Califonia Pistachios

The Economic Outlook for calcium Pistachios
by

Steven C. Blank
Agricultural and Resource political economy Department University of calcium, Davis

The industry in California has a eternize of steady expansion
Pistachio market is unlike other testis crops in some ways: ? The domestic and global markets for pistachios argon not yet as stable as almond and walnut markets ? So there are many opportunities for propelling changes

A key factor …
? Pistachio growers in California produce about 98% of the summate crop in the United States, thus, they are the market in this country ? This creates unusual economic challenges and opportunities

Recent Trends
? The scale of the industry in California has increased dramatically from 1,700 bearing acres in 1977 to 114,000 in 2007 ? Yield per acre is trending up ? Therefore, total proceeds has soared, despite alternate-bearing

 evade 1. California Pistachio Production and Market Data, 2005-2007
2005 Bearing land area Yield (t/ac) Utilized production (1,000 t) Price ($/lb) Value of production ($M) 105,000 1.35 141.5 2.05 580.15 2006 112,000 1.07 119.0 1.89 449.82 2007 114,000 1.80 205.0 1.34 549.40

Global Production has followed California
? World production of pistachios has about tripled oer the last 20 years ? Iran produces about half of total ? U.S.



is second with about 20% ? China (5-10%) is expanding its output and exit keep doing so

Demand for Pistachios
? Domestic per capita consumption is growing, partly from health benefits of nuts, partly from lower prices recently ? Consumption as itch snack has limited growth potential ? Consumption growth potential is greatest from processed ingredient market, which is small topically

surplusage Output is Exported
? About 40% of California crop is exported ? That piece will increase if production continues to expand at current rate ? Export sales are less bankable than domestic sales, on average

Export Prices are Competitive
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