World Edible Bean Industry Growing Slowly

VANCOUVER - Dec 23/04 - SNS -- International dry edible bean production has maintained a slight upward trend during the past decade, notes Stan Skrypetz, Agriculture Canada's Pulse and Special Crops Analyst in an analysis of that pulse sector.

Writing in Agriculture Canada's Bi-weekly bulletin, Skrypetz said production during the past decade ranged from a low of 15.7 million (MT) in 1994-1995 to a high of 18.9 million MT in 2002-2003. During the same period, Canadian production has risen sharply.

Skrypetz' comments continue in the following excerpts from his article:

Canadian dry bean production has increased significantly during the past ten years and is expected to increase further during the next ten years, as Canadian crop production continues to diversify. Although Canada produces only a small percentage of the world's dry beans, it became the third largest exporter of dry beans in the world in 2003-2004, accounting for nearly 10% of world exports.

The value of Canadian exports reached $227 million in 2003-2004. However, exports are forecast to decrease sharply in 2004-2005 due to sharply lower production caused by unfavorable weather in Manitoba, the main producing province. Prices increased for nearly all classes of dry beans.

At the world level, the term dry beans refers to several categories of beans. Dry beans produced in North and South America, Europe and Africa belong mainly to the genus Phaseolus, which is of American origin.

Most of the beans in the genus Phaseolus belong to the species vulgaris, widely known as common beans. This species includes the classes of beans produced in Canada, such as white pea, pinto, black, dark and light red kidney, cranberry, small red, Great Northern, pink, brown and white kidney.

The other significant species under the genus Phaseolus is lunatus, which includes lima beans. In Asia and Australia, most dry beans produced belong to the genus Vigna, which is of Asian origin. Common members of Vigna include azuki beans (Vigna angularis) and mung beans (Vigna radiata).

In addition, in some countries other crops are included under dry beans. For example, garbanzo beans are included under dry beans in the United States (U.S.). Garbanzo beans are actually kabuli chickpeas and are included with chickpeas in Canada and other producing countries.

Dry beans are a leguminous crop and are able to fix their own nitrogen. Therefore inoculation is recommended. However, they do not fix as much nitrogen as dry peas, lentils, and fababeans. Dry beans are very sensitive to frost; therefore seeding should be done when the risk of a killing spring frost is over and soil temperature is greater than 10 degrees Celsius. They require 90-110 frost free days, depending on class and variety.

Dry beans adapt to a wide range of soils, but do best in medium textured soils such as light loams, sandy loams and silt loams that offer good water infiltration and good water holding capacity, combined with good internal drainage. Dry beans fit well in crop rotations with crops such as cereal grains and corn.

World dry bean production has been variable during the past ten years, but had a slight upward trend. Production, during this period, ranged from a low of 15.7 million (MT) in 1994-1995 to a high of 18.9 million MT in 2002-2003.

Dry beans of the genus Phaseolus are produced mainly in North and South America, with Brazil, United States (U.S.), Mexico, Canada and Argentina being the main producing countries. During the past 10 years, dry bean production in the U.S., Brazil, Argentina and Mexico has been variable, with no noticeable trend.

U.S. production (excluding garbanzos) during the past ten years ranged from a low of 0.796 million MT in 2004-2005 to a high of 1.47 million MT in 1999- 2000. The top seven producing states for 2004-2005, in order of importance, are North Dakota, Michigan, Nebraska, Idaho, Colorado, California and Minnesota. The top three classes of dry beans produced in the U.S. are pinto, white pea (navy) and black. Other classes produced include Great Northern, dark and light red kidney, blackeye, small red, pink, cranberry, baby limas, large limas, and small white.

Although China is a relatively small producer of genus Phaseolus dry beans, such as black, most of its production of this category of beans is exported.

World trade in dry beans has been trending upwards during the past ten years. In 2003, the latest year for which data is available, exports were 2.8 million MT. The top five exporting countries in 2003, China, Myanmar, U.S., Canada and Argentina accounted for 76% of world exports. Imports are distributed much more widely than exports, with the top twenty importing countries accounting for only 67% of world imports in 2003.

In North and South America, Brazil and Mexico are significant net importers of dry beans. Although most of U.S. production is consumed domestically, it had been the largest exporter of dry beans in North and South America, until Canada surpassed it in 2003-2004. About a quarter of U.S. production is exported, mainly to Latin America and Europe. Most of Canadian and Argentine dry bean production is exported.

Production Canadian dry bean production has been trending upwards during the past ten years with most of the growth occurring in Manitoba. White pea beans remain the largest class of beans produced, but most of the growth has been for other classes, commonly referred to as colored beans, especially pinto.

Other classes of dry beans produced in Canada are cranberry, black, Great Northern, dark red kidney, light red kidney, small red and pink. In addition, a small amount of white kidney, brown, azuki, otebo and kintoki, and even smaller amounts of yellow eye, soldier, and Jacob's cattle beans are produced. The Canadian dry bean harvest normally starts in late August and ends by mid- October.

World supply and demand by class is not available, but total Canadian and U.S. supply has the largest impact on Canadian dry bean prices. Very high Canadian prices occurred in years when the total Canadian and U.S. seeded area decreased and there were production problems in at least one major producing region in Canada or the U.S.

Prices normally relate to total Canadian and U.S. supply conditions unless there are international influences, such as unusually high demand from importing countries or unusually high competition from other exporting countries. Among countries other than U.S. and Canada, production levels in Brazil, Argentina, Mexico and China also have significant impact on Canadian prices.

Since there is no formal futures market for dry beans, prices are negotiated directly between dealers and customers and are based on supply and demand factors for each class of beans. The prices negotiated could be for nearby or future delivery.

Canadian domestic use, which includes food, feed, seed, dockage and waste, accounts for only about 20% of production. It has been trending upwards with increased production and increased use for food. Food use has been growing because of increased knowledge that dry beans are a healthy food, increased use of dry beans in ethnic cuisine, and the development of quick-cooking and specialty products.

Canadian exports have been trending upwards in line with the increase in production. Although exports increased to all regions of the world, the largest increase was to Europe and the U.S.. The main importing countries are the U.S., mainly colored beans, and the United Kingdom (UK), mainly white pea beans. Other major importing countries are Italy, Angola, Cuba, Dominican Republic and Japan. All exports are carried out by bean dealers. With about 80% of Canadian dry bean production moving to other countries, Canadian producers and dealers are far more dependent on exports than their counterparts in most other countries.

Canadian imports of dry beans are mostly from the U.S.. There is a brisk trade in dry beans in both directions across the Canada-U.S. border. Since many U.S. and Canadian dealers are located near the border, many producers in both countries deliver beans across the border if there is a price advantage. In addition, dry beans are exported to processing plants in both countries and some of the imported beans are re- exported to other countries.

Dry beans are used almost entirely for human food. They are either canned, packaged dry for retail sale or further processed into products such as refried beans, pork and beans, stews, soups, chili, bean flour, bean paste, fibre biscuits, and snack food. Only a small amount of low grade, weather-damaged beans are used for livestock feed.

About 85% of dry beans are consumed in the countries where they are produced. India, Brazil, Mexico, U.S., and China are the world's largest consumers of dry beans. However, China and India consume mainly genus Vigna beans, especially mung beans. On a regional basis, per capita consumption is the highest in Latin America at about 15 kilograms (kg) per annum, and is predominantly of colored beans such as pinto, black, red kidney, and cranberry.

Healthy Diet Pulses, including dry beans, are increasingly being used in health-conscious diets to promote general well-being and reduce the risk of illness. They are low in sodium and fat, high in protein, and are an excellent source of both soluble and insoluble fibre, complex carbohydrates, vitamins (especially B vitamins) and minerals (especially potassium, phosphorus, calcium, magnesium, copper, iron and zinc). Dry beans are an inexpensive, high quality source of protein.

Since dry beans are high in fibre, low in sodium and fat, and are cholesterol free, they are an excellent heart healthy food that may be beneficial to the prevention of coronary and cardiovascular disease.

Eating dry beans may help lower blood cholesterol levels due to their high content of soluble fibre and vegetable protein.

Dry bean consumption can be beneficial in the management of type-2 diabetes because they have a low glycemic index of 55 or less, indicating that their effect on blood glucose is less than that of many other carbohydrate containing foods. Dry beans also have other health effects, such as reducing blood lipids, that may help some serious complications of diabetes.

Flour made from dry beans is gluten free and is a very nutritious option for people with celiac disease. Dry beans fit well in vegetarian diets as they are a good source of iron and protein, and complement the amino acid profile of cereal grains and nuts.

Insoluble dietary fibre consumption can be beneficial to a healthy colon and has been associated with reducing the risk of colon cancer. In addition, diets high in fibre have demonstrated beneficial effects on weight loss because they deliver more bulk and less energy.

Dry beans are an excellent source of the B vitamin folate which is an essential nutrient. In addition, folate consumption during pregnancy has been shown to reduce the risk of neural tube defects.