South Perth,
Western Australia
August 18, 2005
The rapid rise
in field pea production expected in Western Australia over the
next three years is unlikely to cause an oversupply or impact on
prices according to a recent analysis by the
Department of Agriculture.
The Department’s analysis of field pea markets
shows the expected extra production could easily be absorbed by
the market.
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Peter White and John Orr from Premium
Grain Handlers examine Kaspa splits |
Department researcher Peter White said Canada was
the largest producer of field peas in the world and their
production, together with the demand in India, generally set the
price.
“Canada’s production can vary from year to year
by as much as 1.1 million tones,” Mr White said.
“Western Australia can expect to be producing an
extra 150,000 tonnes of field peas by 2007. This is a minor
fluctuation which should not impact on price given the large
production variations that already occur.
Mr White said greater production of Kaspa Duns
represented good opportunities for WA field peas to displace
other exporters of field peas in the Indian market.
“In recent years, Australia has lost market share
to Canada because of the lower volume exported from Australia,”
he said.
“In some regions of India, however, consumers
prefer the taste of Australian Dun type peas to the white peas
supplied by other exporters. Also, freight costs from WA to
India are lower than for many of our competitors.
“Kaspa also represents a jump up in quality,
producing better quality splits and higher splitting recoveries
than other dun varieties. This means WA can supply a better
quality product to the Indian market at a lower price than many
competitors which is likely to put growers in a strong position
in the future.”
In terms of the current situation, John Orr from
Premium Grain Handlers has indicated prices for this year’s crop
look reasonably robust.
The current cash price for grain delivered in
November is $220 per tonne, which is $20 higher than at the same
time last year. Growers need to calculate all prices back to a
farm gate price, to avoid confusion over the way storage and
quality assessment fees are charged by CBH this year.
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