Drought Hits Central America, Reduces Yields Opens Opportunities For US Dry Bean Imports

Central American countries planted their Primera (first harvest) crops April through June under favorable moisture conditions. In late June, however, drought conditions and high temperatures set in, resulting in significant crop losses in several countries. According to our Americas Representative, the northern triangle of Central America (Guatemala, Honduras and El Salvador) is seeing reduced yields for the Primera harvest (first harvest) currently underway.  That, plus decreased sowing of dry beans in Nicaragua due to civil unrest that made it difficult to obtain credit and inputs, could increase import needs in the region.

Map of El Salvador showing impact of drought. Areas in red were the worst hit experiencing 16 to 35 consecutive days without rainfall.
Image from an online edition of El Mundo newspaper

n Costa Rica, the Primera harvest, August into September, is not a major one for beans; it will produce an estimated 2,000 or so MT, somewhat below average. Since there is a two to three month inventory on hand, the government is expected to declare a relatively small shortfall of 4,600-5,000 MT and issue a duty-free quota for that amount to be imported from September 2018 through June 2019. In Nicaragua, El Salvador and Honduras, dry bean prices increased across all bean classes. In Guatemala, black bean prices increased while red bean prices remained stable. In Costa Rica, bean prices remained practically unchanged since last month. In the Dominican Republic, bean prices remained relatively stable except for imported pinto beans, which increased by $171/MT. USDBC will be keeping close watch on these dynamics and opportunities for increased U.S. origin dry bean exports.