News

October Market Updates

Pulses

Peas – Slight pressure upward on Peas over 2016 season. Lower yields in some areas along with lower quality in others has pushed pricing upwards a bit. While nothing spectacular is expected to happen in Yellow and Green peas this season, we could see some opportunities for spot buys at last year’s pricing levels. However, for the most part, forward contracts will carry a few cents premium per pound over 2016.

Chickpeas – What a wild ride this year on Chickpeas. Shortages in many areas around the globe have caused upward pressure on pricing with some feed grade chickpea offers being even with food grade chickpeas. India is buying from Mexico to cover their shortages and Canada, in some cases, wants to hold out on forward contracts for pet food manufacture due to their better graded product. However, there are still affordable options, comparatively speaking, to paying food grade prices. We are working all supply angles, with quality and affordable prices at the forefront of discussions.   Long term conversations are being had with more growers to build strategic relationships for consistent chickpea supplies.

 

Proteins

Venison – Nearly a non-existent supply right now from NZ. If available its be sporadic and inconsistent in pricing and quality. We are working with strategic partners to hopefully unlock supply from other sources but it’s not a quick turnaround right now. When available expect Venison to be priced as the high-demand item that it is.

Vegetable Proteins- Demand for all types of vegetable protein are at an all time high. Potato Protein 72% and Pea Protein 72% are expected to have a limited supply for 2018. We can expect to see higher prices on all forms of vegetable protein in 2018. In order to supply the increased demand in the petfood and human grade sectors, multiple facilities have increased capacity and new companies have started. We should see an easing in strictness of supply for pea protein 50% this next year as the plants come online in Q1 and Q2. With that being said, we are still watching closely to see if there will still be a deficit.

 

Vitamins/Minerals Unfortunately there seems to be a lot of volatility in the Vitamin and Mineral markets right now. In speaking with some of our key contacts, they have referred to it as a rollercoaster year, filled with ups and downs that some are explainable and others not so much. China has shuttered plants in efforts to address quality and safety issues thus throwing other supply regions, like the EU, into disarray. Expect to see some volatility in this market for some time as China gets a better handle on their internal health and safety regulations. In the US, we have seen disruptions in supply chains for many items due to Hurricanes Harvey and Irma. Many of the refineries in Texas that provide chemicals for processing had significant delays along with the port delays.

 

- Loren Topp, Purchasing Agent

- Robert Lee, Strategic Sourcing Manager