“The real wow factor in this whole thing is the huge jump in acreage in the last four years.
Growers’ investment in new acreage equated to more than $5.1 million per day and $10,777 per acre,” Tootelian said. “This meant more than 16,800 jobs, nearly $883.7 million in additional labor income, and nearly $68.4 million in added indirect business taxes.”
The data calculated the total indirect business taxes from California growers and processors at $191.9 million in 2020, or the equivalent of $525,000 per day.
“The impact of the economic output of the pistachio industry in California is huge in the agriculture sector, but it also permeates nearly every other sector in the state — from real estate, construction, insurance, professional services and retailing,” said Tootelian.
Pistachios contribute to Arizona and New Mexico economies
For the first time, Tootelian gathered data and analyzed the economic impact of growers and processors in Arizona and New Mexico in 2020. While pistachio production in the two states is modest by comparison to California, Tootelian’s analysis revealed significant economic benefits from spending by growers and processors in Arizona and New Mexico.
The data for Arizona’s pistachio growers and processors show total expenditures of $49.1 million in 2020, total economic impact of $91.8 million, the creation of 915 jobs and $39.6 million in labor income, and $3 million in indirect business taxes. Total pistachio acreage in Arizona is about 9,500 acres.
For New Mexico, expenditures by growers and processors totaled nearly $2.7 million in 2020, total economic impact was $4.5 million, the industry created 38 jobs and generated $1.9 million in labor income, and the state’s growers and processors created nearly $148,000 in indirect business taxes. Pistachio acreage in New Mexico is about 600 acres.
“Our members are rightly proud of the role they play in boosting economies across their respective states,” said APG President Richard Matoian. “While this study showed 485,000 acres of pistachios throughout California in 2020, new data shows the growth continues with 523,000 acres already in 2021.”
“American-grown pistachios are valued in international markets for their exceptional quality and food safety,” said Judy Hirigoyen, APG VP, Global Marketing. “The new acreage will help supply consumers worldwide as dietary patterns shift to sustainable, plant-based proteins.”
The 2020 study by Tootelian, Ph.D., Emeritus Professor of Marketing at CSU-Sacramento, is a follow-up to a similar study conducted for APG in 2016. His analyses were conducted for net total expenditures by growers and the net variable expenses of processors. He completed economic impact studies using 2020 data for California, Arizona and New Mexico, the three states that comprise U.S. commercial pistachio production.
American Pistachio Growers is a non-profit trade association representing more than 800 growers and member processors in California, Arizona, and New Mexico.
California Report
California Fact Sheet