Market Updates

Exclusive Pulse Atlas data forecasts a 19% reduction in Australian faba production compared to 2023 and a 29% decrease from the volumes observed in 2022. The decline can be ascribed to various weather-related challenges and a reduction in the planted area. The Bureau of Meteorology in Australia declared the presence of El Niño for the 2023/2024 period, resulting in warmer and drier conditions with minimal rainfall. 

Despite a slight 7% drop from the previous year, domestic consumption of faba beans continues to ascend, with an anticipated 245,000 MT for 2024. This upward trend is partially attributable to the growing utilization of faba beans as a valuable feed source, owing to their comparatively stable prices in contrast to canola and soybeans.

Exports, on the other hand, witnessed a substantial decline, plummeting to 355,000 MT in 2024 from 535,000 MT in 2023 and 624,000 MT in 2022. The scarcity of hard currency in Egypt, Australia's biggest buyer of faba beans, and the sharp depreciation of the Egyptian pound against the Australian dollar are key factors contributing to this decrease.

Pulse Atlas: Australia numbers

• Australia's faba bean production is expected to drop to 605,000 MT in 2024, a 19% decrease from 2023.
• Despite the lower production, domestic consumption of faba beans is predicted to remain strong at 245,000 MT, a 7% decrease from the previous year.
• Exports of faba beans are set to fall significantly to 355,000 MT in 2024, down from 535,000 MT in 2023.
  
  

Insider insights 

Francois Darcas, Deputy Chairman of Pulse Australia.

• “The 23/24 Aussie crop is smaller than last year's crop. But a larger percentage of the crop is of better quality than last year, thanks to drier weather.”
• "One of the reasons for the higher decrease in exports is their increasing local consumption of faba beans. However, it is important to note that local consumption here doesn’t only include human consumption, it also contains animal feed. Due to the high prices of Soybean meal and Canola meals, faba beans are the preferred choice for feed use."
• “The supply of faba beans is now more consistent than the supply of peas; feed mills need consistency of supply so they do not have to change their rations too often. This means the percentage of the crop available for export is diminishing.”