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THE FUTURE OF PULSES
IN ASIA-PACIFIC
A Future Food Asia Initiative
In partnership with
Disclaimer
8th June 2021
This report has been published by ID Capital Pte Ltd in partnership with Bühler Group, USA Dry Pea
& Lentil Council and U.S. Dry Bean Council (‘Report Partners’), as part of the Future Food Asia 2021
Conference.
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THE FUTURE OF PULSES IN ASIA-PACIFIC
Table of Contents
Game changing Pulses: Why investor focus is honing in 1
Beyond wheat, rice, corn and soy: Pulses can replenish and securitise 5
Asia’s food bowl
Standing out from the alternative protein crowd 7
Opportunities for soil regeneration and wider adoption 11
Public policy tools for farmers will be crucial 13
Location, Location, Location: Asia is strategically located for processing 15
pulses
Dreams versus realities: Asia Pacific a pulse processing hub 18
Spotlight on Asian fractionation: wet versus dry? 20
Enabling process: Masking the ‘beany note’ 23
Innovation Highlight: Bühler & Givaudan open plant-based Protein 25
Innovation Center in Singapore
Six featured pulses: Dry Peas, Chickpeas, Mung Beans, Fava Beans, 27
Lentils & Dry Beans
Countries to watch 40
On the Pulse: Key takeaways 47
THE FUTURE OF PULSES IN ASIA-PACIFIC
Game changing Pulses: Why investor
focus is honing in
> 2021 is bringing a renewed and necessary investor focus onto pulses. These legume
crops have major potential to broaden, securitise, and replenish Asia’s food basket.
Compounding that potential is a booming consumer appetite for plant based protein and
turbocharging that trend is Asia Pacific’s drastic economic and population growth. Current
monoculture methods, however, appear unable to keep pace.
This is broadly why several aspects of the pulse adoption. New breeding technologies are
value chain — especially of peas, chickpeas, dry bringing quicker growth cycles and higher,
beans, lentils, fava beans, or mung beans — are more reliable yields of more protein-dense
sparking lively curiosity among investors and pulses. Increasingly, some are bred to be ever
major food corporations. This report seeks to better placed for climate resilience, while
satisfy that curiosity, uncovering where and how mechanisation adoption looks set to bring
pulses can bring a powerful proposition to the meaningful benefits and reduce cultivation
Asia Pacific region. Many of these challenges costs. Equally, smart rotations of crops can
and opportunities have come into even sharper ward off insects and disease while naturally
relief during the Covid-19 pandemic. replenishing soils with nitrogen.
Upstream at the farm level, a wellspring of However, existing monoculture practices in
research points to a perfect storm for pulse Asia and elsewhere will not accommodate
Share of Pulses Production in 2018*
South Middle East, 1% Others, 7%
America, 8%
Australia, 6%
Europe, 10%
China, 15%
North America,
APAC, 49%
11%
India, 57%
Myanmar,
Africa, 20% 15%
Total Global Production: 82M MT
*Source: FAOSTATS, Production data, 2018
THE FUTURE OF PULSES IN ASIA-PACIFIC 1
more pulses overnight. As Jürgen Vögele, a pulses take their place on Asian tables as highly
senior director at the World Bank’s Agriculture functional sources of protein, fiber, starch, and
Global Practice puts it, pulses (and other other micronutrients. As this report finds, big
agronomically useful crops like nuts) still get visions already abound across the region for
only a tiny fraction of public research funding entire ‘pulse processing parks.’ These could
from bodies like CGIAR.1 So breeding and need deep pockets, agile government policies,
agronomy techniques lag the likes of corn, and underlying political stability. The latter
wheat, soy, or rice. Getting a larger slice of the point may hold back Myanmar’s prospects
research pie in the years ahead will be crucial as an emergent processing hub — a country
to wider pulse adoption and acceptance. otherwise replete with long term upsides.
Downstream, this report sees a proliferation
of consumer snacks and protein products
using pulses. This is only the sunrise, judging
by foodtech investment trends and consumer
demand forecasts. Although soy still remains
the dominant go-to ingredient for meat
substitutes due to its well-developed supply
chain, market research is showing that
consumer sentiment is receptive to pulse
For processors and traders at the midstream, protein or starch products.2 These range
there are significant wins looming large on the from plant-based egg substitutes derived
horizon too. Given the fragmented nature of from mung bean concentrates to lentil-
the Asian midstream, there are several areas based noodles; there is even scope for dairy
to crank up efficiencies. In particular, this products and protein powders made from
report identifies processing opportunities chickpeas.
for those innovating in the spheres of
fractionation extrusion and flavor science.
All these processing techniques are helping
THE FUTURE OF PULSES IN ASIA-PACIFIC 2
Beyond wheat, rice, corn and soy:
Pulses can replenish and securitise
Asia’s food bowl
> Wheat, rice, corn, and soy have filled Asian food bowls for decades. But, the Big Four need
reinforcements. As populations rise, climates shift, soils deplete, and consumers get a
taste for plant-based proteins, Asia needs to rapidly grow, trade, and eat more pulses.
Asia would not be Asia without pulses. They What this all meant was much more of
have been essential to how the continent feeds a boom time for crops like rice, wheat,
itself since the first agricultural revolution in corn and soy. These ‘Big Four’ crops have
the Neolithic Age. Yet over the past sixty years since gone on to reap a winner-takes-
pulses have found themselves taking more all effect with yield boosts, government
of an agronomic back seat. The onset of the subsidies, scientific research, and a sheer
agrichemicals revolution across the Asia Pacific accumulation of acres farmed — not just in
region has seen many farmers cutting out crop Asia, but globally. Among the four, soybean
rotations — moving away from the natural notably also possesses the benefit (much
nitrogen-fixing capabilities of pulses like peas, like pulses) of nitrogen fixation. Rice, wheat,
lentils, or beans.3 corn, and soy alone now take up roughly
Global Production in 2019-20*
in million metric tons
Pulses, 98
Soybean, 335
Rice (milled), 495
Wheat, 764
Corn, 1,116
*Source: FAOSTATS, Production data, 2018
THE FUTURE OF PULSES IN ASIA-PACIFIC 3
around the advent of a super yielding crop,
not least as a potential source of biofuel. As
did early rice hybrids pioneered by Chinese
scientist Yuan Longping.7 Yet breakthroughs
like these overlooked how much food produced
was actually for feeding livestock. Throughout
history, livestock have given humanity a vital
calorie and protein store for winter months
Rice blast is responsible for ~30% of rice
or bad harvests, as well as grazing areas
production losses globally—the equivalent of
feeding 60 million people unsuitable for cropland.8 While livestock remain
sources of fertiliser in some crop rotations,
particularly regenerative agriculture systems,
half of the world’s entire croplands. The
that usefulness is no longer as acute in today’s
remaining 152 crops cover the rest.4
interconnected world. Storage techniques,
plant protein extraction, and global trade
As successful as the Big Four have been, the
links could feasibly offer year-round access to
over-reliance on a handful of crops and chemical
proteins and calories. Despite this, 71 percent
fertilisers creates risks of crop epidemics, a loss
of all crop produce is still earmarked as feed
of biodiversity, and soil degradation. Vietnam,
for cattle, pigs, poultry, or fish.
for instance, has to constantly find ways to
stop bouts of rice blast disease, a fungal crop
Indeed, demand for plant based protein
blight that — due to rice’s predominance as a
extractions has been booming since the
staple food domestically — can have critical
pandemic, and the indicators suggest this
implications on food security.5 Soy’s tendency
growth is set to continue. One study from
to be grown in equatorial areas has brought it
DuPont Nutrition & Biosciences anticipates
into the spotlight as a culprit crop behind the
destruction of rainforest habitats.6 this surge is only the beginning for Asia Pacific:
the firm predicts that demand is set to grow by
There were harsh historical underpinnings 200 percent in China and Thailand in the next
for maximising yield on a few tried and tested five years.9 Even without these demographic
staples. “In the 1960s, 65 million people in and economic shifts to think about — which
China died just by starvation,” warns Denis will bring major demands from greater
Chéreau, a food scientist and CEO of Improve spending power too — there are issues to
Innov. “It’s not two centuries ago. It’s just reckon with around climate stress, dwindling
50 years ago.” The genetic modifications of biodiversity, and soil degradation.10 These are
the soybean in particular caused initial hype severe, and the same goes with high levels of
THE FUTURE OF PULSES IN ASIA-PACIFIC 4
End-market Applications of Soybean aspects of the Asian food systems, timely
capital deployments will be crucial.
A recent joint report from Temasek, PwC, and
Rabobank — published just before the Covid-19
pandemic — estimates that a cumulative
investment of US$800 billion above existing
levels over the next 10 years will be needed
to grow Asia’s food and agriculture industry
to a sustainable size. The majority of these
investments – around US$550 billion – will
enable key requirements around sustainability,
Soybean meal represents about two-thirds
of the global output of protein feedstuffs. safety, health and convenience. The remaining
US$250 billion will drive increased quantities
existing undernutrition that are crying out for of food to feed Asia’s growing population.11
policy attention. The FAO flags rates of stunting However, since the onset of the pandemic,
in children as an indicator of undernutrition: these numbers are likely to be even higher.
today, four in ten of the world’s stunted children
live in South Asia. So given these trends, why is adoption not
already happening at breakneck speed? One
Pulses can increasingly be part of an affordable holdback for pulse adoption has come down
nutritional solution here. Though, like other to familiarity versus a lean and well established
Agrifood investment requirement in Asia 2020-2030*
300
250 Total 2020-30
cumulative
200 US$550 billion
150 Total 2020-30
cumulative
US$250 billion
100
Total 2020-30
50 cumulative
US$1,500 billion
0
2025 2030
2020
Existing investment Inc. Quantity Improved Quality
*Source: The Asia Food Challenge Report by PwC, Rabobank and Temasek
THE FUTURE OF PULSES IN ASIA-PACIFIC 5
soy supply chain. It’s a forty year first mover time to catch up. Of these, pea proteins show
advantage, as soy ingredients have had a the closest signs of a price and scale catch
decades-long head-start in development. up. 2021’s protein commodity price dynamics,
Food processors have an existing longlist fuelled by some of the trends above — and
of soy ingredients designed for specific others like China’s outbreaks of African Swine
functionalities, and the market is familiar with Fever, global trade tensions, or pandemic-
them. Pulse ingredients have their own unique related bottlenecks — are starting to show a
benefits and functionalities, but they need backdrop that will favor pulses.
“
After the Second World War, agronomic practices intensified, and
mono-cropping was adopted because it’s much more efficient than
to produce large surfaces of one single plant. We then built the agro
inputs perfectly adapted to them, not really taking into consideration
the durability of this practice.”
Denis Chéreau, CEO of Improve Innov
THE FUTURE OF PULSES IN ASIA-PACIFIC 6
Standing out from the alternative
protein crowd
> Health benefits and functionality are leading to a new wave of alternative protein start-ups
harnessing the power of the pulse.
> On the nutritional upsides, many pulses are non-GMO and packed with proteins and
other micronutrients, with research pointing to how some species of beans, for example,
promote weight loss.
There has been a widening array of novel or processing than by raw material. The
protein products entering the market over dominant ingredient of choice for novel protein
the last few years. Globally, the Good Food start-ups, from Australia’s v2food to America’s
Institute (GFI) has calculated that there were Impossible Foods, is the soybean.13
$3.1 billion worth of early stage investments
into alternative protein companies throughout There are lots of reasons why the alternative
2020, most of which were offering plant-based protein revolution would be more sustainable
meat, egg, and dairy products. This record with a wider spread of plant proteins to choose
surge in capital investment, that also comprises from; but one driving cause of soy’s dominance
cultivated meat companies and fermentation comes down to something fundamental —
companies, was three times higher than the early mover advantage. Pushing down its price
total in 2019.12 and underpinning its functionality has been
decades of intense research and breeding
Many of these plant-based companies, of the crop (its genome was successfully
however, are distinguished more by branding sequenced long before any pulse.)14 And yet,
there is a looming boom for at least one type
of pulse protein so far: extracts from yellow
peas, which also have a fairly well established
supply chain.15
Beyond Meat’s burgers, Ripple Foods dairy
alternatives, and countless other emergent
novel food products owe their success to peas.
THE FUTURE OF PULSES IN ASIA-PACIFIC 7Consumer interest in soy protein over a 15-year period, while interest in
pea protein is growing*
*Source: McKinsey & Company
Like soy, yellow peas are providing a highly legumes, peas, mung beans, and chickpeas for
functional foundational ingredient for meat their egg replacement product.17
and at a relatively low price.16
A cornerstone technology for providing added
Other pulses have still largely been overlooked value in the plant protein space, according
as the basis for consumer meat alternatives. to Mark Warner, a consultant and food
One major high value exception to watch, systems expert, will be the application of
however, is the mung bean. Eat Just, which is new fermentation platforms to make highly
expanding into Asia with its alternative egg specialised proteins. “If you’ve got good
products derived from a mung bean extract, nutritional value at a very low price point, it’s
has highlighted how there are clear functionality a wholesale protein,” he says, which is good.
benefits and distinctiveness. Not least: this But what will take the value up a notch is the
pulse contains remarkable proteins that can sort of functionality which would bring protein
coagulate just like eggs — and scramble. properties that simulate the fibres of muscle
Following hot on Eat Just’s heels is Mumbai- tissue or acts like an egg in baking products.
based Evo Foods, who has opted for a blend of That can come with fermentation, like what
THE FUTURE OF PULSES IN ASIA-PACIFIC 8Impossible Foods has already done with soy is more expensive, raising the attractiveness
leghemoglobin production to mimic red blood of pulses as a source of protein. Pulses also
cell traits. He says: “I think fermentation is an come with high nutritional value and low
inevitable direction.” fat content, as well as a rich presence of
bioactive compounds with well-documented
Another novel fermentation solution has been physiological effects. They have higher
adopted by Japan-based DAIZ. The company levels of protein, dietary fibre and minerals
has patented processes to recreate a meaty than all the major cereals and are also, as
texture from germinating seeds to activate with those lentil-based liquid eggs, largely
enzymes that unlock amino acids, which can cholesterol-free with a very low fat content.
simulate a meaty flavour and texture without The carbohydrates in pulses are absorbed
adding synthetic additives. and digested slowly, and thus help control
diabetes and obesity. Obesity, after all, is a
They have applied the germination technology major public health challenge in Asia, as it is
to lentils, dry beans, mung beans and many elsewhere.19
others to develop products with the taste and
texture of chicken, pork and beef.18 In light of the Covid-19 pandemic, there
are also studies indicating that pulses offer
For consumers, a major perk of pulse- rich bioactive compounds and antioxidants
based proteins has been that they are also which boost the overall immunity system to
non-GMO, gluten free and not commonly fight off infections from viruses.20 On top of
reported as high allergens. Over 90% of that, the high iron content in pulses raises
soybean in the United States is considered hemoglobin and makes it a sensible food
to be GMO, though many emerging food option during Covid-19. Its high protein
brands are using exclusively non-GMO content helps manage muscle building
soybean in their products. This non-GMO soy and weight during fever and inflammatory
conditions.
“From a nutritionist’s point of view, they are the
premier authentic, low fat, high protein, high
fiber food,” says Dr Henry Thompson, a plant
scientist at Colorado University and a long-time
advocate of pulse adoption. Of these benefits,
Thompson underscores the presence of fiber
DAIZ’s germination technology is being
applied to a variety of pulses as something wrongly taken for granted in a
THE FUTURE OF PULSES IN ASIA-PACIFIC 9human diet. “The world suffers a dietary fiber we’re seeing is an explosion of interest in
gap,” he says, “and pulses are the best sources the world’s literature about the relationship
of dietary fiber that I know of. Why is that so between food and the gut microbiome and
important? Because inside our gut, essential human health.”
microorganisms feed on that fiber, and what
“
We’re not eating the foods that can help us get to the point
that we’re taking advantage of their interaction. And I’m
saying to those people: wake up!”
Dr. Henry Thompson, Professor of Plant Sciences
at Colorado State University
THE FUTURE OF PULSES IN ASIA-PACIFIC 10Opportunities for soil regeneration and
wider adoption
As protein prices pick up, market incentives for of crop protection from insects or disease.
farmers to adopt pulses will become clearer. After all, rotating diverse crops is a recognised
But beyond economics, there is already a long term strategy to prevent invasive species
strong body of agronomic evidence pointing of fungus, bacteria, viruses or insects from
to major upsides for farmers. Pulses hold continuously blighting harvests.22 To do this
advantages as complementary rotational effectively, regular crop cycles should integrate
crops, and are often used (along with soy) in 8 to 10 different plants. Today, in most
rotation with grains such as rice, wheat and conventional farming, it is a rotation of three to
corn. They help regenerate the soil, enabling four years maximum; scientists estimate that
a more natural form of nitrogen fixation that pests like bacteria, viruses, fungi, or insects can
reduces the reliance on fossil-fuel derived and survive 6 or 7 years.
ecologically problematic chemical fertilizers.21
Another advantage in areas of water stress
On top of that, smart rotations of crops like can be that pulses are often less thirsty crops
peas, lentils, chickpeas, or dry beans can assist than the likes of soy, and are unlikely to lead to
in designing a less chemically intensive form deforestation as they are not grown as much in
THE FUTURE OF PULSES IN ASIA-PACIFIC 11equatorial areas. Nevertheless, are pulses the the “right breeding” and “best practices” that
preferred crops for farmers? In some specific would suit both Asian consumers downstream,
growing areas, yes. But if not, what incentives as well as the incentives for farmers to adopt
can be put in or have been put in? these crops. For Brendan McKeegan, the co-
founder of Australian Plant Proteins, it is a
Where they are not already a crop of choice, case of stimulating demand and consumer
Asian agriculture could take its cue from some activism downstream; farmer incentives
of the success stories in the North American upstream will follow. Client, after all, is king.
Midwest. Here, as Eric Bartsch of AGT Foods “Once we’ve got a direct line of sight of what
describes, pulses have already proved to be a the consumer demand is,” he says, “we can
game changer for their pursuit of regenerative feed that information back upstream to our
agriculture. “When pulses were introduced, farmers, and they can then start to grow based
producers moved to no-till systems; they on demand.”
rotated, bringing in additional crops to more of
a complete rotation,” he recalls. Ho Ren Hua, the CEO of Thai Wah PLC, a
major starch and noodles producer and
processor in Thailand, sees the value of
Yet farming in Asia is still distinct compared
crops like the mung bean to farmers; his
to North America. One has to consider that
company can guide the way from the
there may be another route to agricultural
midstream by signalling interest in varieties
success, not least because there is a far
that suit his company’s production priorities.
greater proportion of smallholder farmers
“The ultimate goal is yield,” he says, “So we
producing food across Asia Pacific. Equally,
run two pilots in a row with two rotational
access to the latest mechanisation and
cycles; we’ve had successful yields, and we’re
breeding technologies is often harder to
playing around with three or four of the most
come by. One question at this stage that
important factors.”
agronomists wonder about is what would be
“
Overall, regenerative practices have been more profitable for farmers
and better for the land. There’s been less wind erosion; they’ve reduced
their nitrogen requirements, and broken into disease cycles
Eric Bartsch , General Manager, AGT Foods
THE FUTURE OF PULSES IN ASIA-PACIFIC 12Public policy tools for farmers will
be crucial
Governments across Asia can lean more Nearly 200 million people in India are classified
on community-supported agriculture (CSA) as undernourished; that accounts for 14.5
models. These are systems to connect the percent of the country’s population. Children
producer and consumers within the food are the worst affected. Lack of sanitation and
system more closely. They do this by letting access to nutrition means many children are
consumers invest in the harvesting of a certain forced to leave school. Providing diets of pulses
farm or group of farms. It is an alternative to schools is an affordable way to support
socioeconomic model of agriculture and food these children, whilst stimulating demand
distribution. Bottom line: it allows the producer for farmers. In turn, community-supported
and consumer to share the risks of farming. agriculture could even center on specific
Why does it matter in the context of pulses? schools, amplifying both policy initiatives.24
It can be used to bring a sense of community
to the growing of more pulses locally, thereby Food norms under mid-day
enabling a more civic agriculture that has meal in India
(per child per day in grams)
major social upsides. It could also be set up
with specific conditions, such as which crops
are grown and how. These could encourage
certain nutritional traits or specific better
practices that would suit the local area, like
chemical reduction.23
Another possibility for improvements could be,
to take the example of India, of linking pulse
cultivation much more extensively with the
Midday Meal (MDM) school meal programme.
Source: Indian Ministry of Human Resource
Development
THE FUTURE OF PULSES IN ASIA-PACIFIC 13Protein density and climate resilience
are the next wave of breeding
One of the major perks of pulses in western is also a matter of looking at breeding for an
consumer perceptions is that they are non- enhancement of existing strengths among
GMO. However, that brings less traction for pulses — making nutritious elements even
Asian consumers, even if a demand for higher more nutritious, breeding extra protein density,
quality is rising. For these crops to reach changing the flavor profiles, or cranking up
price parities with GM crops like soy, greater resistance to stressors like drought or flooding.
attention needs to turn to sophisticated crop From another point of view, the key element
breeding practices; if not outright gene editing could be taking the nitrogen-fixing traits of a
then targeted selection. The ever greater pulse and finding a way to boost that further,
affordability of genome sequencing and data thereby replenishing soils at greater speed. 26
science to make meaningful analysis of which
genes define which characteristics are of The state of the art in breeding, according
course helpful here, but the key is also in the to Eric Bartsch of AGT Foods, used to be
choices of what constitutes a “better pulse.”25 overshadowed by a focus on oilseeds or
staples like wheat, and when they did hone in
Yield boosts are important traits to breed for, on underutilised pulses, they largely centered
helping as they do to drive down cost. Yet it on yield and crop protection and appearance,
which means “how much material can we grow
on that acre of land.” But talk of size or colour
is changing, and fast. An attribute that is in high
demand with the rise of alternative plant based
products is high protein content and functional
versatility. In response, seed breeding startups
like Israel’s Equinom have recently discovered
and developed ways to produce non-GMO
pulses with 50 percent more protein.27
Israel-based seed breeding firm Equinom
has developed non-GMO seeds of pea,
chickpea and cow pea with 50% more
protein than commercially available
THE FUTURE OF PULSES IN ASIA-PACIFIC 14Location, Location, Location:
Asia is strategically located for
processing pulses
> New technologies for fractionation, fermentation, flavor masking, and extrusion are
enabling pulses to enter the high value alternative proteins market. Questions of what to
do with by-products like starch are still top of mind for food processors.
The term “midstream” can be used to in the production of a variety of pulses.” Plus,
encompass much of the journey from the he adds, “the growing population means there
farm gate to the plate, and it often gets the will be a continued demand for the protein
nickname the “messy middle” because food and unique to Asia, is the fact that the starch
systems tend to be exactly that: fragmented, that is extracted has large market application
opaque, and wasteful. Across the world, as in the noodle industry.”
much as one third of food gets wasted on
this journey to consumers, making it an area Eat Just from the US, as part of its on-going
that is ripe for innovation. The pulses supply Asia strategy, plans to build up fractionation
chains across Asia are no exception, says capacity in Singapore. There are several
Vishal Vijay, head of business development at reasons the firm opted for Singapore. One is a
Indian food and seeds distributor Agrocorp. It favourable business climate from government
is the midstream, he believes, that will define support and stellar shipping and industrial
the success or failure of pulses as a plant infrastructure. On top of that, the Lion State
based protein source and there needs to be has been a proactive regulator, giving a green
more investment and encouragement.
Even besides the rise in alternative proteins,
Asia is well placed to move up the value chain
via an added emphasis on processing. “The
Asia Pacific region is very well positioned to be
a Pulse Hub,” thinks Marcel Zuest, a regional
manager for Oceania and South East Asia
tasked with milling solutions at Bühler Group.
The region, Zuest says, “has a dominant position
THE FUTURE OF PULSES IN ASIA-PACIFIC 15light to Eat Just for its cultured meat products. first commercial processing plant in Horsham, Finally, geographically Singapore sits close to Australia. The firm has secured AU$45.7 India and Myanmar, both major sources of million (US$34.7 million) in investment from one of Eat Just’s core ingredients, the mung global agri-food company Bunge to double bean. “I think for any region to become a major its output of plant protein isolates by March fractionation destination, it has to either be 2022. The firm has developed proprietary close to the source or the destination. The technology to isolate fava bean protein; its decision is down to the conversion factor high functionality stems from APP’s process between the raw material and the final that retains protein quality during production. product. That’s the concept for most of the This allows APP’s protein isolates to be used soft commodities,” says Saurabh Bajaj, CEO of for a broad range of plant-based foods. The Eat Just Asia, who is overseeing much of the company has also fractionated protein isolates firm’s moves into mung bean fractionation in from yellow peas, mung beans, chickpeas, red the region. lentils and yellow lentils. Elsewhere, in 2020, Australian Plant Proteins Despite being fairly fragmented and (APP) opted, as its name might hint, to launch its decentralised, there are possibilities for pulse THE FUTURE OF PULSES IN ASIA-PACIFIC 16
hubs in the region. China has built on its soy of pulse processing. Elsewhere in the region,
processing prowess to emerge as a global there are budding midsized players coming
leader in the fractionation of pulses like to the fore from Australia, Singapore and
peas. The countries Shandong province, has Thailand. Further afield, the US, Canada and
an advantage on developing its pea protein parts of Western Europe have significant
industry because it already produces a high processing capabilities and major ambitions
volume of pea and mung bean starches that for expansion. India, however, seems to be
are used in food like noodles. But that does slow out the blocks on developing domestic
not mean it is a global leader in all aspects fractionation plants.
“ Asia could very well be the world’s pulse processing hub.
Because when you fractionate pulses – 65% of what you get is starch and
the region has a unique advantage with a large captive noodle industry.
The high protein fractions have are the fuel for plant based
meat analogues.”
Marcel Zuest Regional Manager Milling SEA/Oceania – Bühler Group
THE FUTURE OF PULSES IN ASIA-PACIFIC 17Dreams versus realities: Asia
Pacific a pulse processing hub
> Though close to the production source and a booming consumer market, Asia Pacific
still needs to overcome the hurdles of price and infrastructure, to emerge as a pulse
processing hub
> More international trade could help bring pulses on stock exchanges and allow companies
to have more visibility on prices
Demand for protein and starch from pulses to increase in order to create more market price
is growing but still dwarfed by commodities consistency and dependability. Higher trading
such as soybean or wheat. A pull factor from volumes could allow commodities to be hedged,
the consumer market would be needed for a giving greater price visibility and planning for
pulse processing hub to become reality. There brand owners. But for that to happen, as a
are still major bottlenecks to think about first. starting point they would need to be listed on
Not least the price: “The market tends to focus regional stock exchanges like India’s National
on the lowest common denominator around Commodity and Derivatives Exchange. Equally,
meat analogues,” says Brendan McKeegan, a products could be traded in a similar fashion to
co-founder of Australian Plant Proteins. “It’s how China’s Zhengzhou bourse is formulating
always going to be a priced based discussion
in terms of opportunities around value added
proteins, and as volume and scale grow, we’ll
be able to bring a more competitive offering to
the table.”
For brand owners to adopt protein for pulses
in their plant based meat analogue or dairy
replacement, they need a consistent and
stable price. The trade of pulses in Asia is
unfortunately still marked by fragmentation
into a complex array of regional players and
low volumes. These trade volumes would need
THE FUTURE OF PULSES IN ASIA-PACIFIC 18its upcoming rice futures — a way of protecting India’s government attaining self-dependency
against major price swings. However, these (see India section).
options are fanciful until international trade
picks up significantly. Even the Chicago futures Even with these headwinds and trade disputes,
exchange has shown limited interest in there remains huge activity across the Pacific
packaging futures products for pulses, as the between North America and Asia. Countries
volumes are still so tiny compared to wheat or like Canada and the United States have
corn. “If you look at the trading of pulses, it is specialised on upstream innovations like crop
not a commodity flow controlled by the likes of rotations and best-in-class practices, while
ADM, Bunge, or Cargill,” explains Sumit Gupta, China is leveraging its existing deep knowledge
a director at the agri analytics firm McDonald of fractionation with soybeans to essentially
Pelz. “It is still a fragmented and evolving supply re-export processed finished products back to
chain, in which traders are still not global.” North America. With the Biden Administration
expressing early interest in reviving free
The length of the pulse midstream varies trade ideas from the Obama era, there still
dramatically; some trade international borders, remains hope for more frictionless trade of
though at present most pulses in global trade pulses between the United States and China.
are produced and consumed domestically.
Even so, there is a major call for exports to Experts are increasingly hopeful that getting
Asia where domestic demand in countries more involved in the processing could allow
like India, China, Pakistan and Bangladesh far Asia to move up the value chain. One particular
outstrip supply. That brings a major exporting dream would be establishing fractionation
role to play for producers like the United States hubs to more efficiently process raw materials.
and Canada (both these countries produce a However, the design and installation of
surplus of pulses, though domestic demand fractionation plants is a capital intensive
there has been picking up.) By and large, endeavour. Investors could take some
tariffs on pulses vary depending on whether convincing here, as a lot of the supply chains
it is raw materials or processed goods. The are still largely fragmented, with uncertain
situation has been deeply affected in the last commodity prices and plant based protein
few years by two major issues: US-China trade applications still in their nascency. There are
tensions that came to a height during the still a number of strategic questions to address
Trump Administration, while a second issue for over where and how prospective plants in Asia
producers has been domestic policy in India will deliver returns.
relating to taxes on imports as a means of
THE FUTURE OF PULSES IN ASIA-PACIFIC 19Spotlight on Asian fractionation:
wet or dry?
Understanding the possibilities and challenges The most valuable one is the proteins (which
around pulse processing means having a firm come in at between 20-40 percent). It is these
grasp of the enabling innovations. By and high protein fractions that are the fuel for
large, the processing of pulses can be done plant-based meat analogues like the Beyond
in two stages. Stage one: cleaning and quality burger.
sorting. Stage two is about preparing seeds
for consumer use. This means sorting by seed Two main forms are known as ‘wet’ and ‘dry’
size, dehulling, splitting, milling, extruding, or fractionation. Bottom line: wet fractionation
dry packaging. Even without getting into the is more capital and energy intensive, but
game of protein extraction, there’s a value is capable of producing “protein isolates.”
additive business in producing pulse flour as These contain around 80 percent of protein.
a nutritious supplement for cereals, noodles, Dry fractionation, meanwhile, is a more
pasta or snacks. Sports snacks or weight loss affordable option, but only produces the
products in particular can and do draw on the protein concentrates, a markedly lower
proteins, fibers, vitamins and iron present in percentage of around 50 percent, but still
pulse flour. high grade and functional.
But to up the ante for protein content even Alexandra Londoño-Baderschneider, who
higher, you need to turn to a key process heads up the pulses business segment at
for the plant based protein world called
fractionation. This separates pulses into
concentrates and isolates such as proteins,
starches and fibres for ingredient use. There
are all sorts of uses from the moment you split
dehulled pulses into its parts. Percentage
wise, the main ingredient is starch, which is
useful for the instant noodle industry or pet
food. There is more starch than anything else Texturization and extrusion technologies
enable plant protein sources like pulses to
in pulses, which can make up to 65 percent. mimic the fibrous muscle structure of meat
THE FUTURE OF PULSES IN ASIA-PACIFIC 20the Bühler Group, believes that the likelier to the farms, serving more local markets and
candidate to gain major traction in Asia in the driving down transport costs.
medium term will be dry fractionation plants,
as they suit the fragmented nature of the Once fractionated, attention turns to another
market there, and require less capital intensity gamechanger: extrusion. This processing
to get going. She also is more comfortable technique is making remarkable leaps
with dry fractionation from a sustainability forward, and has been vital to creating the
standpoint, as wet fractionation uses massive textures for plant-based meat and seafood.
amounts of energy. “There’s a sustainability During extrusion, proteins undergo thermal
question mark over the wet processes,” she and mechanical stresses by heating of the
says. Besides, “more consumers — definitely barrel and shearing of the screws. As a result,
not just in Asia, but all around the world protein structure is altered, which leads
— are demanding a clean label and more to a forming of soluble and/or insoluble
transparency about ingredients and lean aggregates. By attaching a long cooling die
processes to produce these foods.” Here, to the end of an extruder, proteins can be
she thinks, dry milling makes greater sense. aligned in the flow direction forming an
Its lower capital expenditure and operational anisotropic protein network. A wide range of
expenditure through lower energy use makes final product characteristics can be achieved
it an easier way to enter the game. Smaller by altering process conditions during high-
size of production can allow it to be closer moisture extrusion processing.
Pulses Processing Value Chain - Various Protein Opportunities
Output:
Pulse Flour Baked Goods, Biscuits,
Snack Bars, Savory
Output: Snacks and Pasta
Staple
Dehulled Output:
Air Starch-rich Bakery products,
Classification fraction Noodles & Pasta
Input: Dehulling Grinding
Pulse Seed Output:
Protein Aqua Feed
and
Concentrate
Pet Food
Cleaning Output: Extrusion
Hulls Process
(6-9%)
Output:
Staple
with hulls Protein Output:
Isolate Meat
Extrusion Substitutes
Wet Wet
Concentration Isolation Process
THE FUTURE OF PULSES IN ASIA-PACIFIC 21So while investors and entrepreneurs debate partnerships and for specific processing
the best geographical location or regulatory technologies to trigger a cascade. Even for
environment to establish fractionation capacity us, we’re working with European partners to
in Asia, there is also a more fundamental develop the technology platforms and the
engineering question of what type of know-how.”
fractionation and extrusion to bring to the
Another technology being explored in the
Dry texturates enable particulation and
mouthfeel that mimics ground meat
region is the use of a high-temperature
products, have a long shelf life but need to conical shear cell. Developed by Wageningen
be rehydrated before consumption
University, the advantages of this technology
are the production of larger pieces of fibrous
table. “There’s a tremendous amount of stuff meat analogues with a simple, mild, and
that can be done,” says ThaiWah’s CEO Ho Ren cost-effective technology.
Hua. “I think it will take time for technology
“ For entrepreneurs it’s always sexier to start a consumer brand. The mid-
stream might be less inviting, but innovation here can be a key lever to bring
alternate meats to price parity with traditional meats.”
Vishal Vijay, Head of Business Development, Agrocorp
THE FUTURE OF PULSES IN ASIA-PACIFIC 22Enabling process: Masking the
‘beany note’
While the fractionation process extracts Asian and Caucasian populations perceive
proteins from starch, and extruders enable taste. “The findings from our study,” says Yang,
that meat texture, that is not the end of the “could help inform new product development
story. The proteins themselves can have certain to appeal directly to people’s taste buds.”
peculiar traits that give the game away to a
human’s taste buds that it is not “real meat.” It is becoming easier for processors to be
With some pulses, a traditional drawback in more responsive to findings like these. In 2019,
their use in food processing has been the the Swiss flavours house Givaudan unveiled a
difficulty in finding a neutral flavour profile selection of masking solutions in combination
with pulse protein extracts. However, several with a new ‘smart masking tool,’ offering
companies in the midstream have been finding flavourists fast access to high-performance
ever smarter and more efficient ways around solutions to combat off-notes across plant-
this through advances in masking technology based proteins. This effort has resulted in the
and more precise extrusion methods. “We largest, most comprehensive collection of data
invented a technology to deflavor the material,” related to plant proteins and taste ingredients
explains Eric Bartsch of AGT Foods, outlining in the industry. Masking off-notes in protein
how companies like his neutralise a pulse’s is a time-intensive and often complicated
flavour profile: “We take all our ingredients and process, as one ingredient may counteract a
we can run it through a system that will remove particular off-note but exacerbate another.
that beany note.” And while each extra ingredient brings
complexity, it may also increase overall cost.
One thing a company like AGT is all too aware “Striking the balance between functionality,
about is that tastes can be highly individual and texture, taste, nutrition and cost when working
vary from region to region. For many reasons, it with alternative proteins is difficult to achieve
is clear that what tastes right in North America without fully understanding the interactions
will not necessarily hold true across Asia. of all the ingredients in the food or beverage
Recent research from Qian Yang, an assistant product” said Dr. Flavio Garofalo, global
professor in Sensory and Consumer Sciences category director savoury flavours and natural
at the University of Nottingham, has even ingredients at Givaudan, in a statement at the
found significant differences between how time. This could be a major opportunity for
THE FUTURE OF PULSES IN ASIA-PACIFIC 23the Asia Pacific region to add value, bringing a devote R&D capacity to new dairy alternative
lot of the research and development for food applications as well as cutting the ribbon on a
flavours for the region into the region. A major plant-based meat lab, a food and flavour lab,
step in this direction has been the opening of and a customer innovation centre.
a plant based innovation center there, led by
Givaudan and Bühler. Dozens of pulses are grown throughout Asia,
but these six featured pulses are the ones well
Following suit, American multinational food placed to make waves for their availability in
giant ADM has recognised its own urgent the region, nitrogen fixation capacity, protein
need of a greater Asian focus for its product density, presence of micronutrients, and high
development. The firm just opened its own processing functionality for both starch and
new plant-based innovation lab in Singapore, protein.
known as the Biopolis research hub, to
“ Taste is an issue. It could be a limitation for adoption in
the food industry. We have developed FILTEX, a plug and
play solution that actually removes these bitter off-notes.”
Alexandra Londoño-Baderschneider,
Head - Pulses Business Segment, Bühler Group
THE FUTURE OF PULSES IN ASIA-PACIFIC 24Innovation Highlight: Bühler &
Givaudan open plant-based Protein
Innovation Center in Singapore
Exploring downstream opportunities for pulses
Bühler has joined forces with Givaudan, the world’s largest flavour and fragrance manufacturer, to
open an Asia Pacific (APAC) plant-based protein innovation centre in Singapore that will be managed
by experts from both firms.
Outfitted with a pilot plant extrusion-line, a state-of-the-art product development kitchen, storage
facilities, meeting amenities and a viewing area where visitors may tour the 400-square-meter
facility and view live demonstrations, the Protein Innovation Centre is constructed with the end-to-
end process of plant-based protein production in mind.
A testing ground for new pulses protein applications
The collaboration platform, open to use by start-ups, ingredient providers, food processing
companies and academics, aims to support the diverse and fast-growing segments of plant-based
products in Asia. Adrien Beauvisage, President for Bühler Southeast Asia & Oceania, in a statement
described the centre’s purpose as “to accelerate the development of plant-based products that fit
Asian preferences and cooking styles.”
THE FUTURE OF PULSES IN ASIA-PACIFIC 25“This also means,” he adds, “being able to incorporate new ingredients into recipes. As consumers are increasingly getting interested in pea protein for example, our role is to provide support with technical solutions to create innovative products that do not compromise on taste, texture or cooking experience”. A focus on scalability One of the reasons Bühler is so interested in plant-based protein, according to Beauvisage, is “the tremendous potential a flexitarian change in our diet could bring to the sustainability of our food value chain.” Currently, he says, the Protein Innovation Centre is equipped with a pilot-plant extruder producing 40kg of plant-based meat per hour: “This allows us to guarantee to our users that their recipes will be fully scalable onto larger processing lines. Production scale will be key to unlock the sustainability potential of plant-based alternatives and offer an attractive price point which is important to make those products enter every-day lives in Asia.” THE FUTURE OF PULSES IN ASIA-PACIFIC 26
Six featured pulses: Dry Pea,
Chickpea, Mung Bean, Fava Bean,
Lentils & Dry Beans
Dozens of pulses are grown throughout Asia, density, presence of micronutrients, and high
but these six featured pulses are the ones well processing functionality for both starch and
placed to make waves for their availability in protein.
the region, nitrogen fixation capacity, protein
Global Production 2019-20*
Total 2019:
98 M tonnes
35
30 29 29
Total 1991:
25 57 M tonnes
20
17
15 14 14
15
12
10
7
6 5
5 4
2
0
1991 2001 2011 2014 2019
Dry Bean Chickpea Dry Pea Lentil Faba Bean Other Pulses
Break-down of Asia’s Pulse Production in 2018*
Lentils, 7% Others, 2%
Dry Peas,
11%
Dry Beans,
Total 2018:
Pigeon 36% 41 M tonnes
Peas, 12%
Chickpeas,
32%
*Dry Beans incl. Fava Beans
* Source: FAOSTATS, Production data, 2018
THE FUTURE OF PULSES IN ASIA-PACIFIC 27Dry Peas
world in that they are already a well-accepted
food choice, consumed as they are in soups,
Indian dahls, purees, and canned products.
Crucially — unlike many soy products — they
are non-GMO and non-allergenic.
Dry peas, also known as yellow or field peas,
Consumer interest in pea protein is growing are not to be confused with conventional green
rapidly. Internet searches for pea protein peas. They are well suited to grow in temperate
grew 30 per cent a year from 2004 to 2019
and consumption volumes have almost climates plant-based meat applications, due
doubled to 275,000 tonnes from 2015.
in part to their nuttier and comparatively less
sweet taste. However, they can develop a
Why is the humble dry pea the dominating strong off flavour, which has been a challenge
pulse protein of choice in 2021? Short answer: for flavour chemists. However, there are
a competitive cost of production combined increasingly sophisticated workarounds to
with high functionality. Grown over 25 million balance the taste and simulate the mouthfeel
acres worldwide, the crop has been making of meat, like those under development at
a strong showing as an efficient producer of Bühler & Givaudan’s recently opened plant-
protein concentrate while solidly fixing nitrogen based Protein Innovation Center in Singapore.
into the soil as a disease-resistant cover crop.
Canada is the world’s largest producer with
Protein dense, fibrous, and packed with Vitamins almost a third of production of dry peas
C and K, dry pea concentrates and isolates are happening there. Russia, the United States and
already forming the basis of market ready meat Ukraine are also major players, while China and
and dairy analogue products like the Beyond India are both large importers. India, despite
Burger, Green Monday’s OmniPork, or Ripple being a large producer itself, does not export
Milks. Elsewhere downstream, field peas have due to restrictions.
a strong advantage in the plant based protein
THE FUTURE OF PULSES IN ASIA-PACIFIC 28Key Details: Dry Pea
Nutrition (in gms per 100 gms) Key Players (production in tonnes)
• Protein | 23.5 • Canada (4.2M)
• Carb | 65 • Russia (2.7M)
• Fiber | 25.2 • China (1.5M)
• Fat | 2.2 • USA (1.0M)
• PDCAAS | 0.64 • India (0.8)
Processing (Difficulty: Easy) Properties
• Standard Cleaning • Emulsification
• Two dehulling steps are enough • Gelling and Foaming
• Peas can have an strong off flavour • Lower solubility/functionality vs soy
• Suitable for Protein concentration • Beany flavour
and isolation • Excellent source of copper, fibre, folic acid,
manganese, thiamine
• Limiting AA: Methionine and Cysteine
Alt. Protein Product Examples
Beyond Meat OmniPork Sunfed Ripple Foods
USA Hong Kong NZ USA
Nutrition Data: U.S. Department of Agriculture
Production Data: FAOSTATS, Production data, 2018
THE FUTURE OF PULSES IN ASIA-PACIFIC 29Chickpeas
In some ways, chickpeas are not as good as
peas in terms of their protein concentrates, as
they are a little more fatty with up to 7 percent
fat, but it has a sweeter and more neutral taste
than pea protein concentrate, hence requiring
less bitterness flavour masking. Agronomically,
India is the single largest producer of there are also a few perks to note: besides being
chickpea in the world, accounting for 65%
a powerful nitrogen-fixer like other pulses, it
of the total production. Within India the
‘Desi’ variety dominates with 80% market has a deep tap root which enhances its capacity
share
to withstand drought, so it has traditionally
suited growing geographies that can run short
What does a chickpea have to do with milk,
of rainfall and is well suited to areas of climate
ice cream, snacks, protein shakes, or sports
stress and even desertification. Little surprise
drinks? A lot if you’re a company like the Israeli
of its involvement in Middle Eastern agriculture,
start-up Innovopro, which has developed a
and its presence in popular food dishes there,
proprietary process to make a suite of plant-
like hummus or falafel. Too much water can
based products from chickpea concentrate.
be problematic for chickpea growth, which is
The trick is in the presence of highly functional
at its best on sandy, loam soils that drain well.
emulsifying proteins within the chickpea, which
Colder conditions can also damage the crop.
is also known as the garbanzo bean, the Indian
India is the world’s top producer of chickpeas,
pea, the bengal gram, or chana, to name a few.
accounting for approximately 65 percent of
global production. Looking closely, there are
Other perks of chickpea dairy products are
two main kinds of chickpea grown: Desi (Hindi
that they are non-GMO, free of phytoestrogens
for local) and Kabuli (from Kabul). Desi have
and non-allergenic. They are also a good
a markedly higher fibre content than Kabulis
natural source of fibre, iron, phosphorus, folic
and hence a very low glycaemic index which
acid, and selenium. The key trait to mention for
may make them a useful source of nutrition for
chickpea’s use in processing is its ‘aquafaba’ —
diabetics and those seeking weight loss.
which brings the ability to, almost by magic,
whip up and create foam.
THE FUTURE OF PULSES IN ASIA-PACIFIC 30Key Details: Chickpea
Nutrition (in gms per 100 gms) Key Players (production in tonnes)
• Protein | 20.47 • India (9.9M)
• Carb | 62.95 • Turkey (0.7M)
• Fiber | 12.2 • Myanmar (0.5M)
• Fat | 6.04 • Pakistan (0.5M)
• PDCAAS | 0.52 • USA (0.3M)
• Note: figures for dry chickpeas • Australia (0.3M)
• Canada (0.2M)
Processing (Difficulty: Easy) Properties
• Standard cleaning • High solubility
• Two dehulling steps • Foaming (‘aquafaba’)
• Chickpea neutral taste • Emulsification
• Able to produce protein concentrates, • Flour: gritty mouthfeel
but not as good as peas, because of the • Characteristic aroma
higher fat content • High fibre, folate, iron and phosphorus
• Limiting AA: Methionine and Cysteine
Alt. Protein Product Examples
Phuture Foods Unlimeat Bean Supreme Neat Foods
Malaysia South Korea NZ USA
Nutrition Data: U.S. Department of Agriculture
Production Data: FAOSTATS, Production data, 2018
THE FUTURE OF PULSES IN ASIA-PACIFIC 31Mung Beans
bean an interesting cash crop for the region, and
he has observed adoption trends across South
East Asia. “Our heritage was really tapioca,” he
says,” but we actually started working with mung
beans 50 years ago, because mung starch itself
has very unique properties that can be used for
other finished products.”
Eat Just’s mung bean protein isolate has Already, it has particularly strong consumer
that custardy gelation property, as well as
the ability to thicken, emulsify and bind acceptance as a staple ingredient in both
in foods like waffles, pancakes, omelettes,
sweet and savory dishes throughout East Asia,
and even some of the denser baked goods
Southeast Asia, and the Indian subcontinent,
Grown across East and Southeast Asia, the mung where they are consumed as whole beans
bean is well known in Asian cuisine for its ability or a paste, as well as made into flour, soups,
to produce bean sprouts, translucent noodles, or porridge, snacks, bread, noodles, and even
mung bean paste. Yet the crop has drawn scant ice cream. Mung bean starch is extracted from
attention from life sciences companies over the ground mung beans to produce transparent
years. One reason has been how easy it is for cellophane noodles. And it has become a
farmers to save their own seeds, as such there much sought after ingredient in plant-based
are no commercially available hybrids. Much of scrambled egg alternatives, like the Eat Just
the varieties developed have often come more Egg. Because, yes, it coagulates and scrambles.
from public sector initiatives or NGOs. “Across Asia, the mung bean is not really a novel
food. It’s only novel in the Western world,” says
The development of shorter duration varieties Saurabh Bajaj, CEO of Eat Just Asia. Since eggs
with stronger disease resistance, combined are used in conventional beef burgers as an
with its nitrogen fixing qualities has made the emulsifier, companies like Beyond Meat have
mung bean a key cash crop in Asia, particularly turned to the mung bean in small quantities
Myanmar. Yet like the fava bean, mung bean to simulate that effect. Then again, it can be a
productivity is still constrained by biotic and victim of a strong off flavour and needs a more
abiotic factors, where further breeding could advanced dehulling in the processing. On the
help widen adoption. Thai Wah CEO Ho Ren Hua plus side, food scientists do describe the mung
believes that short growth cycles and a positive bean as having a good amino acid profile.
impact on soil health already make the mung
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