CORRECTION – this story has been updated to replace a photo of table peas with the more appropriate dry peas variety. 1525 CST May 12, 2022
Russia’s pea producers have asked their government to intensify negotiations with China on a phytosanitary agreement that would allow trade between the two countries.
That could create stiff competition in Canada’s top market for the commodity.
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The plea is coming from the Siberian Grain Consortium Association, according to a story published in the online publication Fastmarkets Agricensus.
Farmers in Siberia have traditionally exported their peas to Baltic countries such as Latvia and Lithuania, which are now considered “unfriendly” to Russia.
In 2021, producers from the Siberian Federal District exported 151,000 tonnes of peas, 73 percent of which went to those two countries, according to Fastmarkets Agricensus.
Siberian producers want their government to complete a phytosanitary agreement with China that would allow peas to flow to the world’s largest buyer of the commodity.
“I can see them wanting to lobby China to make it work,” said Greg Kostal, owner of Kostal Ag Consulting.
“There’s a lot of moving pieces that go beyond pure economics.”
China and Russia held talks in February on resolving the outstanding inspection and quarantine issues. That was before the war in Ukraine began.
Russia is the world’s second largest pea producer. Stat Publishing expects farmers in that country to grow 2.63 million tonnes of the pulse crop in 2022. Agriculture Canada expects Canadian farmers to produce 4.03 million tonnes.
That would be a big rebound for both countries after harvesting dismal crops in 2021.
China has rapidly become Canada’s top market for peas after the Indian market evaporated, so any intrusion in that market by Russia would be unwelcome.
“It will be a competitive threat,” said Kostal.
The level of that threat depends on how the Chinese would use the Russian peas.
“If Russia is going to be impeding on food, (fractionation) and specialty markets, it’s more pronounced than if it’s feed,” he said.
Russia exported 900,000 tonnes of peas between July 2021 and January 2022. Bangladesh, Turkey and Italy accounted for more than half of those exports, according to Fastmarkets Agricensus.
About one-third of the country’s exports went to European Union countries, which are also deemed as “unfriendly” in the current environment.
So the pressure to open up the Chinese market could be intense.
Contact sean.pratt@producer.com
