andards.
Green lentil is grown in smaller quantities and most is sold into markets in the Middle-East. Two new varieties released for the 2015 season, PBA Giant (a high yielding large green lentil) and PBA Greenfield (a high yielding disease resistant medium-sized green lentil) have increased the variety choice for growers and provided access to different markets.
Factors that may influence marketing decisions for Australian lentil farmers include:
- harvest quality and on-farm storage capacity
- the carryover stocks in Australia and the quality of this grain
- the farm’s proximity to local processors.
Lentil is traditionally the highest value winter pulse option for growers in the southern region. Some small-seeded varieties like PBA Hurricane XT, PBA Bounty and the superseded varieties of Nipper and Northfields have sometimes commanded a price premium. Large-seeded types like Aldinga can attract either a price discount or a price premium, according to supply and demand drivers. Prices for variety size categories can also vary from season to season based on supply and demand. Between 2010 and 2015 there has been little difference in the prices paid to Australian farmer for the different sized lentils.
The price of lentil as a commodity is relatively stable, rising and falling in line with supply and demand. Traditionally there were stronger market demands prior to the Ramadan festive season but the timing of the festival now has less impact on world price. The relatively small tonnage traded also means that any delay in harvest or shipping in an exporting country that threatens a contract being met can result in a ‘short’ or ‘spike’ in the market. These are normally short term and reflect a contractual supply problem rather than a fluctuation in the lentil market.
Variable costs of production for lentil can be higher than those applicable to other pulses, like field peas or lupins, depending on the inputs required to grow a high quality crop.
World production of lentil now exceeds 4.5 million tonnes annually, of which 40–45% is exported from the country of origin. This is in contrast to chickpea where almost double the tonnage is produced globally, yet less than 5% of production is exported.
Australian lentil grain is exported to over 40 countries including India, Turkey, Pakistan, Egypt, Spain, Mauritius and France. Canada also produces large exportable quantities of both red and green lentil. Canada, USA and New Zealand are major export competitors to Australia in world markets for red lentil, and the volume and carry-over stocks impact on world prices.
For Australia to expand its world market share, growers and processors need to pay particular attention to the production of high quality, food grade lentil that will compete favourably with that produced in other countries. Poorer quality lentil grain is a marketing problem. Although they eventually become saleable it will usually be at a dramatically reduced market priority and price. Lengthy storage on farm may be necessary until markets become available, if at all. Badly weathered or damaged lentil grain may not necessarily find a market in stockfeed manufacturing markets either as feed manufacturers are often not familiar with lentil and are reluctant to make temporary changes to rations. See also 'Meeting lentil market requirements'.
At the time of planting for the Australian lentil crop, the Indian rabi production will be known and predicted Canadian and USA lentil sowing intentions will be published. Decisions on whether to sow lentils in Australia can be made based on current world production estimates and apparent deficiencies or likely surpluses.The Canadian and Turkish crop is harvested before the Australian crop, so this can impact on the demand and prices for Australian product, as can the expectations for the Indian lentil harvest. However, much can happen between the Australian sowing time and having product ready to export.
Building a relationship with a trusted lentil buyer or marketer will usually be very worthwhile.
National receival standards for l