DISRUPTION, REFOCUS,

RESULTS

SPG Regional Meetings

February 2019

LOSS OF ACCESS TO INDIA

• Import duties began in November

2017 and now are:

• 50% peas

• 33% lentils

• 66% chickpeas

• Quantitative restrictions of

100,000 tonnes on peas

of Canada’s

red lentil and

yellow pea

exports

India

typically

accounts

for

INDIA FUMIGATION CHALLENGES

• Pulse Canada has worked the Canadian Government to

address all of India’s technical concerns in 2018

• Science-based risk assessment of India’s pest concerns

showed Canadian pulse exports to India pose no risk

• Incredibly challenging to influence foreign government policy

INDIA IMPORT TARIFFS

• Pulse exporting nations are addressing the challenge

of working with India to improve the predictability and

transparency of pulse import tariffs

• Led by the Global Pulse Confederation and through

Geneva-based trade officials from many pulse-

exporting nations.

IMPACT

CANADIAN PEA EXPORTS TO INDIA (TONNES)

-

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

India

LENTIL PRICES AT LOWEST LEVELS IN 10 YEARS

Source: Stat Publishing Panama

-$10

-$5

$-

$5

$10

$15

$20

$25

Budget Actual

Expenditure Revenue Deficit

40%

16%

-$2.8M-$6.8M

2017/18 BUDGET VS. ACTUAL (MILLIONS)

2017/18 PROGRAM ADJUSTMENTS

• $1 million in reductions in market promotion

• $500,000 in reductions in communications

• $400,000 in reductions in agronomy

• 40% drop in levy compared to budget

SPG LEVY

• 2016: Temporary one-year levy reduction to 0.67%

effective August 1

• 2017: Extension of temporary 0.67% levy an

additional year

• 2018: Commitment to maintain 0.67% levy until

July 31, 2019

• 2019: Continuation of 0.67% levy for 2019-20

$0

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

LEVY REVENUE: 2002-2017

$-

$5

$10

$15

$20

$25

$30

2016 2017 2018 2019 (f)

Internally Restricted Unrestricted

-$15.5 million – 0.67% levy

*As of Aug 31 each year

$6.2M $6.2M $6.46 M

$9.5M

$16.5M

$6.46 M

$4.5M

SPG NET ASSETS (MILLIONS)

$20M

Levy $10,000,000

Variety Commercialization

$830,800

Interest & Dividends $300,000

Government Funding $99,003

Advertising $85,000

Sponsorship $40,000

Other Revenue $138,774

2018/19

BUDGETED

REVENUE

$11,493,600

2018/19

BUDGETED

EXPENDITURES

$16,308,026

Research & Development $9,582,748

Market Promotion $2,000,000

Pulse Canada $1,789,833

Leadership & Management $1,472,810

Communications $803,493

Variety Commercialization $659,142

FOCUS AREAS AND

RESULTS

THE FOCUS

• Increasing yields of established pulse crops

• Expanded utilization of pulse crops

• Development and adoption of new pulse crops

• Decreasing barriers to market access

• Increasing SPG’s engagement with growers

EXPANDED MARKET ACCESS

85% of what we

produce is

exported

Facing technical

barriers in

important

international

markets

Experiencing

domestic

challenges in

transportation

KEEP IT CLEAN

GLYPHOSATE USE IN PULSES

• Timing of application

• Label rates

• Continued access to important tools

RESULT - BILL C49 TRANSPORTATION

MODERNIZATION ACT

Bill C49 passed in 2018, with many pulse industry priorities

reflected within the bill

• Incorporating reciprocal penalties

• Giving the Canadian Transportation Agency Own

Motion Power

INCREASING DEMAND FOR

PULSE CROPS

by 2025

2 Million Tonnes of Pulses into New Use Markets by 2025

Ingredient Use

700,000 Tonnes

Foodservice & Consumer

800,000 Tonnes

Pet food, feed, aquaculture

500,000 Tonnes

IMPORTANCE OF CHINA –

CANADIAN PEA EXPORTS (TONNES)

-

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

India

IMPORTANCE OF CHINA –

CANADIAN PEA EXPORTS (TONNES)

-

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

India

China

INCREASE YIELDS OF

ESTABLISHED PULSE CROPS

Breeding & genetic improvement projects

account for 75% of R&D budget

123 pulse crop varieties released

since 1997

Small Red Lentil:

• IBC-1235• Very high yield potential

• CDC Nimble• Good yield stability

overall, but

significantly higher

yield potential in the

North

Kabuli Chickpea:

• CDC 3662• First imazamox tolerant

chickpea released

• Highest yielding

imi-tolerant variety available

ADDRESSING ROOT

DISEASE/APHANOMYCES

$2.9 millioninvested in developing resistant varieties and

risk assessment tools

KRA 3: DEVELOPMENT & ADOPTION

OF NEW PULSE CROPS

SOYBEANS CHICKPEAS FABA BEANS

$1.3

millioninvested in soybean

focused research projects

SOYBEAN REGIONAL

VARIETY TRIALS

• 60 herbicide tolerant varieties tested at 11 sites

with three reps per site

• 8 conventional varieties tested at four sites with 3

reps

INCREASING SPG’S ENGAGEMENT

WITH GROWERS

CURRENT TOPICS

A LOT CHANGING

• Current agreement with CDC expires in 2020

• SPG has been clear with the CDC that our preference would be

for a similar agreement to what is in place now

• SPG retains rights on existing varieties

• New varieties developed through a new breeding model may be

subject to royalties

SEED ROYALTY MODELS

SPG Principles:

• We want to maintain, sustain, and expand research to ensure growers

remain globally competitive in the future, but we believe that more

consultations are needed and that more options should be

considered.

• We need an unbiased, pulse-crop specific economic analysis of the

options and what effect they will have on growers, plant breeders,

and the pulse industry as a whole.

• We are supportive of a system that maintains or increases long-term

profitability for pulse growers.

IN SUMMARY

• Disruptive time in the pulse industry

• Loss of a major market

• Exciting growth in other areas

• Delivering important results for growers with levy investments

• Market Access and Transportation

• Market Development

• New varieties

• Agronomy and Production information

THANK YOU FOR

ATTENDING