GPC Ask the Experts North America/
Mexico Chickpea Panel

SESSION SPONSOR

Analyst:
• Felipe Sandoval, BeGrait

Moderator:
• Demian Gallego, GFI (Global Food and Ingredients)

Panelist:
• Joel Valenzuela, JOVA Graneros S.A. de C.V.
• Sahid Hernandez, Agro Servicios Terminel
• David Larios, Aliansa

During the GPC’s Ask the Experts North America: Mexico Chickpeas session, Damien Gallego from the GFI was joined by analyst Felipe Sandoval of BeGrait and panelists David Larios of Aliansa, Joel Valenzuela of JOVA Graneros and Sahid Hernandez of Agro Services Terminel to discuss this year’s harvest. 

In his presentation, Mr. Sandoval mentioned that domestic consumption of chickpeas was still rather low in Mexico, but is seeing slow growth thanks to the increasing popularity of the plant-based lifestyle. Planted area for 2021 was around 87 thousand hectares, production is estimated at 174 thousand MT and yield at 2 MT/hectare. He also mentioned that average prices paid to farmers in 2021 was $850, compared to a high of $1,250 in 2017 and a low of $670 in 2019. Giving an overview of the 2021/22 season, Mr. Sandoval estimated that planting intentions of chickpeas were 80-90 thousand hectares in Sinaloa, Sonora and Baja California, indicating that rains have been good, which will make for better yields and sizes. There is no carry-in for the 2022 crop and he believes the opening price for 2022 will remain high. In his opinion, the table is set for a fresh start and a normal year for Mexican chickpeas but he expressed the need to always be prepared for obstacles.

In the discussion section, Ms. Hernandez commented that the hectarage for corn has been reduced in Mexico, freeing up acreage for chickpeas and increasing the general optimism about next year. Mr. Larios highlighted that the last couple of years have been difficult for growers in Sonora, many of whom have been selling their water for other products. He added that expenses for growing chickpeas in the region are high but the current high prices are incentivising them to persevere. Mr. Valenzuela mentioned that the main crop in Sinaloa is white corn and that if there is enough water, chickpea hectares will be reduced in favour of corn, despite the fact that chickpea prices are looking to remain firm from now until March, because farmers prefer to grow corn. He agrees that all Mexican chickpeas will be exported by the end of this calendar year, allowing the country to go into 2022 with zero supplies. All panelists stressed the significance of the container crisis for buyers and the fact that no one is sure when things will return to normal, meaning forward planning is primordial.

Mr. Valenzuela mentioned the situation in Türkiye, one of Mexico’s biggest markets for chickpeas, in which all shipments arriving before the end of the calendar year won’t have to pay some import duty, meaning most buyers are covered currently. However, he stressed that Türkiye, a main distributor for the entire Middle East, will have to keep buying regardless and so most buyers are still holding as they try to understand the situation. He added that Mexico is not in a hurry to sell as they are still 6 months away from the harvest, meaning the market is expected to stay firm until March since all the export houses have low inventory and there is no other country available to cover the demand. He stressed that the most important factor which could put pressure on the market currently was whether the farmers decide to plant chickpeas or corn. He added that this is dependent on water availability and government decisions.