Ukraine’s large pea crop faces stiff competition and challenges/
“A EUR 20–30 per MT difference in logistics costs can change an export transaction’s commercial viability”

How does the volume of this year’s yellow pea harvest compare to last year and a typical year?

The 2026 season has been quite interesting for Ukrainian peas. We have seen a significant increase in planted area, reflecting farmers’ growing interest in the crop. Total pea production is estimated at approximately 800,000 MT, representing a substantial volume compared with last year and a strong result by historical standards.

However, the increase in planted area did not translate into a proportional increase in production, as average yields were generally lower than in 2025. 

Despite the larger harvest, the current market situation may discourage farmers from maintaining the same planted area next season. Logistics costs have become extremely high, and domestic pea prices are under pressure.

What have yellow pea yields been like? Could you describe the quality of the yellow peas and the factors that contributed to it?

Yields have varied considerably depending on the growing region. Earlier harvest reports indicated average yields of approximately 2.0–2.5 MT per hectare, with some central and western regions achieving better results. Overall, yields have been somewhat disappointing compared with last year, particularly considering the increase in planted area.

However, the quality of the 2026 crop has generally been good. We are seeing acceptable size, good colour, and satisfactory overall quality parameters. One notable improvement compared with 2025 is the lower incidence of insect-damaged peas. Last year’s crop presented significant challenges in this respect, while this season we have not observed the same widespread quality issues. Naturally, weather conditions and regional growing conditions influence both yields and quality, so each lot still needs to be evaluated individually.

From a commercial perspective, we would describe this year’s crop as generally good quality, even if the yields per hectare were not particularly impressive.

How have yellow pea prices evolved post-harvest and where are they now? What factors are affecting prices?

Since the harvest, Ukrainian yellow pea prices have been under considerable pressure. The larger availability of peas, combined with expensive logistics and strong competition from other origins, has created a challenging environment for both farmers and exporters.

One particularly concerning development is that domestic pea prices have, in some cases, fallen below wheat prices. This is unusual and may have consequences for planting decisions next season. It is also important to understand that the final export price is influenced by much more than the farm-gate price. Logistics, destination, loading point, quality specifications, and payment terms all play a significant role.

Even a relatively small difference in freight costs can determine whether Ukrainian peas are competitive in a particular destination. As a result, prices remain highly dependent on the delivery terms and destination, and exporters have limited room to improve their margins.

How is demand at the major yellow pea markets?

Demand for yellow peas remains present across international markets, but buyers are extremely price sensitive. Importers are carefully comparing offers from different origins, and Ukrainian suppliers must compete not only on product quality but also on the final delivered cost.

Although Ukraine has a substantial volume of peas available this season, converting that supply into export sales is becoming increasingly challenging because of logistics costs. Buyers are generally cautious, and purchasing decisions are strongly influenced by freight rates, availability from competing origins, and the price difference between suppliers.

In our view, the challenge is not necessarily a lack of demand, but rather finding destinations where Ukrainian peas can remain commercially competitive after transportation costs are included. 

How is competition with Russia and other yellow pea suppliers?

Competition with Russia remains one of the main challenges for Ukrainian yellow pea exporters. Russia benefits from significant production volumes and, importantly, more favourable logistics for certain key destinations, particularly China. For Ukrainian exporters, transportation costs can substantially increase the final delivered price, making it difficult to compete even when the product itself is attractively priced at origin.

We also face competition from other established pea-producing countries, including Canada, depending on the destination and market conditions.

Ultimately, buyers compare the landed price rather than the price at origin. This means that Ukraine’s competitive position is increasingly determined by logistics efficiency. Ukraine continues to offer good-quality peas, but maintaining competitiveness against Russia and other origins requires careful management of freight costs and access to reliable export routes.

What are the logistics challenges facing Ukraine’s pulse exporters?

Logistics remain one of the biggest challenges facing Ukrainian pulse exporters. In certain cases, transportation costs are approaching or even exceeding the value of the commodity itself. We experienced similarly difficult conditions during the early stages of the war in 2022–2023.

For relatively low-value commodities such as peas, this creates a serious disadvantage. Even a difference of EUR 20–30 per MT in logistics costs can completely change whether an export transaction is commercially viable.

Road transportation into Europe remains an important option, particularly for smaller lots and direct deliveries. However, border crossing delays, truck availability, and fluctuating transportation rates continue to create uncertainty. 

For more distant markets, exporters must also consider port access, shipping costs, transit times, and the reliability of the entire logistics chain.

These challenges affect not only export margins but also domestic prices and farmers’ willingness to invest in future production.

Improving logistics efficiency will be essential for the long-term competitiveness of Ukrainian pulses.

Do you see the China market opening to Ukraine yellow peas in the near future?

The Chinese market is already officially open to Ukrainian peas, which is certainly a positive development. However, market access and actual commercial opportunities are two different things. At present, participation remains limited, and significant trade volumes have yet to develop. There are still practical requirements for exporters, and not every Ukrainian supplier is immediately able to access the market. 

More importantly, prices in China are currently relatively weak compared with some alternative destinations. Russia also has a clear logistical advantage when supplying China, making it difficult for Ukrainian exporters to compete on delivered prices.

Therefore, while we welcome access to the Chinese market and see it as an important long-term opportunity, we do not expect it to create an immediate or dramatic increase in Ukrainian pea exports. Its real potential will depend on price competitiveness, logistics improvements, and the development of stable commercial relationships with Chinese buyers. 

Some industry voices see Ukraine shifting from a raw material exporter toward a supplier of value-added products. What are your thoughts?

We agree that Ukraine has significant potential to develop its value-added agricultural processing industry. In fact, this transition is already taking place in certain agricultural sectors, with Ukraine gradually moving beyond the export of raw commodities toward processed products. For pulses, opportunities include split peas, protein concentrates, feed ingredients, and other products derived from agricultural raw materials.

However, there are important challenges. First, logistics remain expensive, and transporting processed products can also be difficult, particularly when serving distant international markets. Second, more advanced processing projects, such as pea protein production, require substantial capital investment, modern technology, and reliable infrastructure. Given the ongoing war and the current economic uncertainty, many investments in these newer processing segments have been postponed or slowed down.

In our view, the transition toward value-added products is both logical and necessary for Ukraine’s long-term agricultural development. However, it will be a gradual process rather than an immediate transformation.

The country’s agricultural production capacity provides a strong foundation, but investment stability, infrastructure development, and reliable access to international markets will be essential for further progress.

Is there anything else you feel is important to let our readers know about Ukraine pulses?

One important point is that Ukrainian farmers and exporters continue to demonstrate remarkable resilience despite the difficult circumstances. Ukraine has the agricultural potential to remain a significant supplier of pulses to international markets, and the 2026 harvest demonstrates that production capacity remains strong. However, the future of the sector will depend not only on how much we produce, but also on how efficiently we can deliver that production to buyers.

High logistics costs, pressure on domestic prices, and strong competition from other origins are creating serious challenges for the industry. If these conditions persist, farmers may reconsider the area allocated to peas next season, potentially reducing future production despite this year’s substantial harvest.

At the same time, we see opportunities in developing new export destinations, improving processing capacity, and strengthening Ukraine’s position as a reliable supplier of quality pulses. Ultimately, Ukraine’s challenge is not simply to produce more, but to make its pulses competitive and profitable throughout the entire supply chain.