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The Economics of Everyday Things

Pistachios (Replay)

The Economics of Everyday Things

Freakonomics Network

Business

4.81.2K Ratings

🗓️ 30 December 2024

⏱️ 16 minutes

🧾️ Download transcript

Summary

How did a little green nut become a billion-dollar product, lauded by celebrities in Super Bowl ads? Zachary Crockett cracks open the story.

Transcript

Click on a timestamp to play from that location

0:00.0

Growing up, Sawyer Clark did not understand the allure of pistachios.

0:13.1

My first memory of pistachio was watching my grandpa crack them and put the shells into a bowl,

0:17.4

and I couldn't imagine why someone was eating those weird green nuts with a shell on.

0:20.7

That was hard to get off. But Clark eventually had a change of heart. Today, he helps run a

0:27.2

pistachio farm. He spends his days thinking about nitrogen levels and soil and calculating nut yields.

0:34.5

In the fall, come, you know, late August, but usually more September, you keep an eye on the

0:40.0

crop, and when the nuts start splitting and the holes start peeling back, you shake the trees,

0:45.5

cuts the nuts, bring them to a processor, and get them to consumers. There's a reason for his

0:49.9

change of heart. A few decades ago, there wasn't much of a commercial market for pistachios in the

0:55.7

United States. They could only be found at farmers markets or in the bulk bins at health food

1:00.9

stores. These days, it's a different story. Pistachios are touted by celebrities in Super Bowl ads.

1:08.7

They're sold in huge display cases at major grocery chains.

1:12.6

And they're now the fastest growing nut product in the country.

1:20.1

In the 1990s, the USDA says the U.S. produced about 250 million pounds of pistachios.

1:27.1

This year, the estimate is going to come in

1:29.1

bigger than 1.5 billion pounds. So that's more than 6x in 30 years, just within the U.S.

1:36.6

For the Freakonomics Radio Network, this is the economics of everyday things. I'm Zachary

1:41.6

Crockett. Today, pistachios. Pistachios have been cultivated and consumed for thousands of years in other parts of the world, especially Turkey and Iran.

1:53.9

You can actually find news reports where the two countries talk about who has the older tree. There are pistachios that still produce in Iran that are

2:03.3

estimated to be 1,500 years old. Pistachios first started showing up in the U.S. in the late 19th century.

2:10.1

They were sold in vending machines, a dozen for a nickel. Most of these nuts came from Iran,

2:16.1

which dominated the global pistachio market for many decades.

...

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