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SK Pulse Market Report

 

Here is a link to the SK Pulse Growers March Market Report

http://www.saskpulse.com/media/pdfs/March_Pulse_Market_Report.pdf?utm_source=March+PMR&utm_campaign=3d563e5c0c-March_Pulse_Market_Report2_28_2012&utm_medium=email

A Look At Pulse Production In Ukraine.

By John Smorhun, Harmelia Investments

Pulses have always been a staple foodand today they also play an important role in ensuringglobal food security– one of the reasonswhy area under pulses increased by 17.7% from 2000–2010, from 159.4 million acres to 187.7 million acres. Currently the major producers of pulses are Canada, India, China, Myanmar, and Brazil. These countries account for half of the global output. According to the UN’s Food and Agriculture Organization, the most important pulses are beans, chickpeas, cow peas, peas, pigeon peas, and lentils, which account for 86% of output.

In Ukraine, there are almost one million acres under pulses – a fraction of the total area. Peas, the main crop, account for about 70% of cultivated areas. Beans are grown on about 5.8% of total acreage in Ukraine.

Pea yields in Ukraine are on par with global averages at 24.17 bushels/acre, while bean yield is 63.9% – higher than the global average.

Pulses are grown in most regions and are conditional on area under wheat, barley, and corn, since pulses in Ukraine are used as a nitrogen-fixing crop. Pulses account for approximately 1–2% of totalcultivated area in Ukraine’s crop rotation,while the major crops are wheat, barley, corn, and sunflower, with rapeseed and soy playing an increasingly important role.

Harvested areas under pulses decreased from 1.18 million acres in 2003 to 0.64 million acres in 2008, down by 46.3%, but increased to 0.96 million acres in 2009/10. The recent expansion of area under pulses has been driven by the observance of crop rotation and growing domestic prices of peas.  

In 2008, pea farming significantly exceeded other grain and oil crops for profitability in Ukraine, outranked only by winter rapeseed. However, despite the ascending dynamics of pea prices in 2009/10, the profitability of this crop dropped from 22.3% in 2008 to 1.2% in 2010.

In 2009 domestic pea prices hit an all-time low, bringing sales margins down to 5.5%. The decline in pea yields in 2010 caused sales margins to slide further. Farmers are now forced to adjust pea acreage every year, due to uncertain weather conditions and prices. Inadequate harvesting equipment is also an issue. However, Ukraine has managed to strike a certain balance in pea distribution.

The volumes of pea exports from Ukrainevary and are determined by harvest size in Ukraine. The highest pea exports hit 10 million bushels in the period between 2006–2010.  
 
Pea export markets account for 98% of all pulse export sales from Ukraine, and include India, Spain, the United Kingdom (U.K.), Italy, and Pakistan. These same markets accounted for 70% of all Ukrainian pulse exports during the period of 2006–2010. Ukraine also exports an insignificant amount of chickpeas, beans, and fodder beans, together not exceeding 220,000 bushels.

Price and yield fluctuations make it difficult to foresee how profitable a future pea harvest might be, preventing farmers from enlarging pea acreage. However, farmers in Ukraine have turned their attention to chickpeas, a crop that is becoming increasingly popular. In contrast to peas, chickpeas are more resistant to excessively low or high temperatures and enjoy stronger demand on global markets at two or three times the price of peas. The export sales of Ukrainian chickpeas have soared from 6,000 bushels in 2007 to 140,000 in 2010, indicating this will be a promising crop for Ukraine.  


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