PRODUCTION
Pistachio production is highly cyclical and yields vary dramatically from year to year and between regions and orchards in Turkey. Although MY 2016 had been expected to be “off-year” in the pistachio production normal cycle, it became “on-year” and reached the record of recent years in the production at 155,000 MT, up from 130,000 MT of previous year which was another record of the recent years. South East Anatolia has been suffering from a drought which was caused by less rainfall in autumn 2016 and winter 2017. Since 95 percent of pistachio is grown in this region, production has been negatively affected by the weather conditions. Additionally, since the consecutive past two years were “on-year” in pistachio production and bearing trees used all nutrition reserves to increase the yields and become less productive; MY 2017 became “off-year” which results in a dramatic production decline. Although there was a rainfall increase in spring, this was not effective on pistachio production. Gaziantep and Sanliurfa provinces which represent more than half of the production were the most negatively affected area from unfavorable weather conditions in MY 2017.
Therefore, pistachio is the most negatively affected commodity in MY 2017 with around 50 percent decline in the production compared to the previous year. Post forecasts pistachio production at 80,000 MT, down from 155,000 MT last year.
Recently, producers and traders have been spending lots of efforts to break the natural production cycle “off year/on year” rule. For this reason, producers have been implementing more good agricultural practices than ever, especially in some part of South East Anatolia in the past few years.
Pistachio production areas increased by about 25 percent and reached to 3.134.316 decar (da) (1 da = 1000 meter square (m2)). Bearing trees increased by about 30 percent and total tree number increased by about 25 percent in the last five years in Turkey. In previous years, harvest could be done ten years after planting. Due to recent practices and measures, harvest can now be done in five years after planting. Currently, the average pistachio yield is around 4 kilograms (kg)/tree.
Although pistachios are grown in more than 50 provinces in Turkey, it is a traditional product of the Southeastern Anatolia Region. The cities Gaziantep, Sanliurfa, Adiyaman, Siirt, Kilis, Kahramanmaras, Mardin and Diyarbakir are the most significant locations for commercial pistachio production and 95 percent of the total production comes from these provinces. 5 percent of pistachio production comes from Aegean, Mediterranean and Marmara regions.
In Turkey, quality is directly related to size: 90 nuts or fewer per 100 grams is considered first quality, 90-100 nuts are second quality, 100-120 nuts are third quality, and more than 120 nuts are fourth quality.
With the increasing number of new saplings planted in the Sanliurfa and Siirt regions, the production of high quality pistachios is predicted to increase in the future since pistachios are replacing olive trees especially in the rain-fed and irrigated areas. Currently, Gaziantep province has more trees than its neighboring province Sanliurfa and around 40 percent of total production comes from Gaziantep. Yields were 4kg/tree in Gaziantep, 2kg/tree in Siirt, 4kg/tree in Adıyaman, 9 kg/tree in Mardin, 8kg/tree in Kahramanmaras and 14 kg/tree in Diyarbakir in MY 2016.
In recent years Aegean Region (in provinces such as Manisa, Izmir, Aydin, Denizli) and West Marmara Region (in provinces such as Canakkale, Tekirdag) have also become popular for pistachio production.
CONSUMPTION
Most of the Turkey’s crop is consumed domestically and consumption varies from year to year according to availability of pistachio on the market. Traditionally, the Turkish people consume 35 percent of total production as a snack food and the rest are used in the production of confectionery, chocolate products, ice cream, especially in desserts and bakery products.
Packaging mitigates food safety and quality concerns related to high humidity in these regions. Currently, 35 percent of total tree nuts are being packaged, while it was 15 percent few years ago. Post forecasts that the packaging of tree nuts, including pistachios, will increase consumption over time. Current per capita consumption is around 1.6 kg/year in Turkey.
Because of the low production of pistachio in MY 2017, pistachio prices are very high at the beginning of the harvest. Currently retail prices of Antep pistachio is about 75 TL/kg or US$21,18 /kg and Siirt pistachio is around 70 TL/kg or US$ 19,77 /kg since there is less amount of pistachio in the market (3,5408 TL equal to $1 USD on September 26th , 2017). Traders think that there might be a minor decrease in pistachio prices after harvest is completed.
EXPORTS / IMPORTS
Turkey is self-sufficient in pistachios. Usually a minor amount of total production is exported. Since the consecutive past two years were “on-year,” pistachio exports increased and imports decreased in MY 2016 compared to the previous year. Export destinations were Saudi Arabia, Israel, Jordan and European Countries such as Italy and Germany.
In MY 2017, pistachio production will decrease about fifty percent compared to the past two record year. Post forecasts that exports will considerably decrease compared to the previous year to 5,000 MT since there is low production and usual domestic consumption needs.
Post forecasts that this tendency will not continue in MY 2017 due to low production. Post forecasts pistachio imports at 10,000 MT in MY 2017.
Gaziantep Commodity Exchange (GCE) will conduct a project which establishes the “Pistachio Perfection Center” in Gaziantep with the support of GOT soon. Scientific studies related to product quality and safety will be carried out in the center aiming to increase the trade and the image of Turkish pistachio.
PRODUCTION, SUPPLY AND DEMAND STATISTICS
| Pistachios, Inshell Basis
Market Begin Year Turkey |
2015/2016 | 2016/2017 | 2017/2018 | |||
| Sep 2015 | Sep 2015 | Sep 2017 | ||||
| USDA Official | New Post | USDA Official | New Post | USDA Official | New Post | |
| Area Planted | 0 | 0 | 0 | 0 | 0 | 0 |
| Area Harvested | 0 | 0 | 0 | 0 | 0 | 0 |
| Bearing Trees | 0 | 40600 | 0 | 41400 | 0 | 42500 |
| Non-Bearing Trees | 0 | 11600 | 0 | 11900 | 0 | 17100 |
| Total Trees | 0 | 52200 | 0 | 53300 | 0 | 59600 |
| Beginning Stocks | 5000 | 5000 | 0 | 8500 | 0 | 29500 |
| Production | 130000 | 130000 | 0 | 155000 | 0 | 80000 |
| Imports | 10000 | 10000 | 0 | 8000 | 0 |
10000 |