Part 3: China Expanding Dry Pea Market Fuels Competition Between Russia and Canada

China remains the world's largest importer of dry peas, with demand primarily driven by its rapidly expanding food processing, starch manufacturing, pea protein, and livestock feed industries. Over the past few years, the country's import sourcing has undergone a significant transformation as trade policies, geopolitical developments, and changing price competitiveness reshaped the balance among major exporting countries.

For many years, Canada dominated China's dry pea import market, supported by its reputation for high-quality products, dependable supply, and competitive pricing. However, the competitive landscape began to shift after China approved imports of Russian peas in late 2022. The decision enabled Russia to rapidly expand its presence in the Chinese market, backed by rising production, lower production and freight costs, geographic proximity, and aggressive export pricing.

By the 2023/24 marketing year, Russia had overtaken Canada as China's largest dry pea supplier, accounting for nearly half of the country's total imports.

The transition accelerated further after China imposed a 100% tariff on Canadian peas, effective March 20, 2025. The tariff significantly reduced the competitiveness of Canadian shipments, prompting Chinese buyers to increase purchases from Russia and other alternative suppliers.

Import demand rebounded strongly during 2026, with May imports reaching the highest monthly level in more than two years. Russia remained the dominant supplier during the first five months of the year, while Canada gradually regained market share as bilateral trade relations improved and tariff-related barriers eased.

Canadian dry peas continue to command a premium in international markets because of their consistent quality, higher protein content, and reliable export logistics. In contrast, Russian peas are generally more price-competitive. Lower production expenses, combined with shorter shipping distances to China, enable Russian exporters to offer attractive prices, strengthening their position in the world's largest import market.

Looking ahead, China's expanding pea protein industry and recovering trade relations with Canada are expected to support sustained import demand from both major suppliers. Russia is likely to continue increasing its market share because of its cost and freight advantages, while Canada is expected to retain a strong position among buyers seeking premium-quality dry peas and a dependable supply.

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