Ukrainian farmers may reduce pea planting due to low prices and high logistics costs

Ukrainian farmers harvested around 800 thsd tons of yellow peas in 2026, but significant volumes have yet to find buyers on international markets. Despite a substantial expansion in planted area, production increased less significantly due to relatively low yields of 2–2.5 t/ha. At the same time, the quality of the harvested peas is generally considered good, with favorable color, acceptable size, and less insect damage compared to last year. This was reported by Lika Koptyanets, Sales Manager at Exim Asia/Agroleader, in comments to the Global Pulse Confederation.

Following the harvest, Ukrainian pea prices declined, in some cases falling even below wheat prices. This is an unusual situation for the market and could influence farmers’ planting decisions for the next season. Meanwhile, the export competitiveness of Ukrainian peas depends not only on purchase prices but also on delivery costs, export destinations, quality requirements, and payment terms. For a relatively low-value crop such as peas, additional transportation costs of just €20–30/t can significantly undermine the economics of exports.

The situation is further complicated by border delays, shortages of freight transport, and volatile logistics rates. In addition to road and rail transportation, exporters face costs associated with port handling, sea freight, and transit, increasing the final delivered price of Ukrainian peas for foreign buyers. According to Koptyanets, global demand for yellow peas remains in place, but importers have become much more price-sensitive. As a result, Ukrainian suppliers must compete primarily on the total delivered cost of their products rather than quality alone.

Competition from Russia and Canada is putting additional pressure on Ukrainian exporters. Russian suppliers, in particular, benefit from more favorable logistics conditions on certain key routes, especially to China. Access to the Chinese market remains challenging for Ukraine, limiting opportunities to diversify exports. Meanwhile, developing domestic pea processing could create additional sales channels and increase the share of value-added products. However, such projects require substantial investment, which remains constrained by the war.

According to the expert, the combination of high logistics costs, low domestic prices, and intense competition in the global market poses risks to the further development of pea production in Ukraine. If current conditions persist, farmers may reconsider the economic viability of growing peas and reduce planted area next season. This, in turn, could lead to a decline in yellow pea production following this year’s expansion in planted area.

Tags: Ukraine, logistics, pea