U.S. Dry Bean Council to Stay the Course in Brazil Marketing Activities

January 17, 2017
USDBC Informational Seminars

USDBC Dry bean informational seminars in Sao Paulo, Brazil.

The Brazilian Agricultural Supply Company (CONAB)  is forecasting higher production for Brazil’s first harvest for 2016 – 2017.  Conab expects that low stocks and firm prices for carioca and black beans in 2016 would drive up seeded hectares in the first 2016-17 planting season. Higher yields per hectare were also projected along with increased production in several states, with total production forecast at 1.283 million MT, up 24% from 2015-16. Of the total, carioca beans dominate, accounting for 819,000 MT (up 23% from last year) and black beans come in second, accounting for 315,400 MT (up 9.1% from last year).
USDBC Dry Bean Informational Seminars in Sao Paulo

USDBC Dry Bean Informational Seminars in Sao Paulo

Based on USDBC’s own informal survey of the market, we project that production will be lower than Conab’s forecast. Reports are already surfacing that weather conditions, including extreme heat, have reduced yields.  We are continuing to monitor Brazilian bean market conditions and run promotional activities around the country.  During the period September 1 through November 2016, Brazil imported 4,820 MT of U.S. dry beans, nearly ten times total imports of U.S. dry beans for the entire 2015-16 marketing year and 99% more than the amount imported during the same 3-month period a year ago (Global Trade Atlas).  The U.S. Census Bureau reported that U.S. black bean exports to Brazil in the same period reached 7,253 MT, making Brazil one of the top-ten destinations for U.S. dry beans in 2016-17. USDBC is in the process of finalizing our work plan for this new dynamic market for 2017.

Historical Brazilian Bean Production (Source: Conab)

Historical Brazilian Bean Production (Source: Conab)

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