Two companies which specialize in pulse production, AGT Foods and Sweet Nutrition, are teaming up to advance the industry via a new $3.9 million investment.

The companies are partners in a project which was initiated by Protein Industries Canada (PIC), an industry-led group.

Both firms, headquartered in Saskatchewan, will “develop improved pulse ingredients” from peas, lentils and faba beans (also commonly known as fava beans).

“The project will advance new processing and post-fractionation techniques, including heat-moisture treatment, blending and extrusion; to enhance ingredient performance and consistency,” according to the release.

Joint project to improve the values of pulses

PIC will commit $1.4 million and the industry partners will provide the remainder of the funding.

“Those two companies have put together a project charter where AGT Foods will help create the ingredients at their extrusion facility in Regina," Tyler Groeneveld, chief executive officer of PIC said to FoodNX in an interview, "then Sweet Nutrition will take the ingredients from AGT’s processing, and they’ll be creating new snack foods and baked items and a broader portfolio of products that will be single-serve, high-protein products.

“It’s a true end-to-end Canadian project.”

But what exactly is a pulse?

“Pulses are edible seeds from the legume family including beans, peas, chickpeas and lentils. They are very high in protein and fibre and low in fat,” according to Pulse Canada, an industry association representing growers, traders and processors of Canadian pulses.

Canada’s pulse production industry contributed $6.3 billion to the economy, including $3.1 billion in GDP in 2021, and it contributes almost 26,000 jobs, according to Pulse Canada.

The sector is well poised for an evolution, and the initiative should give it a boost.

“There has been a real growth in the value-added processing market in Canada, where, if you look back to maybe 20, 25 years ago, there was only a handful of companies that had the capacity to process ingredients," Janelle Carlin, director quality science food innovation with Pulse Canada, told FoodNX. "Now we’re upwards of anywhere between 20 to 30 companies that are manufacturing these ingredients.”

But the industry must also address the different needs of different markets, she said.

“Flavour continues to be a large challenge for the food sector, particularly in Western diets, where Western consumer expectations are for a very clean flavour; minimal taste, and that’s in comparison to countries or different regions that have historically high consumption of pulses, so they’re a little bit more familiar with the flavour profile.”

Production capacity, improved functionality aim of project

The project will aim to improve the functionality of pulse proteins, starches and fibres, according to a release. It will achieve this and expand the production capacity.

“Combining AGT’s knowledge and expertise in pulse ingredients, food product formulation and production at scale with the entrepreneurial drive of nimble companies like Sweet Nutrition is definitely a recipe for success,” Murad Al-Katib, president and chief executive officer of AGT Foods said in a press release.

This initiative “complements AGT’s existing business and supports a new generation of pulse product innovators,” and fits nicely into the 25-year-old producer’s $3-billion annual business, he said.

For Sweet Nutrition, “this partnership with AGT Foods gives us access to the next generation of Canadian pulse ingredients, and the investment from Protein Industries Canada is helping us scale our production in Saskatoon. We’re expanding our manufacturing capabilities and broadening our product lineup to bring more delicious, nutritious options to Canadian consumers,” Casey Parker, cofounder, president and CEO of Sweet Nutrition said in a release.

“We’re proud to be part of a project that keeps the value of Canadian crops right here in Canada.”

Road to $25 billion

PIC is one part of Canada’s five Global Innovation Clusters. This project is part of a broader effort to support domestic innovation and grow Canada’s plant-based food, feed and ingredient sector into a $25-billion industry.

For PIC, this effort will help Canada protect an important asset while global turmoil roils.

“The campaign is focusing on 'make it here,' so we’re able to feed a hungry Canada, looking for national security and economic security and food security. A project like this really allows Canada to feed our own domestic country and ultimately, we’re able to also export these ingredients to a world looking for more functional, high-protein ingredients,” Groeneveld said.

Groeneveld argues for increased manufacturing within Canada.

“We export a lot of commodities to Asian markets but if we can take a percentage of those commodities that we ship and do more processing here in Canada, we create economic activity, jobs and GDP; economic security and food security.”

In addition, the protein industry today is grappling with issues that are facing much of the food industry.

“I think the challenges are Canadian consumers, like North American consumers, are looking for cleaner labels; nutrient-dense foods, higher-protein products, higher-fibre products,” he said.

“So why are we not investing in a crop that is growing every year to create more economic potential because we can do it quicker than many of these other priority economic sectors that the federal government has identified.

It’s a wonderful opportunity: the world is looking for more secure food supply chains, and Canada can be a very secure food supply chain to a world looking for higher quality ingredients, including proteins, and recognize the economic wealth from that."