Summary

With the PGRO/Syngenta 2012 Roadshows just completed, the message to growers is clear – this is NOT the time to give up on peas or beans! Certainly, attendance at these joint Roadshows underlines the continuing interest in pulses as a profitable and sustainable crop.

It is true that oilseed rape yields and prices have been competition to pulses at present - but in the longer term the worryingly tight rotations have to unwind. A point made very clearly by ADAS's Peter Gladders recently at the HGCA's Agronomist Conference. Pulse market demand and prices are as strong as ever, and our export competitors – such as France and Canada - have suffered from a low production year.

Total UK bean production in 2011 was only 350-375,000mt and peas about 135,000mt and, if winter beans are down 25% again, the bean tonnage is likely to fall again unless we have an exceptional yield year in 2012.

However, there is every sign that French acreages will also fall again – despite their subsidy reaching €137/ha this past autumn. Note that the EU protein subsidy of €55.57/ha paid to French growers ceased on 31st December 2011. The French Co-ops are lobbying hard to keep supporting legume crops, and we continue to seek more information on their innovative scheme to issue carbon credits based on growing legumes.

The good results from the ‘Green Pig’ project involving PGRO and 12 other industry partners, including the feed companies, should provide more momentum for pulses instead of soya on protein feed rations.

Feed Beans

Despite indications that only about 30% of the UK production reached the highest human consumption standards, few beans have been taken up for feed – perhaps expecting export standards to reduce! The prices north of £170/tonne are another key factor.

Human Consumption Beans

French bean exports were down considerably year on year due to lower area and below average yields, combined with quality issues. UK cargoes went out to Egypt in November/December. There were also several shipments over the winter of bagged beans
to the Sudan. So the UK industry has been taking up the slack to an extent.

Equally, the Australian crop started to ship in January - their estimated 275,000mt crop has take up some of the demand, but UK demand has just recently pushed prices up to over £250 ex-farm, a premium over feed price of some £70! The key question is how much HC quality crop remains on farm as lower quality standards are adopted to make up the Egyptian demand?

Combining Peas

Following the good yields and quality obtained from 2011 harvest, the UK market is well supplied. The 2011 Canadian pea crop was down a third but exports to China/Bangladesh have been good, so their carryover is down over 60%. The US crop too is down over 60%, so pea prices worldwide will be strongly underpinned for the foreseeable future. At the same time the French crop will decline further from last year due to poor yields – and despite the large subsidy accruing at the moment.

Marrowfats

There is little trading activity to report as the Chinese New Year starts. The increased proportion of marrowfat varieties sown in 2011 plus good yields has seen a temporary oversupply. However good marrowfats are still a premium to good blue peas, and there are good contracts in place for 2012.

Blue Peas

A slow market at present - but some interest from Europe. The market is roughly in balance for 2011 crop, but will be short for 2012. Good Blues are worth more than poor Marrowfats

White Peas

Inevitably, with the Canadian supplies lower this year, the French exporters have done well and their peas are also coming into UK for human consumption and bird feed. Anyone with UK origin white peas this year could have achieved prices of £250+, and there are good contracts available for 2012.