Iran’s Pistachios Top in the World
By Sadeq Dehqan
Staff writer
Around four years ago, Iran held its position as a leading global producer of pistachios. However, the United States has overtaken Iran in this regard through expanding the acreage of pistachio cultivation, securing its status as the top producer of this commodity worldwide. Despite Iran’s slip to second place in global pistachio production, it continues to excel in pistachio exports and maintain a reputation for quality.
Driven by the enlargement of pistachio orchards, the United States has increased its annual pistachio output to approximately 700,000 tons this year. A mere few years ago, its maximum production stood at 240,000 tons, when it held the top spot in pistachio production globally. The US benefits from favorable land and water resources, facilitating its expansion of pistachio cultivation. In contrast, Iran grapples with constraints in terms of water availability and suitable cultivable lands.
Iran’s pistachio yield for the current year stands at around 200,000 tons, with an additional 30,000 tons carried over from the preceding year, summing up to a total of 230,000 tons for the ongoing year. Globally, the collective annual pistachio production hovers over 1.2 million tons. In this context, Iran accounts for roughly 20%, while the US commands about 58% of global pistachio production.
Mohammad Salehi, the head of the Iranian Pistachio Association, told Iran Daily that while the US consistently ranks among the world’s top pistachio producers, a considerable proportion of its output is consumed domestically.
“In the previous year alone, around 270,000 tons of pistachios were consumed within the United States. This dynamic maintains a close contest between Iran and the US in terms of pistachio exports to international markets,” he said.
Salehi delineated the destinations for Iran’s pistachio exports, pointing to the European Union nations, India, the Arab states of the Persian Gulf, Russia, Central Asian nations, and particularly China as major customers.
Emphasizing the unmatched quality and flavor of Iranian pistachios, he asserted that “they still captivate traditional and exclusive clientele in global markets”.
Unfavorable conditions including frost during certain months and water scarcity have impacted pistachio production in Iran. These challenges not only inhibited production growth in previous years but also contributed to a decline in output levels.
Salehi, however, commended the robust pistachio production performance in the current year, saying that last year yielded up to 115,000 tons, whereas the ongoing year is projected to yield 230,000 tons, signifying a remarkable 100% growth rate.
Assessing Iran’s pistachio export situation, Salehi pointed to the issue of foreign exchange obligations imposed by the government on exporters.
“These obligations have created obstacles for pistachio exporters. If the government fails to address this matter, it will significantly impact both exports and potentially lead to unwarranted reductions in pistachio prices within the country,” he warned.
The fulfilment of foreign exchange obligations came to existence 2018 when the government began to issue executive instructions about it. The government’s aim with this initiative is to ensure that all entrepreneurs and businesses engaged in exporting bring back their foreign currency earnings into the country.
According to Salehi, repatriating foreign currency as the government intends proves challenging due to Iran’s banking sanctions in certain countries. “This has emerged as a hindrance for exporters,” he complains.
Salehi also believes that the government’s practice of setting a pistachio price for farmers lower than the prevailing market rate discourages exporters from purchasing and subsequently exporting the product.