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Pulses

GVP $359.3 million est. Up 527% yoy.
Pulse production totaled 685,000 tonnes in 2020-21.
Exports of chickpeas to Pakistan reached 168,700 tonnes, worth $118 million in 2020-21.

Pulse production recovered from the extended drought with chickpea production in particular increasing substantially. Domestic demand from livestock feed markets decreased resulting in price declines for lupins, faba beans and field peas. In the case of pulses for human consumption, prices began to firm globally through 2020-21, with tight supplies for many types of pulses in India and south Asian countries supporting global prices. Indian imports of chickpeas remain restricted with Pakistan the major export market for New South Wales chickpeas. Continued demand from major pulse importing markets is anticipated to support global prices for pulses during 2021, along with low stock levels and capped production from major exporters such as Canada and producers such as India, who have experienced dry seasonal conditions during 2020-21.

$10 million facility to supercharge chickpea production

As worldwide demand for Australian chickpeas soars, the NSW Government will invest in a $10 million research and development facility at Tamworth, which would boost production in new areas across the State and country.

This infrastructure investment will strengthen the State’s $15.7 billion agricultural industry. The NSW Government will invest $5 million in the chickpea breeding facilities with matching funds also to be invested by the Grains Research and Development Corporation (GRDC) as part of a broader $30 million chickpea funding package.

Media Release

Eight regional businesses partner with Chickpea Breeding Australia

Chickpea Breeding Australia (CBA), a $30m five-year partnership between the NSW Government and Grains Research and Development Corporation (GRDC), has announced eight regionally-based seed partners to distribute chickpea seeds to farmers.

DPI Group Director, Plant Systems Dr Alison Bowman said CBA’s focus was on increasing chickpea production and developing new chickpea growing regions around Australia.

“CBA is really excited to be partnering with eight businesses across the country to promote chickpea production, as well as the adoption of new chickpea varieties across Australia,” Dr Bowman said.

“Our seed partners will play a crucial role in providing growers with the latest chickpea varieties by CBA".

Media Release

Production

The value of pulse production in 2020-21 is estimated at $359.3 million, up substantially on the gross value for 2019-20 which was $57.3 million.¹⁷ Production of pulses in 2020-21 totalled 0.68 million tonnes as NSW came out of an extended drought, an increase of 720 % in volume terms over 2019-20.⁴ The area sown to pulses was estimated at 384,000 ha in 2020-21, an increase of 2.4 times the area sown in 2019-20 which totalled 157,500 ha. Despite the increase pulse production, the area sown to pulses in 2020-21 remained 26% lower than the area sown based on the five-year average of 521,800 ha to 2017-18, prior to the most recent drought impacted years.

Chickpea production, the major pulse crop grown in NSW, had the most substantial turn around with production an estimated 374,000 tonnes in 2020-21, up from just 24,400 tonnes in 2019-20. In the case of Faba beans, production in NSW increased to an estimated 110,000 tonnes in 2020-21, a level of production not achieved since 2015-16, with the majority of faba bean still grown in Victoria and South Australia.⁴

Area sown to pulses ^z

Chickpeas
Faba beans
Field peas
Lentils
Lupins

Download data (.XLSX)

Source: ABARES (2021)

Pulse production ('000 tonnes) ^z

Chickpeas
Faba Beans
Field peas
Lentils
Lupins

Download data (.XLSX)

Source: ABARES (2021)

Years marked 's' are estimates, years marked 'f' are forecasts.

Price

Prices for pulse crops that are used for livestock feed such as lupins, faba beans and field peas saw prices decline from mid-2020. These declines were in response to rains that lifted pasture growth and crop yields generally across eastern Australia, resulting in reduced demand from sheep and cattle industries and higher feed grain supplies.³¹ The relative prices received for lupins and chickpea illustrate the impact of changed demand and supply drivers. In the case of lupins, prices declined by 35% over the twelve months to June 2021. In contrast the price of chickpeas, typically used in food production, regained its traditional price premium over lupins on a dollars per tonne basis, a premium that was lost for short periods during 2019-20 and at the start of 2020-21.

Global prices for chickpeas and pulses generally have begun lifting, following relatively lacklustre prices emanating from India over the past three years. Tight supplies for various pulses in India and other south Asian countries are supporting global prices.¹⁸³ ¹⁵⁰

Pulse Prices ^ab

Chickpeas
Field peas
Lupins
Faba beans

Download data (.XLSX)

Source: DPI (2021)

Trade

Exports of pulses totalled A$215.3 million in 2020-21, some four times greater than each of the two prior years impacted by drought, however still 35% lower by value than exports recorded in 2017-18. Pakistan was the major market for pulses accounting for 62% of exports by value followed by Bangladesh and Egypt with 19% and 11% shares of exports by value in 2020-21.

Chickpea is the dominant pulse crop exported representing 87% of total pulse exports by value worth $186.4 million in 2020-21, and with 63% by value being sold to Pakistan ($117.7 million). Of the 271,600 tonnes of chickpeas exported in 2020-21, up 337% on 2019-20 export volumes, 168,700 tonnes went to Pakistan with the next largest destination Bangladesh receiving 60,400 tonnes.¹²⁸

Faba bean exports, while a pulse predominantly grown in Victoria and South Australia, achieved exports valued at $23.9 million in 2020-21.¹²⁸ The major export market for faba beans is Egypt where Australia competes with the United Kingdom, in 2020-21 New South Wales exports to Egypt totalled $22.7 million.²²² ¹²⁸

Logistical issues continued through 2020-21 as a consequence of the Covid-19 pandemic, difficulty in obtaining containers and a threefold increase in container rates, typically used for pulse exports, has encouraged more bulk trades, including chickpea exports to Pakistan.²²² ¹²⁷

Value of pulse exports (A$ million)

Bangladesh
Egypt
India
Nepal
Pakistan
United Arab Emirates
Other

Download data (.XLSX)

Source: GTA (2021)

Macroeconomic conditions

India as both the largest pulse producer and consumer has a major influence on global supply and demand, and prices. The Indian government manages supplies of pulse crops to meet the dual objectives of supporting farm production and food security for consumers through price management, tariffs and quotas applied to pulses. During 2020-21 prices for pulses in India have tended to be above the prescribed minimum support price levels reflecting lower forecast production and government stocks.¹¹⁷ The Indian government manages supplies of pulse crops to meet dual objectives of supporting farm production and food security for consumers through price management, tariffs and quotas applied to pulses. In the case of chickpeas, high tariffs of 60% remain for the Indian market which has stimulated increased production by Indian farmers, with annual production having increased by 60% over ten years, based on the three-year annual average to 2019 compared with three-year annual average to 2009.¹⁰⁶ Further, the Indian government adjusts imports of desi chickpea substitutes such as yellow pea from Canada, to meet domestic demand and influence domestic prices.²²⁰ Chickpea stocks decreased through 2020 as the Indian government released stock to households as a part of a Covid-19 support program.²¹⁹

Demand for pulses from major markets including the South Asian markets of Pakistan, Bangladesh and Nepal, along with Middle East markets including the United Arab Emirates remains robust long term.¹⁶⁷

Outlook

Continued demand from major pulse importing markets is anticipated to support global prices for pulses. On the supply side, Canadian production for 2021, the largest pulse exporter, has been substantially impacted by drought for the 2021 harvest. Relatively favourable pricing of alternate crops such as canola had already resulted in Canadian growers reducing the area sown to pulses in 2021, subsequently drought has exacerbated the reduction in Canadian pulse production for 2021.¹²³ Estimates for Canadian production of peas, lentils and chickpea are down 38%, 25% and 66% respectively, impacting Canada’s pulse export activity in 2021-22.²⁸ At the same time, Indian government stocks of pulses are lower than in recent years.¹⁵⁰

As a result of this global market context, the outlook for pricing is generally firm and combined with favourable growing conditions for the 2021 winter crop supports pulse production in 2021 and prospects for the season ahead.