Argentina/Brazil Trade Mission Confirms Shortfalls

July 8, 2016
Posted in: News

A recently concluded USDBC trade mission and crop tour to Argentina and Brazil confirms crop shortfalls in both countries. Argentine dry bean plantings are down from 2015 but still above historical averages. Yields are significantly lower than last year, color is good but caliber is smaller than average. At the same time, Brazil, the largest bean growing and consuming nation in the world, is also facing a dry bean crop shortfall due to poor weather conditions in growing regions.

Argentina 2016 Planted Hectares

This dynamic has created a high demand, high price, sellers’ market, particularly in Brazil where carioca beans prices (the most popular Brazilian bean) have reportedly reached close to US$3,000/MT. Brazil traditionally turns to Argentina as their supplier of choice for dry beans. Brazilian buyers are, for the first time, admitting the crop shortfall and some sources have noted they may need an extra 300,000 MT of dry beans. During the crop tour, USDBC spotted Brazilian buyers visiting Argentine growing regions to purchase beans directly from growers. Brazilian traders have told USDBC that in addition to sky high carioca prices, they are paying upwards of $950/MT for cranberry beans, and $850/MT in cash prices for black beans. USDBC feels that Brazil will buy every pound of the Argentine crop possible.

For USDBC, this means that our year-long efforts to promote US pinto beans (called feijao tigre in Brazil) as a substitute for Brazilian carioca beans, has a real chance of creating new US dry bean sales to Brazil. But this opportunity is not limited to Pinto beans. With Brazilian need for dry beans so strong, the Argentine crop falling short, and traditional Brazilian sources commanding record prices, we are optimistic we will sell U.S. dry beans to Brazil this year.

 Photo Courtesy of Randy Duckworth

Photo Courtesy of Randy Duckworth

A Brazilian truck with Parana State (Brazil) license plate in the heart of the Argentine black bean growing area, in Salta.