Lentils and peas: China's retaliatory tariffs hit pea market
April 28, 2025 at 12:45 PM ,
Der AUDITOR
Large price differences for old and new crop
As the experts at Rayglen Commodities state in their latest market reports, growers of green lentils in Canada are currently fighting an uphill battle. Demand from buyers is very low and prices are under severe pressure as a result. In the red lentil market, however, prices are holding steady; buying interest is high enough to avoid price reductions, but not high enough to drive prices upwards.
Compared to other agricultural commodities, however, lentils are still doing well overall, according to the market experts. However, in addition to low demand, the prospect of an expansion in acreage is exerting additional pressure. StatsCan had initially expected a decline of 1%, but analysts are currently forecasting increases, especially for green lentils; they base these predictions on good seed sales and the strong prices for the new crop last winter. According to Rayglen, the prices of green lentils for the old and new crop are currently up to 12 cents apart, which is putting some buyers off. While old crop green lentils are trading at CAD 0.50-0.51/lb FOB farm, the new crop is at CAD 0.40-0.42/lb. For red lentils, the difference is smaller, with Rayglen quoting prices for old crop at CAD 0.34/lb and new crop at CAD 0.29-0.30/lb FOB farm.
India remains most important buyer
Canadian lentil production is estimated at 2.43 million mt in 2024, an increase of 35% compared to the previous year and 3.6% compared to the ten-year average, according to Chelmer Foods experts. The acreage is said to have increased by 15.9% compared to 2023, while yields are expected to have grown by 16.4%. Exports have also improved and, according to the market experts, increased by 14% year-on-year to 800,000 mt in the period from August to November 2024. India remained the most important buyer with 350,000 mt, followed by Turkey and the United Arab Emirates.
China imposes 100% tariffs
According to market experts, the Canadian pea market has been fairly quiet in recent weeks, with Chinese tariffs being the main issue. After Canada imposed tariffs on Chinese e-cars, aluminium and steel last autumn, China is now responding with retaliatory tariffs on Canadian agricultural goods. Since 20 March, a 100% tariff has been in force on Canadian rapeseed oil, rapeseed meal and peas. This has of course significantly dampened demand in China, but buying interest is also limited in other export destinations and on the Canadian domestic market, and Rayglen states that buyers are currently only looking for small quantities to cover their acute needs. According to Rayglen, green peas from the old crop cost around CAD 16/bu, while the new crop is trading here at around CAD 12.50/bu FOB farm. The price for yellow peas is CAD 10/bu for the old crop and CAD 9/bu FOB farm for the new crop.
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