How a sapling and a viral confectionery made California the world’s pistachio king

UNITED STATES – Twenty years ago, California farmers bet big on the pistachio. The little green nut was considered niche in the United States, but it was a staple in Iran and the surrounding region.

That gamble has paid off. Demand for pistachios is high as wellness trends draw people to high-fibre, protein-rich foods. They are also a key ingredient of Dubai chocolate, the incredibly popular chocolate bar filled with pistachio cream and kataifi, or shredded filo.

Pistachio orchards cover more than 242,800ha in California, up from 40,470ha in 2001. The San Joaquin Valley of California has almost perfect conditions for pistachios: a mix of hot, dry summers and cold, wet winters.

The US is now the world’s largest producer and exporter of pistachios. Iran is second.

Yet, more than a month into the war with Iran, ship traffic through the Strait of Hormuz is at historically low levels, which has stymied exports from the region.

The potential removal of a major player in the market is good news for farmers in California, who are likely to get higher prices for their pistachios.

“With this war, it’s going to limit what Iran is able to do, able to ship, to customers in Europe and China,” said Mr Adam Orandi, who farms almost 650ha of pistachio orchards in the San Joaquin Valley. His father imported saplings from Iran in the 1970s.

For hundreds of years, Iran dominated the market.

Pistachios first found their way to California in the 1930s when American botanist William E. Whitehouse brought the nuts back from Iran. Yet, only one variety flourished, which was named the “Kerman”.

Pistachio orchards expanded in the 1970s in California, but Iran continued to control the global market until the Iranian hostage crisis of 1979, when students stormed the US Embassy in Tehran and took dozens of Americans hostage.

Various trade embargoes against Iran were imposed and lifted in the following years, but a 241 per cent tariff that was put in place in 1986 essentially ended Iran’s reign in the pistachio market in the US.

Since 2011, the US has consistently surpassed Iran as the largest exporter of pistachios. Iran has continued to lose market share.

“Production in Iran has been erratic,” said Mr David Magana, who analyses the fresh produce and tree nut industry at financial services company Rabobank. “Fifteen years ago, Iran accounted for 40 to 50 per cent of global pistachio exports. More recently, its share has been more like 20 per cent.”

Rising prices

The wholesale price of in-shell pistachios – what large manufacturers or retailers pay – has climbed 20 per cent in the last 18 months to US$4.57 (S$5.80) for 450g, according to Expana, a market data provider for the agriculture and food industries.

In stores, consumers are paying significantly more.

The market is divided into two products: in-shell pistachios, which are sold whole and often roasted; and pistachio “kernels”, the seeds that are used in food production. The explosion of interest in pistachios as an ingredient in desserts and other foods has increased demand for the kernels.

Mr Orandi said: “For years, pistachios were a one-trick pony. They were a salty snack.”

Just a few years ago, he added, he could not give the kernels away.

In recent years, California growers have devoted more space to pistachios, and the state produced a record 725 million kilograms in 2025. American Pistachio Growers, a trade association, projected that California trees will bear more than 900 million kilograms of pistachios by 2031.

But there is one thing standing between the farmers and those projections: California’s water regulations, which people in the industry said may restrict the ability of some orchards to expand.

Pistachios, like other tree nuts, require large amounts of water. The amount needed by 0.4ha of pistachio trees for an optimal crop yield depends on a number of factors, including soil salinity and the age of the trees.

On average, 0.4ha of pistachios consume more than 3.8 million litres of water in a year – slightly less than almonds and walnuts, according to estimates from University of California Agriculture and Natural Resources.

For areas in California prone to droughts, the pistachio boom could add stress to the state’s already thin water resources.

The vast majority of pistachios in California – in addition to other nuts and crops – grow in areas of extremely high water stress, as defined by environmental research firm World Resources Institute.

Compared with two decades ago, the amount of water used for pistachios in these areas is now billions more litres than before.

Still, there may be benefits to pistachios emerging as a major nut crop of the state, according to professor of environmental engineering and water resources researcher Josue Medellin-Azuara at the University of California, Merced.

They are more tolerant to drought and water salinity compared with walnuts and almonds, and they are consistently a high-value crop, he added.

The profitability of these water-intensive crops creates a paradox for the farmers planting them, said water and climate data scientist Rich Pauloo. “They consume more water, but you get more money per drop of water.” NYTIMES