European Pea Imports 13.12.24
Although not the largest player in the game, the European Union has always been a net pea exporter. In the past few years, however, rising domestic consumption and a fall in production led it to become a key market for Russian peas. Exports peaked when demand from the Indian subcontinent was high but once India imposed import restrictions in 2017, European farmers dropped peas from their crop rotation and the bloc became a new importer.
Countries like Spain and Italy, in particular, expanded their pea consumption multifold in the decade and Russian exporters were happy to supply various industries. After a sharp increase in price following India opening to imports in December 2023, EU farmers increased their pea acreages to the highest in seven years. Subpar yields, however, somewhat spoiled the party.
Declining Pea Trade
Following India's opening to trade, global pea prices rose and feed usage was cut in many markets - including Europe. To benefit from the elevated prices, Spain even re-exported its (imported) peas to India.
Since December last year, European pea trade has remained in the double digits. It has averaged just 51,937 MT in the first eight months of 2024, compared to 102,761 MT in 2023.
With this year's production lower than the domestic consumption, the bloc will have a few options:
- Cut the Usage: Prevailing attractive prices will keep pea usage in snack, pet food and other speciality areas unchanged. Feed usage will depend upon the competitiveness to other substitutes like corn, barley, soymeal, sun meal, rape meal et al.
- Further reduce exports: Exports are already cut this season, as evident from the data.
- Increase imports from non-Russian origin: A less viable option as origins are hard to come by and availability is poor. Plus, Ukranian pea shipments are nearly over.
- Draw down from inventory: A possible alternative but one that will shoot prices up.
via GPC