Each year, a significant portion of Iran’s pistachio production is exported to global markets. The primary global consumption of pistachios is as a snack, typically sold raw, in bulk, and with their shells.
Raw pistachio kernels, obtained after removing the hard shell, were traditionally used as an additive in the food, confectionery, and chocolate industries. However, in recent years, the use of pistachio kernels as a standalone snack has also gained popularity. This report examines the export of pistachio kernels and their target markets.
History
In 1963 (1342 in the Iranian calendar), a comprehensive study on pistachio production and marketing in Iran was conducted by the late Azmi, an expert from the General Directorate of Agricultural Economics. According to his reports, Qazvin was one of the earliest regions where the majority of pistachios were processed into kernels and marketed for confectionery purposes. The pistachio kernels from this region had a distinctive green color, making them particularly attractive for producing green-colored sweets.
Over time, the inedibility of closed-shell pistachios prompted pistachio traders to separate them from open-shell pistachios to enhance the overall product quality. Techniques were developed to either mechanically open or crack closed-shell pistachios and extract their kernels. This innovation introduced the product known as pistachio kernels into consumer markets. Pistachio kernels have a very thin outer skin, reddish-purple in color, which is tightly adhered to the greenish-yellow nutmeat inside.
Historically, workers used hammers or iron rods to gently crack pistachios, ensuring the kernels remained undamaged. Naturally, this method was time-consuming and inefficient. With the advent of pistachio processing and handling machinery, and due to increasing market demand for pistachio kernels, specialized machines for cracking pistachios were designed and developed.
Industrial Production of Pistachio Kernels
Evidence suggests that the first pistachio-cracking machine for closed-shell pistachios was built in Tabriz in the early 1980s (1360s in the Iranian calendar), modeled after an almond-cracking machine. Over time, modifications were made to accommodate pistachios of various sizes, leading to a specialized design. Since then, large-scale production of pistachio kernels has flourished.
Kernel Production Process from Closed-Shell Pistachios
The basic mechanism of pistachio-cracking machines involves placing closed-shell pistachios between two metal blades or hard surfaces. Through a reverse rotational motion, the pistachios are cracked, and the kernels are extracted. The mixture of kernels and shell fragments is then separated using a combination of sieves and suction systems. The resulting kernels, which may still contain small shell fragments, are transferred for final cleaning.
Cleaning Process
Kernels are separated from residual shell fragments either manually, using human labor, or through sorting machines, or a combination of both. Modern sorting machines, employing advanced technologies such as laser beams or image processing, are capable of precisely separating shells from kernels. Before packaging, the pistachio kernels pass along a conveyor belt, where they are inspected by human operators to ensure minimal error.
To measure the purity level (freedom from shell fragments and foreign matter), a sample of the prepared pistachio kernels is weighed, and the remaining shell fragments or foreign objects are quantified. The purity grade of the kernels is an influential factor in determining their price.
Production and Export Statistics of Iranian Pistachio Kernels
The production volume of pistachio kernels depends on market conditions and customer demand. Pistachio industry stakeholders decide to produce and market kernels based on target market demands. When the demand for pistachios in-shell is high, closed-shell pistachios are processed and marketed as mechanically opened pistachios. However, if global demand for pistachio kernels increases, closed-shell pistachios, and sometimes even open-shell pistachios, are processed to extract more kernels for customers.
In Iran, the majority of pistachio kernels are exported in bulk to target countries, similar to in-shell pistachios. According to Iran’s customs statistics, over the past seven years, approximately 98,000 tons of pistachio kernels have been exported to the European Union, Middle Eastern countries, the Indian subcontinent, and re-export markets like the UAE and Turkey.
Export Trends
- In the 2020/2021 crop year, pistachio kernel exports amounted to 21,000 tons, the highest figure during the past seven years.
- In the first ten months of the 2023/2024 crop year, kernel exports totaled 17,000 tons, closely matching the ten-month peak of 19,000 tons recorded in 2020/2021.
Major Export Markets
Iran’s primary export markets for pistachio kernels include the Indian subcontinent, Middle Eastern re-export markets, and the European Union.
- In the 2023/2024 crop year, 28% of Iranian pistachio kernel exports went to India, 16% to the UAE (mainly for re-export to the Middle East and Indian subcontinent), 13% to Turkey (partially for domestic use and partially for re-export to European markets), 10% to Germany, and 8% to Iraq.
To determine the percentage of pistachios exported specifically as kernels, the volume of closed-shell pistachios exported must also be monitored.
A portion of exported closed-shell pistachios is mechanically opened in destination countries for consumption. Typically, the ratio of hard shell to kernel is approximately 50%. Therefore, to calculate the equivalent weight of pistachio kernels from closed-shell pistachios, the kernel export volume is doubled and added to the volume of closed-shell pistachio exports.
Comparative Export Performance: Iran vs. the USA
Iran and the USA are the main global suppliers of pistachio kernels, while Turkey, another major producer, primarily consumes its kernels domestically in its confectionery industry, notably for Turkish baklava.
- Over the past seven years, Iran exported a total of 98,000 tons of pistachio kernels, while the USA exported 81,000 tons.
- However, in 2021 and 2022, the USA surpassed Iran in global pistachio kernel supply. Factors contributing to this included frost damage to Iran’s pistachio crops and export challenges faced by Iranian traders.
Global consumption of pistachio kernels is steadily increasing due to:
- Growing industrial applications for pistachio kernels.
- Rising popularity of flavored, roasted pistachio kernels as snacks, particularly promoted by Californian producers.
Pistachio Kernel Consumption
Pistachio kernels are consumed in the following forms:
- Raw Kernels: Used in confectionery industries in Iran and Turkey, especially for traditional sweets like gaz, sohan, and baklava.
- Raw Kernels in Food Industries: Utilized in the production of pistachio butter, paste, oil, ice cream, sauces, and pistachio milk.
- Roasted and Flavored Kernels: Consumed as snacks.
Although pistachios in-shell remain the primary choice for most consumers, the popularity of pistachio kernels as snacks has grown, driven by widespread marketing efforts from California’s pistachio industry.
Additionally, pistachio oil has recently gained traction in the cosmetic industry, enhancing the quality and health benefits of various beauty products.