Canada Expands Dry Peas Acreage by 5%
Farmers Expand Dry Peas Acreage to Boost Production
Canadian farmers have expanded dry peas acreage by 5% for the 2024-25 season, reaching 1.30 million hectares. They are choosing to grow more dry peas because of favorable returns and the crop’s benefits in rotation plans. Saskatchewan leads with 54% of the total acreage, followed by Alberta at 39%. This increase in area is expected to push production to 3.3 million tonnes, driven by improved yields.Canada Prepares for Increased Dry Peas Supply
Canada’s dry peas supply is expected to rise to 3.56 million tonnes in 2024-25, reflecting the higher production. Despite lower carry-in stocks, the increased acreage will bolster overall supply. Export levels should remain stable at 2.5 million tonnes, with China, India, and the US continuing as key buyers. Carry-out stocks are likely to increase, surpassing five and ten-year averages. However, average prices may drop due to an anticipated global supply boost and favorable crop conditions in the Canadian Prairies.Growth in US Dry Peas Market
The United States is also expanding dry peas acreage for 2024-25. The USDA projects over 1.0 million acres (0.42 million hectares) will be devoted to dry peas, with significant increases in Montana and North Dakota. With normal yields, US dry peas production should rise by 2% to 840 thousand tonnes. The US has successfully exported dry peas to traditional Canadian markets such as Yemen, China, and the Philippines and is likely to maintain its market share in 2024-25.Green Peas Command Price Premium Over Yellow Peas
Canada’s dry peas exports for 2023-24 are projected to remain steady at 2.5 million tonnes, driven by higher demand from India. This demand offsets lower imports from China, Bangladesh, and Pakistan. Despite stable exports, carry-out stocks are expected to decrease due to the smaller supply. The average price for dry peas is likely to rise, except for feed peas. Green dry peas are expected to command a price premium over yellow dry peas, continuing a trend from the previous year. In June, Saskatchewan experienced a decline in yellow pea prices, while green pea prices at the farm gate increased.Conclusion
Canada’s dry peas market is positioned for growth in 2024-25, with increased acreage and production. Although exports remain stable, price fluctuations between green and yellow peas are anticipated as global supply conditions evolve.