Increase in spring beans area could challenge the industry

UK Bean growers should focus on managing crops to maintain quality if they are to achieve the margins promised by the lucrative North African human consumption market this year, says Nidera Bean trader Arron Mayhew.

With an increasing tonnage currently being shipped to Egypt from the company’s Barmby Moor processing facilities in North Yorkshire and estimates of a doubling in Spring sowings in 2013, hitting premium markets could be harder than ever for growers this year.

“We’re currently looking at a premium of around £40/tonne for feed beans over wheat when historically it has been more like £20 - 30/tonne and the best quality beans for human consumption can add a further £10 - 20/tonne to this,” he says.

“Spring sowings are expected to rise to 100,000ha in 2013 as a result of more growers abandoning winter crops and being forced to sow a Spring crop.”

And whilst, there is a genuine opportunity to double the UK acreage of beans for export, quality will be the determining factor in growers achieving the margins they expect to, he says.

“There is a year round demand from Egypt for the best beans. Across North Africa and the Middle East, 260 million people eat beans every day of which 80% of the total demand is from Egypt with the country consuming 600,000 tonnes per year. Furthermore, population is expected to double in the next 20 years.

“But the market has the strictest quality requirements, too. Most contracts are based on just 2% damage by Bruchid beetle although some buyers will take up to 5%.”

In recent years around a third of UK produced beans have made the human consumption grade, but increased sowing and the poor start to the growing season could impact on this in 2013.

“The rapid growth in Spring beans this year means there will be many producers new to the crop’s husbandry and they will be trying to grow the crop in one of the worst establishment periods we have had in recent years,” Arron Mayhew says.

“It’s a challenging year for even the most experienced producers and the bottom line is there could be a high volume of mediocre beans pushed into the UK market this Autumn with many growers potentially failing to achieve the premiums they were hoping for.”

Nidera contracts are currently offering premiums for human consumption beans over feed but achieving the right quality depends on producers investing wisely in the agronomy of their crops.

“We’ve recently invested in upgrading our facilities in Yorkshire to handle greater volumes and help growers achieve premiums through drying, cleaning and ‘magic eye’ technologies so we can achieve the high quality requirements demanded by the Egyptian markets.

“We’re also working very closely with our International offices so we can track the market and know precisely what is required to achieve the best contracts and prices.”

And whilst the rising popularity of UK beans with Egyptian consumers offers tremendous potential for growers, the rapid increase in area grown this Spring could test many in the Industry.

“Long-term the future looks very good for beans but we’ve probably gone a little ahead of the curve, a little too quickly and this will catch some growers and traders out this year.

“If growers want to get the prices that make beans a realistic economic proposition, it’s vital to have the right contract, achieve the right quality and be sure you have access to the best facilities which can maximise the potential of your crop.”