OUTLOOK, Sask. – The 2003-04 crop year was a forgettable one for prairie bean growers.
A huge carryover of pintos in the United States, a good crop of black and coloured beans in Mexico and cheap Chinese white beans combined to create lacklustre demand and poor prices.
Values for most classes of beans are expected to rebound in 2004-05, a trader with Walker Seeds Ltd. told growers attending the Irrigation Crop Diversification Corp. dry bean field day in Outlook, Sask.
“This year looks much better for pintos,” said Gildardo Silva, speaking to a small crowd gathered at the KEG Farms dry bean processing facility, located near the central Saskatchewan community.
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Growers were getting paid as little as $16.50 for a 100 pound bag of pintos in December 2003.
With U.S. carryout levels falling to 30,000 tonnes at the beginning of the current crop year, down from 116,000 tonnes in 2003, new-crop prices should be $21.50-$22 per bag with the possibility of some $23 trades, said Silva.
Exporters were hoping to be able to offer growers $25 prices this fall, but a late production shift out of soybeans and into dry beans in the U.S. foiled that plan.
Silva delivered a similar uplifting outlook for great northern beans.
Most sales into Europe last year were no higher than $20.50 per bag because cheap product from China depressed prices in Europe, North Africa and the Middle East.
A major frost in Argentina combined with seeding cuts in China has improved 2004 sales prospects for great northerns. Prairie farmers will receive $27 per bag.
“This year it’s much better,” Silva assured the farmers gathered at KEG Farms.
But the outlook for blacks is dismal. Silva told growers not to expect prices beyond $20 per bag.
“I don’t think the demand is going to be there from the Mexicans who are the main buyer.”
But Mexico’s long-term demand for black and pinto beans is huge, as prohibitive tariff rate quotas are set to expire in 2008.
“My advice to you would be keep on going on beans. Don’t give up,” said Silva.
Grant Carlson, manager of KEG Farms, echoed that sentiment. He estimated only 10,000 acres of beans were planted in Saskatchewan this year.
“We’d like to see acres grow by another 10,000 and we think the markets are there for even a way bigger increase than that.”
Carlson said his plant, which he believes is the only dedicated bean processing facility in the province, could easily handle 20,000 acres of production.
A few years ago the facility couldn’t get buyers interested in looking at sample shipments, but this year the phone is ringing.
“We’re getting calls from people that have seen our beans somewhere and they ask ‘how many rail cars can you ship?’ ” said Carlson.
He told growers Saskatchewan is “way underserved” on bean acres. Some of his best suppliers didn’t grow beans this year due to poor 2003 prices.
Carlson said farmers in traditional bean regions like Colorado and Idaho are shifting into competitive crops, creating an opportunity for bean expansion north of the border where there is cheaper land.
“We think it’s headed towards us. How fast it’s going to get here, I’m just not sure.”
