News

Dry bean market disruptions likely

A dry bean marketer says he’s concerned about how tariff threats will impact global dry bean markets.

Chaise Wilson with Star of the West Milling Company tells Brownfield Mexico is the number one buyer of U.S. dry beans and any retaliation would have far-reaching effects.

“Brazil and Argentina continue to increase their black bean production and they are looking to compete with us in Mexico,” he says. “Something like a 25 percent tariff would put us at a tremendous disadvantage when compared to the production coming out of a country like Brazil and Argentina.”

Wilson says trade in the last few months between the U.S. and Mexico has been stifled, but new crop purchasing and contracting is the most vulnerable heading into the planting season.

“It may cause processors here in the U.S. to offer less producer contracts going forward if they don’t have certainty that they have demand on the consumption side with the country of export origin like Mexico,” he says.

He says losing demand from Mexico would also likely cause spillover acreage shifts for corn and soybeans as well as flood other dry bean global markets.

Michigan is the nation’s largest black bean producer and second in terms of all dry beans behind North Dakota.