Pulses

  • GVP $446 million est. Up 2% year-on-year.
  • Pulse production fell 9.2%.
  • Pulse prices firmed, assisted by lower domestic production as well as in other key producers Canada and India.
After three big crop years, pulse production returned to average levels. A less-than-favourable drier outlook for the growing season resulted in a another reduction in area planted to pulses and production continued to fall. Average seasonal producer prices for pulse crops in 2023-24 increased year-on-year off the back of strong global demand. Exports remain dependent on several key markets such as Pakistan, Bangladesh, and the United Arab Emirates. In May 2024, India removed their import duties on Australian chickpeas which strongly supported price.

Production

NSW pulse production and share of winter cropping area

  • Chickpeas
  • Faba beans
  • Field peas
  • Lentils
  • Lupins
  • Pulses share of winter cropping area (RHS)
Source: ABARES (2024)
The total area sown to pulses in NSW in 2023-24 decreased by an estimated 9.2% year-on-year to total 286,000 hectares and resulted in total pulse production falling 16% to 341,500 tonnes. 6 The predictions of the El Niño eventuated meaning there was very limited rainfall from mid-August.

Australia grows two varieties of chickpeas — the desi chickpea, which is primarily exported, and the kabuli chickpea, which is typically the tinned chickpea consumers buy in supermarkets. The area of chickpea grown in NSW decreased again in 2023-24 due to a combination of low pulse prices prior to planting and forecast weather-related growing season risks. Limited rainfall from mid-August across the key northern NSW chickpea growing areas was the key driver of the reduced planted area of 150,000ha, down 6% year-on-year, 6 with some farmers deciding not to plant at all. Limited in-crop rain restricted yield growth, with the state average yield at 1.1t/ha, just under the 10-year average. However, despite the smaller volume, traders reported that crop quality was excellent. 116 123 Total production landed at 165,000 tonnes. 6

Faba bean production was down 24% year-on-year to 61,500 tonnes, a function of lesser area planted and a yield-limiting lack of rain during the growing season. 6 Heavy rains during the later part of the harvest damaged some late crops however, the majority were harvested ahead of the rain. In the case of lentils, production remained relatively steady at 15,000 tonnes, 5% down on the record crop of 2022-23, and lupin production declined by 14% to 60,000 tonnes as the estimated seeded area for lupins was cut by 10%, the smallest area since 2019-20. 6

Price

Whilst most major crop prices were down, pulse prices made a comeback in 2023-24, largely due to desi chickpeas. Average prices rose 59% over the course of the year to levels not seen since early 2020. 63 New crop bids strengthened early in the year upon the official announcement of an El Nino and forecasts of a lower Indian crop, and received a further boost as harvest commenced. Demand slowed over the summer, with minimal export participation reflecting a slowdown in accumulation for bulk export ahead of Ramadan. Exports picked up pace again in February amid strong bulk demand from Pakistan and Bangladesh and the Middle Eastern container market which helped underpin values during March and April.

In May 2024, following a poor local harvest, India suspended their long-standing tariffs on Australian chickpeas until March 31, 2025. The tariffs, which were established in 2017 and equated to 33% (and were later extended to 66%), effectively ended Australian chickpea exports into India, the world’s biggest consumer of chickpeas. Upon news of the tariff suspension, both old and new season chickpea prices increased by more than $100/t in some areas, to levels not seen since 2019. 63

Faba bean prices continued to come under supply pressure from consecutive strong production seasons and export prices were impacted by ongoing currency difficulties and a sharp depreciation of the Egyptian pound against the Australian dollar. 109 However, owing to their comparatively stable price in contrast to canola and soybeans, growing domestic demand for faba beans as a stockfeed source provided timely price support.

Pulse Prices (Del. Junee)

  • Chickpeas
  • Field Peas
  • Lupins
  • Faba Beans
Source: DPIRD (2024)

Trade

NSW exports of pulses totalled $164 million in 2023-24, a 18% increase over the previous year, 79 driven by an increase in both the volume and unit price of exports. Desi chickpeas remained the dominant pulse export from NSW, accounting for approximately XX% of total NSW pulse exports by volume and increasing in value by 10% year-on-year to $137 million. 79 Pakistan remained the principal market for chickpeas, despite a fall 33% in volume off the back of the large export programs of 2021-22 and 2022-23. Chickpea exports to NSW’s second largest market the UAE, increased by a substantial 49% year-on-year by volume and 87% by value. 79 Higher domestic pricing in India, the UAE’s principal source of chickpeas, is working to hold supplies within India and minimise exports. 85
Russia is quickly becoming a global competitor in pulses, emerging as a significant producer and supplier. Russia recorded a record pulse crop in 2023 of 6 million tonnes, 29% higher than the last season and a massive 59% more than the five years’ average. There has been a substantial increase in the overland trade of pulses from Russia into Pakistan, passing through the Pakistan-Afghan Torkham border as an efficient alternative to sea-based trade. 108

Australian monthly chickpea exports and the commencement of Ramadan

  • Volume exported
  • Ramadan
  • Approximate Pakistan harvest (March-April)
Source: PulsePod (2022)
Demand for pulses, particularly chickpeas, tends to spike in conjunction with international festival dates – the most significant of these is Ramadan. The dates of Ramadan depend on the phases of the moon and thus vary, generally moving earlier by 10-12 days each year. 106 In regions where Ramadan is observed, such as Pakistan, Bangladesh, the UAE and India, chickpea demand tends to increase approximately six weeks before Ramadan. In recent years, however, due to the varying dates of the holy month, this trend has been changing. 107
In Pakistan, the domestic demand for pulses significantly outweighs supply, leaving the country to rely on imports to meet its consumptive needs. In 2023-24, the Pakistani domestic crop was harvested in March and April which meant that it was not available for consumption during Ramadan. As the dates of Ramadan continue to shift further into the growing season in the coming years, it is expected that Pakistan will start competing for supplies at the same time as Bangladesh. 107 With Ramadan being observed earlier in the year, the Australian chickpea harvest is well-aligned to take advantage of these shifting supply and demand dynamics.

Outlook

The outlook looks bright for pulses with ABARES forecasting the 2024-25 crop to be the largest NSW crop since 2020-21. Higher prices and renewed trade interest from India have encouraged a higher planted area. The elimination of India’s prohibitive tariffs will directly benefit Australian farmers, re-establishing key market access, delivering more reliable pricing, and boosting industry confidence. Whilst the forecast area planted is set to remain relatively steady for faba beans, field peas, lupins and lentils, the favorable market outlook has resulted in a substantial 106% increase in the area planted to chickpeas. 6 Excellent early season rainfall across the key growing regions provided the ideal conditions for crop development and prices are forecast to remain relatively strong.

DPIRD Recognising Success

Dr Kevin Moore receives the 2023 Farrer Memorial Medal

In recognition of a distinguished career dedicated to improving the productivity and sustainability of chickpea crops, including ground breaking work in disease management, Dr Kevin Moore, has been awarded the prestigious 2023 Farrer Memorial Medal.

Cherry

On Friday 23 August 2023 Dr Kevin Moore, was awarded the prestigious 2023 Farrer Memorial Medal in recognition of his distinguished career and invaluable contributions to chickpea research at a breakfast with Kate Lorimer-Ward (A/Chair and Trustee for the Farrer Memorial Trust), and the nominators for the award, Alison Bowman, and Guy McMullen.

Kevin, a renowned plant pathologist, has dedicated his career to improving the productivity and sustainability of chickpea crops. His ground breaking work in disease management, particularly Ascochyta blight, has significantly advanced the industry's understanding and ability to protect chickpeas, ensuring better yields and stability for farmers worldwide.

From developing innovative disease forecasting models to leading research that has helped safeguard one of our most vital pulse crops, Kevin's contributions have been nothing short of transformative. His efforts have not only enhanced agricultural practices but have also played a crucial role in food security.

Congratulations to Kevin on his remarkable achievements and his well-deserved recognition as the 2023 Farrer Memorial Medal recipient.

You can find more information on Kevin in the below link: https://www.dpi.nsw.gov.au/about-us/who-we-are/interacting_2/farrer-memorial-trust/farrer-memorial-trust-medal-recipients-and-orations/Dr-Kevin-Moore-Presentation-2023-Farrer-Memorial-Medal-Recipient.pdf