A recent report published by Rabobank recommends that the U.S. tree nut industry consider potential global competition and expand with caution. Diversification of its customer base is important. In 2012 the U.S. pecan industry lost market share and prices crashed after South African pecan production more than doubled from a short harvest in 2011 providing China with an alternative supply against record-high U.S. prices. For U.S. walnut growers China is a producer to watch. Demand in China still outstrips production and land is limited, but the industry is growing and poses competition to the U.S. as the largest global producer. For U.S. pistachio growers the main competition comes from Iran however pistachio production in Iran is expected to continually decline because of water and food safety issues. The U.S. nut industry is currently in a rapid growth phase but as supply catches up with demand and the market matures, the industry will need to be ready for price equilibrium.
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