“I expect China will come back strong”/
Skane Group on green mung, white beans and the European market

What recent developments have been happening at Skane Group?

Vanesa Tejero: We've been working on a really exciting project in Venezuela for the past four years, focused on developing new mung bean seed genetics to improve germination rates. 

It’s been a long journey, but last year we managed to export around 2,600 tons of these new seeds. This year, we're aiming even higher, with plans to export between 4,500 and 5,000 tons.

How is the global mung bean market looking right now?

VT: China has been dealing with some issues with their harvests, and that's something that could really shake things up in the global market. Last year, we didn’t sell much to China at all, but I have a feeling next year things could be very different. 

I expect China will come back strong, and we’ll see a significant increase in their demand for mung beans.

What’s happening in the European pulse market? Are you seeing any major challenges or opportunities?

Andres Gil: Europe’s an interesting place right now, especially for pulses. Lentil consumption has absolutely exploded this year. People are really catching on to the health benefits, and we’re seeing lentils used in all sorts of products, even as a meat alternative in things like veggie burgers.

The white bean market is another area with some changes. The price is going up in the United States and in Canada. But we also have to remember that there are alternative origins like Ethiopia, whose harvest came out at the end of September. And prices in Ethiopia are very competitive. 

Egypt is stepping up as a major supplier to Europe, especially with Argentina struggling. Egypt's got the capacity to supply the whole world if they wanted to! They proved that this year with the 30,000-ton Algerian tender. I think Argentina’s crop loss is going to hit them hard, and they’re going to overplant next year, driving prices down. Egypt’s expanding production, so we’ll see prices for white beans likely drop significantly.

Are there any new markets you’re exploring?

VT: Yes, we’re really focusing on Central America right now, particularly for mung beans. One of our team members, Alejandra, is actually living in Panama to help us grow in that region.

This year was incredible for black beans in Brazil, especially in the Mato Grosso region. We were invited to a fair in Brazil where we talked about the opportunities for business and production in South America. For the first time, we ended up exporting black beans from Brazil to Venezuela, Chile, and the Dominican Republic. It was completely unexpected because Brazil usually imports beans, not exports them. But this year was different, and we shipped over 80 containers to the Dominican Republic alone!

We’re also developing black-eyed peas in Venezuela. Last year, we sent quite a bit to Europe, but historically our black-eyed peas were smaller than those from other countries. Now, with improvements in seed genetics, we've managed to increase the size, and the project is really moving forward.

What’s the current situation in Venezuela’s agricultural sector?

VT: The 2024 mung bean harvest wasn’t great—yields are down, and it’s becoming less and less attractive for farmers to stick with certain crops. Some farmers are switching to alternatives like sunflower, sesame, and white beans. Some farmers are still sticking with mung beans, or will continue, but I don't think the intention will be more than 50,000 hectares but I might be exaggerating because of the lack of seeds.

But the problem is that there’s little government-backed agricultural financing, so many farmers have to rely on private loans with very high interest rates. On top of that, there’s a diesel shortage, which makes it hard to run tractors.

However, we’re doing what we can to help. We’re educating farmers, bringing in international experts, and working to improve seed quality. 

We’ve been in Venezuela for 10 years with our mung bean project, and while progress is slow, we’re making strides each year. Planting starts in Venezuela from October 15th at the latest to the end of November. We're in that process right now, encouraging and betting on mung this year. 

How are you approaching the markets in Asia?

Vanesa Tejero: Venezuela has an advantage when it comes to exporting to Indonesia—something Argentina can’t do. We’ve developed the mung bean market there, as well as in Malaysia, Thailand, and the Philippines. The feedback from these clients has been great. While we didn’t send much to Vietnam this year, the alternative markets have welcomed us with open arms.

We’re also working to reopen the phytosanitary agreements with Pakistan. It used to be one of our biggest markets, alongside Turkey, but we haven’t been able to export to Pakistan in a while. We’re trying to fix that and get back in.

What about Europe? How does that market look for Skane Group?

AG: Europe is a fierce market, especially in countries like Italy. It’s all about price there—if you don’t have the right price, you’re out. This year, Portugal has been one of our biggest successes. We exported between 15-20 containers of mung beans to Portugal, which is a big jump compared to just a few containers a few years ago.

We’ve also expanded into selling beans in glass jars. For instance, we supply white beans in jars to clients in Bulgaria through Cister. Cister has been growing fast—when I visited them recently, I saw their new warehouses, and I don’t think I’ve ever seen anything that size in Europe!

It sounds like the red kidney bean market is facing some issues. Can you explain?

AG: Yes, it’s going to be a rough year for red kidney beans. The harvest in the U.S. didn’t meet expectations, and domestic consumption is rising. We think yields will be much lower than anticipated—around 30,000 tons instead of the 50,000 they were hoping for. This is going to make red kidney beans hard to come by in the coming months.