Ukraine farmers could plant pulses on low fertilizer need: trade

Ukraine pea and pulse production could be thrown a lifeline as their relatively low need for fertilizers could encourage farmers to plant more, an industry group has told Agricensus.

Since much of Ukraine's pulse industry has been export-oriented, the country's sector has been hit hard by the challenges brought by the Russian invasion of Ukraine. 

The nature of the season meant that typically most pulses exports happen before the end of the calendar year, so peas and other pulses in the 2021 season were already sold and shipped abroad before the war started.

For any volumes left unexported, traders were able to place most of the remaining pulses by railways and tracks across the borders into the European Union.

According to official government data, in 2021 Ukraine harvested 500,000 mt of peas; of which around 70,000-80,000 mt went to domestic consumption, leaving just over 400,000 mt to be exported, according to estimates from the Ukraine Pulse Association. 

But this spring planting campaign, under war conditions, resulted in a dramatic decrease in pea plantings with the area halved compared to 2021.

“At the beginning of the war, the feasibility of growing pulses was actively raised. Pulses are less expensive to plant, a source of plant protein, which is attractive from a food security perspective and very important - do not require large amounts of fertilizer,” Antonina Sklyarenko, the president of industry body Ukraine Pulse Association told Agricensus.

And peas remain the number 1 pulses crop for Ukrainian farmers, with interest in this crop now said to be growing in response to the current fertilizers supply crisis.

“More often, farmers' choice fell on peas... this crop allows you to get a harvest with relatively small costs for seeds and plant protection products,” Sklyarenko said.

Indeed, according to Ukrainian Ministry of Agricultural Policy estimates, nitrogen consumption was 3.6 times lower than in the previous season, with phosphorus 3.7 times lower and potash demand 5.6 times lower, and they expected those figures to be reduced further in the next season.

As per Ukraine Pulse Association data, in 2022, the Ukrainian peas crop fell to 238,000 mt, and domestic consumption is not expected to exceed 50,000-55,000 mt, after so many of the country's population were displaced.

As such, even with lower production, Ukraine could potentially export about 190,000 mt of peas in the 2022/23 marketing year, with some volumes already now passing through the grain corridor.

On November 15, a vessel with 6,100 mt of peas sailed from Ukraine to Turkey and the extension of the corridor for another 120 days will likely create additional export opportunities for pulses, potentially supporting local prices.

In common with other elements of Ukraine's export slate, the war has imposed drastic changes on the geography of its pulses exports.

Before 2022, the main buyers of Ukrainian pulses were Turkey, Pakistan, Malaysia, and then the EU, but after the war's start, most of the volumes have gone straight to the EU for obvious reasons.

Trade

But complications remain.

As one farmer explained to Agricensus, this season, traders are reluctant to enter into forward contracts as the risks remain very high and the war has meant adjustments to the sowing campaign and trade process.

According to Ukraine Pulse Association, purchasing prices for Ukrainian peas on the market now are not very high - hovering around $145-180 per tonne, although for other pulses the situation is better, with chickpeas prices about $750-800 per tonne.

But even with the challenges, the low input need means for next year, farmers plan to plant pulses, and peas in particular.

Now, the seed supply reminds the main obstacle, and the association has said it will focus its efforts on finding ways to provide farmers with seeds before the spring planting campaign gets underway.