Monster Pistachio Crop Expected
April 4, 2012 Pistachios are an unusual crop in that the industry is relatively still a baby in the U.S., dating back to just the 1970s. Even then, until recently it wasn’t growing very fast. For example, from 1990 to 2003, an average of about 3,800 acres were planted each year, says Richard Matoian, executive director of American Pistachio Growers. But since 2004, an average of 11,000 acres were planted each year, with a high of 24,000 acres in 2007.
Add it all up and you’ve got an awful lot of acreage coming on-line. In fact, in part because pistachios are, along with pecans, the least precocious of the nut crops, 35% of the U.S. pistachio acreage is still nonbearing. Besides the new plantings coming into production, existing young acreage is increasing production, and 2012 is an “on” year for the crop, which is considered alternate-bearing, says Teresa Keenan. She and her husband Bob’s Keenan Farms have been growing and processing pistachios since the industry’s early days.
“Existing growers have increased their farms’ size by investing in planting more trees, and we’ve also got a lot of new growers breaking into the pistachio industry,” she says. “Pistachios have been a very good crop with a nice return on investment.”
How Big Is Big?
The current record for crop size was achieved in 2010, at 528 million pounds. Last year was an odd-numbered year, and thus an “off” year, so the crop declined somewhat, to 447 million pounds. When you consider that 15,000 more acres will come into production this year, Keenan says it looks to be a record breaker. “As an industry, we haven’t been the best at crop estimating,” she concedes, “but indications are that the crop could reach a record 600 million pounds.”
Matoian strongly agrees, albeit with the caveat familiar to growers of all crops. “As long as the weather holds,” he says, “everything is pointing to a record year.”
Now only one question remains, although it is a big question: Is the crop too big? In other words, can they not only sell all those nuts, but at a good profit to growers? “We’re looking at the glass as half-full,” says Matoian, adding that with pistachio trees taking six years or so to produce a crop, it’s not like the sales staffs are being caught off-guard. “They’ve long been anticipating this large crop, and they’re getting ready to sell it.”
Keenan agrees, noting that sales have been strong both at home and abroad. “With aggressive investments in marketing and promotions, price declines can be moderated,” she says. “The industry has been very active in promoting pistachios worldwide, and this effort will increase each year to help move the projected increases in production.”
Farming In The Sea
U.S. pistachio growers are also catching a break in the form of their chief competitor’s misfortune. This past September, President Obama ordered an embargo on all Iranian products, including pistachios. Even without the embargo, the Iranian pistachio industry is facing a whole host of problems, says Matoian. While they have 600,000 acres of orchards — more than double U.S. acreage — their trees are more like bushes because they harvest them by hand.
Pistachios were first grown in Iran because like California and other areas of the southwestern U.S., it has a Mediterranean climate. But also like California, Iran suffers from a lack of water, a problem that has intensified in the recent past, says Matoian. And what irrigation water they do have is sometimes very high in salt. Matoian says a consultant took a measurement on a trip to Iran and reported the salt content at 30%. “It’s like farming in ocean water,” he says.
Without serious competition, the U.S. pistachio industry should continue to prosper because worldwide consumption continues to grow. The new Chinese middle class, with India to follow, means many, many more potential pistachio consumers. In addition, like other tree nuts such as almonds and walnuts, pistachios are being highlighted in research trials as being “heart-healthy.”
But perhaps most important of all, concludes Keenan, is that pistachio growers know what’s at stake, and they are willing to invest now in order to thrive tomorrow. “Our industry understands its goals and its objectives,” she says, “and is more than willing to fund its success.”
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