According to Agriculture and Agri-Food Canada’s (AAFC) latest field crop estimates released Friday, pea production dropped 45 per cent at 2.527 million tonnes for the 2021-22 marketing year, compared to the year before. With 2.3 million tonnes of peas slated for export, that’s to leave only 50,000 tonnes in ending stocks, compared to 479,000 from the year before.

The drought “didn’t do much to bolster carryout stocks, that’s for sure,” said Daryl Domitruk, executive director of Manitoba Pulse and Soybean Growers, adding that pea yields were variable across that province, up to 60 bushels per acre.

Pea protein has experienced a surge in demand mainly due to greater interest in plant-based protein alternatives like meat substitutes. Most of Manitoba’s peas, according to Domitruk, are purchased by Roquette, whose pea processing plant near Portage la Prairie, billed as the largest of its kind, is expected to reach full capacity next year.

The protein market “looks like it’s real and it’s growing. That is creating demand and lucky for us, it’s creating local demand,” said Domitruk. “But that’s really a small part of the overall demand for peas, which is driven by the export market. It really depends on what buyers like China require and where they’re going to be in the marketplace.

“We saw prices come up a little bit and we saw companies looking for peas in the eastern Prairie market. For producers who haven’t contracted all of their peas and had some available, they were able to take advantage of some delivery opportunities and some higher prices. But that was only a certain number of producers who were lucky enough to have a decent crop.”

Despite the drought and the ensuing yields, Domitruk maintained that peas are a dry weather crop and can rebound next year. Local and export demand for the crop, as well as rising prices for nitrogen (for which peas have little need) also may make the crop more desirable for producers.

“That combination of export demand and local demand is buoyant, but it does require significant export demand to be there, which impacts local prices for domestic consumption,” he said.

— Adam Peleshaty reports for MarketsFarm from Stonewall, Man.

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The market for alternative protein has soared in recent years, attracting major investment from global agrifood groups, including Nestle, PepsiCo and Archer Daniels Midland, hoping to capitalize on a trend toward healthier eating.

But pea production slumped this year due mainly to a severe drought this summer in top supplier Canada that cut ouput by 45 per cent, pushing prices up 120 per cent from last year, Roquette said in a statement.

Meanwhile in France, the crop was severely damaged by wet weather during harvest.

“The dramatic increase in prices will inevitably lead to costs being transferred to customers,” Roquette said.

The company declined to give details on price rises it is considering passing on to its customers globally.

Family-run Roquette is the largest pea protein producer for the food market. It built the world’s biggest pea protein factory at Portage la Prairie, Man., which is due to reach full capacity in 2022, processing some 125,000 tonnes of peas a year. It also has a pea protein factory in northern France.

Last year it signed a three-year supply agreement with U.S. plant-based burger maker Beyond Meat to end-2022.

The global pea protein market is projected to increase about 12 per cent per year to reach US$554.9 million by 2028, according to research firm Grand View Research.

Other key ingredients of plant-based protein such as soybeans, corn and wheat have also seen prices rally over the past year on strong international demand and a lack of global supplies.

— Reporting for Reuters by Sybille de La Hamaide.

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The company is working toward full operation at the world’s largest pea plant by early 2022, she said.

“To date we have picked up hundreds of loads of peas from growers and we are using these peas to fine-tune and commission our processing and quality assurance systems at the plant,” Finley, the company’s communications and public affairs manager, said via email.

Construction of the 200,000-square foot facility, costing about $500 million, was completed late last year, and Roquette purchased peas to calibrate the production equipment.

“Our goal is to have consumer-ready protein available during the summer of 2021 and the plant will reach full production capacity in early 2022,” Finley said.

Ground was broken for the plant in 2017, but work was delayed for more than a year as Roquette upgraded its design, with construction resuming in October 2018.

Once operating at full capacity, the Roquette plant will be able to process about 125,000 tonnes of yellow peas per year. Also, the plant is able to process conventional and organic peas, with plans to buy 5,000 tonnes of Manitoba-grown yellow peas during the first year of operations.

Up to 120 people will be employed at the plant, Finley said.

Prices for yellow peas have been steady for about the last month, but have climbed more than $4 per bushel during over the last year, according to Prairie Ag Hotwire. Prices currently range from $9.25 to $11.25 per bushel.

Nearly 4.6 million tonnes of peas were produced in Canada in 2020, according to Statistics Canada. Of that, about 2.5 million tonnes were in Saskatchewan, with 1.8 million tonnes in Alberta, while Manitoba harvested about 246,000 tonnes.

Roquette has said it fully expects the amount of peas produced in Manitoba to increase.

— Glen Hallick reports for MarketsFarm from Winnipeg.

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After the plant begins operations, expected by the end of the year, yellow pea processing at the 200,000-square-foot facility will work upwards to 125,000 tonnes per year. According to a recent press release, Dominique Baumann, CEO for Roquette in Canada, said receiving of peas will begin in mid to late December, and Roquette grain buyer Glen Last added the plant is expecting to receive 5,000 tonnes of organic yellow peas from Manitoba growers in 2021.

“We’re quite confident there has been very good interest from growers,” Last said. He believes conventional growers will consider a switch to organic peas, and should the demand for organic products continue to increase, the entire plant could be switched over to organic pea processing. Peas may also be brought in from Saskatchewan.

Roquette continues to purchase all varieties of peas. However, premiums are available for the following preferred varieties: AAC Asher, Abarth, CDC Inca, CDC Profit, Agassiz, CDC Canary, CDC Lewochko, CDC Saffron, AAC Lacombe, CDC Amarillo and CDC Spectrum.

Why go organic, and how?

Some growers may consider a switch to organic due to higher market prices. Additionally, the future for organic crops looks bright as consumer demand for organic products continues to rise. However, producers will determine “what format is best for their property and business,” says Anastasia Kubinec, agronomist for Roquette in Canada.

For those wishing to have fields already in conventional crop production certified for organic pea production, it’s a three-year process, explains Laura Telford, Manitoba Agriculture’s organic sector development specialist. Producers must fill out the paperwork now and then follow the certification guidelines, obviously including no use of a prohibited substance (conventional crop protection products or fertilizers) on the fields in question.

Telford says the easiest and fastest way to certified organic pea production is to use a livestock system — a field of alfalfa, for example, onto which no fertilizer or crop protection products have been applied during the last three years. However, since growers must be under the supervision of an organic certifier for 15 months before organic certification is obtained, no organic premium can be provided for peas grown next year on that field. “If you filled out your paperwork now for that field of alfalfa, for example, you will be able to market peas grown on those fields as organic starting in 2022,” says Telford.

To support organic pea growers, Roquette will provide help that spans the entire process, beginning with proper seed selection. “We’ve recently launched our GrowWithRoquette.com webpage and we’ll be building a library of resources for growers that contract with us,” says Kubinec. “The library will include video tutorials, agronomy bulletins and a monthly newsletter. Our agronomy team is also available to provide support year-round and can assist with providing information on crop rotation planning, seed selection, crop establishment strategies, pest control, harvest and storage. Providing support and service to our growers is important to us and we are focused on building long-term relationships with growers that we contract with.”

Roquette also recommends that farmers who want to go organic connect with an organization such as Manitoba Organic Alliance for information on equipment costs and more. “They can also provide you with more information on the organic certification process for growers and averages for conventional versus organic yields,” says Kubinec. Organic yields are generally about half of conventional yields.

Contracts and pricing

Roquette’s organic contracts will adhere to Canadian organic rules and traceability, while being quite similar to contracts for conventional peas. Contract specifics will be discussed directly with interested growers, but Kubinec can provide a few details.

“Some highlights of our offer include one- and two-year contracts, price premiums and flexible delivery options,” she says. “Pricing reflects market pricing and a variety of other factors. We work directly with the grower on pricing. Our goal is to get great peas and for the grower to be successful.”

She adds response from growers in Manitoba and Saskatchewan was very strong for Roquette’s contracts in 2020. “It’s always our goal to ensure that our contracts are beneficial for growers and we are confident that growers will be pleased with what we have to offer,” she says. “We are looking to build long-term relationships with our growers that support their goals for their businesses. The success of our growers means success for us.”

For information on Roquette’s 2021 contracts for conventional and organic yellow peas, visit GrowWithRoquette.com or call grain buyer Glen Last at 204-872-0619 or 431-304-0173. Other members of the team include Kubinec and senior agronomist Bruce Brolley. Further information about the Manitoba Organic Alliance can be found at manitobaorganicalliance.com.

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After construction is finished at the end of 2020, the 200,000-square foot facility will work its way up to processing 125,000 tonnes of yellow peas per year.

“We will be receiving peas in six to eight weeks,” Dominique Baumann, CEO for Roquette in Canada, said during a news conference Wednesday.

Extensive measures continue to be taken to protect workers at the Portage plant from COVID-19, he said.

Glen Last, grain buyer for Roquette in Canada, said the company is planning to receive 5,000 tonnes of organic yellow peas from Manitoba growers in the plant’s first year of operation.

“We’re quite confident there has been very good interest from growers,” Last said, adding there are conventional growers considering a switch to organic peas.

“Acres may not meet their needs the first year, but down the road it’s certainly going to be a sustainable supply,” he said, acknowledging organic yields are about half of conventional yields.

Should the need arise, he said, yellow peas would be brought in from Saskatchewan.

Last didn’t comment on contract specifics, but said organic contracts will adhere to Canadian organic rules and traceability, while being quite similar to contracts for conventional peas. That includes growers having a choice between one- or two-year deals with incentives.

“Our pricing will be at a sustainable level to make it work for the grower as well as [Roquette],” he said, noting contract specifics would be discussed directly with interested growers.

“We are very confident the grower base is there. We have a good contact list of growers. We have had conversations with them all.”

Last also said Roquette will provide growers with supports such as agronomists, help with seed selection, crop rotation as well as with pick-up and delivery needs.

Should the demand evolve, the entire plant could be switched over to organic peas, Baumann said.

“Consumers are looking more and more for organic products,” he said.

— Glen Hallick reports for MarketsFarm from Winnipeg.

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The market for plant-based protein such as meat-free burgers has surged in the past few years, attracting major investment from global agrifood groups, including Archer Daniels Midland , Cargill and Nestle, hoping to capitalize on a trend towards healthy eating generally, including less red meat.

But lockdowns around the world to prevent the spread of COVID-19 have shaken the market, Jean-Philippe Azoulay, Roquette’s head of pea and new proteins business, told Reuters in an interview.

“Long-term were are not worried, this is a trend which is not going to reverse but short term there is some uncertainty,” he said.

Azoulay said there had been a sharp slowdown in new products due to the fact that many companies had to shut down laboratories, including Roquette.

The family-run company, which signed a three-year supply agreement with U.S. plant-based burger maker Beyond Meat to end-2022, is due to open the world’s largest pea protein factory at Portage la Prairie, Man. later this year.

Azoulay said sales to food service outlets, including restaurants and cafeterias, were also severely impacted by the crisis.

But it also led to increased demand for plant-based protein food in supermarkets, with people doing more cooking and trying new recipes, which could prove positive for the sector long-term.

A Reuters analysis of sales data showed that U.S. sales of fresh plant-based meat rose 102 per cent in volume in the second quarter of the year.

A positive impact from the COVID crisis, such as people eating less meat or less fish, could prompt Roquette to accelerate plans to open a second facility in Canada, Azoulay said.

— Sybille de La Hamaide is a Reuters correspondent covering France’s agrifood sector from Paris.

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Los Angeles-based Beyond Meat on Wednesday launched the “latest iteration” of its flagship Beyond Burger, billed as “produced locally at a co-manufacturing facility in Canada” and available now through major grocery retailers across the country.

Beyond Meat didn’t say in Wednesday’s release who its co-packer is or where in Quebec it operates, but said “producing the Beyond Burger locally in Canada enables Beyond Meat to better serve the Canadian market, while reducing the company’s environmental footprint.”

Per patty, the latest Beyond Burger offers 20 grams of protein from plant-based ingredients such as peas, mung beans and rice, with marbling made from cocoa butter to melt and tenderize like beef, the company said.

Beyond Meat didn’t say Wednesday exactly how the new product differs from what it has sold until now at Canadian retail, but said it “represents Beyond Meat’s commitment to creating plant-based protein that is indistinguishable (in terms of taste, texture, colour and cooking experience) from its animal protein equivalent.”

Beyond Meat early this year announced it had locked in a multi-year pea protein supply deal with French processing firm Roquette, which itself is expanding its space in the Canadian pea market with a plant under construction at Portage la Prairie, Man.

Beyond Meat’s Beyond Burger has been in the Canadian retail market since June last year, followed by Beyond Beef and, more recently, Beyond Sausage.

The company has also brought its products to the Canadian fast food market, through chains including A+W, McDonald’s, Tim Hortons and Subway.

Tim Hortons last year dialed back its Beyond Meat use to the Ontario and B.C. markets. McDonald’s ran a 12-week test of a “P.L.T.” Beyond Burger in southwestern Ontario earlier this year, but hasn’t yet said if it will take that sandwich into other markets, either within Canada or anywhere else.

Beyond Meat didn’t say Wednesday whether its Quebec partner will supply faux-meat for the company’s Canadian restaurant or foodservice customers, or strictly for retail. A message to company representatives Wednesday wasn’t immediately returned. — Glacier FarmMedia Network

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“Beginning in early March we proactively started collaborating with contractors on COVID-19 prevention measures, such as increased cleaning of communal spaces and thermal camera monitoring of everyone entering the site,” said Michelle Finley, the company’s communications and public affairs manager for Canada.

“We have followed the province of Manitoba’s guidelines for social distancing and limited gatherings to no more than 10 people. Where possible, we’ve adjusted tasks to incorporate a minimum of two meters of personal space.”

As of Thursday, she said, there have been no confirmed cases of COVID-19 among the people at the worksite and construction remains on schedule.

Production at the facility is slated to begin sometime in late 2020, about 18 months later than originally planned.

Construction of the nearly-$500 million plant did not get fully underway until the fall of 2018, more than a year after its groundbreaking ceremony. Roquette said the delay was the result of design upgrades.

The pea-processing plant is expected to be the largest in the world, capable handling of 125,000 tonnes of peas per year and employing up to 120 people.

— Glen Hallick reports for MarketsFarm from Winnipeg. Includes files from Alexis Stockford of the Manitoba Co-operator.

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Los Angeles-based Beyond Meat on Tuesday announced a “multi-year pea protein supply agreement” with France’s Roquette, renewing a “longstanding partnership” between the two firms.

No specifics were available on the amount of peas involved or the financial terms of the supply deal.

Beyond Meat, in its release, said the renewed agreement “significantly increases the amount of pea protein to be supplied by Roquette to Beyond Meat over the next three years as compared to the amount supplied in 2019.”

“This latest contract with Roquette reflects Beyond Meat’s commitment to further scaling the plant protein supply chain as global demand for our products continues to rise,” Beyond Meat CEO Ethan Brown said in the release.

Founded by Brown and partners in 2009, Beyond Meat has grown its public profile exponentially in the past couple of years, expanding its space on retail shelves as well as in the menus of major restaurant and fast-food chains including McDonald’s, Subway, Tim Hortons, KFC, A+W and TGI Friday’s, offering simulations of ground beef, sausage, meatballs and chicken.

Roquette has also expanded its space in the pea market in recent years, breaking ground in 2017 on a pea processing plant at Portage la Prairie, Man., where it expects to take in about 125,000 tonnes of peas annually from 2020 onward.

When it announced the Portage plant in early 2017, Roquette billed it as “the world’s largest dedicated to pea protein in the food, nutrition and health industry to date.”

“We are very pleased to continue supporting the growth of Beyond Meat, which shares our passion and values this long-term commitment,” Roquette CEO Jean-Marc Gilson said in the same release.

Along with pea protein, Beyond Meat products’ ingredients include mung bean and rice protein as well as coconut oil and cocoa butter for “marbling” and beets for a red beef-like colour in their uncooked form.

The company says it uses “a simple process of heating, cooling and pressure to create the fibrous texture of meat and layer in plant-based fats, binders, flavours and colours.” — Glacier FarmMedia Network

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“Peas will become the next successful crop in Manitoba. Thank you for believing in the future,” Eichler tweeted.

Part of the minister’s optimism stems from global corporate giant Roquette constructing the world’s largest pea processing plant at Portage la Prairie. When operation starts, expected in the second half of 2020, the $400 million plant will be able to process approximately 125,000 tonnes of peas per year. That’s more than the 104,800 tonnes of peas grown in Manitoba last year.

For 2019, Statistics Canada projected dry pea acres in Manitoba to drop 8.6 per cent to 77,700. Although that’s the third most acres in the country, Manitoba’s crop is a fraction of the peas grown in Saskatchewan and Alberta.

In Agriculture and Agri-Food Canada’s May outlook for principal field crops, pea production has been projected to increase by nearly 420,000 tonnes, to four million tonnes for the 2019-20 crop year.

When the Roquette plant is built, Eichler expects Manitoba’s pea production to increase.

“Currently, Roquette is expecting to contract 60 per cent of their peas right here in Manitoba, which was originally higher than company expectations,” the minister said in an email to MarketsFarm.

One specialist with Manitoba Agriculture predicted pea acres in the province will reach 100,000 acres in 2020 and balloon to 300,000 in the following years.

Given China’s ban on canola imports from Canada, Eichler said it’s good there will be more value-added processing in Manitoba to provide farmers with more confidence in making planting decisions.

“There will always be a demand for peas worldwide. Peas are such a versatile commodity. With peas being high in protein and Manitoba looking at becoming the protein supplier of choice, grain companies will always be able to find and assist farmers with different ways and tools to market their product,” he said.

— Glen Hallick writes for MarketsFarm, a Glacier FarmMedia division specializing in grain and commodity market analysis and reporting. Includes files from Melanie Epp for Glacier FarmMedia.

Table 1. Pea production, in thousands of tonnes.

Table 2. Projected pea area, in thousands of acres.

Source: Statistics Canada.

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