Green Peas Prices Explained

Green pea prices posted glum sentiments in the market as usual inquiries from trading partners are low due to uncertain economic conditions and uncompromising partnerships. 

Canada’s optimistic growing season yielded negative results as farmers battled hot and dry conditions. While the produce is better than the previous year, the quality is not up for the long term. On the other hand, Russia remains the largest producer of peas globally, and the country’s farmers capitalize by planting peas across the country, raising concerns for a bumper harvest.

On the demand side, the Chinese economic progress prompted low imports from the U.S. and Canada. The EU’s export tariffs in Russia made it find a new market (India).

Why are green pea prices fluctuating?

1. Weather Condition

Droughts, floods, storms, and frosts are examples of extreme weather events that damage crops and lower the quantity and quality of green peas produced. As a result, unfavorable conditions result in less supply which leads to higher green peas prices.

For example, the global output of green peas dropped in production as poor weather in major producing countries such as China, India, and Canada affected the countries’ yields.

2. Production Costs

Green peas prices are influenced by various production factors, including expenses for seeds, fertilizers, pesticides, labor, machinery, transportation, and storage.

Producers adjust prices to cover their costs and maintain profitability if these production costs increase. For instance, the price range for Philippines green peas in 2023 is between $0.7 and $1.4 per kilogram, which reflects the costs of production and distribution.

3. Trade Policy

Green pea prices are determined by the trade policies of the countries that import and export which include things like subsidies, quotas, tariffs, and sanctions.

Additionally, these regulations have a significant impact on how readily available, high-quality, and competitively priced green peas are worldwide. For example, the world’s exports of green peas increased significantly due to increased shipments from Ethiopia, Russia, and the United States.

However, trade restrictions put in place by some importing nations such as China, India, and Pakistan, hindered the rise in the APAC region.

4. Market Competition

The price of green peas is directly impacted by market competition among growers, dealers, and retailers. Green pea quality, variety, and innovation are all affected by this competition, along with customer and seller preferences and their ability to bargain.

Overall, the global market for green peas is defined by its competitive and fragmented structure, with numerous competitors operating in different locations. Presently, leading producers of green peas worldwide are the United States, China, India, Canada, and Russia.

Which variables impact the price of green peas?

• Weather Condition
• Production Costs
• Trade Policy
• Market Competition
• Transportation Costs
• Storage and Processing Costs

Where does green pea come from?

Green peas are tiny and rounded seeds that are contained in pods. Additionally, they are part of the legume family which consists of plants that produce pods with seeds inside. Furthermore, they are starchy because of their high proportion of complex carbohydrates, or starches. Here are some common types of green peas:

1. Garden peas – They are harvested when the seeds are still developing and the pods are tender. Also, they are often sold fresh, frozen, or canned.

2. Snow peas – They have flat and edible pods that are collected while the seeds are little. Additionally, they are often eaten raw or stir-fried.

3. Sugar snap peas – This variety has edible pods and is eaten whole. Moreover, its pods are sweeter and rounder than snow pea pods and have a crunchy texture when raw.

4. Yellow peas – It has yellow seeds instead of green ones.

5. Petit pois – Commonly known as baby peas, it is a smaller and sweeter variant of garden peas. Regarded as a delicacy, they are highly valued for their tender texture and sweet taste.

6. Dwarf peas – These are compact plants that don’t require support. Additionally, they are suitable for small gardens or containers.

What are the uses of green peas?

Green peas are a popular vegetable that is not only tasty but also has a high nutritional value, with a considerable fiber and antioxidant content.

In addition to many other healthy elements like fiber, vitamin K, and vitamin A, green peas also contain carbohydrates and protein. Besides its usual use as a food product, green peas have a variety of industrial uses. Some of these applications include:

1. Canning and Freezing – These two common processing techniques are used on green peas to extend their shelf life and maintain their nutritious content. Additionally, this preservation method allows consumers to savor green peas at any time of year.

2. Livestock Feed – Pea byproducts, such as pea protein concentrate or meal are used in animal feed and provide cattle with extra nutrition as a valuable source of protein.

3. Pharmaceutical Industry – In the pharmaceutical industry, pea starch is used as a filler or binder in the process of making tablets and capsules.

4. Cosmetic Formulations – Extracts, oils, or powders derived from peas are utilized in the cosmetic industry, finding applications in skincare and haircare products due to their potential benefits.

5. Dietary Supplements – Supplementary products made from peas such as pea protein isolates are used in manufacturing.

What is the future price of green peas?

As more people become aware of the importance of their health, there is a global increase in the demand for healthy and low-fat foods.

Many health-conscious individuals adopt a vegan lifestyle, contributing to the worldwide trend of going vegan. This shift is particularly strong in countries like the U.S. and Canada, where the market for products made from plant proteins is growing due to the rising popularity of veganism.

Also, the development of food processing to preserve shelf life gave rise to the dried and frozen green peas market (which is getting popular in the European region). For instance, a survey from The Grocer (a UK-based magazine) revealed that 15% of consumers eliminated dairy products from their diet entirely, and 20% showed increased preference for plant-based products.

Therefore, the price of green peas will reach $1.25 to $3.00 per kilogram in 2028. Additionally, the Green Peas Market size is expected to reach $5.60 billion by 2028, growing at a CAGR of 12.80%.