Pulse weekly outlook: New investments cause for optimism

MarketsFarm — Canada’s pulse industry had to endure more than its fair share of challenges and obstacles in 2021, domestic and abroad. Nevertheless, the national organization representing pulse growers, traders and processors feels the industry will be strong in the New Year.

An already tight supply situation became tighter in 2021 as drought in Western Canada last summer cut production across all crops. In Statistics Canada’s latest principal field crop estimates released Dec. 3, the country is projected to produce 2.258 million tonnes of peas, 1.606 million tonnes of lentils and 385,900 tonnes of edible beans in the 2021-22 marketing year — representing yearly declines of 50.8, 44 and 21.2 per cent, respectively.

“I think from a grower level, it was obviously very significant. Pulses were no more immune to that than any other crop or sector. We’ve seen the impact with production and pulse growers were keeping an eye on markets to see prices go up,” Pulse Canada vice-president, marketing and communications Jeff English said. “Even though pulses are adapted to grow in pretty arid conditions, it was felt across the Prairies.”

Supply chain and logistical issues also created major headaches throughout the year, whether they were COVID-19- and weather-related shutdowns or a worldwide container shortage. Tariffs and quotas in certain markets also didn’t help matters.

“(One-third) of pulses are shipped by container throughout the world. Our industry really felt the pinch, certainly with respect to the inability to access containers in a timely matter as well as to get them to market,” English said, adding that access to India and southeast Asia continues to be a significant problem for pulse companies.

“We’re looking at the cost of shipping a container here in Canada increasing at about 10 times the amount on average… As an industry, we didn’t take it lying down. We’ve spearheaded an initiative with a dozen other groups calling on Ottawa to take action with respect to helping fix this issue.”

Despite these difficulties, English affirmed that overseas demand for Canadian pulses remains “very strong.” He also expressed his hope for a supply chain system that is more than capable of meeting that demand.

“Canada produces what we feel are some of the most sustainable pulse crops and proteins in the world,” he said. “We’re seeing a growing global demand whether that’s on the whole side or whether that’s on pulses being used as ingredients in key markets around the world. It continues to grow and I think we’re scratching the surface on what that growth could be.”

Some of that growth English cited includes the opening of the $600 million Roquette pea-processing plant at Portage la Prairie, Man. and the Canadian government’s pledge to provide additional funding towards Pulse Canada’s 25 by 25 initiative, which plans on using 25 per cent of Canada’s pulse production capacity for new and diversified end uses by 2025.

There is a lot to like in the pulse sector in 2022, he added.

“There’s a tremendous sense of energy I’d say across the pulse sector right now,” he said. “Given a level playing field, Canadian pulses can not only compete with those around the world, but they can show net benefit in areas that matter to consumers. A lot of the investments we’ve seen in the sector right now are reflective of that optimism.”

— Adam Peleshaty reports for MarketsFarm from Stonewall, Man.