US pea protein industry fights back against alleged Chinese dumping, Russian imports

Pea protein is a label-friendly ingredient but beware of its origin. Food manufacturers may unknowingly be buying product from China or Russia.

Product imported from China is under investigation by the Department of Commerce (DOC) and the International Trade Commission (ITC) for dumping and countervailing charges. ITC defines a product as dumped when a foreign supplier sells its product at a price that is below that producer’s sales price in the country of origin. When a government provides a subsidy to industry for the benefit of production at terms that do not reflect market conditions, the subsidies are “countervailable.” Preliminary investigations of Chinese firms have found them guilty on both charges.

The source becomes cloudier as pea protein is entering China from Russia. “Brands who claim ‘North American’-grown peas but purchase from China are at risk, as China has shifted its purchasing power to Russia,” Lauren Perez Hoistad, chief of staff at PURIS Proteins LLC, said.

In July 2023, The Western Producer reported that a shipment of 55,000 tons of peas from Russia cleared Chinese customs. The floodgates opened further when, in October 2023, World-Grain.com reported that Food Export Trade, a Russian grain exporting firm, signed a $26 billion contract to supply China with 70 million tons of grain, legumes and oilseeds over the next 12 years. Peas are among the products receiving approval.

The prices set by Chinese exporters have made it difficult for U.S. producers to compete. PURIS petitioned DOC and ITC on July 12, 2023. A September report of ITC’s investigation confirmed the pricing data showed pervasive underselling, with subject imports underselling the domestic product in all 52 quarterly comparisons at margins ranging from 25.6% to 72% and averaging 45.4%.

While duties are currently enforced, the final determination by government agencies will take place this summer. “We are hopeful that this will right size the pea protein market and are committed to protecting the interests of our industry partners, our network of farmers, our dedicated workforce and the communities we serve,” Hoistad said. “We will continue to price with growers, food manufacturers and consumers in mind. We are in the market of supporting domestic farmers and are committed to making these businesses profitable. Our protein prices follow the pea market pricing, and we will continue to price for all parties to win in the marketplace.”

“Our preliminary anti-dumping investigation shows proof that these entities are tied to the Chinese Communist Party (CCP),” Hoistad said. “PURIS’ unwavering purpose behind this petition is to address the unjust trade practices that have cast a shadow on the domestic pea protein industry. We refuse to compromise on our principles of fair competition, which lie at the heart of our mission and values.

“Chinese pea protein imports have taken advantage of the American market due to alleged government subsidies by China and price manipulations by Chinese producers that threaten the very foundation of our industry,” Hoistad explained. “This is not merely a matter of commerce; It’s about safeguarding American jobs, supporting domestic farmers and upholding the integrity of our markets.”

On February 8, 2024, ITC implemented preliminary duties assessed to companies ranging from 112% to 270% for dumped imports. Hoistad noted these duties are on top of the countervailing duties set in December 2023 at rates ranging from 15% to 342%.

While duties are currently enforced, the final determination by government agencies will take place this summer. “We are hopeful that this will right size the pea protein market and are committed to protecting the interests of our industry partners, our network of farmers, our dedicated workforce and the communities we serve,” Hoistad said. “We will continue to price with growers, food manufacturers and consumers in mind. We are in the market of supporting domestic farmers and are committed to making these businesses profitable. Our protein prices follow the pea market pricing, and we will continue to price for all parties to win in the marketplace.”