Smaller Bean Crop May Cut Exports

WASHINGTON - Oct 21/04 - SNS -- Smaller dry edible bean harvest in the United States will likely force the industry to reduce export shipments for the second year in a row, suggests the USDA's Economic Research Service Vegetables and Melons Outlook report by Gary Lucier and Alberto Jerardo.

The text of their comments on dry edible beans continues:

The October estimate of the 2004 U.S. dry edible bean crop indicated a decline of 17% from a year ago to 18.7 million cwt (100 pound units) -- the smallest crop since 1983 (15.5 million cwt).

National dry bean output was also 12% below the August crop forecast, with the October estimate incorporating the effects of the unusual August frost and an earlier-than-hoped-for September frost in the upper Midwest.

Because of a cool, wet growing season punctuated with frost, average U.S. dry bean yield was estimated at 1,495 pounds per acre, down 11% from last year and below long-term trend levels.

U.S. dry bean harvested area is now expected to decline 7% to 1.25 million acres, with acreage losses standing at 9% of planted area -- equal to the average of the past 5 years, but up from just 4% a year ago.

Most of the reduction since the August estimate occurred in North Dakota and Minnesota where crop damage from both rain and frost was most evident and where harvest was slowest to advance. Yields in North Dakota, the leading dry bean producing State, are expected to decline 27% from a year ago and are the lowest since 1993. Given estimated production of 5.4 million cwt, this would be the smallest North Dakota dry bean crop since 1993.

Movement of dry beans has been reported to be sluggish since the August frost as market participants tried to get a handle on the supply situation. Since that event, dealer and grower prices have been moving higher on the limited trading activity that has occurred.

Between mid-August and mid-October, the greatest increases in dealer prices were noted for pinto beans (up 44%), navy beans (29%), cranberry beans (21%), light-red kidney beans (18%), and dark-red kidney beans (17%). About two-thirds of the pinto, navy, and dark-red kidney bean acreage is located in North Dakota and Minnesota (where crops suffered losses from frost and rain), which helps explain some of the upward market pressure for pinto and navy beans.

During the 2003-04 marketing year (September-August), dry bean export volume declined 7% from a year earlier to 6.11 million cwt. Volume was 9% below 2 years earlier and was the lowest since 1993-94 (6.11 million cwt). Export volume to Japan increased 7%, but exports to Canada (down 46%), Mexico (19%), and the United Kingdom (34%) each declined.

Pinto bean exports jumped 60% to 2 million cwt -- the strongest pinto exports since 2000-01. Crop year export volume also exceeded year-earlier levels for small red beans with volume jumping 46%, recovering the ground lost since the late 1990s.

Exports declined for most other bean classes including navy, Great Northern, lima, and cranberry beans. However, declines were sharpest for light-red kidney, pink beans, garbanzos (or chickpeas), blackeyes, and dark-red kidney beans. Chickpea (garbanzo bean) exports declined 57% to the lowest level since 1997-98.

Chickpea exports have declined for 3 consecutive years after peaking in 2000-01 at 62.3 million pounds.

Dry bean imports rose 6% to 183 million pounds during the 2003-04 crop year. Canada (48%), Mexico (19%), and China (12%) continued to be the top three foreign suppliers of dry beans during 2003-04.