SOURCE: Rabobank, N.A.

Rabobank, N.A.

September 11, 2014 13:20 ET

Warm Winter and Drought Casting Doubt on Pistachio Harvest

Rabobank Report Says That One Billion Pounds Still Attainable by 2019

FRESNO, CA--(Marketwired - September 11, 2014) - California pistachio production has grown significantly over the past decade. So much so that the United States (U.S.) is now the world's largest producer of pistachios with nearly 60 percent of the crop being exported. The only wrinkle in 2014 is expected to be a temporary slowdown in production from un-uniform chilling hours and the ongoing drought in California. This is according to a new report by Rabobank's Food & Agribusiness Research and Advisory group (FAR) titled "US Pistachios - A billion reasons to believe."

Vernon Crowder, SVP/Senior Analyst with FAR said that one billion pounds is still very much in reach by 2019. "Between the acres coming into production and the expectation that we will have more normal weather patterns in the future, one billion pounds is realistic by 2019." Crowder goes on to state that the forecast could be delayed by a change in the alternate bearing cycles.

While historical growth is driving record prices for all parties, it does pose a challenge for processors and marketers. "Critical issue number one is processing capacity," said Crowder. "Today we know that many of the largest processors are expanding capacity in advance and are positioning to deal with larger harvests."

The report goes on to examine the prices that growers are receiving for their crop and also looks at what potential new avenues for sale are available.

The full report is available exclusively to clients of Rabobank and to media upon request.

About Rabobank, N.A.
Rabobank, N.A. is a California community bank and a leading provider of agricultural financing and full-service banking products to California consumers, businesses and the agriculture industry. With nearly 120 retail branches, we serve the needs of communities from Redding to the Imperial Valley through a regional structure that promotes local decision-making and active community involvement by our employees. 

Rabobank, N.A. is a division of the Rabobank Group, the premier lender to the global food and agricultural industry and a financial services leader providing commercial, retail and agricultural finance solutions in 48 countries around the world. From its century-old roots in the Netherlands, Rabobank has grown into one of the world's largest and safest banks. Rabobank N.A. is a Member FDIC and Equal Housing Lender. www.rabobankamerica.com

About Rabo AgriFinance
As a leading financial services provider for agricultural producers and agribusinesses in the United States, Rabo AgriFinance adds value using industry expertise, client-focused solutions, and by creating long-term business relationships. Rabo AgriFinance offers a comprehensive portfolio of services that give producers the right products to prepare for, and take advantage of, market opportunities. Rabo AgriFinance representatives offer a wide array of financial services and knowledge to help customers realize their ambitions. This comprehensive suite of services includes loans, insurance, middle market agribusiness, input finance and sophisticated risk management products. Rabo AgriFinance is a division of Rabobank, the premier bank to the global agriculture industry and one of the world's largest and safest banks.

About Rabobank Food & Agribusiness Research and Advisory (FAR)
The Rabobank Food & Agribusiness Research and Advisory (FAR) group is a global team of more than 80 analysts who monitor and evaluate global market events that affect agriculture worldwide. This international team works to collect key insights into commodity markets; conduct in-depth analysis of the factors that drive sector success (or failure); and examine the megatrends that ultimately influence clients' business strategy. These analysts are internationally respected experts in sectors from protein to produce, inputs to oilseeds, and their knowledge is shared with Rabobank customers. 

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