The California pistachio harvest is going full bore and the state accounts for 99 percent of pistachio shipments in the U.S. This year is an off-year for pistachio trees, and may be off even more than usual for this type of year.
A mild California winter failed to provide enough chilling hours, adversely affecting pollination. However, the California drought also is hurting.
California’s lack of water is also impacting yields because the trees form a shell first and during a later stage, the nut fills the shell during a critical time. As a result many trees are only producing shells and the share of blanks has increased significantly. At this point it is difficult to predict total shipments, but the hare of blanks in some orchards are as high as 70 percent.
Between September 1, 2014 and August 31, 2015 California exported 61 percent of its pistachio production. China is the number one market for the US, followed by the European Union. Iran is the US’ main competitor in pistachio production, and the U.S. is at a disadvantage in China because of Iran’s proximity to China.