High Logistics Costs and Competition Will Force Farmers to Reduce Pea Acreage

Lika Koptyanets, Sales Manager at Exim Asia/Agroleader, said this in a comment to the Global Pulse Confederation.

The expert noted that the area under the crop increased significantly, but the expansion in plantings did not result in a proportional increase in production due to a lower average yield of around 2–2.5 t/ha. At the same time, the overall quality of the harvest is assessed positively: the peas are of an acceptable size, have good colour and show less insect damage than last year.

Lika Koptyanets noted that after the harvest was completed, pea prices declined, in some cases falling below wheat prices.

«This is unusual and may have implications for planting decisions next season. It is also important to understand that the final export price is influenced by much more than just the purchase price. Logistics, destination, loading point, quality specifications and payment terms all play a significant role,» the expert explained.

According to her, for a relatively low-priced commodity, even a difference of €20–30 per tonne in transport costs can completely change the economics of an export transaction. At the same time, border delays, a shortage of trucks and unstable tariffs create additional risks, while port costs, sea freight, transit and the overall reliability of the logistics chain add further expenses.

«Demand for yellow peas on the global market remains, but buyers have become extremely price-sensitive. Ukrainian exporters are forced to compete not only on product quality, but above all on the final delivered cost,» the expert added.

Competition with russia is particularly challenging, as it has more favourable logistics options on certain key routes, including to China. Canada also remains an additional competitor.

Lika Koptyanets noted that supplying peas to the Chinese market remains challenging for Ukrainian exporters, while domestic processing requires significant investment, which is being constrained by the war.

«High logistics costs, pressure on domestic prices and strong competition on the global market are creating serious challenges for the industry. If these conditions persist, farmers may reconsider the area allocated to peas next season, which could potentially reduce production,» the expert concluded.