Pulse fractionation is the next big opportunity for the Prairies

Plant protein is a booming segment, write Naomi Christensen and Carlo Dade.

The Prairies are well known for being a global leader in pulse production and exports, but we didn’t get here by being complacent. We are now in the midst of an opportunity to become the premier region for pulse fractionation, a relatively new processing technology that breaks pulses into protein, starch and fibre fractions for use as ingredients in food processing.

The Prairies already have an encouraging start. Developing a fractionation hub next to our existing multibillion-dollar peas, lentils and beans industry turns what was once a competitive disadvantage — distance from market — into an advantage. Already, millions of new investment dollars in fractionation facilities have been earmarked across the Prairies. Competitors in Europe and the U.S. are also starting to realize that the opportunity is huge, and will only grow in the future.

The global market for specialty food ingredients like pea protein is about US$100 billion annually and growing. The greatest growth in the ingredient sector is from plant proteins like pulses. While there are more than 34,000 food and beverage product manufacturing establishments in Canada and the U.S., only a minority use pulse ingredients in their production. The opportunity for expansion is enormous.

In North America, the EU and even China, the health and nutrition food sectors are key markets for ingredients derived from pulses like protein and fibre. Pea protein is used in granola and energy bars, high-protein pasta, baby food, veggie burgers, egg alternatives and even beverages and smoothies. Pulses have a higher concentration of protein than cereal crops and rice, and can be used to make gluten-free food. Pulse fractions are useful in non-niche food processing, too — stabilizing viscosity in sauces and dressings, adding crispiness in breaded products by reducing oil absorption and retaining moisture in meat products.

Protein fractions are also used in pet and animal feed. The global pet food industry, valued at nearly US$50 billion, grows more than five per cent annually.

The Prairie provinces share characteristics that make them attractive locations for fractionation. All lentil and chickpea crops seeded in Canada are in the West, as are 98 per cent of dry peas and more than 50 per cent of beans.

Transportation infrastructure to move processed pulses along the supply chain affects investment. Manitoba and Saskatchewan’s inland ports are attractive, as are Edmonton and Calgary’s freight transportation hubs.

Our rail and road links to West Coast ports and the U.S. ensure fractions can be shipped to key markets.

Thanks to the oil downturn, the Prairies have an available supply of technically skilled workers.

Governments do not need new spending to increase fractionation — some policy changes at all levels can reduce the challenges that affect investment, such as reviewing axel weight restrictions on roads that would serve as key transportation routes for fractionation facilities.

Operating costs, like labour and electricity play a large role in investment decisions. French plant-based ingredient company Roquette specifically made note of sustainable hydroelectricity in its announcement earlier this year of a $400-million pea protein facility in Portage la Prairie, Man. It was chosen out of 40 sites in Canada and the U.S. As Alberta and Saskatchewan move away from the cheapest source of electricity — coal — to a greater volume of more expensive renewables, they must consider how changes in electricity policy affect future investments in other sectors like agri-food processing.

The federal government can also help by negotiating tariff reductions with key markets. Tariffs are often higher on processed products than on raw commodities.

In the last year, plans for new fractionation facilities have been announced in Bowden, Alta., Moose Jaw, Sask., and Portage la Prairie. We should not be satisfied with this alone. Governments should ensure their policies are not impeding further investment in fractionation facilities. The opportunity for the Prairies to be a global leader in pulse production, exportation and processing is waiting to be seized.