The 2002 green pea crop isn’t so green.
Merv Berscheid, a broker with CGF Brokerage and Consulting, said his
company has seen quite a few samples of new-crop peas and a lot of
what’s coming in is five to 20 percent bleached.
Of the 50,000 bushels of green peas graded by the Saskatoon brokerage
firm between Aug. 6 and Aug. 23, 60 percent has gone into the sample
grade and only seven percent has ended up No. 1.
But Berscheid said buyers are interested in the bleached product.
Read Also
Agriculture ministers agree to AgriStability changes
federal government proposed several months ago to increase the compensation rate from 80 to 90 per cent and double the maximum payment from $3 million to $6 million
“Originally we thought it was going to go into the feed market, but
there’s going to be some homes for it.”
Yellow peas appear to be in much better shape. There has been evidence
of sprouting and earth tag, but almost every sample he has seen in
August has ended up in the top category for quality.
Reports on pea yields have ranged from five bushels per acre in dry
areas to 50 bu. per acre in southern Saskatchewan.
Saskatchewan Agriculture special crops specialist Ray McVicar said his
department is estimating an average pea yield of 18 bu. per acre, which
is substantially down from the 10-year average of 32 bu. per acre.
The province is forecasting a 1.13 million tonne crop, down nearly
500,000 tonnes from the five-year average of 1.59 million tonnes.
There were good crops in southeastern Saskatchewan, but three-quarters
of the pea-growing area was drought stressed.
Growing conditions were even worse in Alberta, which is Canada’s other
main pea growing region, McVicar said. Northern Alberta is facing a
“terrible crop,” he added.
“It’s bad there.”
Agriculture Canada is projecting Canada-wide production of 1.6 million
tonnes of dry peas, down 23 percent from last year’s crop and 46
percent below the record 2.9 million tonne crop in 2000-01.
The department expects the average dry pea price over all types, grades
and markets to increase by about 10 percent over last year due to lower
supply.
Berscheid said top quality green peas are already fetching $8 per bu.
on the farm and No. 2 or better yellows are selling for about $6 per
bu. Green peas with 20 percent bleaching are fetching $5 per bu.
Saskatchewan Agriculture estimates that about two-thirds of the pea
crop is yellow peas this year, but Berscheid thinks it could be closer
to three-quarters.
Both types will likely be heading to human consumption markets in the
Middle East and the Indian subcontinent, depending on protein values. A
feed market for peas could emerge if the cost of feed ingredients such
as soy meal rises, but it looks like it will be an edible market this
year.
“A couple of years ago when we had a gazillion acres of peas in and
lots of volume, well then your floor price was the feed pea price and
there wasn’t much of a premium for the edible.”
That’s not the case this year. Pea prices have been on the rise in the
past few weeks and Berscheid thinks that trend will continue.
“Oh man, some guys are going to make nothing but big money this year,”
he said.
An early frost and August rain caused sprouting in desiccated and
swathed peas, which will affect their germination potential. That will
heat up the seed market, which may provide a good outlet for some of
the bleached green peas, Berscheid said.
One other thing to keep in mind is that the Canadian Grain Commission
has advised its inspectors that a 0.02 percent tolerance for
grasshopper parts will be enforced on all pulses this year. Samples
having an excessive objectionable odour due to grasshopper parts will
receive a sample grade.
