China has removed a major market access barrier for Canadian pulse crops.
As of Feb. 14 Chinese authorities are no longer enforcing a maximum limit for selenium in imported foods.
“It really opens up the ability to import pulses and use them in other applications,” said Carl Potts, director of market development with Pulse Canada.
China began enforcing the 0.3 parts per million maximum limit for selenium in imported peas in 2006, causing a temporary shutdown in trade with that important pulse buyer.
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Soils in some parts of Canada contain high levels of selenium, which made it risky for exporters to ship peas to China.
Pulse Canada proved to Chinese authorities that when peas are fractionated the selenium stays with the protein fraction, not the starch fraction.
“We were able to demonstrate that for starch noodle use there wasn’t a food safety issue,” said Potts.
That paved the way for a temporary agreement allowing Canadian yellow peas to be imported for starch noodle production and animal feed pending a permanent solution.
China became a major buyer and was Canada’s third largest pulse market in 2010, importing 586,000 tonnes of peas worth $172 million, up from 50,000 tonnes in 2002.
But neither party was satisfied with the temporary resolution. With the help of Health Canada, China’s Ministr y of Health conducted a risk assessment that concluded selenium should be classified as a nutrient rather than a food contaminant.
Potts said the permanent removal of the trade barrier allows pulses to be imported for other uses such as snack foods, flour and bakery products.
Chinese importers told Pulse Canada they had been reluctant to bring in Canadian peas for those purposes due to the selenium issue. If a shipment exceeded the maximum limit it would have to be diverted to the low-value feed market.
Pulse Canada has launched a market development project in China to promote more use of pulses. It is exploring ways to best incorporate pulses in staple foods like noodles, steam breads and dumplings and to use them in snack foods.
Chinese food companies consume 30 million tonnes of flour annually. Pulse exporters would like to capture a portion of that market by promoting the health benefits of pea flour.
“Even to get a small slice of that overall market would represent a very significant incremental opportunity for increased pulse exports to China,” said Potts.
Food companies estimate there could be a new market for 1.5 million tonnes or $500 million of Canadian pulses in addition to what is now being consumed in the starch noodle and animal feed sectors.
If that new demand materializes, China could soon rival India as the top buyer of Canadian peas.
Potts said it may take two or three years of market development work to identify and develop Chinese food products well suited to pulses.
He credits Agriculture Canada, Health Canada, Foreign Affairs and International Trade Canada and ministerial involvement on a couple of occasions for the breakthrough in negotiations with Chinese authorities.
“You need to have that team-based approach inorder to get these things resolved,” said Potts.
