Professional Documents
Culture Documents
0868714
AGRI 1110
Due: December 01, 2015
pulse area/farm being 178.2hectares it would cost a farmer $1283.04 for the average farm
(Syngenta Canada, 2015). Storage conditions should maintain the crop moisture at 13-14% with
temperatures below 15C to ensure maximum life of up to 40 weeks.
Global importance: All this modernization and advancement in agriculture compared to
other countries gave Canada an envious place in the global pulse trade with yields of
1.93tonnes/ha while the average yield in India (worlds largest consumer) is 0.73tonnes/ha.
Globally when presented with the facts we can determine that Canada is a major player in
the production of pulses. As you can observe from Table 4, except for the case of dry beans,
Canada overall is the top producer of lentils and dry peas and a major producer of chickpeas. The
pulse trade for Canada has led to major economic benefits with the majority of our production
(04.7 million tonnes) destined for export netting this country with cash receipts of over
$2.7billion (Pulse Canada, 2013) or $574/tonne. With such a high production rate and yield and
very low domestic consumption, Canada is perfectly positioned to export the vast majority of its
pulses to the international market. As you can observe from Table 2 above, the growth of cash
receipts from pulses have been steady and consistent almost tripling in 10 years from
approximately $900 million in 2001 (AAFC, 2009). Canada currently exports pulses to a wide
range of 129 nations (E. Beekkering, 2014) with India being our largest client ($530.8 million,
2009) followed by Bangladesh ($241.4 million, 2009), Turkey ($135 million, 2009) and UAE
($116.5 million, 2009). The current production numbers are already strong and the potential
exists to increase capacity, since land use to cultivate and produce pulses is constantly shifting
(usually decreasing) and at the same time yields are increasing, meaning Canadian producers can
readily amplify their production. The main limiting factor would be international production,
usually related to weather conditions and this will influence demand the most, especially with
countries that consume and export in great amounts (India, Turkey). When comparing the export
value of Canadian pulses to those of other countries, we are by far the largest beating the next 2
countries of China and Australia put together, and this lead does not seem to be threatened.
Table 2
pulses. Regarding crop rotation, next to obtaining higher yields to the crop following pulses
(usually wheat), there are issues of blight with many pulses (ascochyta blight and anthracnose in
lentils and chickpeas) which is why in rotation it is best to seed pulses in the same field once
every 4 years has passed (AAFC,2009).
Part 2:
The potential for export of Canadian pulses to Nepal is immense and very feasible.
Unfortunately Nepal is a landlocked country with no seaports, which means the most cost
effective method of transportation (shipping bulk loads) by sea freight direct to the country is an
impossibility. The good news when it comes to pulses, is that presently India is already a major
importing client of Canadian pulses and there is a massive shared border between India and
Nepal. This means that like most goods in bulk the transportation would go through by land.
The process: The first step would be to purchase the pulses from a well-established
Canadian producer. Alliance Grain Traders headquartered in Regina, Saskatchewan is currently
the major player in this field with at least 15 processing plants throughout western Canada as
well as in Turkey, USA, and Australia, this global presence ensures that it has access to many of
the legume crops at the source where they are grown (AGT, 2015). They can move pulses from
prairie farmers to their facilities by truck which are then cleaned, sized, split, colour sorted and
then packaged for shipment to various clients worldwide. The pulses destined for Nepal will be
loaded into 20ft shipping containers in bulk, since any type of pre packing of the pulses incurs
additional cost and in a limited resource country like Nepal the focus will be on reducing the
costs as much as possible. These containers can then be taken by Alliance Grain Traders and
trucked to the nearest railyard (most likely Regina, SK) and loaded onto trains. They will then be
transported via rail car to the port of Vancouver where they can either be stored temporarily in
silos (if transported by hopper car) or loaded right away onto ships. Although bulk loading into
ships may be less expensive, the loss in transport time to Asia (97days vs 21 days) and the risks
associated with multiple handling and potential product spoilage will mean that container loading
remains the preferred method of shipping across the ocean (Hanam Canada, 2010). The only
options when it comes to moving pulses by railcars is using CN or CP rail. EBN Grainco of
Richmond is specialised in loading pulses from rail hopper cars into 20ftcontainers (Hanam
Canada, 2010). The next step is by way of a good freight forwarder and shipping line
(Searates.com and Maersk Inc respectively) to move the containers by ship from the port of
Vancouver to the port of Kolkata, India since it is the nearest major sea port to Khatmandhu,
Nepal. Once at the port of Kolkata, the container will go into the possession of local Indian firm
TCI freight, a specialist in overland transport in India can then truck the containers from Kolkata
to silos and storage facilities in Khatmandhu, Nepal where local distributors and retailers can
purchase and sell the contents (TCI Freight, 2015).
Economics: I have researched the feasibility of such an endeavour and found that it is
practical to get this project off the ground and affordable. Also with the right partnerships it can
be profitable and a net benefit to the people of Nepal by reducing the cost of one of their most
consumed food staples and source of protein. I will use whole red lentils as an example, since
this is the most consumed and exported of the pulses to this part of the world. The price for these
would be 975CAD/MT bulk (A. Safak, personal communication, July 25, 2013). Then through a
freight forwarder we can get them moved from silos in the port of Vancouver to the port of
Kolkata for approximately 5015CAD and add another 902CAD to transport the container by
truck to Khatmandhu (P.Walsh, personal communication, October 18, 2015). This brings the total
for a full container of Canadian whole red lentils to $27,367 which equals to $1.24/kg of red
lentils. Compare that to the average price of red daal (lentils) in Nepal at 180 ($2.20CAD) at
local grocery chain Metro Tarkari (Metro Tarkari, 2015) you see that there is significant
economic advantage for the average Nepalese consumer in savings. Even if there were to be a
small markup in price the all can benefit including the retailers and distributors.
Potential benefits to Nepal: If Nepalese were assured of a safe, cheap and dependable
ALLIANCE GRAIN TRADERS
TCI Freight
supply of one of their most consumed staples, much more effort can be spent on developing good
land for a more useful profitable and enriching purpose instead of base subsistence farming. The
amount of manpower that could be diverted to more profitable tasks would also be great if so
much effort was not spent on farming and harvesting pulses. Perhaps more profitable crops such
as coffee, fruits and vegetables could be grown and harvested in the Terai if less pulses where
operating in the area. Remittances from those Nepalese who work abroad is a large revenue
source for many and this can also increase in the short term as the people look for alternatives
forms of employment to agriculture that offer them and their families a basic standard of living.
With the excess money in government coiffures from the remittances, more money can be
invested in education, industry and resource extraction for future generations to profit from.
Realities/issues: To import lentil seeds into Nepal one will have to get the appropriate
license from the Nepal government Seed Quality Control Center. For 100Rs one can obtain a
license after filling out the seed import license application and providing a sample of seeds to
send to the licensing body (Nepal License, 2015).
With all these facts on the side in favor of promoting the export of pulses to Nepal from
Canada we have to recognize the realities on the ground. At the present time before this essay
came fully to fruition Nepal was not in such a difficult political and social dilemma as it is today.
From the earthquake in April 2015 to the border blockade of today Nepal has proven to be a very
unstable country both politically and tectonically. The need for goods and services to enter the
country from abroad has never been higher yet due to the situation many goods cannot move
through the border, and those that do make it cannot go very far due to a chronic fuel shortage in
Nepal, another result of the blockade.
Conclusion: Still there are other issues to consider regarding this project in terms of long
term benefits for Nepalese regardless of the political uncertainty. On paper the theory is
basically; cheaper good quality food for locals + less time needed to spend working the fields to
grow and harvest will lead it more disposable income and more time and land available for other
more profitable endeavours. This can be a reality but it needs support from guidance from the
higher powers in the Nepalese government and population as a whole. It really is not easy to
change a culture and there is no guarantee that local farmers will be open to the idea of more
pulses coming from outside the country and encroaching on their livelihoods unless they are
provided with proper compensation (substitute crop, compensation, alternative employment, etc).
Also if one of the other major drivers of the economy is remittances from working abroad and
tourism, those can be very fickle and unreliable especially with tourism in an unstable country.
Nepal is a country of many challenges and going forward if it hopes to get its population out of
the severe poverty it faces one key will be ensuring food security and weaning it population of
laborious agriculture subsistence farming and moving towards more profitable industries. This
idea of exporting pulses is not a guarantee of success but it will give something to Nepalese that
many of us in North America are continuously seeking and that is more access to higher quality
cheaper foods, and thats an idea that all peoples can agree on.
References
(2009, March 18). Pulses and Special Crops Canadian Industry - Agriculture and Agri-Food
Canada (AAFC). Retrieved October 17, 2015, from http://www.agr.gc.ca/eng/industrymarkets-and-trade/statistics-and-market-information/by-product-sector/crops/pulses-andspecial-crops-canadian-industry/?id=1174420265572
Latest Products -Metro Tarkari. (n.d.). Retrieved October 18, 2015, from
http://metrotarkari.com/?option=product&cid=383734353832&m=s
Kyle Knight. The subtle wounds of Nepals remittance boom. (n.d.). (April 04, 2014). Aljazeera.
http://www.aljazeera.com/indepth/features/2014/04/subtle-wounds-nepals-remittanceboom-201441144741533395.html
Nepal Business License e-Portal. (n.d.). (December 1, 2015),Government of Nepal from
http://licenseportal.gov.np/index.php/browse_license/license_details/241