AgNet News Hour

Pistachio Market Outlook Brightens as Global Tensions Shift Supply Dynamics


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Today’s AgNet News Hour featured an in-depth conversation with pistachio grower and crop advisor Rich Kreps, highlighting how global events, domestic policy, and on-the-ground growing conditions are shaping the outlook for California’s pistachio industry.

Kreps, widely known in the industry as “Mr. Pistachio,” pointed to geopolitical tensions in the Middle East as a key factor influencing the market. With Iran ranking as the world’s second-largest pistachio producer, any disruption in that region could significantly benefit California growers.

“Iran is the second-largest producer of pistachios, so it will help the American market—especially California,” Kreps said. “That’s just the reality of global supply.”

While last year delivered a record-breaking crop in both volume and quality, early signs suggest another strong year could be ahead. Kreps noted that newer pistachio varieties like Golden Hills are helping stabilize production by reducing the dramatic swings of alternate bearing.

“They don’t show as big of an alternate bearing issue,” he explained. “So you can budget better and see more consistent yields year to year.”

Still, weather remains the biggest wildcard. Kreps warned that early season conditions could point to an extremely hot summer, which would put additional stress on orchards during critical development periods.

“If March is any indication, this could be one of the worst heat years we’ve had,” he said.

To combat heat stress, growers are increasingly turning to advanced crop protection tools and nutritional programs designed to help plants regulate stress and maintain productivity. These innovations, combined with strong management practices, could help sustain another solid crop despite challenging conditions.

Beyond production, the conversation also turned to ongoing challenges facing California agriculture—particularly water availability. Despite recent increases, allocations remain far below what growers have historically paid for and relied upon.

“We’re still getting about 80 percent less water than what we’ve paid for,” Kreps said. “That’s the reality.”

He emphasized that improving water storage and delivery systems would have far-reaching benefits—not just for agriculture, but for environmental management, energy production, and long-term sustainability.

On the policy front, Kreps stressed the importance of engagement between farmers and policymakers. He recently participated in discussions with state leaders to help bridge the gap between legislative decisions and real-world farming conditions.

“We’ve got to sit down and have those conversations,” he said. “Even if we don’t agree, we need common-sense solutions.”

Despite ongoing uncertainty, Kreps remains optimistic about both the pistachio crop and the resilience of California agriculture.

“Be prepared—it’s going to take a lot of effort to get that food to your table,” he said. “But farmers will get it done.”

Listen to the full interview below or on your favorite podcast app.

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AgNet News HourBy AgNet West Radio Network

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