The country's leading pea protein producer, Minneapolis-based Puris, has won an initial tariff case against Chinese producers that are allegedly exporting heavily subsidized pea protein and undercutting Puris' business.
This "dumping" of low-cost imports has been so bad Puris had to idle a plant in Wisconsin this summer, laying off 48 people, according to federal and state filings.
"Because of dumped and subsidized imports from China ... American workers have lost their jobs, and the future of domestic production of high-protein content pea protein is at risk," Puris wrote in its tariff petition.
This week the U.S. Department of Commerce gave initial approval to countervailing duties meant to offset Chinese government subsidies of nearly 350%. Final approval is expected by next spring.
Puris CEO Tyler Lorenzen said in a statement the agency's findings "validate our claims that Chinese pea protein imports are being unfairly subsidized" and sold at "artificially low prices."
"This preliminary determination is a critical milestone for American jobs, domestic farmers and upholding the integrity of our markets," he said.
Puris is a major ingredient supplier for plant-based products and sells pea protein for use in nutritional shakes, bars, plant-based meats and milks and other products. The company also launched its own vegan egg alternative, Acre Made, last year.
The Cargill-backed company is headquartered in Minneapolis and in 2021 opened a $75 million production facility in Dawson, Minn., as the market for pea protein is expected to grow globally in the coming years.
"The imposition of countervailing duties will help to level the playing field and ensure that U.S. pea protein producers can compete fairly with our Chinese counterparts," Lorenzen said.
Puris said the Turtle Lake, Wis., facility would remain idled unless demand rebounds after the tariffs take effect.
