The sector is gaining ground in desert areas such as the province of San Juan, but its growth is causing a severe water crisis. Plantations now cover nearly 8,500 hectares.
In the province of San Juan, one of the most arid in Argentina, water is more than a resource: it is a symbol. A popular legend tells the story of a woman, Deolinda Correa, who died of thirst in 1841 while crossing this province during the civil wars. Her baby miraculously survived, giving rise to the legend of Deolinda, “La Difunta.” The local tradition is to leave a bottle at her sanctuary, a scene that reflects the daily tension experienced in a region where water is scarce and valuable.
Paradoxically, it is this same geography that now gives life to a rapidly expanding crop: pistachios. This nut thrives in these ideal climatic conditions—cold winters, hot and dry summers—and within a growing global market.
The area covered by pistachio plantations has increased from about 1,000 hectares in 2013 to between 7,500 and 8,500 hectares today, according to estimates provided to Dialogue Earth by the National Institute of Agricultural Technology (INTA). San Juan accounts for around 90% of the cultivated area. However, the essential resource needed to sustain the pistachio boom is precisely the one most lacking: water.
A boom amid drought
The region has been suffering from a severe hydrological drought for more than a decade, worsened by climate change and inefficient resource management. Water supply depends mainly on winter snowmelt, a source that has been threatened. According to data from the Argentine Institute of Nivology, Glaciology and Environmental Sciences (IANIGLA), exposed ice levels in the desert Andes have decreased by 17% over the past 15 years, snow cover has declined by 23%, and water levels in monitored glaciers have dropped by the equivalent of seven meters. The Center for Research, Development and Innovation for Integrated Water Management in Arid Areas (CIGGIA) states that the river basins of the San Juan and Jáchal rivers have snow levels “well below the average of the last 25 years.”
The outlook is critical, says Leandro Salvioli, a researcher at the National Water Institute (INA), a government agency. “In San Juan, rainfall ranges between 80 and 100 millimeters per year, and droughts are becoming more frequent and prolonged. We are digging deeper and deeper into the aquifer to find water that is between 10,000 and 12,000 years old. If we do not build water awareness, we are heading straight toward a wall,” he states.
The shortage is compounded by a lack of strict oversight. Although there are only 5,370 authorized water wells, Salvioli estimates that around 15,000 are being exploited, including unauthorized ones.
A demanding crop
Pistachios tolerate water scarcity better than other crops due to the depth of their roots. However, according to INTA technicians, commercial yields still require considerable amounts of water. “It is interesting for arid zones, but to perform well it needs water, and that is the challenge,” explains Gonzalo Sánchez Cañete, a researcher at INTA San Juan.
Leading producing companies, such as Pistachos de los Andes and Prodeman, note that the sector has invested in technologies aimed at optimizing resources, such as constant soil moisture monitoring and drip irrigation. The latter can save up to 80% of water consumption compared to other methods, according to the University of Massachusetts Amherst.
In the San Juan department of 25 de Mayo, the largest pistachio production hub in Argentina, the company Pistachos de los Andes has been operating for nearly two decades. It manages about 300 hectares, with yields between 2,800 and 3,000 kilograms per hectare per year. It also has a nursery that produces around 100,000 plants annually, says agronomist Pablo García, who manages production at the site.
The farm looks like an oasis in the desert, with neat green plots of trees that contrast sharply with the dry, arid landscape. Brenda Sánchez has been working in the nursery for two years. “Plants have to be treated with care and affection because they are fragile. Water is scarce here, so we know we have to take great care of it.”
Significant investment has been made in technology, ranging from seedling substrates imported from Finland to frost-protection wind machines brought from New Zealand. This technology stands out in an area of small and precarious settlements. Many inhabitants still build their homes with mud and wood, following the ancestral traditions of the region’s Huarpe indigenous people.
“We are a circular economy company,” explains Marcelo Nemirovsky, owner of Pistachos de los Andes, to Dialogue Earth. “We generate no waste and use solar energy. We also make very efficient use of water.” The company uses between 7,000 and 8,000 cubic meters of water (roughly equivalent to three Olympic swimming pools) per hectare per year. Meanwhile, the provincial Secretary of Agriculture, Miguel Moreno, states that the pistachio sector is a “model of water management” and that 97% of its operations use modern technology.
Even so, experts agree that the debate over its use in a desert region—where arable land represents barely 3% of the province’s surface—will continue to grow. “There is something stubborn about wanting to live and produce in a desert. Human beings must adapt to that, not the other way around,” argues Salvioli.
Global and local demand
The pistachio boom in Argentina is part of a global phenomenon. Worldwide, production is expected to grow by 7% this year to reach 1.2 million tons, according to a report by the United States Department of Agriculture, which leads the market, followed by Turkey, Iran, and Syria. Consumption is also increasing, especially in Turkey. International prices have risen by 17% this year, reaching 23 dollars per kilogram and earning the nickname “green gold.”
In Argentina, pistachios are part of a nut industry that covers approximately 22,000 hectares, led by walnuts, followed by pecans, almonds, and hazelnuts, according to the latest official figures from the 2018 National Agricultural Census. For some of the country’s oldest producers, such as Prodeman—specialized in peanuts and recently entering the pistachio market—the opportunity combines diversification with a global trend toward healthier consumption.
“The demand for nuts is growing because younger generations are eating more healthily,” says Gustavo Cavigliasso, a member of Prodeman’s board of directors. “First, we want to strengthen the domestic market, but the doors are always open to exports.”
China: a horizon full of expectations
Argentina’s pistachio producers received a boost in March 2025 with China’s decision to approve imports of nuts from the South American country, and the first shipment of pecans was made that same month.
China imports around 170,000 tons of pistachios per year, a volume that far exceeds Argentina’s total production. Experts believe this could be significant, but it is unlikely to have an immediate impact. “The trade relationship with China is strong and growing, but today Argentine pistachios are far from being able to supply such a market,” explains Ernesto Taboada, director of the China-Argentina Council. “Chinese buyers will come for many containers, not just a single bag.”
The main challenge is to quickly reach the desired scale. Trees take between eight and ten years to mature. “Of course we are interested in selling to them, but we still don’t have the necessary volume,” acknowledges Nemirovsky. “To reach China, we first have to grow, and that takes time.”
Moreno, the Secretary of Agriculture, acknowledges the difficulties: “The opening of China will have an impact, but it is still impossible to supply that market.” The Asian country is seen as a giant that could absorb Argentine pistachios when—and only when—the sector manages to expand its production scale.
An industry in search of balance
Argentine pistachio producers are balancing this potential growth with the limitations of production in one of the country’s most arid regions. As tensions between agricultural expansion and water crises become more visible, experts warn that the future of the sector will depend on its ability to adapt.
According to data from the INA, the aquifer on which much of San Juan’s production depends is being exploited faster than it can be recharged. As Salvioli puts it, “it is a resource that cannot be renewed.” At the same time, the pistachio sector is trying to position itself as an example of efficiency. According to the Ministry of Agriculture, 97% of plantations use drip irrigation. Leading companies also use sensors, continuous monitoring, and renewable energy to reduce consumption.
However, advanced technology is only a partial solution. INTA researcher Cañete states: “The issue is not only how much water they use, but where it comes from and how much remains for others.” The challenge is to find a balance: expanding a crop that can generate employment and exports without compromising a resource that defines life itself. According to Salvioli, the lack of control over well drilling and the intensive exploitation of water worsen the problem: “A resource that is increasingly scarce is being overused.”