USDBC Projects Decline in Chinese Dry Bean Production

In 2010 the Chinese government eliminated tax advantages for exporting beans and has since provided new incentives to increase soy and corn planting. USDBC’s on the ground reporting from China confirms that China will continue to emphasize products with a higher rate of domestic consumption and projects that the dry bean industry will continue to shrink over the next five years as corn, soy and other domestic foods increase. We are also projecting that if the current trade tension between China and the U.S. results in a tariff on US soy beans, the price of domestic soy would increase and could create a further reduction in dry bean planting beyond 2018.

Our most recent prospective planting report from China projects production decreases in black and white beans, no change in light speckled kidney beans and slight increases in other important bean varieties,

Source: Fairman International Business Consulting (FIBC)

USDBC is watching this dynamic closely to determine what impact it may have on some of our critical export markets where we compete with Chinese dry beans. For specifics on each bean variety please see the full report from Fairman International Business Consulting on our members only page. We anticipate a preliminary production report later this summer.