Though parts of California have faced the worst drought in history, that state’s tree nut crop output was strong in 2020 and there are plans to expand almond, walnut and pistachio acres as exports continue to surge despite tariffs and adverse monetary conditions that would otherwise slow them down. But as production grows, the shelling, hulling and processing capabilities must grow to handle larger crops. In addition to that challenge, the record-high output has caused prices to decline, though that’s not expected to last as consumers around the world continue to add more nuts to their diet, leading to a bullish export demand outlook. See more on the state of the California nut sector.