Recent developments in the hog and biofuel industries have the pulse sector rethinking its domestic feed pea strategy.
“There are questions being asked and we certainly need to take a look at it,” said Garth Patterson, executive director of Saskatchewan Pulse Growers.
Pulse groups have put considerable time and effort, although scant resources, into cultivating domestic pea demand. Western Canadian hog barns have provided a floor price for the crop in years when quality is unacceptable for human consumption markets.
However, with a high Canadian dollar, escalating feed costs and low hog prices and rumours of Canadian barns relocating part their operations to the United States, Patterson wonders if it’s time for pulse growers to chase other markets for its off-grade product.
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“If we’re in a declining market for peas into hogs in Western Canada, are we better off directing grower dollars elsewhere?” he said.
His concerns were heightened during a Pulse Days presentation by University of Saskatchewan agricultural economist Richard Gray, who predicted a migration of the western Canadian livestock industry into the U.S., where there is an abundance of cheap, high protein feed, the byproducts of a booming biofuel industry.
That presentation prompted Patterson to ask panelists at the market outlook portion of the Saskatoon conference whether the agriculture industry has entered a new era in which there will be depressed markets for feed peas.
Brian Clancey, senior market analyst with Stat Publishing, told Patterson that peas don’t fit livestock rations anywhere in the world at today’s prices.
However, he added there is no reason to stop talking to the hog industry about peas and to breeders about how the crop can be better adapted to fit niche markets such as the hog sector.
“It’s the lowliest of the pulses but to me it’s probably the most exciting because it’s the most useful,” Clancey said.
Patterson agreed that peas are a multi-purpose crop, which is why the association will be considering all of its options for exploiting North American feed markets outside of the western Canadian hog industry.
For instance, Saskatchewan Pulse Growers might want to work on a joint marketing effort with U.S. pulse groups about pursuing feed markets in that country. Or it may target the North American aquaculture or pet food markets, where peas seem to be a good fit.
“We better take a look at this,” Patterson said.
