Pea overproduction in Russia pressures prices and forces market adjustment

Russia has significantly expanded its production of pulses in recent years, becoming the world’s leading producer of peas. Since 2020, the area planted with pulses has roughly doubled, and peas have effectively lost their status as a niche crop. In regions such as Siberia, strong yields have further boosted overall supply.

However, this rapid growth has led to clear signs of overproduction. Amid ample global supply, procurement prices remain under pressure, reducing profitability for farmers. The situation echoes the 2018 market downturn, when India temporarily exited the market and triggered a sharp price decline. In 2026, demand persists, but it is not keeping pace with the surge in supply.

Competition on the global market is also intensifying. Canada and Australia continue to expand exports despite periodic weather challenges, while United States is also facing a surplus of peas. As a result, the global pulses market remains oversupplied, with prices shaped by strong competition and currency dynamics.

Despite these pressures, Russia has strengthened its position in key markets, particularly in China, where it has captured a significant share of pea imports. However, this achievement is partly offset by low prices, forcing exporters to operate with thin margins. Additional risks stem from the potential return of Canadian supplies to the Chinese market, which could further intensify competition.

Tags: Russia, pea