Lethargic Markets Limit U.S. Bean Expansion

WASHINGTON - Aug 31/04 - SNS -- Dry edible bean seedings in the United States are having difficulty keeping pace with prior years on account of lethargic bean prices, compared to opportunities for other agricultural commodities, suggests the USDA in its annual report on pulses.

Writing in the USDA'S Vegetables And Melons Yearbook, Gary Lucier and Andy Jerardo of the USDA's Economic Research Service (ERS) said this year's harvested area is expected to reach 1.33 million acres, 2% less than last year.

"Planted area increased just 1% in response to lethargic dry bean prices, relatively unstable domestic and export demand, and more attractive prices and revenue streams for alternative crops," they said in the annual report.

With some exceptions, such as black beans and navy beans, production is expected to decline and prices should continue to strengthen during the 2004-05 season.

In 2003, a 23% reduction in harvested area (to 1.35 million acres) and 4% lower yields sent dry bean production down 26% to 22.5 million cwt. The largest reduction in output from a year earlier occurred in Michigan (down 50%), where area planted was a record-low 170,000 acres. Output was also reduced in Washington (down 37%) and North Dakota (down 27% from the 2002 record high). Output was reduced for 8 of the 13 identified classes, with notable declines for navy beans (down 53%) and pinto beans (down 21%).

Among classes experiencing increases in 2003 were Great Northern beans (up 42%) and blackeye beans (up 45%). With output down for other classes last year, stocks were being drawn down but grower and dealer prices were slow to respond, resulting in some growers choosing to plant more lucrative alternative crops in 2004.

With output down, the farm value of the 2003 dry bean crop was estimated to be $412 million—down 20% from a year earlier. Despite the smaller crop, carryover supplies proved burdensome enough to keep prices in check, with the season average price for all dry beans estimated to have risen just 4% to $17.80-cwt.

Calendar year dry bean export volume declined for the fourth consecutive year in 2003, falling 2% to 680 million pounds—18% of available supply. With a smaller crop and reduced imports (down 23%), per capita dry bean use in 2003 totaled 6.6 pounds—down 1% from a year earlier.