May 15, 2025Pistachio shipments fall on supply shortage despite soaring demand
U.S. pistachio shipments continued to lag in April, down 12.5% compared to the same month last year, as tight supplies constrain a market hungry for more product, according to Meridian Growers’ April pistachio shipment report. Total shipments for the 2024-25 crop year through April are down 24% year-over-year.
The issue is not a lack of demand but a lack of supply. Demand remains strong across all markets, but Meridian Growers estimates that most processors are approaching 90% + sold for the year.
The report attributes the robust interest to what’s been dubbed the “Dubai Chocolate effect” — a surge in social media buzz and consumer awareness of pistachios. Demand is especially strong for kernels, not only as snack products but also for use as ingredients in confections and baked goods. While overall pistachio shipments are down, kernel shipments are up 2.5% over last year even amid higher prices.
Some packers have reportedly resorted to cracking naturally opened inshell pistachios to fulfill kernel demand. The strong kernel market is expected to continue through the remainder of 2025 and into 2026.
Shipments in April totaled 69.4 million pounds, down from 79.3 million pounds in April 2024. Year-to-date shipments through April reached nearly 687 million pounds, compared to over 903 million pounds at the same point last season. Domestic shipments fell about 6% year-over-year, while exports dropped more than 28%.
The American crop for 2025 is progressing well, with current production estimates holding at 1.6 billion pounds. With a projected carryover of about 150 million pounds from the 2024 crop, availability will remain tight. Meanwhile, Iran and Turkey are expected to produce 485 million and 315 million pounds, respectively, though Turkey’s output may be impacted by a recent freeze.
Market watchers are also keeping a close eye on shifting trade policy. While en route home from the recent International Nut and Dried Fruit Council Congress in Mallorca, processors learned that China’s proposed 145% tariff on U.S. pistachios had been temporarily reduced to 10%, highlighting how quickly international trade dynamics can shift.
To meet strong early-season demand, the processor says it will run near capacity this year, aiming to process between 45 and 50 million pounds. Facility upgrades, including a new kernel sorting line and a validated pasteurizer/roaster, are already in place.
