<p>The US and Iran are jockeying for top spot as the world’s largest producer of pistachio nuts.</p> <p>The US will continue to be the major supplier to global markets. In February 2013, the Iranian government had announced a ban on exporting pistachios until the new crop begins to arrive in August, in order to try and boost domestic availability and lower domestic prices. However, due to a backlash by producers, this ban was lifted after a short time. Even though the ban had been lifted there was concern in the international marketplace over the stability of supply.This caused some buyers to switch to the US for security.Both countries, though, experienced a poor crop in 2011/2012. Many buyers held of from purchases, expecting a better crop in Summer 2012. This caused prices to drop. The situation was rectified once harvesting began in September, from which point prices continued to rise until the end of year when, with a glut of US produce on the market, prices again dropped.</p> <p>The reason global pistachio prices have been falling since the start of the year as is that all the world’s largest producers have moved into the high yielding year of the biennial pistachio cycle. The US, Iran, and Turkey are all currently experiencing good crops, and global production for the 2012/13 season is estimated to be up by 33% year on year. Production in the US is estimated to be 0.25m tons, up 24% on 2011/12, whilst Iran is expected to reach 0.20m tons and Turkey 0.13m tons, up 25% and 150% year on year respectively.</p> <p>This means the US will be the second largest exported for the second year on the run. Estimates place US exports at 0.18m tons, up 15% year on year and reaching 53% of global exports. Initial estimates for the 2013/14 US crop show a production of 0.22m tons. Whilst this is a 12% year on year fall, it is still a very high figure for a low yielding year in the biennial cycle, as more orchards will enter full production. In past low years, US production has struggled to reach 0.2m tons.As Iran and Turkey are anticipating a return to the off year part of the cycle, it seems probable that the US will retain its position, for the time being, as the world's largest producer.</p> <p> </p>