Many Challenges for Pulse Trade in Brazil

By Marcelo Eduardo Luders

By - Website

Many Challenges for Pulse Trade in Brazil

With the harvest of Brazil’s second crop starting in second half May, Brown Eye Beans contracts will be shipped to India, Pakistan and Egypt as well as Vietnam. The quality of the grains, which is usually very large, this year, is not something that worries. The weather has been ideal for the development of crops.

Brazil has a consumption of Brown Eye Beans that increases every year. Brown Eye Beans are quick-cooking pulse with a good smooth taste. It has been gaining more and more consumers and admirers.

Much of the current crop will be consumed in the domestic market. For this reason exporters face difficulties in making the firsts shipments since the value in the domestic market is higher than the export value. The first shipments should take place at the beginning of June.

This second Brazilian crop should still have 600.000 tons of carioca beans that will be fully consumed in approximately three months. Black beans will be sufficient to meet domestic market demand until September; so there will be a need to import from Argentina around 50.000 tons. It will still be planted in June, which will be the third harvest. Commanding all harvests and beans, Brazil will be able to reach 3.2 million tons, adding up all the beans.

In a meeting held last month, main Brazilian companies shared their concerns and experience regarding BEB crop conditions, market and other subjects.


Currently main concern is related to increasing costs to export:

1 – Fumigation with Methyl Bromide: This product is allowed in Brazil with several restrictions. That means a higher cost comparing to Aluminum phosphide. Besides that all exporters will depend on only 2 companies which can fumigate with Methyl Bromide so probably shipments will delay.
2 – Inland freights: Brazil is harvesting huge soya beans and corn crops. Due to this situation inland freights are much above regular prices. BEB production zone is 2,000 to 3,000 km away from port. Roads in very bad conditions plus super crops of soya beans and corn will make inland logistics very hard and really expensive this year.
3 – FSSAI number printed on the bags: This requirement is impossible to follow, especially for small quantities. However FSSAI can be easily printed on the tags and attached to the bags.
4 – Sea freights: Number of vessels between Brazil and Asia is smaller than previous years. Besides that also due to a big crop of soya beans and corn shipping lines are increasing sea freight rates.

All points above are important and sellers are really concerned. Margin is too tight and everyday there is an “extra” cost involved on the operation.

The IBRAFE - Brazilian Dry Beans Institute - will promote the largest Pulses meeting in Latin America. For the first time will be international and will receive Indians, Chinese, Argentines and Americans interested in the Brazilian market of Pulses. It will bring together researchers, producers, importers and exporters in the city of Campinas next to the city of São Paulo during June 21-23, 2017.

More information available at www.forumfeijao.com.br

Many Challenges for Pulse Trade in Brazil
Many Challenges for Pulse Trade in Brazil
Many Challenges for Pulse Trade in Brazil

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Disclaimer: The opinions or views expressed in this publication are those of the authors or quoted persons. They do not purport to reflect the opinions or views of the Global Pulse Confederation or its members.