Russia is the second largest producer of peas in the world and as of now imports of other dry peas from Russia are almost nil. According to the official website of the Khabarovsk Regional Branch of the Russian Veterinary Plant Bureau on May 20: The Russian Federal Veterinary and Phytosanitary Supervision Bureau has completed the approval of the inspection and quarantine requirements protocol for Russian peas exported to China with the General Administration of Customs of China, which means that in 2022 Russian peas can be exported to China. What impact will the imported Russian peas have on the Chinese pea market? I will do a simple analysis.
The output of other dry peas in China is relatively low. In the past five years, the output of dry peas in China has shown a downward trend year by year. However, my country’s pea deep processing industry has developed rapidly, especially the pea protein industry has developed rapidly in China. The production capacity of pea protein produced by Shuangta Group alone accounts for nearly 40% of the global pea protein. The rapid development of pea deep processing has led to an increase in domestic demand for peas. Facing such a large demand gap, it can only be made up by importing from abroad.
According to the latest data released by the General Administration of Customs, the total import of other dry peas in China in April 2022 was 150,200 tons, an increase of 5,600 tons from the previous month and a month-on-month increase of 3.89%. Compared with April 2021, China’s total imports of dry other peas decreased by 119,300 tons, a decrease of 44.25%.
From the perspective of importing countries, in April 2022, China’s other dry pea import sources mainly include Canada, Australia, France, Argentina, the United Kingdom and New Zealand. Among them, Canada imported 115,200 tons of other dry peas, accounting for 77% of China’s total imports of other dry peas, followed by Australia, which imported 24,200 tons, accounting for 16% of China’s total imports of other dry peas.
Canada is the world’s largest producer of peas. Canadian pea production in 2020 is 4.59 million tons, accounting for 29% of the world’s total pea production. At the same time, Canada is also an important source of Chinese peas. From the perspective of the import volume in the past five years, the total import volume of other dry peas in Canada is relatively large. From 2018 to 2021, the amount of other dry peas imported from Canada accounted for the proportion of other dry peas in China. The proportion of total imports is relatively large, and its proportion has remained above 93% all year round. However, starting from 2022, Canada’s imports of other dry peas will gradually decrease. From January to April, the import of other dry peas from Canada accounted for 68%, 64%, 77% and 77%, respectively, and other dry peas from Australia The import volume has gradually increased. From January to April, the volume of other dry peas imported by Australia was 13,900 tons, 10,200 tons, 22,300 tons and 24,200 tons, accounting for 21%, 21%, 15% and 24,200 tons respectively. 16%.
Russia is the second largest producer of peas in the world, and the production of other dry peas in Russia in 2020 was 2.74 million tons, accounting for 17% of the global total. Up to now, only 160 kg of other dry peas have been imported from Russia in 2019, and almost never imported dry peas from Russia in the later period. The volume of other dry peas imported from Russia in the last five years is almost zero.
According to the official website of the Khabarovsk Regional Branch of the Russian Veterinary Plant Bureau on May 20: The Russian Federal Veterinary and Phytosanitary Supervision Bureau has completed the examination and approval of the inspection and quarantine requirements protocol for Russian peas exported to China with the General Administration of Customs of China, and plans to soon sign the protocol in the future. With the further cooperation with Russia in the later period, it will be helpful to solve the diversification of raw material sources for my country’s pea industry and prevent and resolve business risks.
Canada’s production will be reduced and prices will rise due to severe weather in 2021. The reaction in the Chinese market is particularly pronounced. From the above figure, we can see that the price of peas in Qingdao Port will remain above 4,000 yuan/ton in 2022. As of May 25, 2022, the price of peas in Qingdao Port will be 4,450 yuan/ton, an increase of 56% over the same period last year. If Russian peas enter the Chinese market in the later period, the supply of the Chinese pea market will be relieved to a certain extent, which will be a great benefit to my country’s pea market and will also promote the rapid development of my country’s pea deep processing industry.
In the short term, the approval of Russian pea exports to China has no actual impact on my country’s pea market. The current situation of the Canadian pea market has a greater impact on my country. With the gradual reduction of Canadian supply, the price of foreign disks has risen, and the planting area of Canadian peas this year has dropped by 7% compared with the expected 2021. In the medium and long term, domestic pea prices will remain high.