November 29, 2021
Andrea Gomez is the commercial director of Progranos, a Mexican company trading in corn, beans, soybeans and chickpeas. This week, she chatted to the GPC’s Ana Krepp about the Mexican pulses industry.
Tell us a little about the history of Progranos.
The company was established in 1996. We are a family business; my father started collecting corn more than 35 years ago using the experience he gained when he came from Spain to work in Mexico. A few years later, he started trading other products such as beans, chickpeas and sorghum. He has also been acquiring vineyards little by little.
Today, we export to more than 35 countries: the main destinations are Algeria, Turkey, Jordan, United Arab Emirates, Iraq and Brazil.
How did water availability affect seeding in 2021?
This year there was enough rain and the dams had enough water, which meant that farmers sowed more corn. When there’s no rain and the dams are empty, growers have no other option but to plant beans and chickpeas. We just finished planting chickpeas in October.
After several years, Mexico will start from zero stocks, due to the fact that the last harvest was not very fruitful and exports increased from 2020 to 2021. Now for the new harvest in 2022, we are expecting production of 100-120 thousand tons.
What effect is the low availability having on prices?
In the short term, prices will keep rising due to the logistics problem as well as the low availability of chickpeas. However, it’s India that tends to define price behaviour and unfortunately they have been lowering their prices, which means the price of Mexican chickpeas has been impacted. Demand was also reduced as a consequence but we hope that at the end of November and in December it will start increasing again and we’ll have stable or rising prices.
What are the main challenges in the port of Mazatlán?
It is a relatively small port so we only have two shipping companies and this year, due to the Covid issue and high demand for various products, there has been a lot of congestion in the main ports, such as Valencia. Combined with the shortages of containers, our shipping and selling have been seriously delayed.
Can you give us an overview of Mexican pulse consumption?
Well, Mexicans consume a lot of corn but the most popular pulses are beans, the type of which varies depending on the area. Sinaloa, for example, is the main consumer and producer of the Mayocoba bean, or Peruvian/Canarian as it is known elsewhere, which is also exported to the United States and Peru. In Mexico City, lots of black beans are consumed.
What are the main challenges for Mexican agriculture?
It is a matter of costs and open markets: we compete with international markets, especially the US, Argentina and Brazil. They are exporting countries while Mexico is mainly an importer, except for chickpeas, tomatoes and vegetables. Mexico’s borders are open and our corn and beans struggle against the subsidized markets of richer countries whose costs are lower, who have lower interest rates and cheaper gasoline as well as much more new production technologies. This leaves us at a disadvantage.
Regarding chickpea exports, we could be one of the most important in the country because there are not many chickpea exporters in Mexico, but we need to fight every day to maintain the profit margins that allow us to continue participating in this market while always providing a high level of quality for our customers.
With which crops do chickpeas compete?
Sinaloa is an agricultural state, so it sows all types of grain, such as white and yellow corn, beans and sorghum. The Mexican chickpea directly competes with foreign chickpeas, mainly those from India, Turkey, Spain, the US, Canada and Argentina. They all produce high volumes that also have different qualities and sizes. In the domestic market, we are always competing against the product that is more profitable to grow.
What is the typical composition of the Mexican farm in terms of size and yield?
In a very good harvest, the yield is 1.8 tons per hectare and 85% of the harvest is heavy gauge.
Pulses are the main providers of protein and vitamins in a plant-based diet, how do you see the future in a world where meat consumption is increasingly problematic due to its impact on the environment?
It is a fact that pulses consumption has increased, but it is also a fact that meat consumption is still very strong, at least in Mexico, and we are a country with excellent meat quality. But the plant-based trend is on the rise, people are slowly turning away from meat and towards plant-based alternatives and I think sooner or later, we will see a huge change in consumer diets.
How was Progranos affected by the Covid-19 pandemic?
I believe that demand for food will always be present because people have to eat. In fact, in Mexico, companies in the food sector have not closed throughout the pandemic.
The negative impact was the increase in the demand for products in general, which caused the congestion of ports and, on our part, lengthened the delivery times of our products.
What does the future look like for Mexican pulses?
We need to keep researching seed quality so that we can keep producing thick white chickpeas. We produce excellent quality chickpeas but the variety has been degenerating and quality has been affected over the past few years. The SIAP (Agri-food and Fishing Research Service) is investigating the production of new varieties of Sinaloa white that will hopefully be unique to Mexico. Also, the producers need to listen to the leaders so that adequate volumes are planted and production stays high.
What’s the best thing about working in the pulses industry?
It’s fun - it is a market in which you can learn a lot because you often work with people who are very different from you and have a different language and culture. It is a rather complicated market so it’s important to build trust - we have some very good clients who we consider real friends.
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Disclaimer: The opinions or views expressed in this publication are those of the authors or quoted persons. They do not purport to reflect the opinions or views of the Global Pulse Confederation or its members.