David Lever from AGT Foods Africa/
South Africa’s pulses consumption and next year’s harvest

South Africa is set to experience another good harvest; how will that affect AGT Foods and the pulse market?

I actually think it’s a bit premature to be calling this a bumper harvest at the moment; we’ve only just started planting. The majority of the pulse crops grown in South Africa are summer crops, so they’re planted around this time of year, with the intended harvest happening around March, April, and May. There are some faster-growing pulses planted in January-February time, too. So, it’s very early to be talking about a high-yield harvest at this stage, especially with the fluctuating weather being so unpredictable.

The CEC has predicted a 14% increase in dry bean production to around 54,000 hectares; how do you feel about that?

I agree with the CEC in terms of the hectares, but because it’s so early in the season, it would be an almost impossible task to guess potential yields. Based on seed sales, 54,000 hectares does seem likely. These statistics are limited as they only mention beans and neglect smaller pulse crops, but it’s true, beans are a huge market in South Africa. We’re looking at a 65,000 ton bean crop.

If it’s too soon to talk about next year’s harvest, how have things been in recent years? There have been several reports about increased yield, do you agree?

Again, I don’t agree with that at all. If we’re talking predominantly pulses here, our bean crop this year was probably 35% of what it usually is. The reason for that is simple: there was an abundance of late rain at a critical time, close to and even at harvest. The conditions were so bad that they took away a significant proportion of our speckled bean crop. South Africa has been importing beans for the majority of the year which, from a timing perspective, is strange because normally we would produce enough to keep going from harvest time to around November or December. This year that hasn’t been the case. So, if you ask me, it’s been the complete opposite of a bumper crop.

How has having to import beans so early affected AGT?

Unfortunately, the South African economy has struggled to recover from the COVID-19 pandemic and that has put pressure on consumption patterns. The reduced bean crop has affected us in the sense that we haven’t had enough domestic production but that has almost been offset by the fact that people are buying less because of the state of the economy. So we are importing beans and will continue to import beans but the volume is not what we would traditionally have seen in the past in South Africa.

What is pulse consumption typically like in South Africa? How established is the plant-based movement? 

The pulse consumption patterns here are very, very traditional. When I say traditional, I’m referring to products such as speckled beans, navy beans, and kidney beans. However, there has been a definite increase in the consumption of lentils, peas, and chickpeas. For me, I think that’s a direct result of consumer awareness improving over the last five years or so. Pulse consumption patterns are definitely changing. 

Based on the economic climate in South Africa, there are two distinct markets: the more traditional side uses pulses as an excellent source of protein, as they have done for hundreds of years; the other side is coming onto pulses because of this new awareness around sustainable eating. So, these are two very different kinds of consumers. 

The plant-based movement certainly has gained traction, not quite as fast as I would have anticipated, but there is an awareness around it and an increasing curiosity. There’s no doubt people are intrigued by plant-based products and want to make healthier, better choices, both for themselves and the planet. 

Unfortunately, there isn’t a great deal of information directed towards teaching lower LSM (Living Standards Measure) groups about other kinds of pulses. I believe that if there was a push towards educating people, they would understand the benefits of including a broader range of pulses in their diets. As a company, we hope to increase awareness around different pulse options.  

How much of your business is based in South Africa? 

In South Africa, it’s both an import and export business. Obviously, we import the products that we don’t produce enough of or don’t produce at all. These are things like lentils, peas, and chickpeas. However, it is certainly an ambition for AGT Africa to try and increase awareness of these crops in growers and farmers; hopefully, if we introduce these initiatives slowly, South Africa can become more active in pulse production. There is immense potential here from a farming perspective, and we intend to tap into that potential. We’d love to see things expanding and progressing here.

Are you exporting a lot? Where are your biggest markets?

The world is our market! We try to cover as much of it as we can.

Has there been an increased demand in recent years? Is wastage ever an issue?

Wastage isn’t a particular issue; pretty much everything we are producing is consumed in one way or another. We haven’t had a situation where there has been an overproduction either, so we can always sell what we’ve got. There’s very little wastage with pulses as a crop in general; even by-products not fit for human consumption can be sold as feed for cattle, so nothing goes to waste. We do our best to extract every ounce of value out of all the pulses we work with; we want to make sure customers are getting the most out of our products.

Would you say the current level of production is sustainable or will it mean higher costs for farmers?

I would say the current level of production is weather-permitting. The past few years have been very changeable—we’ve gone from dry conditions to wet conditions—and that makes things absolutely impossible to predict. Weather patterns have changed so dramatically; I’m sure it’s a real headache for farmers across the country.

Is it too soon to tell if this shift in the weather is permanent? 

I think you’d have to ask the scientists that one!

Fair enough! Besides weather then, what are the main obstacles in the industry right now? How are rising herbicide prices affecting crop production? 

Production costs have increased dramatically worldwide. This is due to a combination of factors but I’d say the biggest one is the global shipping crisis. It’s had a huge impact on fertiliser costs; anything that is imported or exported on a vessel has now increased in price exponentially. Unfortunately, that does mean higher prices for the consumer too because the production costs for almost everything we are actively involved in have increased.

Have you seen the implications of this on a local level, in conversation with farmers, for instance?

Not so much with this year’s harvest, but certainly with what we plan to produce next year. In negotiations with any farmer, we have to talk about how production costs on their side have increased. I think food inflation is going to be a serious issue over the next twelve to eighteen months.

How are you going to navigate that? It sounds like it’s going to be a tricky time.

We’ll have to find a balance between running a business from a profitability perspective and keeping things affordable for our consumers. It’s a tough situation, but we’ll do our best to manage it.