The pistachio industry in California is rapidly growing, with farmers turning to this crop due to its resilience and drought tolerance in a state known for its precipitation fluctuations. The United States has become the world’s top exporter of pistachios, generating nearly $3 billion in revenue last year. Much of the crop is being shipped to China, where pistachios are a popular treat during the Lunar New Year. However, Americans are also consuming more pistachios as a snack food, with a variety of flavors available in grocery stores.
The Wonderful Co., a prominent agricultural company in California, has become a major player in the pistachio industry, increasing its production after developing a rootstock that yields more nuts with the same resources. Pistachio orchards owned by Wonderful cover vast areas of farmland in California, alongside other crops like pomegranates and dairies. The demand for pistachios is growing globally, leading to increased production to meet the market’s needs.
Pistachios are poised to handle California’s dry spells better than other nut crops, such as almonds, due to their minimal water requirements during droughts and their ability to produce nuts for decades. Farmers growing both nuts are applying lessons learned from almond farming to ensure the sustainability of the pistachio crop. By focusing on keeping demand ahead of supply, pistachio growers hope to avoid the issues faced by the almond industry, such as falling prices and rising input costs.
California farmers are increasingly turning to perennial crops like pistachios that offer higher returns compared to annual crops like cotton. These crops cannot be easily replaced during dry years, making them an attractive option for farmers navigating water regulations and groundwater restrictions. Despite facing water challenges, pistachio acreage is expected to continue growing in California as trees planted in recent years begin to produce nuts. The value provided by the pistachio industry in California is approaching that of almonds with fewer acres required, making it a lucrative option for farmers.
As California grapples with a state law aimed at conserving groundwater and promoting sustainable use, farmers growing pistachios in areas reliant on groundwater are preparing for changes in their operations. While some orchards may eventually be taken out of production due to water limitations, the overall trend is expected to see continued growth in pistachio acreage in the state. Comparatively, almond and walnut acreage is stabilizing or declining as orchards are removed, highlighting the resilience and profitability of pistachios in California agriculture.
