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Pea, Lentil Acreage Could Hit 10 Million, Says AGT

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    Pea, Lentil Acreage Could Hit 10 Million, Says AGT

    Western Canada’s farmers are likely to produce their largest pea and lentil crops in history this year, according to the president of AGT Food & Ingredients.

    In a recent presentation to grain industry experts in Saskatoon, Murad Al-Katib predicted that plantings of dry peas and lentils in Saskatchewan, Alberta and Manitoba will exceed 10 million acres this year.

    That would easily be the largest seeded acreage ever for the two crops in Western Canada.

    “Lentils and peas will cross the 10 million acres in Western Canada this year,” Al-Katib told delegates attending the Prairie Grain Development Committee meetings in late February.

    “That will be the first time we’ve every touched 10 million acres for those two crops … and by the way, I think we can market it all as well.”

    Statistics Canada says peas and lentils accounted for a record 7.6 million acres in Western Canada last year.

    If Al-Katib’s projections hold true, the 10 million acres would represent a year-over-year increase of more than 30 percent.

    Acreage for the two crops has been trending steadily upward over the past 10 to 15 years.


    Last year, peas and lentils produced some of the healthiest farmgate returns of any crops, he added.

    As well, global demand shows no sign of slowing.

    In 2015, the price for top quality western Canadian red lentils peaked at around 58 cents per pound, said Al-Katib, whose company had global sales revenues of more than $1.7 billion last year.

    That’s a far cry from the 10 to 15 cents that prairie growers were routinely earning for red lentils in the early 2000s.

    “(Fifteen years ago,) the world used to say that if Canada grew a million tonnes of red lentils, we could never market them,” Al-Katib said.

    “Well, I’m proud to say that from August to December of 2015, we exported more than a million tonnes of red lentils, so the industry has changed.”

    Al-Katib said global demand for pulse crops and pulse-based ingredients continues to rise, not only in traditional markets such as India but also in new and expanding markets such as China, Europe and North America.


    China recently became the largest buyer of Canadian field peas, surpassing India.

    “Canada’s largest pea market in 2014 was not India but China … more than one million tonnes of starch for production of vermicelli noodles, Chinese dumplings and moon cakes,” Al-Katib said.

    Canadian pulse exports have increased significantly over the past decade, thanks to aggressive marketing and the development of new varieties that offer improved yield potential, enhanced agronomic performance and better market appeal.

    These factors have convinced prairie growers to take another look at pulses, he added.

    The benefits of rotation, which includes cereals, pulse crops and canola, are also being recognized.

    “Today, we produce and export 65 percent of the world’s lentils, so Canada is at the centre of the world trade when it comes to that particular commodity,” said Al-Katib.

    “The sustainable cereal-oilseed-pulse rotation is one that has actually shown great economic benefit to (Saskatchewan) and to western Canadian agriculture.”

    I would have to agree on this one. It is going to be Lentil and Peas from MT to Rock in Canada.

    So 10 million plus acres. What crop will take a hit this year. My guess in HRS and Some Canola Acres. So if you have 10 for peas for fall on Half the crop should you drop your pea acres From say 1000 peas down to 640. Because with this size of crop projected the carry over will be priced very low. If you have a wreck your contract buyout will be what 6 a bushel.

    #2
    year sure glad we have an AOG on ours . pea wrecks are very common here when the monsoons come

    Comment


      #3
      For that same reason we decided to not join the crowd and add lentils back into our rotation. Back in the 80s they paid the bills.

      Comment


        #4
        Question for today should a guy drop pea acres already used and gamble with using those quarters for other crops. 10 dollars a bushel on 25 bushels on 1000 acres for $250,000. or drop acres to 640 and use the other acres for Canola or Canary seed.
        Because if this crop actually comes off and 50 is across the board they will be worth 6 at harvest or less. all year long.

        Comment


          #5
          Well lets just say 2 neighbors who both 2 years ago claimed they would never grow peas have brand new 52 foot rollers in their yards for some reason.

          Comment


            #6
            Global economics and fading El Nino into next year can change global demand and price prospects for peas and lentils quickly.

            Credit markets have a huge say in these prices as well.

            Comment


              #7
              I wouldn't bet the farm on Pulses.

              You grow 30 have 20 contracted for good money and sell the last 10 for .12 cents a lb if lentils and 5.75 if peas.

              Comment


                #8
                I'm not growing any lentils or yellow peas, I believe they could be under tremendous pressure with a decent crop. Better appreciate the contracted prices or AOG clauses... I'll zig when everyone else zags and stick with the low yielding cheaply priced green peas. If there were earlier soybeans I'd maybe dip my toe into that pool, but they need water too.

                Comment


                  #9
                  I'm not a market chaser, but what do we grow?? I'm in prime lentil/pea growing area, been growing pulses for years. We ALL complain about the cost to grow canola and should take a stand against these seed companies with their exuberant seed costs and not grow canola. That doesn't leave many options left. The problem is it's all these "outsiders or "first time" poker players. It's beyond me why guys in Yorkton, Canora, etc are going to attempt lentils. Sorry boys you have missed the "gold rush, gravey train", or whatever you want to call it. You are a yr behind!!
                  Theses areas have no idea what they are getting themselves into growing lentils. If you are growing 60 bu canola why even consider lentils. That kind of crop took cool weather and big moisture.
                  All I can say is have a good baler ready to go, you should produce a profitable bale crop.

                  Comment


                    #10
                    Bigzee , A long time ago I went to a direct seeding presentation and the theme was rotation, rotation, rotation. sometimes on big farms it's a crop insurance play. Plant 5 or 10% acres to lentils and see what happens. Worst case they get a disaster, bale it up or turn them into the soil, there is money in the bank and nitrogen for next years' canola crop.

                    Comment


                      #11
                      There should be a line drawn to where lentils should be grown, just like chickpeas. Farm for crop insurance, real profitable!! Not sure what coverage there would be when there no prior history. It just costs us all more at the end when disaster hits.

                      Comment


                        #12
                        Moisture coming for SW sask is very bearish peas and lentils and lots of demand for seed helped push up the prices for yellow peas more than the market justified. I hope peas pull acres away from canola.

                        Comment


                          #13
                          So what would be the potential yellow pea bid be if there was some wrecks between the old crop bid of $14ish and the new crop bids of $9-9.50? Just have an issue with the 30% drop to new crop. I can understand if everyone grows a bumper crop but at the moment it is 50/50 as to what happens. Is india still having weather issues to keep demand up and china being the new top buyer, what are everyone's thoughts?

                          Comment


                            #14
                            Bigzee - same should be done with canola .

                            Comment


                              #15
                              I would not pin my hopes on much significant moisture for SW Sask over the next few days

                              Comment

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