-March 9,2023-
from California Farm Bureau
Considering the waning profitability of almonds and walnuts, pistachio growers are upbeat about prospects for the state’s current “it” crop.
More rainfall this season has eased the multiyear drought, with improved water allocations for farms. The colder winter has also provided adequate chilling hours for pistachio trees to produce flowers and fruit. With more pistachio trees coming online this year, growers appear on pace to produce a record crop that could top 1.2 billion pounds, according to Richard Matoian, president of the American Pistachio Growers.
“On the surface, the outlook appears to be positive,” he said, though he warned “a lot can happen and has happened in the past between what we believe and where we end up.”
At the association’s annual conference in Carlsbad last week, Matoian shared his thoughts on the state of the industry, highlighting what helps growers sleep at night and what keeps them up.
On the rosy side, there’s less inventory this year due to the lighter crop in 2022, when production hit more than 878,000 pounds. 2022 was considered an “off” year in the trees’ alternate-bearing cycle and was preceded by two previous bountiful crops, yields of which reached more than 1 billion pounds. The record 2021 crop produced more than 1.15 billion pounds.
After two years of port congestion that led to delayed and stranded shipments of agricultural exports, Matoian noted those problems have largely been resolved. The quality of U.S. pistachios remains a “major selling point worldwide,” he said, as are the nut’s health benefits. Pistachio marketers continue to make inroads with consumers, who have become more familiar with the nut, he added.
But challenges remain on the trade front. Retaliatory tariffs in China from the Trump-era trade war remain, elevating the price of U.S. pistachios. The strong dollar has added to the pain, making the product even more expensive. The potential for a worldwide recession could further wreck sales, Matoian said.
Even though port traffic has improved, not all shipping issues have gone away, Matoian said. Any number of supply chain problems could strain the availability of pesticides, fertilizers and other materials, hurting pistachio production and sales.
The U.S. remains the world’s top pistachio producer, a title it has held for more than a decade. About 99% of the crop is grown in California, with 2023 bearing acres at just fewer than 454,000. Total state acreage stands at about 590,000, including 135,000 nonbearing acres.