Pulse Industry to Double in Less Than Five Years; 1200 New Jobs to be Created in Saskatchewan

Transcription

1 MEDIA RELEASE For Immediate Release (5 Pages) November 6, 2 Pulse Industry to Double in Less Than Five Years; 12 New Jobs to be Created in Saskatchewan Saskatchewan s pulse industry has grown a phenomenal 8% over the past ten years, and is slated to yet again double its growth by 25. Acres devoted to pulse crops in Saskatchewan totaled 38, in 1989, 3.1 million in 1999 and are forecast to hit 7 million by 25, says the Pulse State of the Industry Report, just released by the Saskatchewan Agrivision Corporation Inc. (SAC Inc.). The pulse industry s growth over the past 2 years has been incredible, says Garth Patterson, Executive Director of the Saskatchewan Pulse Growers. The value of Canadian pulse production in 1999 was nearly $1-billion and we expect the value to increase significantly in the near future. Saskatchewan can lead the way in a production explosion of the pulse industry, says Mark Pickard, President of InfraReady Products (1998) Ltd., a Saskatchewan-based company that processes cereal grains, legumes and oilseeds and this year s winner of STEP s prestigious Exporter of the Year award. Our research estimates that for every one million acres of additional pulse production, over 4 new jobs are created in handling and processing, mainly in rural communities, he continued. The four page Pulse State of the Industry Report is based on a collective vision of the pulse industry for growth, and was produced with extensive input from major players such as Saskatchewan Pulse Growers Association, InfraReady Products (1998) Ltd., Parrheim Foods, Walker Seeds and Canadian Select Grains. Following the format of the two previous State of the Industry fact sheets produced by SAC Inc., dealing with the pork industry and the nutraceutical industry, the Pulse Industry Report details industry trends and outlines a specific plan of action for growth. Success in marketing comes from actions that PULL the product through the value-chain system, as opposed to actions that try to PUSH the product on the consumer, notes Ken Fulcher, General Manager of Parrheim Foods, a Saskatchewan-based company that processes peas. Al Scholz, Executive Director of SAC Inc., says that in five years, pulse crop acreage in Saskatchewan will equal the current canola acreage. By 215, we expect pulses will surpass the contribution canola makes to the Saskatchewan economy, Scholz noted. Saskatchewan peas, lentils, beans and chickpeas will be the dominant force in feeding market demand for pulses throughout Asia, Africa, India, the Middle East and the Americas, added C.M. (Red) Williams, President of SAC Inc. SAC Inc. is a business driven organization with a mandate to initiate collaboration with the agriculture industry stakeholders who have a vested interest in value-chain development. As a catalyst, SAC Inc. is uniting all players and stakeholders in agriculture -- from suppliers through to farmers, processors, transporters and retailers -- to a vision and action plan for growth and prosperity For more information, contact: Garth Patterson, Executive Director Al Scholz, Executive Director Saskatchewan Pulse Growers Saskatchewan Agrivision Corporation Inc. Tel: (36) Tel: (36) , Cell (36) th Street West Saskatoon, Saskatchewan S7L 6H2 Tel: Fax: agribusiness@sk.sympatico.ca

2 State of the Industry Fact Sheet Industry Trends Pulse Industry Saskatchewan is the North American leader in responding to the expanding pulse markets around the world (peas, lentils, chickpeas and beans). In 2, Saskatchewan seeded more than 5% of the North American pulse crops. Given projections of strong market demand for pulse crops in Asia, Africa, India, Middle East and the Americas, the pulse industry is forecast to double the 1999 pulse acreage by the year Canada is the world s largest producer and exporter of peas and lentils and second largest producer and exporter of chickpeas to an expanding market. Over 9% of Canada s lentils and chickpeas and 7% of the peas are produced in Saskatchewan. 2 The Canadian pulse industry aims to be the world s preferred supplier of quality beans, food and feed peas, lentils and chickpeas. By working together, producers, trade organizations, scientists, grain companies and retailers have demonstrated that we have what it takes to be the leader in global feed pea and lentil markets. That same quest for excellence drives an industry-wide commitment to further expand Canada s beans, lentils, food and feed peas, and chickpeas into new markets. 3 Based upon industry consultation, Saskatchewan Agrivision Corporation Inc. has estimated that existing and emerging world markets will support the following growth projections for pulse production and Saskatchewan between 2 and 25: p Field pea production will increase from 2.8 million tonnes in 2 to 3.5 million tonnes by 25, a 25% increase. The major growth markets are Africa, Asia, India and Central America. p Lentil production will increase from 97, tonnes in 2 to 1 million tonnes in 25, a 3 % increase based on growing markets in Africa, Middle East, Asia and Central America, of which Saskatchewan will produce 98% of Canada s output. Pea Acres (in 's) Past and Projected Seeded Pea Area p Chickpea production will increase from Statistics Canada, June 2 37, tonnes in 2 to 1 million tonnes in 25, a 17% increase due to demand in Asia, Western Europe, United States, and the Middle East. Given that world trade in chickpeas is similar to lentils and Canada currently only has about a 5% market share in chickpea trade, there is great opportunity for growth ' 99' 91' 92' 93' 94' 95' 96' 97' 98' 99' ' 1' 2' 3' 4' 5' 4 Saskatchewan Agrivision Corporation Inc. is an industry driven organization acting as a positive catalyst to create a vision for Saskatchewan agribusiness, sector by sector th Street West, Second Floor Saskatoon, SK Canada S7L 6H2 Tel: (36) Fax: (36) info@agrivision.ca

3 p Bean production will increase from 296, tonnes in 2 to 45, tonnes in 25, a 5% increase with most of the growth occurring in Saskatchewan due to the province s climatic advantages. Canada s significant growth in pulse production and marketing is from both increased utilization and gaining market share from competing countries. However, new producers and exporters are coming on stream (particularly in Eastern Europe) and Canada must be diligent in marketing the Canadian pulse advantage. Chickpea Acres (in 's) Past and Projected Chickpea Area Lentil Acres (in 's) ' 94' 95' 96' 97' 98' 99' ' 1' 2' 3' 4' 5' 255 Statistics Canada, June 2 Past and Projected Seeded Lentil Area ' 99' 91' 92' 93' 94' 95' 96' 97' 98' 99' ' 1' 2' 3' 4' 5' 196 Statistics Canada, June 2 Continued excellence in marketing is essential because Canada is highly export dependent and most of the phenomenal growth in pea, lentil, bean and chickpea production in Canada is destined for the export market. Pulse Canada estimates that by 25 Canada will account for 48% of world pea trade, 63% of world lentil trade and 45% of world chickpea trade. Today, over 6% of pulses produced in Canada are exported. The 1999 Canadian production value is estimated at $93 million, of which 72% or $667 million represents pulse export value. By 25, SAC Inc. projects that Canadian pulse production value will double to nearly $2 billion, with the majority of the production in Saskatchewan. Growth in the value-added pulse industry could lever this GDP contribution exponentially. Bean Acres (in 's) Past and Projected Seeded Bean Area ' 99' 91' 92' 93' 94' 95' 96' 97' 98' 99' ' 1' 2' 3' 4' 5' Statistics Canada, June 2 Current Situation for Saskatchewan Agri Business You Are Here Since 1989, Saskatchewan s pulse industry has grown 8% from 38, acres in 1989 to 3.1 million acres in 1999! In 2 pulse plantings increased an additional 55% to 4.78 million acres. It is estimated that for every one million acres of pulse production, over 4 new jobs are created in handling and processing, largely in rural communities. By 25, 6 to 7 million acres of pulse crops will be grown in Saskatchewan due to:

4 p Rising incomes/populations in countries with a history of pulse consumption (market growth) p Recognition of pulses as high quality animal feeds p Reduced pulse production by traditional countries, Turkey, USA, and others (market competition) p Rotational advantage of crops in terms of production costs, yields and premium prices p Environmental benefits such as less fertilizer being required as pulses fix their own nitrogen Challenges to continued growth will occur but the pulse industry is experienced and prepared to proactively develop the market by addressing the following challenges: p Meeting quality expectations of existing and new pulse markets p Dealing with trade barriers which limit access to potential new markets p Adjusting to European Community agricultural policy changes p Anticipating competition from Eastern Europe, Australia and China p Addressing lack of global awareness of Saskatchewan pulse products 4 In 1999, Saskatchewan s pulse industry accounted for approximately 15% of farm crop receipts. Saskatchewan has 128 special crops processors (mostly pulse crops) employing 1,86 persons, a 6% increase since Half (51%) of these processors plan to expand within three years and 3% plan to expand within one year to take advantage of market growth based on Saskatchewan s growing competitiveness. Clearly, the pulse processors are well positioned to respond to continued growth in the market. Special crops most commonly processed include: peas (86% of processors); lentils (75% of processors); canary seed (53% of processors); and chickpeas (4% of processors). The most common processing activities include cleaning, bulk loading and bagging. Value-added activities include precooking pulses and milling extractions of starch, protein and fibre as fractions for supplying the food, animal feed and industrial markets. Future value-add opportunities include separation for the nutraceutical and anti-oxidantsmarketing and processing of desi chick peas for the chana dahl flour markets. These value-added activities are a good example of how public, grower and industry investment in breeding and agronomy has encouraged private-sector investment in a value-added processing industry now worth $5 million in Saskatchewan. 5 A Vision For The Saskatchewan Agri Business Growth Based on extensive industry consultation, SAC Inc. projects that by 25 pulse crops in Saskatchewan will reach 6 to 7 million acres which will equal the current canola acreage. By the year 215 pulses will equal or surpass canola s contribution to the provincial economy. In order to reduce the reliance on the export market, the domestic consumption of pulses will be increased through research into functionality and component utilization for food and feed products. This will be supported by information dissemination to health care professionals on new uses for pulses and pulse food products, and the feed market such as high quality aquaculture and animal feeds. Already, the booming pork industry is shifting to increased use of feed peas in their rations as a competitive alternative to soybeans. As one of the major players in developing Saskatchewan s potential, Saskatchewan Pulse Growers has the mission to maximize farmer profitability and sustainability. Saskatchewan Pulse Growers will strategically fulfill its mission by directing resources toward research and domestic and export market development in cooperation with Pulse Canada. Pulse Canada is a national organization established to conduct market development and promotion activities in feed and food markets worldwide.

5 Strategies and Action Plan for Pulse Industry Stakeholders To achieve this vision by 25, SAC Inc. recommends the following two strategies and subsequent action plans: Strategy 1: Establish and develop an International Pulse Institute with the mandate to be a Centre of Excellence in domestic research and development, utilization and promotion. Funding should come from the federal and provincial governments and pulse processors and exporters. The Institute will have the following action plans: 1.1 Expand research activities regarding crop production and utilization (eg. animal and human health, nutritional requirements and variety pulse niche markets) to meet changing domestic and export marketplace demands with specific action and on-going development. 1.2 Training support and technology transfer (ie. HACCP [food safety] and ISO 9 [food quality]) to processors and all sectors of the value chain to produce world class products that maximize production efficiencies, new market opportunities, grower profitability and industry viability. 1.3 Support the formalization of international quality assurance standards and product standardization to ensure all pulse products meet or exceed desired market specifications such as consistent quality, nutrition and safety. 1.4 Lead the development of a Pulse Sector Council, bringing together representatives from business, labour, education, and other professional groups in a neutral forum to comprehensively and cooperatively analyze and address sector-wide human resource issues. Strategy 2: The industry must monitor new opportunities for value-added consumer products domestically and in export markets. Then, the industry must communicate opportunities to venture capital investors and manufacturing and processing firms to move value-added processing to consumer-ready products with the following actions: 2.1 Promote development of primary and secondary processing facilities for pulses to increase value-added processing and, thus, create sustainable jobs and increase GDP. 2.2 Research and address transportation, tax and regulatory barriers with government to sustain a competitive business climate to encourage retention of existing Saskatchewan value-added processors of pulses and support rapid, strategic expansion of new business start-ups and sector growth. 2.3 Proudly promote the Canadian pulse crop brand reinforcing our global leadership and Saskatchewan s national leadership role in crop production and exports. 2.4 Target and develop global market (retail) distribution networks (alliances) in order to maximize distribution efficiencies to maximize grower and industry return on investments in the pulse industry such as alliances and/or partnerships with major food processors. 2.5 Conduct ongoing needs assessment of pulse industry business growth and development to remain competitive in pulse crop production, processing, innovative utilization, marketing, and sales and customer service. 1 Saskatchewan Agrivision Corporation Inc. 2 Sask Pulse Growers 3 Pulse Canada 4 Saskatchewan Pulse Growers 5 Sasktchewan Agriculture and Food: Survey of Saskatchewan Special Crops Processors Prepared by: Greenough & Associates Inc., and Mitura Economic Research Inc.