Pistachio farming in Chile: The keys to efficient production March 2015
Among the advantages of pistachio farming, one of the greatest is that it can maintain full production for up to 80 years without the need to replant.
In general, the dried nut market is very stable with strong sales projections. This has caused many growers to enter the business, or to evaluate the possibility.
The soil and climate requirements for pistachios are readily available within Chile properties, and the market is growing rapidly. As such, pistachio orchards in Chile can be a great option for those looking for an investment opportunity.
Chile has about 1,200 hectares (approx 3,000 acres) registered in pistachios and an average production of 800 kilos per hectare (0.36 tons/acre)- a very low figure when compared with those of the major producing countries. “Chilean production has not reached its production potential. Countries like Iran and Turkey are achieving, on average, yields near 2 tons per hectare, and in California a good producer can reach 4 tons per hectare, which shows us there´s a lot of work to be done here in Chile, “says Gamalier Lemus, agronomist and Deputy Director of Research at INIA.
Ideal Climate Conditions
The pistachio tree has three essential requirements for good health and production- a cold winter, a long spring, and a hot summer.
Chilling requirements range from 400-900 cold hours, depending on the variety, to allow for proper flowering. In Chile, these conditions are achieved consistently in the O’Higgins and Maule Regions, as well as in other areas of central and southern Chile.
Regarding the second factor, the heat, it´s relevant to mention this fruit comes from western Asia, so you need to have springs and summers long enough to accumulate between 2,000-3,000 hours of heat. “The heat factor is necessary for the fruit to develop properly,” adds Lemus. The heat requirement can be achieved in Chile properties in the O’Higgins Region and to the north.
But what about areas where the heat is sufficient, but not the cold? The cold hours can be substituted by agricultural management through the use of hydrogen cyanamide, depending on the variety and its level of needed cold; or by selecting varieties of pistachios with less required cold hours (discussed below).
Another great advantage of this fruit is the limited effects a frost has on its phenology. Pistachios flower in mid-spring, so their flowers escape damage from early frosts, unlike in the almond cycle.
Soil and Irrigation
In regards to ideal soil characteristics needed to develop properly, the pistachio requires a half-sandy soil texture. Pistachio trees don’t do well in clay soils, because they can’t tolerate soggy conditions or low percolation.
The pistachio is classified as a Phreatophyte plant, ie it is able to get the water it needs from the water table, thanks to the great depth its roots can reach- 3 to 4 meters deep – which is quite different from traditional crops.
Therefore, a pistachio orchard is more drought tolerant than other orchards. “This fruit tolerates drought very well, and still manages to reach productivity consistently, making it a strong candidate for rainfed-only areas and for drought prone Chile properties” said Lemus.
Summary of Varieties and Current Challenges
The pistachio is a fruit tree of the Dioica species, ie, for effective pollination, the female plants need to receive pollen produced by male plants.
Usually pistachio varieties are classified according to their place of origin, so that each producer country has its own selections, which differ mainly by the fruit qualities, requirements, and harvest time. In addition, for each of these varieties there are selected pollinators which are used depending on the production area.
Among the main varieties planted in Chile include Kerman -the most widely planted in California; Sirora -of Australian origin; and the Larnaca and Aegina -both of Greek origin (and also perform well in Spain).
The selection of varieties has become one of the main challenges for pistachio producers, and so far none have had the results hoped for. “These varieties at best are producing one ton per hectare, when yields should be more than twice that much,” said Lemus.
The Kerman variety, for example, has been planted along with the pollinating Peters. This combination has been very successful in California and accounts for the vast majority of production there. It´s also the most widely planted arrangement in Chile, but has resulted in far less productivity here.
The heat and cold requirements of this variety are the primary problem. In contrast to California, temperature ranges in Chile typically vary more greatly between day and night, and this decreases the numbers of hot daytime hours. It´s precisely this reason, according to Gamalier Lemus, why Kermans have not been successful in Chile.
Another critical reason Chilean pistachio orchards of this variety have failed to produce at the same level as in California is due to poor timing of bloom cycles between the two varieties (Kerman and Peters). In California, the female trees are in full flower as the males release their pollen. But in Chile, the flowers haven´t completely developed at this key moment, thus optimal pollination and fruit formation are not achieved.
The rootstocks used for growing pistachio trees need to be resistant to the most common diseases in Chile- such as phytophthora and verticillium- which are responsible for the vast majority of dead trees. “The rootstocks that have been tried so far have not been selected very well. There are more adaptable options available for rootstock, that are capable of tolerating these diseases, we just have to find them” says Lemus. “We need to properly study the genetic materials that best suits our conditions on farms in Chile.”
Investment
Many investors don’t care for pistachios because of the time it takes them to reach full production. In comparison with stone fruits, pistachios need 3 or 4 more years to reach full production.
The pistachio tree reaches full production around the eighth year. So you have a longer wait for cultivation, and you also have extended maintenance and fixed costs before receiving a return. The delay in return and higher costs are enough to discourage most investors. However, something often not considered, pistachios can maintain full production for up to 80 years without need for updating and replacing any trees. That´s an economic advantage unparalleled in other orchards, and justifies the wait of a couple of extra years of development in exchange for so many years of full production.
Import – Export
While Chile ranks among pistachio exporters, it´s primarily due to the efforts of a group of companies from Iran who are using Chile country as a platform. The small amount of pistachios that Chile currently produces mostly stay in the country for domestic consumption. In fact- despite limited local consumption and an under-developed market in Chile- it´s still necessary to import pistachios to meet domestic demand.
There are great opportunities to tap into this very well-defined international market, as well as to expand the local supply. Furthermore, Chile has extensive distribution of other nuts, so there are already potential buyers for exportation.
Chile Property 