Canada’s pulse sector has grown from what was a 200,000-acre niche market 25 years ago into a six million acre powerhouse exporting $1 billion of product annually to more than 150 countries.
However, a Pulse Canada official says stagnant consumption could constrain future growth unless the industry aggressively expands into new markets.
Average production over the past five years has been four million tonnes of peas, lentils, beans and chickpeas.
If the industry meets the yield and acreage targets it has set for itself over the next 25 years, annual production would rise by 16.5 million tonnes.
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That’s a potential problem because global pulse consumption has been falling.
Even optimistically assuming that pulse consumption rates stabilize and are maintained at today’s levels, it would take until 2048 for there to be enough population to mop up that extra 16.5 million tonnes of production, Greg Cherewyk, director of transportation at Pulse Canada, told delegates attending Pulse Days 2009 held as part of Crop Production Week in Saskatoon.
And that assumes all of the extra 16.5 million tonnes of demand would be satisfied in Canada, with nothing going to its competitors.
“We can’t rely solely on population growth,” Cherewyk said.
“We have to look beyond that.”
He said the best chance to create new demand for pulses is to promote their health and nutritional benefits as well as the considerable environmental benefits of crops that fix their own nitrogen.
It’s a sales pitch that seems to resonate with food manufacturers.
Wayne McKnight, a retired vice-president of Wal-Mart’s global food procurement department, recently told Pulse Canada that its products are in a “sweet spot” in terms of meshing with consumer interests in health and the environment.
Cherewyk was also encouraged by a statement contained in a 2009 outlook document released by the U.S. Grocery Manufacturers’ Association, whose members generate $2.1 trillion in annual sales.
“Sustainability will not only continue to gain prominence in the mainstream, but this year some think it could even become a standard,” the association said.
The food manufacturers’ first step has been to make their packaging more environmentally friendly. In 2008, 2,390 new food products were released boasting environmental packaging, compared to 480 in 2007.
Cherewyk said the next logical step is for food manufacturers to brag about what’s inside those packages.
That’s why the industry needs to continue promoting the environmental advantages of pulses along with their nutritional benefits. Pulses are high in protein and fibre, contain complex carbohydrates, have a low glycemic index, are low in fat and high in vitamin B and minerals, and have a low allergenicity rating.
Potential growth markets include snack foods, bakery ingredients, flour, sports and nutrition products, plant protein, fibre ingredients and vegetarian and gluten-free food.
Making inroads into new business segments could have a substantial impact on the industry. For example, if pea flour garnered a one percent share of the North American and European flour markets, it would consume 850,000 tonnes of the crop annually and generate additional revenues of $425 million.
To put that in perspective, Canada’s entire pea export program in 2007 amounted to 2.2 million tonnes worth $594 million.
The new opportunities don’t end with food.
The same environmental and nutritional attributes can be marketed to pet food manufacturers, the growing aquaculture industry and the livestock sector.
Cherewyk said he suspects the Japanese market couldn’t resist hogs that have been raised on a nutritional and earth-friendly diet of peas.
