What The 'Lentil King of Saskatchewan' Knows About World Trade
May 2, 2025
auto_awesome
Murad Al-Katib, the President and CEO of AGT Foods and Ingredients, is hailed as the 'Lentil King of Saskatchewan.' He discusses how Saskatchewan became a global leader in lentil exports and the importance of sustainable farming practices. Murad explains the impact of trade tariffs on the agriculture sector and the need for supply chain diversification. He also emphasizes the vital role of soil health and innovative strategies to navigate challenges in global trade, ensuring food security amidst shifting economic landscapes.
Murad Al-Katib transformed Saskatchewan's agricultural landscape by capitalizing on global demand for protein-rich lentils and chickpeas.
Canada contributes significantly to the global pulse market, addressing food security issues with high-protein exports to countries like India.
Al-Katib's company showcases a vertically integrated supply chain model that enhances efficiency and quality control from farmers to international consumers.
Deep dives
The Role of the Lentil King
The featured guest, known as the Lentil King of Saskatchewan, discusses his career in transforming the agricultural landscape of Western Canada through lentil production. He shifted from a government position to leading a business that capitalizes on nitrogen-fixing crops, introducing a sustainable alternative to traditional nitrogen fertilizer-dependent farming. By leveraging global demand for protein crops, particularly lentils, chickpeas, and beans, he built a company that now generates over $3 billion in revenue and exports to 110 countries. His journey illustrates the importance of innovation in agriculture and how a local industry can reach international markets.
Canada's Global Position in Pulse Production
Canada is a major player in the global pulse market, contributing up to 60% of the world’s lentil production, which creates unique supply chain dynamics. The discussion highlights the significance of pulses as a protein source, especially in vegetarian-heavy populations like India, where demand continues to rise due to food security issues. This positioning means Canada has tapped into the need for reliable exports of these high-protein crops, amid increasing global challenges like malnutrition and a growing population. The importance of Canada’s vast agricultural land and modern farming techniques underscores its potential to address global food insecurity.
Supply Chain and Vertical Integration
The Lentil King's company exemplifies a vertically integrated approach by managing every link in the supply chain from farmers to international consumers. By contracting directly with farmers, the company enhances quality control and efficiency, ensuring that lentils move swiftly from fields to global markets. The operations include processing and shipping lentils efficiently through rail and port networks, with established infrastructures across several countries. This strategy not only strengthens the company’s market position but also showcases the critical role of logistical planning in agricultural exports.
Technological Advancements in Agriculture
Technological advancements, particularly in precision agriculture, have dramatically improved productivity in Canadian farming. The guest contrasts traditional farming methods used decades ago with today’s data-driven approaches that utilize soil analysis, GPS systems, and minimal tillage to maximize yield. These innovations have allowed Canadian farmers to increase crop outputs significantly, projecting an additional 7 to 10 million tons of grain from the same acreage over the next decade. This transformation is essential for meeting the increasing global demand for food, while also addressing concerns over soil health and sustainability.
Navigating Trade Challenges and Protectionism
The conversation navigates the complexities of international trade, particularly regarding the influence of protectionist policies in countries like the U.S. and India. The guest emphasizes the need for agricultural trade to adapt to these policies, with a focus on diversifying markets and reducing reliance on single trading partners. Additionally, the importance of maintaining robust bilateral trade agreements and adapting supply chains to remain resilient is highlighted in light of fluctuating tariffs. This adaptability is crucial as food security and agricultural productivity remain intertwined with global political dynamics.
We don't know what the end state for the tariffs are going to be, but inevitably there will be some shifts in the way that goods and dollars flow around the world economy. Of course, some parts of the economy are always subject to changing rules around subsidies and tariffs, and that's particularly true in agriculture. On this episode of the podcast we speak with Murad Al-Katib, the President and CEO of AGT Foods and Ingredients, who is sometimes known as The Lentil King of Saskatchewan. He is credited as being a driving force in turning the Canadian Province into a powerhouse of chickpea and lentil exports all around the world. He explains to us why he saw an opportunity in this space, why it's boomed, how the global trade and supply chain of these plants work, and how his company navigates perpetual shifts in agriculture policy around the world.
Only Bloomberg.com subscribers can get the Odd Lots newsletter in their inbox — now delivered every weekday — plus unlimited access to the site and app. Subscribe at bloomberg.com/subscriptions/oddlots
