A recently concluded USDBC trade mission and crop tour to Argentina and Brazil confirms crop shortfalls in both countries.  Argentine dry bean plantings are down from 2015 but still above historical averages. Yields are significantly lower than last year, color is good but caliber is smaller than average. At the same time, Brazil, the largest bean growing and consuming nation in the world, is also facing a dry bean crop shortfall due to poor weather conditions in growing regions. 

 

This dynamic has created a high demand, high price, sellers' market, particularly in Brazil where carioca beans prices (the most popular Brazilian bean) have reportedly reached close to US$3,000/MT.  Brazil traditionally turns to Argentina as their supplier of choice for dry beans.  Brazilian buyers are, for the first time, admitting the crop shortfall and some sources have noted they may need an extra 300,000 MT of dry beans.  During the crop tour, USDBC spotted Brazilian buyers visiting Argentine growing regions to purchase beans directly from growers.  Brazilian traders have told USDBC that in addition to sky high carioca prices, they are paying upwards of $950/MT for cranberry beans, and $850/MT in cash prices for black beans.  USDBC feels that Brazil will buy every pound of the Argentine crop possible.

 

For USDBC, this means that our year-long efforts to promote US pinto beans (called feijao tigre in Brazil) as a substitute for Brazilian carioca beans, has a real chance of creating new US dry bean sales to Brazil.  But this opportunity is not limited to Pinto beans.  With Brazilian need for dry beans so strong, the Argentine crop falling short, and traditional Brazilian sources commanding record prices, we are optimistic we will sell U.S. dry beans to Brazil this year.  

Photo Courtesy of Randy Duckworth

A Brazilian truck with Parana State (Brazil) license plate in the heart of the Argentine black bean growing area, in Salta.

A few weeks ago USDBC received a request from a European customer about our farming practices.  Their interest was primarily in determining how we regulate various farming inputs such as fertilizers and pesticides and how we ensure compliance with the EU's own food safety requirements.  EU food safety standards are some of the most stringent in the world but most export thresholds will rely on Codex standards, which our dry bean exports meet. That said, the issue of food safety is part of a larger discussion on our sustainability practices and one that will continue to come under increased scrutiny from the EU and possibly other markets.  Despite the fact that the U.S. has some of the most efficient and effective farming practices in the world, we need to do a better job of promoting the sustainable farming practices that have been part of our culture for many years.

 

To that end, USDBC will begin discussions in the next weeks with the U.S. Sustainability Alliance, a coalition of U.S. agricultural trade groups, farmers, fishers, and foresters committed to communicating a century of "continuous commitment to American environmental sustainability by supporting and participating in conservation programs that protect natural resources in the U.S."  The message of the Alliance is broader than conservation, providing important data on U.S. agricultural practices such as no till farming, the clean air act, and occupational safety laws.  The U.S. dry bean industry has always had a strong message with regards to our production practices including the fact that dry edible beans are nitrogen fixers, returning nutrients to the soil, and utilize less water than other crops.  Aligning our interests with the Alliance will allow us to broaden our outreach and continue to promote the superior qualities of U.S. agricultural products.  We will be providing more information on this initiative in the weeks to come.  You can find out more about the Alliance at,  http://thesustainabilityalliance.us/