Bean Bulletin
An update on issues that impact the US Dry Bean Industry
        June 12, 2015                               Volume One, Issue 4
                      Rebecca Bratter             
US Dry Bean 
Council
                       Executive Director
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 In addition to new updates to our facebook page, USDBC is now on twitter and Instagram.  

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Market Reports. 

 

May - Southeast Asia Monthly Report 

 

 

USDBC TO SUBMIT COMMENTARY ON 

NEW USDA APPOINTMENT

 

USDBC along with members of the agricultural trade community will submit input and commentary into the deliberations surrounding the creation of a new Undersecretary position at the US Department of Agriculture (USDA).  This proposal would create a new Undersecretary for Trade and Foreign Agricultural Affairs.  The initiative has been supported and championed by the US agricultural trade sector who feel that the current global agricultural portfolio is best served by separating it from the Farm Service Agency.  The current Undersecretary covering the farm and the foreign agricultural service carries a very broad portfolio that splits his time between domestic and global agricultural duties. With a trade agenda that includes a number of critical initiatives, there is some concern that the joint portfolio won't allow the Undersecretary to provide the high level leadership needed.  This is in no way a reflection of the Undersecretary but is an indication of the emerging importance of global agricultural trade issues and the need to have a different structure to reflect the current reality.

The movement behind the creation of this new position is based on various studies and vetting exercises requested by Congress.  The last step in this process is input from the agricultural trade community that will then be submitted in aggregate form to the National Academy of Public Administration, tasked by congress to evaluate the need and role of this position.  Our input will be used to recommend a portfolio for this new position.  Input is due June 17, please contact USDBC if you'd like more information on this opportunity.

 

USDBC SUPPORTS INITIATIVE TO EASE US PORT DISRUPTIONS


 
USDBC is supporting proposed legislation under the Protecting Orderly and Responsible Transit of Shipments (PORTS) Act of 2015.  The bill would allow state governors to intervene in labor disputes at seaports and stop disruptions such as the West Coast ports dispute that brought shipping traffic to a standstill and took a toll on the economy.

 According to the recent letter in support of this bill signed by USDBC, "International trade via seaports accounts for more than a third of U.S. GDP; that value is expected to increase to 60 percent by 2030.  Seaports currently support 13 million domestic jobs.  The number of trade-supported jobs has doubled over the past 20 years and is still growing faster than total employment." Disputes at ports disrupt trade and hurt the economy through port delays, higher costs, and lost business for various industries.  It is estimated that the recent West Coast port dispute cost the country $1 billion per day in lost economic activity and in some cases, many industries are still recovering from the lost activity.  Many agriculture businesses lost export opportunities and overseas customers due to shipping delays. 

USDBC will continue to report on the proposed bill and its progress.

 

CALIFORNIA DRY BEAN ADVISORY BOARD ADDRESSES GRADING CONCERNS


 
The California Dry Bean Advisory Board (CDBAB) has been working together with the California Bean Shippers Association to investigate recent blackeye grading changes resulting in an increase of samples failing to make the grade. After consultations with USDA's Grain Inspection, Packers, and Stockyards Administration (GIPSA) it was determined that GIPSA set the inspection guidelines for "insect webbing and filth" at standards that were almost impossible for warehouses to meet. This has created complications and difficulties in marketing California blackeyes.  According to the CDBAB, buyers looking for number one grade are having trouble filing their orders "and may be forced to look outside of the U.S. where standards may not be as strict."

 

CDBAB and California Bean Shippers Association met with GIPSA to gain a better understanding of the inspection process and discuss replacing the current grading standard with a more universal standard allowing for higher thresholds.  During this meeting, GIPSA suggested utilizing the CODEX standard for "extraneous matter" which is based on a percentage of weighted measurement and the not number of beans per 1,000 count that show "webbing and filth."   These discussions will continue and if there is agreement to change the inspection standard, the new rule will be circulated for public commentary.  While this is a small change, the U.S. dry bean industry believes it would be a more effective measure that would allow more blackeyes to make the grade while still enforcing high phytosanitary standards.   We look forward to continued collaboration with GIPSA to resolve this matter. 

 

 

COMPETITIVE CHALLENGES EXPECTED FOR THE US DRY BEAN INDUSTRY IN 2016

One of the most important roles played by USDBC, is keeping industry members informed of global market developments.  With international representatives strategically placed around the globe, USDBC not only provides on the ground data on new sales opportunities but also keeps the industry informed on expected competitive challenges, and new and emerging markets.

 

Recent reports from our international representatives suggest that several competing dry bean producer markets and traditional importers of US dry beans are expecting huge crops this year.  Argentina will produce a record dry bean crop with a notable increase in black bean production.  South Africa is also anticipating a large crop with record  white bean production.   

 

USDBC leadership will be looking at the competitive outlook for 2016 and considering how to approach the market challenges.  USDBC international representatives will continue to identify and develop new opportunities in untapped markets and market segments that will help take up U.S. supply.   We will also continue to provide the latest market intelligence to members to help guide marketing decisions. 

USDBC Rep Johanna Stobbs introduces US dry beans to the Bulgarian market
Key upcoming events in the US and around the Globe        

July 17 & 18                       USDBC Summer meeting, Boston MA

July 19 - 21                        US Dry Bean Convention, Boston MA

September 13 - 19              Reverse Trade Mission to US

October 10 - 14                  ANUGA, Cologne, Germany 

February 12 - 14, 2016        Mexican Bean Congress, Cancun, Mexico

 


Rebecca Bratter,
Executive Director

US DRY BEAN Council            7928 East Drive, Suite 302 North Bay Village FL 33141             202.492.0522