Grain farmers with bins full of feed peas may be hoping a duty on American corn imports is good news for them, but analysts say they shouldn’t expect significant new pricing opportunities because of the trade action.
Pulse growers have been working for years to get more hog producers to use more peas. They are pitched as a high-protein ingredient for hog rations, replacing protein sources like soymeal.
But corn is used for its energy.
Hog producer Marcel Hacault said farmers are scouting for alternative sources of energy for rations. Feed wheat, also high in energy, is an obvious choice.
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Hacault noted feed wheat often has higher protein levels than corn. That means there may be less demand for protein-rich feed peas, he said.
Brian Clancey of Stat Publishing Ltd. said the duty could indirectly help feed pea prices by pushing overall feed grain prices higher.
Hog producers may be more likely to look at feed peas if they have to reformulate their rations anyway, said Clancey, but they will be looking for more than a bargain price.
“Cheap prices are good, but consistency of supply is also important.”
Feed pea growers who want to get into local feed markets may want to invest in cleaning equipment.
The cleaner the peas, the more attractive they are to feed mills, he said.
It’s hard to estimate how many feed peas go into hog rations in Western Canada, but Clancey said he forecasts 475,000 tonnes will be fed to livestock this year.
Including edible peas, he thinks Canada will be left with 800,000 tonnes at the end of the crop year.
“There’s no shortage.”
