Pulse Sales to Middle East Markets Are ‘Frozen’

Why It Matters

The Middle East accounts for roughly 78% of Canadian lentil exports, so the disruption threatens revenue and could depress domestic pulse prices.

Key Takeaways

• Shipping surcharges exceed $2,000 per container.
• Rerouting adds $800 fees, forcing safe‑port drops.
• MENA pulse imports fell to near zero.
• Canadian lentil price dropped $0.02 per pound.
• Algeria now restricts imports to government only.

Pulse Analysis

The Canadian pulse sector has long relied on the Middle East and North Africa (MENA) as a cornerstone export destination. In 2025, the region absorbed 801,000 tonnes of Canadian pulses, generating roughly $769 million, with lentils alone representing 78 % of that volume. The escalation of the Iran‑related conflict has abruptly severed this pipeline, as shipping lines refuse to dock at contested ports and impose hefty emergency surcharges. Exporters such as Victoria Pulse Trading and GEDKO Global now label the market ‘frozen,’ leaving inventories stranded and cash flow strained.

Logistical hurdles have become the primary cost driver. Container freight forwarders are levying up to $2,000 per container as a conflict surcharge, plus an $800 rerouting charge to the nearest safe harbor, typically Jebel Ali’s alternatives. Additional fees—$200 emergency conflict, $500 rate restoration, and $150 fuel surcharges—push total expenses beyond market tolerances. Coupled with lingering effects of U.S. tariff policies, these costs have dried up liquidity for pulse traders, prompting many to suspend new bookings. Even Algeria’s recent decree limiting imports to a single government entity further compresses demand.

The immediate fallout is a downward pressure on Canadian pulse prices. Red lentils slipped to $0.23 per pound, a $0.02 decline since the conflict’s onset, and analysts expect broader price erosion if export volumes remain constrained. Producers are now eyeing alternative markets in Europe and Asia to offset the MENA shortfall, though establishing new trade routes takes time. Policy makers may need to consider export‑support mechanisms or negotiate safe‑passage agreements to restore confidence. In the short term, the frozen Middle Eastern market represents a significant revenue gap for Canada’s agricultural export basket.