GPC Ask the Experts North America/
Mexico Dry Beans

Analyst:
• Vicente Mendoza, Independent Consultant

Moderator:
• Raul Caballero, US Dry Bean Council

Panelist:
• Sebastian Gutierrez, Surtidora Abarrotera
• Miguel Angel Vazquez, Schettino Hermanos
• Jorge Uriarte, Intercontinental de Mexico Trading
• Alejandro Rubio, COGSSA

At the GPC’s North America Ask The Experts: Mexico Beans, Peas and Lentils panel, Raul Caballero, representative of the US Dry Bean Council in Mexico, was joined by panelists Vicente Mendoza, an independent consultant, Sebastian Gutierrez of Surtidora Abarrotera, Jorge Uriarte of Intercontinental Mexico, Alejandro Rubio of COGSSA and  Mr. Miguel Angel Vazquez. The theme of the session was the spring/summer 2021 production cycle of beans in Mexico.

Mr. Mendoza’s presentation included data from his own field surveys conducted in the first few days of August, compared with data collected by SIAP. His own numbers for dry bean seeding intentions were estimated at 1.2 million hectares while SIAP predicted 20% more: 1.4 million hectares. Likewise, SIAP’s production number estimations for the S/S 21’ cycle were more optimistic than his own: 972 thousand tons compared to a more conservative 680 thousand tons. These numbers are predicted to be split by variety of bean into 49% black, 39% pinto and 12% white. Last year, the split was 54% black, 31% pinto and 15% white. 

As for import/export behaviour, Mr. Mendoza remarked that the past two cycles were significantly affected by droughts and frosts. Between September 2020 and August 2021, Mexico had imported 216 thousand tons of beans, mostly pintos. At the beginning of this year, the nomenclature was changed in the Directorate General of Customs and everything is now being concentrated in one code. As a result, he said, it’s difficult right now to understand exactly how much of the import volume is black, pinto or white. Exports for the past marketing year were 33 thousand tons, an almost 10% decrease from last year. 

Regarding inventory, supply data showed around 1.2 million tons in the marketing year 20/21: an initial inventory of 56 thousand tons, production of 881 thousand tons and imports of 229 thousand tons. The demand number is 1.072 million tons, composed of 36 thousand tons of exports, 850 thousand tons of domestic consumption, 72 thousand tons for seed and 114 thousand tons of waste. At the end of this commercial year, the final supply number is approximately 93 thousand tons. 

During the Q&A section, panelists commented on the positive outlook for the upcoming cycle, thanks to some good rains at planting, but stressed the importance of remaining prudent. Mr. Uriarte discussed the country’s recovery and added that Durango had a late sowing of between 30 and 40 thousand hectares at the end of July and experienced a lot of rains, meaning it will be a catalyst for the production of the cycle. The possible substitution of beans for lentils was touched on, as their popularity continues to grow in Mexico, however it was remarked that high prices may curb this trend.  

Finally, panelists expressed concern at the decreased purchasing power of Mexican consumers and the increasing prices of beans before concluding that it’s important for the country to promote bean consumption as much as possible faced with declining popularity.