Pea protein suppliers tackle soaring prices amid “worst drought in over a century”

28 Sep 2021 --- Pea suppliers in the plant protein sector are facing an unprecedented situation that is strongly impacting the market – tight raw material supply capacity amid rising global demand for meat alternatives. Specifically, pea availability has been hit by an exceptional drought this summer in Canada, the largest pea-producing region in the world.

Canada recorded a drop of 45% in its production and pea prices have drastically increased by 120% in comparison to last year.

Simultaneously, Europe has suffered from low yields and in France, another large pea producing country, the crop has been severely damaged by the wet weather during the harvest.

Speaking to FoodIngredientsFirst, executives from Ingredion, Roquette, Cosucra and Cargill’s joint venture Puris share concerns over supply shortages.

Canada recorded a drop of 45% in its pea production and prices have drastically increased by 120% in comparison to last year. (Credit: Roquette)Drastic price hike
“Due to the drought, the supply of peas in North America is substantially lower than estimated prior to harvest, resulting in higher raw material costs,” comments Yadu Dar, business director, plant-based protein, US/Canada at Ingredion.

“We are working with our customers closely to navigate the impact of the unexpected cost to their business plans.”

Jeremy Burks, senior vice president of plant proteins at Roquette, shares similar concerns.

“Over several years, we’ve invested in breeding new varieties of peas, on farming methods and our agronomists have worked with farmers to ensure a reliable and plentiful supply of high-quality peas,” he comments.

“The short term is a serious challenge, but we are making certain that customers can look forward with confidence.”

The dramatic increase in prices will inevitably lead to costs being transferred to customers.

“We know our customers are watching the raw material prices and availability closely and they can rely on our huge investments to shorten the supply chains and help them mitigate some of this significant cost increase,” says Burks at Roquette.

Belgium-based natural ingredients specialist Cosucra has not observed any notable business impacts, having certain volume agreements in place. However, as the company’s pea protein product manager, Cecilia Autran, highlights: “It has put pressure on the market prices for pea in general, which are increasing. This will also be reflected in the increased sales price of the Cosucra pea ingredients in 2022.”

Tyler Lorenzen, CEO of Cargill’s joint venture Puris highlights that the supplier’s vertical supply chain supplies it with climate-resilient peas. “Puris is focused on growing peas domestically in the US through our network of over 400 growers, from coast to coast and North to South.”

“With the tough year our growers in the US have faced — between the pandemic, a historic drought, flooding and other unprecedented climate issues — they are no doubt feeling the economic and environmental impacts of the world,” he comments.

“We see first-hand that there is work to be done, and are dedicated to being part of the solution. We're navigating these challenges alongside our growers and customers alike.”

Last year, Roquette inaugurated the world’s largest pea protein plant in Portage la Prairie, Manitoba, Canada.Pea production marches on
Roquette has invested more than half a billion euros in pea protein over a period of five years, of which nearly €400 million (US$467.3 million) went toward a brand new factory dedicated to this popular ingredient used in meat analogs.

Despite complexities surrounding the COVID-19 pandemic, the supplier was able to inaugurate the world’s largest pea protein plant last year in Portage la Prairie, Manitoba, Canada.

Roquette’s production sites include Vic-sur-Aisne (France), which is the largest pea protein plant in Europe.

Among its ingredient offerings, Roquette produces Nutralys, marketed as the “widest range of pea protein ingredients available.” The range includes 12 pea proteins types ideal for plant-based formats including ground meat, burgers, meatballs, sausages, nuggets, fish sticks, bakery, cereals, ice cream, protein shakes and spreadables.

Ingredion’s pea protein range
Earlier this month, Ingredion expanded its Canadian manufacturing assets in Vanscoy, Saskatchewan. The launch of its latest production facility marked increased capabilities for pea ingredients and other pulses-based concentrates sourced from North American farms.

Ingredion’s recent pea protein launches include Vitessence Pulse 1853 and 1803 C pea protein isolates, Purity P 1002 pea starch, Vitessence Pulse 1550 and 1556 pea protein concentrate, Vitessence TEX Crumbles 102 structured vegetable protein, and the Homecraft Pulse 1101 and 1103 pea flour.

“The latest and perhaps the most innovative launches are our ultra-performance Vitessence Prista P 155 deflavored pea protein concentrate and Vitessence Prista P 101 deflavored pea flour,” Dar tells FoodIngredientsFirst.

“Having a broad portfolio of in-demand plant proteins, ranging from pea, faba, lentil and quinoa, allows our customers to source a grade of product most suitable for their application,” he continues.

“The demand for pea as well as other plant-based ingredients continues to rise as consumers seek out products that are perceived as having a health halo and more sustainable.”

By Benjamin Ferrer