and food safety. Zion mentions, "The Europeans are very big on sustainability, and we're actually getting sustainable questions out of Asia as well."
Food safety concerns in the European Union benefit U.S. pistachio sales, as the EU prefers U.S. pistachios for their handling of aflatoxin risks. Aflatoxins are carcinogenic compounds from soilborne molds affecting crops.
In the walnut sector, U.S. production is estimated between 700,000 and 710,000 tons. China leads global production, while Chile is noted for high-quality hand-cracked walnuts. Zion remarks on the U.S. efforts to match Chile's quality.
For almonds, California is seeing improved grower returns after a period of unprofitability, with acreage stabilizing. Zion expresses optimism for almonds, stating, "I'm very bullish on almonds for the next 18 months," though tariffs and trade issues could impact this outlook.
Source: FarmProgress