By SHELLY STRAUTZ-SPRINGBORN
Michigan Correspondent

CORAL, Mich. — Enthusiasm over dry edible bean prices brought a large number of growers to a local field day to learn about different bean varieties and hear the latest market updates.

More than 60 people attended the Montcalm Dry Bean Plot Tour at Grassley Farms in Coral on Aug. 25. Bob Green, executive director of the Michigan Bean Commission, talked with growers about the anticipated worldwide increase in demand for dry edible beans, as other commodity prices continue to hover at near-record levels.

During a recent trip to China, Green said he learned interest in dry beans is growing. “Their vision is to be importing dry beans from the U.S. and Canada within the next 10 years,” he said. “That’s pretty dramatic when you think in terms of 1.3 billion people.”
Green said increases in dry bean yields have lagged behind yield increases seen in other cash crops because the industry is not utilizing genetically modified technology. “Customers around the world have generally rejected genetically modified technology,” Green said. “But we’re seeing a little relenting on that because of the price of corn pulling beans out of production.”

Fran Arbogast-Carlson of Howard City, a grower and packager of dry beans and registered dietician who also serves as a director and treasurer for the Michigan Bean Commission, said pressure from other commodities is putting a real strain on dry bean production.
“Consumers are looking for more beans, but there’s less beans grown,” Carlson said.

Larry Sprague, senior merchandiser at Kelley Bean Co. in Durand, said decreases in dry bean acreage coupled with rising demand is contributing to a tight market this year.

“Unlike other years, we don’t have a carryover stock,” he said. “Michigan has always acted as the comfort level for the crop, but our carryover stocks are all sold this year. We’re starting out with bare cupboards on every class of beans we grow and acreage has been cut. All U.S. and Canada production is shrinking.”

Sprague said there’s no place else to go for dry edible beans. “There’s nowhere else to get them – other countries are having the same concerns,” he said. “We are looking at a real tight supply on every bean class that’s being sold.”

What that means for growers this year is that prices are up. “Pricing is anybody’s guess. This year we already have dry edible bean prices back to a comparative level with corn, soybeans and wheat, “ Sprague said. “Dark red kidneys are up more than 25 percent.

“It does look like prices on kidney beans will be somewhere in the 50s, depending on what happens with quality at harvest.”
He also cited pressure from other commodities as a major competitor for the dry edible bean industry.

“We lost 30 percent of pinto bean acres in two years’ time,” Sprague said. “Almost every canner we talk to says their business is increasing in dry beans – some as much as 25 percent. I don’t know of one truckload of Michigan light red kidneys that are available – they’re gone. We have a real competitive situation to try to get growers to grow enough acres.”

During the field day, Greg Varner, research director with the Michigan Dry Bean Board, also updated producers on the characteristics of 132 varieties of beans featured in the plot tour.
Dry bean production occurs in 14 states and Michigan is ranked second behind North Dakota. In 2004, Michigan was ranked first for its production of black beans, cranberry beans, light red kidney beans, navy beans and small red beans, according to the National Agricultural Statistics Service (NASS).

Michigan producers grow 12 classes of beans, including popular black beans, light and dark red kidney beans, pinto beans, navy beans, cranberry beans and others.

According to the Michigan Bean Commission, every other row of Michigan dry beans is exported. England is the largest user of Michigan dry beans other than the U.S., and 90 percent of Michigan’s cranberry beans are exported, mainly to Italy, Spain, Portugal and Columbia – making Michigan the main supplier of dry beans to Europe.

Much of the state’s black beans are exported primarily to Mexico, Venezuela and Brazil.