February 9, 2016 - Dry Bean Bulletin

February 9, 2016 Volume Two, Issue 2

USDBC NEWS UPDATE

USDBC Elects New Officers,

Outlines Future Priorities

The Council concluded it's annual Winter Meeting in DC on January 27, 2016 electing the following new officers to a two year term:

President - Lynn Preator , Preator Bean Company, Burlington, Wyoming

Vice President - Deon Maasjo, Kelley Bean Company, Oakes, North Dakota

Treasurer - Mark Thompson, New Alliance Bean and Grain Company, Alliance, Nebraska

Congratulations to the new Officers. Additionally, the Board and Officers discussed several new exciting initiatives for 2016 to continue to build global demand for U.S. dry beans. In addition to the momentum this year from the International Year of Pulses, USDBC is looking at several new demand building activities around the world as existing and new export markets seek to promote plant based proteins and processed products such as bean flours and fried snacks. This will be coupled with a strong domestic program to address new regulatory challenges concering zero tolerance issues and to support research programs that look at increasing dry bean production and yield. 2016, the International Year of Pulses looks to be a year full of promise for dry beans and a tremendous opportunity to engage in activities to grow dry bean consumption this year and well into the future.

USDBC Global Reps discuss market conditions.
L to R - Violeta Picazzo and Raul Caballero - Mexico, Randy Duckworth - Latin America & Emerging Markets, David McClellan - EU and Africa, Jeff McNeill - Japan, Johanna Stobbs - EU, Dee Richmond - Southeast Asia.

USDBC Raises Concerns

regarding DR Trade practices

The Dominican Republic is an important trade partner and export market for U.S. dry beans. Despite full participation in the CAFTA/DR trade agreement with the U.S. and being a member of the World Trade Organization (WTO), the Government of the Dominican Republic (GODR) continues to engage in questionable trade practices with regards to imports of US dry beans. Most recently, this has resulted in numerous tactics to restrict imports, including refusal to issue phytosanitary certificates necessary for market entry. According to industry insiders, there are currently 3,000 MT of pinto beans detained at port, and another 3,000 MT of dry beans under contract or nearing delivery. At current prices, this could mean a loss of approximately US$3.5 million. USDBC is working closely with the office of USDA's Foreign Agricultural Service (FAS) in Santo Domingo and with FAS trade enforcement staff in the U.S. seeking immediate resolution to this issue. We will keep you updated with any new developments.

Research Continues

on solutions for Sclerotinia

Sclerotinia is a fungus that causes white mold in a number of different broadleaf crops including dry beans. It is estimated that the economic loss due to crop damage as a result of sclerotinia in dry beans is over $46 million. USDBC has been working closely with other affected crops as part of the National Sclerotinia Initiative (NSI), to find a solution to white mold as it is one of the major obstacles to increased production and yield. There is no doubt that the US bean industry will need to produce more to feed a growing world population in the long term and to satisfy growing demand for sources of plant based protein in the short term.

Along with industry partners, USDBC has participated in The National Strategic Plan for the Sclerotinia Initiative 2017-2021, providing the research community with a foundation for a comprehensive and integrated research approach toward this problem. According to the Initiative white paper, "the plan defines the actions that will be taken to solve these problems, describes what is promised or will be produced, assigns accountability for the work to be accomplished, and provides a mechanism for peer review and assessment of research progress."

The full report and outline of research priorities is available from USDBC upon request.

Reverberations continue from "Dal Shock" in India

The latest news from India suggests that the unprecedented high prices for pulses is not due solely to crop shortfall but to price gouging. Indian trade insiders and media report that a few Indian traders are buying up stocks of red lentils from Canada and using this to extract high prices and play the market, exacerbating existing fears caused by crop concerns. This has created chaos and panic across the pulse market resulting in wild price spikes. While this does not have a direct impact on dry beans, reverberations will be felt throughout the pulse market as the same buyers purchase all pulses.

The Government of India (GOI) is taking steps to determine responsible parties and bring an end to the so-called commodity "cartels." This may have an impact on the ability to conduct business in the short term but USDBC's on the ground Representative in India is confident things will be sorted out in short order. A delegation of U.S. dry bean dealers and growers will travel to India this month to attend the Pulse Conclave and meet with potential buyers. While we are aware of the situation and it's potential impact in the short-term, we anticipate a successful meeting where U.S. industry representatives will have the opportunity to establish important new contacts, leading to future business opportunities.

Dal Prices Skyrocket. Photo courtesy of Shakun Dalal.

USDBC Keeping an Eye on Mexico Market

The market situation and potential demand outlook in Mexico remains fluid as harvest numbers continue to come in from the main dry bean growing regions. Some regions are reporting harvests well below anticipated forecasts and others seem to be holding steady. USDBC is deciphering the market intelligence daily so that state and bean class specific data can be available to our membership as the specific numbers are confirmed. We will continue to keep you informed and please feel free to contact our Mexico City office with any questions.

THE 2016 MEXICO BEAN CONGRESS STARTS THIS WEEK!

The 2016 International - Mexico/U.S. Dry Bean and other specialty crops congress is takes place February 11th-13th 2016 in beautiful Cancun, Mexico. The US Dry Bean Congress is coordinated and sponsored by the U.S. Dry Bean Council, the USA Dry Pea and Lentil Council, the National Sunflower Association and The Popcorn Board. The objective of this event is to gather exporters from these associations to facilitate meetings with buyers from Mexico and Latin America. This year, the event will include importers from Mexico, Colombia, Peru, Chile and some countries in Central America.