The Economics of Everyday Things

Episode 24: Pistachios
Host: Zachary Crockett
Release Date: March 23, 2026

Overview

This episode uncovers the surprising rise of pistachios—once a niche, hard-to-find nut in the United States, now a booming, billion-dollar industry and one of the fastest-growing snack products in the country. Journalist Zachary Crockett takes listeners from ancient pistachio groves in Iran to mega-farms in California’s Central Valley, peeling back the layers on everything from agricultural economics, industry giants, and the pivotal role of water, to the creative marketing that has made pistachios a household staple.

Key Discussion Points & Insights

Pistachios: From Niche Snack to Juggernaut

• Personal Perspective: Sawyer Clark, who helps run Gold Leaf Farming, recalls,

  “My first memory of pistachios is watching my grandpa crack them and put the shells into a bowl. And I couldn’t imagine why someone was eating those weird green nuts with a shell on.” (01:17)

• Growth Surge:
  • 1990s: US grows ~250M lbs/year (02:25)
  • Today: >1.5 billion lbs/year, a sixfold jump in 30 years (02:25)
• Ancient Origins:
  • Pistachios have been cultivated in the Middle East for thousands of years, sometimes from trees over 1,500 years old (02:58).
  • Intense rivalry over oldest trees between Turkey and Iran.

The Birth of the American Pistachio Industry

• Pre-1980s:
  • US market dependent on Iranian imports, often found in vending machines or health food stores (03:10).
• Shift to Domestic Production:
  • 1970s: Iranian export supply falters; US farmers, often immigrants, plant groves in California’s Central Valley (03:48).
  • 1980: Iranian Revolution ends Iranian-US trade, paving way for California dominance (03:10).
• Geographic Focus:
  • 900M lbs harvested last year; nearly all come from a 175-mile strip in Central California (04:07).

The Business and Science of Pistachio Farming

• Production Requirements:
  • Needs Mediterranean climate, suitable soil, and, above all, water (04:32).
• Economics of an Orchard:
  • Initial investment:

    “$20,000 an acre for the ground. $5,000 an acre to plant. $10,000 per acre growing the trees and farming them.” (05:30 - Sawyer Clark)

  • Takes ~5 years for trees to yield anything; 8-10 years to break even (05:44).
  • High risk, high reward. Pistachio trees can bear for 50+ years, compared to almonds’ 20–25 (06:22).
• Delicate, High-Stakes Harvest:
  • Six-week harvest:

    “If your operation slips, if your machines go down, if someone gets hurt, if there’s a storm, everything you’ve done for the last 12 months can really be damaged.” (06:45 - Sawyer Clark)

  • Harvest technique: careful tree shaking to maximize open-shell nuts (07:07).
  • Only 18% of shells on average are sealed shut; 5% cracked apart (07:44).
• Processing & Pricing:
  • Processors pay growers per pound (including the shell!), which is over 50% of a pistachio’s weight (08:28).
  • Gold Leaf recently earned ~$2.25/lb—a better return than almonds, which have stagnated (08:55).
  • Almond farmers are rapidly pivoting to pistachios (09:05).

Industry Giants & Marketing Innovation

• The Wonderful Company:
  • Founded by Stuart and Linda Resnick, owns 75% of US retail pistachio market (11:55).
  • Vertically integrated: farms, trucks, processing, packaging (12:12).
  • Processes 450M lbs annually, exports 70%, primarily to India and China (12:51).
  • “Wonderful is the 800 pound gorilla in the pistachio world.” (12:37 - Sawyer Clark)
• Revolutionizing Demand:
  • “It wasn’t really until we made pistachios cool that we really were able to change the game for packaged pistachios.” (13:12 - Diana Salsa, VP of Marketing)
  • Major marketing push:
    • “Get Crackin’” campaign: celebrities like Snoop Dogg, John Cena (CGI elephant), Psy, Stephen Colbert (13:53–14:36).
    • Super Bowl ads, $55M spent (14:21).
    • Per capita US consumption rose from 0.1 lbs/year (2008) to almost 0.5 lbs/year (2018) (14:54).
  • Recent efforts:
    • Esports, partnering with TikTok influencers, a Get Crackin’ eating contest with competitive eater Joey Chestnut (15:12).

Water: Pistachio Gold and Industry Challenge

• Water Intensity:
  • Takes roughly 1 gallon per nut, 900,000 gallons/acre/year (15:52).
  • Farming viewed in terms of protein or calorie output per gallon—pistachios outperform beef but still spark environmental concerns (15:52).
• Controversy & Power:
  • California’s droughts make water access fraught (16:05).
  • The Resnicks control vast private aquifer capacity, using 150 billion gallons annually—twice San Francisco’s usage (16:22).
  • “This is a little bit contrarian, but there are places in California that have historically grown all sorts of things, including nuts, that we probably shouldn’t anymore.” (16:13 - Sawyer Clark)
• Industry Response:
  • Precision irrigation, breeding for efficiency, focus on sustainability (16:58).

The Future: Growth and Uncertainty

• Booming Supply:
  • American Pistachio Growers project supply will almost double in 10 years (17:13).
  • “There are a lot of young trees that are going to come into production over the next five or 10 years. We’ve got to move that crop. We’ve got to find new markets. We think we can do it, but the supply is coming. So we’ve got to prove the demand.” (17:42 - Sawyer Clark)
• Ongoing Risks:
  • Weather, water access, and the unpredictability of agriculture remain, as Clark jokes about “a first in 30 years hurricane coming into Southern California.” (18:22)

Notable Quotes & Memorable Moments

• “My first memory of pistachios is watching my grandpa crack them...and I couldn’t imagine why…” – Sawyer Clark (01:17)
• “The pistachio someone eats might be off a tree that’s five years old, 50 years old, or...500 years old.” – Sawyer Clark (06:22)
• “If your operation slips...everything you’ve done for the last 12 months can really be damaged.” – Sawyer Clark (06:45)
• “Wonderful is the 800 pound gorilla in the pistachio world.” – Sawyer Clark (12:37)
• “It wasn’t really until we made pistachios cool...” – Diana Salsa (13:12)
• “This is a little bit contrarian, but there are places in California...that we probably shouldn’t anymore.” – Sawyer Clark (16:13)
• “We’ve got to move that crop...So we’ve got to prove the demand.” – Sawyer Clark (17:42)

Important Segments & Timestamps

• [01:12] Sawyer Clark’s pistachio journey and the modern farm operation
• [02:25–03:48] U.S. pistachio industry history, from Iranian roots to California
• [05:09–06:00] Economics & timeline for starting a pistachio orchard
• [06:36–07:44] The harvest crunch and science of maximizing sellable nuts
• [08:28–09:05] Processor relationships, grower pricing, and the almond pivot
• [11:29–13:12] Wonderful Company’s dominance and marketing history
• [13:53–15:23] Celebrity marketing blitz, expansion to younger consumers
• [15:52–16:58] Water use, controversy, and technological responses
• [17:13–17:42] Industry projections and looming challenges

The Takeaway

Pistachios’ meteoric rise in the US is a story of agricultural innovation, big bets, high-stakes marketing, and a fight over natural resources—most notably water. As pistachio orchards multiply and marketing efforts intensify, the tiny green nut sits at the intersection of food trends, agribusiness economics, and environmental debate—offering both opportunity and challenge for growers and consumers alike.