Yesterday, Dutch agricultural goods processor Louis Dreyfus Company (LDC) introduced a new business unit dedicated to the global commercialization of pulses.
The group says the move aligns with its strategic focus on reinforcing its core merchandising activities and diversifying into new sectors. LDC’s decision to focus on pulses comes at a time when these crops are increasingly recognized as a cornerstone of plant-based diets.
“Pulses have gained prominence as a primary source of plant-based proteins”
The global demand for pulse ingredients continues to grow, reflecting their critical role as a sustainable and nutrient-dense protein source in the plant-based food sector. Pulses, including peas, chickpeas, lentils, and lupins, are increasingly favored by plant-based food manufacturers and consumers alike for their health benefits and environmental sustainability.
Despite recent declines in the prices of commodities like soybeans and wheat due to factors like oversupply and changing demand dynamics, pulse values have remained robust, demonstrating their growing importance in the global food supply chain.
The cornerstone of plant-based
While EU export demand has slightly weakened due to higher prices associated with lower-than-expected crop availability, domestic users remain reliant on pulses. Key export regions like Canada, Australia, India, the United States, and East Africa are anticipated to play a crucial role in meeting this growing demand, with many significant investments and partnerships in these regions over the last year.
The new business unit will initially concentrate on key pulse varieties such as yellow peas, chickpeas, red lentils, fava beans, and pigeon peas. LDC’s established presence in major pulse-producing regions, as well as its trading operations in significant consumption hubs like India, Pakistan, and Bangladesh, positions the company to effectively meet the growing global demand for pulse ingredients.
LDC isn’t alone in recognizing the potential of pulses. The Canadian government recently invested over $11 million in Pulse Canada to enhance its agricultural production and processing capabilities, particularly in the pulse sector, which is central to the country’s strategy for food innovation. Canadian plant-based ingredients company Above Food also acquired The Redwood Group’s Specialty Crop Food Ingredients Division in the United States, which supplies pulses to over 35 countries.
Agribusiness leader ADM acquired Prairie Pulse last year, a locally operated lentil and pulse crop processor in Saskatchewan, Canada, enabling ADM to double its production of alt protein products for domestic and international markets. Meanwhile, Bunge has added pea and fava protein concentrates to its portfolio, produced in collaboration with Golden Fields at a new facility in Latvia.
Demand amid market fluctuations
Even amid market fluctuations, there is a steady demand for pulses, with major industry players like Ripple Foods, Beyond Meat, and Konscious Foods all incorporating pulse ingredients as key components in their product recipes, not least the egg alternative market leader JUST Egg which is famously based on the mung bean.
Despite challenges like uncertain crop yields and fluctuating supply levels, the resilience of pulse prices—bolstered by strong domestic demand and strategic investments—shows that pulses will continue to play a critical role in the plant-based food industry.
Michael Gelchie, LDC’s Chief Executive Officer, noted, “Pulses have gained prominence as a primary source of plant-based proteins and are also an ally for sustainable agriculture, as crops with properties that improve soil health and reduce agricultural greenhouse gas emissions. The decision to establish this new business unit is therefore fully aligned with our strategy to meet evolving nutritional and sustainability expectations from customers, reflected in both global production and demand growth.”