Thursday, 18 February 2016

Global pulse demand increases demand and pricing for Canadian crops

This trend, while probably temporary (as all commodity booms usually are), should have a positive impact on AGT Food and Ingredients (TSX:AGT) throughout the year, as they are heavily focused on processing and shipment of pulse crops. They have been low on the radar due to the focus in Canada on other crops, but the demand for pulses has been growing over the years and they are in a good position to capitalize on it.

Pulses have been popular as a source of non meat protein, and as a flour to fill in nutrient gaps. Many popular pastas have been using portional pulse content to do this. In addition, pulse flour has been used to produce gluten free pastas. While I personally find gluten free to be more of a popular 'me too' trend, it's increased demand for pulse crops and does have the benefit of providing more goods on the market that actual celiacs can benefit from in their diets.

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