Lentil Guide

India, one of the most important markets for Canadian lentils, extended the zero tariff on lentils until March 31, 2024, on December 29, 2022. The country expanded its duty-free importation of lentils for another year. The exemption was set to expire on March 31, resulting in a return to a prohibitively high 30 percent duty. 

Tariff Information

Source: Tridge

Supply chains in Canada mainly operate a ‘pull’ delivery system where grain is moved from a farm to a receival site and then to a port, ‘just in time’ as ships arrive. Canada’s grain supply chain is particularly exposed to the pricing and efficiency of rail freight provided by two dominant private rail companies. Unit trains in Canada are larger and deliver at least 10,000 tonnes per train to the port. Canadian wagons take up to two weeks to cycle. Grain in Canada is mainly produced in the warm summer months over a four to the five-month growing season. Almost all grain in Canada is stored on the farm immediately after harvest, with less than 10% delivered to a receival site directly from the paddock. Canadian farmers present grain samples stored in farm bins to receival sites and negotiate prices and grades. Farmers’ sales are primarily restricted to their local receival sites, which compete for grain through their price and contract offers.

75% of grain exported from Canada travels long distances by rail from the prairie provinces to two main west coast ports. Journeys of 1300 to 1800 km are commonplace. Oil and mineral fields in Canada are close to agricultural areas, so both industries share the rail network. Two rail companies dominate the provision of rail freight in Canada. There is limited inter-switching between the networks, so they operate primarily as regional monopolies, owning both above and below-rail assets.

Consequently, Canada’s grain supply chains are particularly exposed to the pricing and efficiency of rail freight provided by these two dominant companies. Canada’s main export port, Vancouver, has six-grain export terminals. Three companies in Canada: Richardsons, Viterra, and Cargill, own most of the port infrastructure and account for about 75% of the annual grain exports. 

[Australia]

In December 2020, Australia is currently in the high season of lentils.

[Canada]

In Saskatchewan, lentils are planted in early May. Lentil plants grow approximately 24 inches tall, with the seeds being produced in pods attached to the plant. There are between one to three lentils per pod. The lentil is then harvested in its dry form, typically in mid-August.

[Russia]

Depending on the region of cultivation, the sowing and harvesting period of lentils may deviate up to 2 weeks due to the features of the climate of Russia and different average weather temperatures.

The sowing period of lentils starts in early spring when the soil warms’ temperature up to 5-6°C.

In the Southern District of Russia, a sowing period is at the beginning - the middle of March, in Central and Volga districts - in the middle - the end of April, in the Ural area - the end of April - the beginning of May, in Siberia area - the beginning - the middle of May.

The harvesting period varies from region to region. In the Southern district, harvest comes from the end of June until the beginning of July, in Central and Volga districts - from the middle of July to early August, in the Ural district- from the end of July to the mid of August, in Siberia district - from the end of August to the beginning of September.

[France]

Sow in April or May. The harvest season is in July or August.

There are four main categories of lentils: brown, green, red/yellow, and specialty:

Brown Lentils

Brown lentils are the most common variety – any bag in the grocery store that says “lentils” without any other descriptor is most likely full of brown lentils. This variety can range in color from khaki brown to dark black and has a mild, earthy flavor.

Green Lentils

Green lentils are incredibly similar to brown lentils, but have a more robust and slightly peppery flavor and come in a range of sizes. Green lentils can vary in color from pale or spotted green to a green-slate color with blue and black hints.

Red and Yellow Lentils

This variety of lentils ranges in color from golden yellow to orange and red. Red and yellow lentils are also the only variety sold “split,” which means these lentils are processed into smaller lentil bits. These somewhat sweet and nutty lentils are very common in Indian and Middle Eastern cuisine and are the key to classic dishes such as Indian dhal.

Specialty Lentils

There are many varieties of specialty lentils, but two are most common: Black beluga and Puy. Both varieties are about one-third of brown or green lentils’ size and have a rich, earthy flavor.

Black Beluga Lentils

When cooked, black beluga lentils are shiny, tiny, and black – has a similar look with caviar: hence the name.

Puy Lentils

Puy lentils are grown in the volcanic soil of a specific region in central France called Le Puy. Puy lentils are known for dark, bluish-slate-green color and rich, peppery flavor.

According to USDA, here are the grade and grade requirements for dockage-free lentils:

Source:

United States standards for lentils

In 2022, countries that imported the largest quantity of Canadian lentils in the world include Türkiye($373.3M), India($302.2M), United Arab Emirates($219.5M), Algeria($77.7M), United States($77.1M), Bangladesh($76.6M), Pakistan($74.8M), and Colombia($67.4M) generated 77.44% of the world’s overall total. The total import of Canadian lentils amounted to USD 1.68 billion in 2022. Year over year, the overall value of exported lentils increased by 14.3% compared to $1.4 billion during 2021.

Export Destinations of Canadian Lentils

Source: Tridge

In 2020, India was the largest importer, accounting for 20.6% of the worldwide import share with an import value of USD 580,893K. This was followed by Turkey (11%) with an import value of USD 311,790K. Bangladesh was the third-largest importer with an import value of USD 264,265K (9.4%)

- Class

Lentils are designated into two classes: Lentils, Red, and Lentils, other than Red. The method of determining the class of a lentil is by cotyledon color. Inspectors may need to visually inspect cotyledons to determine the class.

Lentils on export are graded in accordance with the primary and export grade determinants tables. The following are some items that affect lentil quality:

- Ascochyta

Ascochyta is a fungal disease that attacks the lentil plant and seed. Any degree of white fungal growth on the seed is considered damaged.

- Bleached

Bleached seeds have a whitened seed coat distinctly faded from the natural red color of sound lentils. Lentils having a lighter pink shade that is contrasting with the overall sample are considered sound.

- Color

Color is evaluated after the removal of stained and damaged lentils.

- Copper

Copper seeds have a rust color covering both sides of the seed and the entire seed coat. The rust color is in distinct contrast with the natural red color of sound lentils.

- Damage (DMG)

Damaged lentils may be peeled, split, broken, sprouted, distinctly green, frost-damaged, distinctly deteriorated or discolored by weather or disease, insect damaged, heat damaged, or otherwise damaged in a way that materially affects quality.

- Ergot (ERG)

Ergot is a plant disease-producing elongated fungal body with a purplish-black exterior, a purplish-white to off-white interior, and a relatively smooth surface texture.

- Excreta

Excrement from any animal, including mammals, birds, and insects.

- Fertilizer pellets

Fertilizer pellets are manufactured plant nutrient products used by producers in the production of grain. The looks are typically small, round, or irregularly shaped and usually white, grey, brown, pink, or reddish.

Grain bound for Asia typically departs from one of two west coast ports: Prince Rupert or Vancouver. Vancouver is the largest of these ports, with six terminal elevators and 58% of total grain exports. Prince Rupert has only one terminal elevator despite accounting for 19% of Canada's grain exports. 

Most grain destined for Europe or the Middle East departs from Thunder Bay, Ontario, which has eight terminal elevators and accounts for 21 percent of exported grain. Less than 1% is also exported via the east coast port of Churchill via a single port terminal. Export volumes from west coast ports have increased compared to east coast ports in recent years. This is partly due to a decline in trade with Europe compared with Asia and partly due to lower shipping rates in the Pacific region.

Lentil in its whole serves a purpose in flavor and aroma enhancer products such as soups, sauces, dips, spreads, and so on. Furthermore, it is commonly found in ready-to-eat food products, contributing to the worldwide lentil market's rapid rise.

Several snack foods, batters, and pastry items are made with flour and split lentil fractions. In addition, consumers worldwide favor lentils due to their lengthy shelf life, resulting in increased demand.

Due to the developing organized food retail sector, there has been an increase in consumer health consciousness and awareness regarding the availability of organically grown lentils in recent years. Demand for lentils has increased as people become more aware of its health benefits, such as being an excellent source of plant-based protein, fiber, and numerous vital nutrients. Lentils are becoming growing in popularity as people seek healthier eating options.This has had a direct influence on the global lentils market.

Moreover, the increased popularity of vegetarian and vegan diets has raised demand for plant-based protein sources such as lentils. Lentils are a great meat substitute that can be used in a variety of meatless recipes.

Lentils are currently in high demand, particularly in emerging markets such as India, Türkiye, and Sri Lanka, as a result of rapid population expansion, rising living levels, and shifting dietary trends. Lentils are a very inexpensive source of nutrition, making them appealing in areas where populations are growing.

Source: 

Outlook on the World Lentil Market (2019-2024): Volume & Value Trends, Price Analysis, Imports & Exports, Opportunity Forecasts