Odd Lots Podcast - What The 'Lentil King of Saskatchewan' Knows About World Trade

Release Date: May 2, 2025

In this insightful episode of Bloomberg's Odd Lots podcast, hosts Joe Weisenthal and Tracy Alloway engage in a comprehensive discussion with Murad Al Khatib, the President and CEO of AGT Food & Ingredients, affectionately known as the "Lentil King of Saskatchewan." The conversation delves into the complexities of the global lentil and pulse trade, sustainable agricultural practices, supply chain logistics, and the impact of international trade policies.

1. Introduction to the Episode

The episode begins with a brief mention of the recent Canadian elections, highlighting the unexpected victory of Mark Carney and the Liberal party. Tracy Alloway contrasts Carney's globalization-friendly approach with the more protectionist sentiments influenced by former U.S. President Donald Trump.

Notable Quote:

[01:30] Tracy Alloway: "Mark Carney is sort of the antithesis of Trump, right? He's the sort of globalization, Davos, former central banker guy."

2. Murad Al Khatib and the Rise of AGT Food & Ingredients

Joe Weisenthal introduces Murad Al Khatib, emphasizing his pivotal role in transforming Saskatchewan into a major player in the lentil market. Murad shares his journey from a government position to founding AGT Food & Ingredients, focusing on sustainable agriculture and global trade.

Notable Quote:

[04:22] Murad Al Khatib: "It's been quite exciting to build a multibillion dollar company based right out of Regina, Saskatchewan, to reach the world, drive the Canadian trade, and participate in growing and consolidating a global supply chain in this business."

3. Canada's Dominance in the Global Lentil Market

The discussion highlights Canada's substantial role in the global lentil and pulse trade. Murad provides insights into Canada's market share, estimating that the country accounts for approximately 50% of the world's lentil exports. He underscores the importance of lentils as high-protein crops essential for addressing global protein deficits.

Notable Quote:

[05:51] Tracy Alloway: "How big a player is Canada nowadays in pulses and grains and lentils and those things?"

[06:14] Murad Al Khatib: "Somewhere around 50% or more of the world trade."

4. Sustainable Agricultural Practices and Yield Enhancements

Murad elaborates on the sustainable farming practices employed in Western Canada, including crop rotation and the use of nitrogen-fixing legumes like lentils. He discusses the technological advancements that have significantly increased crop yields and improved soil health.

Notable Quote:

[19:48] Murad Al Khatib: "Farmers in Western Canada are now practicing a sustainable three crop rotation... we're returning biomass into the soil."

5. Supply Chain Logistics: From Farm to Global Markets

The conversation delves into the intricate supply chain that transports lentils from Saskatchewan farms to consumers worldwide. Murad details AGT's vertically integrated operations, including ownership of processing facilities and transportation infrastructure across multiple continents.

Notable Quote:

[10:13] Murad Al Khatib: "We take it right from the farmer right through to the distribution directly onto the consumer shelf."

6. Impact of U.S. Trade Policies and Global Tariffs

Joe and Tracy explore how shifting U.S. trade policies, particularly under protectionist leadership, affect AGT's operations. Murad discusses strategies for mitigating the impact of tariffs, such as diversifying markets and establishing alternative supply chains to ensure resilience.

Notable Quote:

[26:10] Murad Al Khatib: "We need to pivot... we have to be part of global value chains as they settle in this new geopolitical and trade regime in the world."

7. Infrastructure Investment and Capital Challenges

Murad emphasizes the critical need for substantial investment in trade infrastructure to support the growing agricultural output. He advocates for a strategic investment of $100 billion to enhance railways, port facilities, and other essential infrastructure components.

Notable Quote:

[31:43] Murad Al Khatib: "If I was prime minister for one day, I would invest $100 billion in trade infrastructure because that ultimately would pay dividends for generations to come."

8. Technological Advancements and Future Outlook

The episode concludes with a discussion on the role of technology in modern agriculture. Murad highlights innovations such as precision agriculture, soil sampling, GPS-guided planting, and decision support systems that have revolutionized farming practices, leading to significant productivity gains.

Notable Quote:

[16:22] Murad Al Khatib: "Zero minimum tillage where GPS systems are giving the farmer the exact placement of seed fertilizer in a single pass without breaking the soil."

9. Consolidation in Agriculture and the Role of SMEs

Tracy raises concerns about the consolidation trend in agriculture, where smaller farms struggle to compete against larger entities. Murad acknowledges the importance of scale for survival but emphasizes that small and medium enterprises (SMEs) still play a crucial role through innovation, partnerships, and integration into global value chains.

Notable Quote:

[45:13] Murad Al Khatib: "Scale today is essential to surviving, but that doesn't mean that small and medium enterprises don't have a role to play in scale."

10. Navigating Trade Diversification and Future Strategies

Murad discusses the necessity of trade diversification beyond the traditional reliance on the U.S. market. He outlines AGT's strategies to establish bilateral trade agreements, expand into new markets, and enhance global partnerships to ensure sustainable growth amidst evolving geopolitical landscapes.

Notable Quote:

[29:31] Tracy Alloway: "Have you noticed any shifts in the pattern?"

[35:00] Murad Al Khatib: "We need bilateral trade agreements. We need to resolve India and China as powerhouses that balance our reliance on the US."

11. Final Thoughts and Conclusion

The episode wraps up with the hosts reflecting on the multifaceted aspects of global trade, agricultural sustainability, and the strategic imperatives for companies like AGT. Murad's insights provide a nuanced understanding of how the agricultural sector can navigate complex global dynamics to achieve growth and sustainability.

Notable Quote:

[51:21] Joseph Weisenthal: "Murad Al Khatib, the lentil king of Saskatchewan with his pulse on the pulses."

Key Takeaways:

• Canada's Strategic Advantage: Leveraging vast arable land and technological innovation positions Canada as a dominant player in the global lentil and pulse markets.

• Sustainable Practices: Implementing crop rotations and nitrogen-fixing legumes enhances soil health and boosts productivity.

• Supply Chain Integration: AGT's vertically integrated supply chain ensures efficient distribution from Saskatchewan to global markets.

• Navigating Trade Policies: Diversifying markets and establishing robust trade agreements mitigate the impact of protectionist policies.

• Infrastructure Investment: Significant capital investment in trade infrastructure is essential for sustaining and expanding agricultural exports.

• Role of Technology: Advanced farming technologies drive substantial increases in yield and operational efficiency.

• SMEs in Agriculture: Small and medium enterprises remain pivotal through innovation and strategic partnerships, despite consolidation trends.

This episode offers a comprehensive exploration of the global lentil trade, underscored by the expertise of Murad Al Khatib. Listeners gain valuable insights into the intersection of agriculture, trade policy, and sustainable business practices that are shaping the future of global food security.