Feed Pea Demand Falters

VANCOUVER - Sep 22/06 - SNS -- Feed pea markets ended the week on a stronger price note in both Europe and North America, lifting values past levels which many buyers consider profitable.

This is not a significant problem for producers in France, Canada and the United States. The overall decline in production from last year is being offset by decreased usage in Spain and other fed pea destinations. At the same time, food pea demand is currently strong.

The net effect is markets are not currently struggling for ideas about where to sell this year's field pea harvests. This is made easier by the fact North American quality is better than last year and the proportion of peas which can only be sold as feed is down.

Market development efforts continue. On Friday, the USDA announced it will give 6,000 metric tons (MT) of feed pea to Land O'Lakes. The U.S. based cooperative will sell the peas in the Philippines and use the proceeds to facilitate dairy herd and cooperative development, increase the number of milk processing plants, enhance milk consumption and marketing systems, and improve milk quality.

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