Rows of trees with ripening yellow fruit now dot Argentina’s rapidly expanding pistachio heartland, indicating how growers are moving quickly to capitalise on rising global demand.
Much of that expansion has been spurred by the global popularity of pistachio-filled Dubai chocolate, which has helped transform this once-obscure commodity into a lucrative agricultural bet.
According to the National Network to Study Pistachio Trees in Argentina, established in 2023, pistachio acreage in the country has increased fivefold over the last five years to reach almost 25,000 acres.
Most of that growth is limited to the mining and farming province of San Juan, which is located along the Andes mountain range.
Room to grow
Producers feel that this is just the beginning. The network has identified 65,000 square kilometres (approximately 16 million acres) in San Juan, Mendoza, San Luis, and La Pampa that provide the ideal balance of hot, arid summers and cold winters for pistachios.
The trees normally take seven years to produce large fruit, but growers believe the long wait is worthwhile.
While the United States, Iran, and Turkey dominate global production, Argentina is the only big producer in South America. Producers claim that this offers the country an advantage when northern hemisphere crops are not in season.
“Without a doubt, Argentina can turn into a great producer,” said to Reuters Alberto Aguilera, SolFrut’s pistachio grove manager in San Juan.
With over 3,000 acres, the firm is on track to become one of the nation’s top growers once full harvesting begins in 2027. “You have land, water, and the climate conditions.
Supply strains and changing tastes
Most Argentine growers use rootstock seeds from California, which has approximately 500,000 pistachio-bearing acres.
According to The Wonderful Company, which produces a large portion of the US harvest, the quantity of pistachio kernels remains limited.
“People can’t get enough of it,” said Stephen Vasquez of the United States Administrative Committee for Pistachios.
Argentines share their delight. The widespread spread of creamy pistachio-filled Dubai chocolate in 2023 prompted entrepreneurs to launch pistachio dulce de leche, pastries, and even a pistachio alfajor marketed by YPF, the state-owned oil and gas company.
The pioneer who planted first
The industry’s roots in Argentina may be traced back to Iranian immigrant Marcelo Ighani, now 74, who planted the country’s first pistachio crop near San Juan during the 1980s.
In November, staff at his Pisté nursery prepared rootstocks to meet high demand. Since 2023, the company’s annual production has more than doubled, and it intends to reach 400,000 plants by 2025.
“We have a lot of unsatisfied demand that we can’t meet,” explained his son, Maximiliano.
According to a 2024 assessment from Argentina’s Federal Council of Investments, the country exports between one-third and half of its pistachios, with Italy leading the way, followed by Russia, Australia, and surrounding Latin American countries.
Producers anticipate more exports as more investors enter the field and more trees mature. Only a small portion of the existing area is currently yielding nuts.
Investment and caution
SolFrut began growing pistachios on old olive land in 2019, investing approximately $12,000 per acre, according to José Chediack of Grupo Phronesis.
He described pistachios as having “a perfect moment” but cautioned that long-term growth may be dependent on improving macroeconomic conditions and reduced interest rates under President Javier Milei.
With global wine demand declining, some farmers are already converting vines to pistachios and other nuts. Mendoza, renowned for its Malbec, advertised pistachios as “green gold” in 2020, even sharing a recipe for pistachio-and-cheese empanadas.
Ramiro Martins, a third-generation winemaker, has planted approximately 250 acres of pistachios, which should begin production in 2026. “We understood that the market was trending towards more healthy tendencies,” he stated.
Pistachio fever in San Juan
Pistachio trees are currently San Juan’s third-largest crop, trailing only vineyards and olive gardens. “Pistachio will have a very strong impact on the economy of San Juan,” agricultural secretary Miguel Moreno stated.
This sustained demand has surprised everyone, and I think it is an incentive for long-term investments.”
Workers at the Tres Cumbres alfajores factory mix pistachio paste between biscuits, and the Habana ice cream shop offers three pistachio-themed varieties, two of which were added this year.
However, demand might sometimes exceed the new supply. When Graciela Gomez visited the shop with her grandson recently, she discovered that the famous pistachio flavour had sold out. She stared in astonishment.
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