Home Precision Agriculture Why is the USDA Buying $40 Million Worth of Pistachios?

Why is the USDA Buying $40 Million Worth of Pistachios?

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The USDA has lengthy bought meals from American producers, however typically, some sorts of merchandise get priority—reminiscent of dairy.

This week, although, the USDA introduced a unique kind of mass buy: the largest seafood buy in the historical past of the division and a big quantity of pistachios.

The USDA’s buying usually serves two functions: first, to purchase crops and different merchandise from farmers who’re having hassle promoting it, which gives earnings to them, and likewise to produce that meals to meals banks and different distribution packages for the food-insecure. Precisely which merchandise are bought by the USDA appears to range primarily based on a number of elements.

A USDA spokesperson, in reply to an inquiry, wrote in an e mail that the resolution of what merchandise and in what portions to buy is “determined by ongoing reviews of agricultural market conditions, requests from industry, demand from federal nutrition program participants and nutritional aspects of the products.” These “requests from industry” appear necessary; we’ve seen the dairy trade repeatedly request enormous purchases as demand for his or her merchandise decreases, and native lawmakers will generally request purchases for his or her constituents, as occurred with Gulf shrimp final summer time.

In mid-April of 2021, lawmakers representing coastal Pacific areas requested that extra Pacific seafood be bought by the USDA. That request appears to have been answered with this new buy, which is the largest-ever seafood buy by the USDA. It consists of Pacific-caught species reminiscent of rockfish, Pacific whiting, pollock, and sockeye salmon, together with extra Gulf shrimp.

There’s additionally one eye-catching quantity in the press launch asserting this buy. Whereas the announcement focuses on the seafood buy, the single largest quantity of cash isn’t for a fish or crustacean; it’s for a crop grown virtually completely in the deserts of inland California. This buy announcement features a whopping $40 million for pistachios, virtually twice as a lot as some other buy.

Pistachios have change into a serious crop in inland California, with robust export markets, excessive costs and decrease water necessities than, say, almonds. Requiring much less water is extraordinarily invaluable in the Central Valley, the place water is scarce at the greatest of instances and more likely to hit excessive ranges this 12 months, because of a worse-than-usual wet season. Actually, the previous two years have set data for California pistachio output, and analysts see pistachio acreage quickly rising into the foreseeable future. 

This is a comparatively new crop on this amount; the first USDA buy of pistachios was solely in 2011. However manufacturing is completely booming: The USDA’s February report predicted an insane 42-percent enhance over the earlier 12 months. In late 2020, the American Pistachio Growers group itself stated that it is “mounting a full-court press to market the expected one-billion-pound harvest that is now filling bins in processing facilities.” 

The USDA spokesperson didn’t reply to a query on whether or not the American Pistachio Growers or anybody else had particularly requested that the USDA buy pistachios, solely saying that the USDA “proactively monitors market conditions to determine what products and volumes to purchase under the authority of Section 32.”



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