Pistachio Farming Grows in California Amid Agricultural Shifts
In a vast facility located within California’s agricultural heartland, millions of pistachio shells glide along a metallic conveyor, where they undergo inspection, roasting, packaging, and distribution to grocery stores around the globe.
The state has witnessed a rapid increase in pistachio cultivation as farmers allocate more land for this resilient, drought-resistant crop, especially important in an area known for its unpredictable weather patterns. Last year, the pistachio harvest contributed nearly $3 billion to the economy, and over the past decade, the U.S. has overtaken Iran to become the largest exporter of pistachios worldwide.
Zachary Fraser, the president and CEO of American Pistachio Growers, which advocates for over 800 farmers in the Southwest, noted, “In the last 10 to 15 years, there has been a remarkable surge in plantings, and many of those trees are now yielding fruit.” He added that these developments reflect the long-term vision of growers from four decades ago.
California is responsible for producing more than a third of the nation’s vegetables and about 75% of its fruit and nuts, according to state agricultural data. The popularity of pistachios has propelled them to become the sixth most valuable agricultural product in California, surpassing established crops like strawberries and tomatoes.
A significant portion of this nut harvest is shipped to China, where it is a favored snack during the Lunar New Year festivities. However, experts also report a rising consumption of pistachios among Americans, who have seen these nuts evolve from being scarce in grocery stores to a widely available snack in a multitude of flavors—from salted to honey roasted—and in both shelled and unshelled varieties.
The Wonderful Co., a renowned agricultural organization valued at $6 billion, known for products like Halo mandarins and FIJI Water, is the leading player in the pistachio market. Although the company has been growing pistachios since the 1980s, it intensified its efforts in 2015 after developing a unique rootstock that allows for a yield increase of up to 40% while using the same amount of soil and water, as mentioned by the president of Wonderful Orchards, Rob Yraceburu.
Currently, Wonderful Orchards produces between 15% and 20% of the U.S. pistachio crop, with extensive orchards situated in the dust-heavy farming lands northwest of Los Angeles, where pomegranates and dairy farms also flourish. Come fall, the trees are shaken, and the harvested nuts are sent to a large processing facility for preparation and distribution. Yraceburu remarked, “There is an ever-increasing demand for pistachios; it’s clear that the world wants more.”
Furthermore, experts believe that pistachios are likely to thrive amid California’s prolonged dry spells compared to almonds, a larger nut crop that earned nearly $4 billion in the state last year. Unlike almonds and other more sensitive plants, pistachio orchards can survive with less water during droughts, rely on wind for pollination, and can produce nuts for decades.
Many farmers who cultivate both types of nuts are applying insights gained from previous almond farming challenges to the current pistachio trend. Although almond production has been much larger than pistachio cultivation in California, its prices have decreased due to overproduction in the post-pandemic economy, forcing some farmers to forgo replanting aging orchards.
Pistachio growers aim to learn from these experiences and maintain a balance between supply and demand. Recently, American Pistachio Growers signed a promotional deal with a highly regarded cricket player in India to enhance awareness and sales within that market, according to Fraser.
The emergence of pistachios also showcases California farmers’ transition towards perennial crops that offer better financial returns compared to traditional products, as indicated by a 2023 analysis from the Public Policy Institute of California.
While perennial crops are not replanted each year, making them more challenging to manage during severe droughts, pistachios demonstrate specific advantages over other habitual crops. These trees can endure extended periods without water and are tolerant of saline soils, making them attractive to farmers constrained by state laws regulating groundwater usage for conservation purposes.
In light of the 2014 state law promoting more sustainable groundwater practices following years of over-extraction, farmers anticipate challenges ahead. Notably, a significant portion of California’s pistachio crop is cultivated in areas reliant solely on groundwater for irrigation. Yraceburu noted that some of these orchards might eventually be phased out of production.
However, pistachio acreage is projected to expand in the coming years as younger trees begin bearing fruit, contrasting with the stabilization or decline seen in almond and walnut farming. David Magaña, a senior analyst at Rabobank in Fresno, CA, noted that pistachios require about 3 acre-feet of water per acre—less than the nearly 4 acre-feet needed for almonds. Additionally, pistachios yield more per acre and command higher market prices. “The value that the pistachio industry brings to California agriculture is rapidly approaching that of almonds while utilizing significantly less acreage,” stated Magaña. “I have not observed any pistachio orchards being removed.”