Pandemic eating sparks demand for wheat, lentils
A surge in takeout pizza orders, baking and pantry stockpiling has created an unexpected “burst in demand” for Canadian wheat and lentils, as restaurants remain shuttered and governments continue to urge social distancing measures to prevent the spread of COVID -19.
Prices for Canadian spring wheat, a key ingredient in pizza crusts, for red lentils, a pantry staple, and for the durum wheat used in pasta have all soared in the weeks since the pandemic forced broad lockdowns of non-essential businesses.
Meantime, the low Canadian dollar, hit hard by collapsing oil prices and coronavirus lockdowns, has provided farmers with an additional boost.
“No one wants to profit off of a pandemic but these prices are definitely good news for us,” said Rob Stone, who grows both spring wheat and red lentils on his 7,500acre farm in Davidson, Sask. “Like every sector of the economy, we’ve got products that aren’t doing well, so this helps.”
Red lentil prices jumped 76 per cent to 30 cents per lb. in the past six weeks, while spring wheat prices rose 25 per cent to $7.25 per bushel. Durum wheat rose 20 per cent to roughly $9 per bushel during the period.
The desire for red lentils has been intense enough that Canadian farmers are expected to seed an additional 25 per cent of their acres with the crop this year, according to Pulse Canada.
“People are ordering pizza like crazy, flour sales are robust and pasta and pulses are selling because of this push to pantry preparedness,” said Neil Townsend, chief market analyst with FarmLink Marketing Solutions in Winnipeg. “The real winners from that shift in behaviour are durum and spring wheat and pulses like lentils. For all those things, Canada is among the biggest exporters in the world.”
Global demand for red lentils, a staple in both Middle Eastern and Indian cuisine as well as in North American and European pantries, surged in recent weeks as consumers seek to stockpile non-perishable foods.
An additional boost has come from a decision by India’s central government to provide one kilogram of pulses each month for a period of three months to all ration cardholders or at-risk consumers — a group that includes about 800 million people.
As India’s farmers scramble to meet these new domestic needs, demand for Canadian lentils has soared on world markets.
“India is removing its own pulses from the market and we’re seeing our own grocery stores cleaned out,” said Gordon Bacon, chief executive of Pulse Canada. “That’s what’s driving up prices.”
A general trend toward plant-based proteins has continued and a shortage of shipping containers has complicated deliveries and prompted many food companies to keep more of the ingredient on hand.
Exports of Canadian durum wheat had also suffered a steep decline following the imposition of strict country of origin labelling rules in Italy. But a consumer run on the kitchen cupboard staple has prompted a reversal of fortune for that commodity, too.