Amidst global oversupply warnings, early US pistachio exports have demonstrated robust performance, particularly in the Chinese market where purchases have doubled from the previous year, surpassing 200 million pounds in the first four months of the marketing year. This surge is attributed to the smaller US ending stocks and the high demand during the Chinese New Year, where US pistachios are favored for their quality and food safety standards over foreign counterparts. Additionally, export growth to Germany and Spain has seen significant increases, with shipments to Germany tripling to 35 million pounds and Spanish exports rising to 13 million pounds.
Despite the positive export figures, the US pistachio industry faces challenges from potential oversupply due to record crops and increasing production projections. The industry's bearing acreage is expected to reach over 600,000 by the decade's end, potentially pushing US production to two billion pounds. Experts from the University of California have advised growers to focus on profitability over production to maintain global competitiveness. Meanwhile, global competition intensifies as Turkey increases its pistachio exports, challenging the US's position in the global market despite Iran's production remaining flat.
Source: farmprogress.com