South Africa is aiming to develop a pistachio sector with output of up to 60,000 tons annually and a 5 to 8 per cent share of the global market within the next decade. The country could rank among the top six or seven producers worldwide.
The plans were outlined at a growers conference in Prieska, Northern Cape, hosted by Karoo Pistachios and funding partner Fedgroup. The event brought together stakeholders from agriculture and finance to assess development and expansion.
Karoo Pistachios CEO David Muller said production conditions in the Karoo are suited to pistachios, which require high temperatures, winter chill, low rainfall, and a stable water supply. Only a limited number of regions globally meet these requirements.
"We've therefore been able to produce premium nuts that rival the best in the world in terms of quality, which makes this such a compelling and lucrative opportunity for the region," he said.
Fedgroup partner Alternative Asset Management Warren Winchester said the group provides long-term capital aligned with production cycles. "We have been on this journey with Karoo Pistachios for six years and have gained a solid understanding of the financial models and the broader opportunity."
"Our 'patient capital' approach has also been structured to align with orchard maturation cycles, seasonal variability, and long-term asset value creation," he said.
Muller said conventional financing structures do not align with perennial crop timelines. "If you try to grow within these constraints, unlocking an opportunity that should take five to 10 years can end up taking 40 to 50 and, quite frankly, many South African farmers simply don't have that amount of time," he said.
The sector aims to expand production to 2,000 hectares over the medium term. Development requires coordinated expansion across land, growers, and financing, supported by processing and export infrastructure.
"We aim to fast-track the sector's development and position pistachios as a climate-resilient, export-driven growth engine for South Africa," Muller said.
Source: BizCommunity
