Canada's Dry Peas Production Plummets Due to Lower Yields and Reduced Harvested Area

Mumbai, 16 Dec (Commoditiescontrol):This updated report from Agriculture and Agri-Food Canada (AAFC) paints a concerning picture for Canada's principal field crops in the 2023-24 crop year. The country faces a substantial 24% reduction in crop production, amounting to only 2.6 million tonnes (Mt). This downturn is primarily driven by a significant 14% decrease in yields compared to the previous year, a result of less favorable growing conditions, notably drier weather.

The composition of the production heavily leans towards yellow and green pea varieties, expected to yield about 2.24 Mt and 0.3 Mt, respectively. The remaining production is spread across other crop varieties. Despite a significant decrease in output, the total crop supply is down by a smaller margin of 17%, reaching 3.1 Mt, thanks to substantial carry-in stocks from previous seasons.

Export forecasts are grim, with projections indicating a slump to 1.9 Mt, a direct consequence of the reduced supply. This decrease is poised to impact international trade, particularly leading to reduced imports by Bangladesh. Intriguingly, despite the supply crunch, carry-out stocks are anticipated to swell.

The average crop price is projected to dip by 5%, stabilizing around $420/tonne (t), a decrease from the previous year's figures. This decline is largely attributed to the reduced market value of yellow dry peas, while other dry pea types maintain stronger pricing.

In Saskatchewan, the on-farm prices for both yellow and green pea types have remained consistent as of November. Market stability is credited to subdued export demand and predictions of a smaller Indian winter pulse crop. Currently, green dry peas command a notable $190/t premium over yellow dry peas, a substantial increase from the previous year's $65/t premium.

The United States presents a contrasting scenario for the 2023-24 season. According to USDA estimates, there is a 3% increase in the area dedicated to dry peas, totaling 0.95 million acres (0.38 Mha), primarily in North Dakota and Montana. With projections of above-average yields, the USDA anticipates a 14% rise in US dry pea production, reaching nearly 0.8 Mt. However, US dry peas form a smaller segment in Canadian export markets, such as China and the Philippines.

(By Commoditiescontrol Bureau: 09820130172)