At first glance, it might seem that our coverage of the International Pulse Trade and Industry Confederation indicates Canada’s pulse industry is in trouble.
Buyers complain about too much foreign matter in the grain, particularly about purposely added screenings from canola, which contains genetically modified seed.
Competitors are boosting production, the Americans might add pulses to their farm programs, and the market could soon be crowded with sellers.
Everything is going wrong.
But really, it adds up to a coming-of-age story.
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The fact that 500 of the world’s leading pulse traders attended the IPTIC meeting in Vancouver speaks volumes about Canada’s incredibly quick rise to the top of the world pulse market.
The criticisms of Canada’s product can’t be dismissed, but must be seen in context.
Customers always complain about the products they buy. They want the highest quality at the lowest price.
For example, Canadian wheat is generally accepted as a world leader in quality, uniformity and cleanliness. But foreign buyers complain about it if given the chance.
It is not an indication that our wheat market is in imminent danger. Rather it is a reminder of the business cliché that if you are not moving forward, you are falling behind.
The trick for Canada’s pulse industry will be to get buyers to pay for the improvements they want.
That might become more difficult as competition increases among suppliers.
Turkey, a leading pulse exporter in the first half of the 1990s, looks like it is making a comeback after several years of drought.
Australian farmers, like their Canadian counterparts, picked up on the pulse opportunity and have been building acreage. Drought set them back last year, but they expect a better crop this year.
And India, the world’s biggest consumer of pulses, expects that a favorable monsoon season will improve its production and lessen import requirements.
Canada’s pulse industry can’t expect its competitors to suffer crop failures regularly, and the potential of the United States is great if it expands its subsidies to include pulses.
So Canada must sharpen its edge to succeed in a crowded market.
That includes the grain handling system that must do its best to meet the needs of the pulse industry, which often has a narrow transportation window to meet sales opportunities.
