DISRUPTION, REFOCUS, RESULTS
Transcript of DISRUPTION, REFOCUS, RESULTS
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.
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
-$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
$-
$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
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
Facing technical
barriers in
important
international
markets
Experiencing
domestic
challenges in
transportation
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
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
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
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