Pistachio Shipment Report 19.12.24

As of the end of November, the total U.S. pistachio crop for the year has reached 1.109 billion pounds (502 million metric tons). This volume aligns closely with industry expectations based on the crop estimates released earlier in March and April of this year.

Crop Quality and Characteristics

The overall quality of the 2024 pistachio crop has been exceptional. While there was a higher percentage of closed-shell pistachios compared to previous years, the amount of shelling stock available - used to produce kernels - was significantly lower than usual. The reduced supply of input stock, combined with sustained and heavy demand, has driven kernel prices upward dramatically in recent weeks.

In terms of sizing, the crop has outperformed expectations. A larger proportion of nuts fell into the 22 size category or larger, surpassing last year's distribution. Moreover, the processing experience for this year's crop has been notably smooth, with efficient handling reported across the board. Customer feedback has been overwhelmingly positive, with shipments meeting or exceeding quality expectations.

Shipment Trends and Market Dynamics

Year-to-date shipments are currently down by approximately 7% compared to the same period last year. This decline is largely attributed to reduced export volumes to key markets such as China and Hong Kong. However, this is not indicative of diminished global demand. Instead, the smaller crop size has led to tighter supply constraints. Many of the industry's largest shippers have implemented allocation systems to manage their inventory.

It's worth noting that most processors report being 75% or more sold at this stage. As a result, securing pistachios for purchases scheduled between now and the late third quarter will likely prove challenging. Buyers are strongly encouraged to plan ahead and assess their needs carefully. With availability expected to remain limited until the 2025 crop becomes accessible in October, proactive purchasing strategies are essential.

Key Recommendations for Buyers

Given the current supply constraints and robust demand, we urge buyers to review their requirements through the next harvest cycle and secure commitments now to ensure uninterrupted supply. Delaying purchases may result in higher costs or difficulties in sourcing product as inventory continues to tighten.