November 8, 2022
Felipe Sandoval is the general director of BeGrait. Ahead of his analyst role at the Americas Pulses Congress, Luke Wilkinson chatted to him about why information is the key to good business.
Felipe will be an analyst on the chickpea, black bean, pinto bean and yellow bean panels at the GPC’s America’s Pulses Congress in Cancun on December 3-5. Not registered yet? Sign up for the event here
All good thank you! Everything has been very relaxed but now we're coming into the important season as the seeding for beans, chickpeas, and corn are all starting up.
From around 1998, I had been working in different commercial ventures here in Mexico, then fifteen years ago I really started my ‘romance’ with pulses and other grains. I fell in love with the industry almost immediately, plus I had the good luck to meet and deal with all the right people who, over the years, became good friends and teachers who helped reveal the secrets of the industry to me.
To be honest, nowadays I enjoy the work so much that I don't really think of it as work, or the company as a company; it's all more of a lifestyle, something that's a part of me and my daily routine.
About seven years ago, I had a little curiosity that grew into a dream, and then that dream slowly transformed into different objectives and goals for the future at a time when I least expected it. In 2017, BeGrait was born.
In Mexico we deal with chickpeas and beans - black beans, pinto beans, and yellow beans.
In terms of import/export, we also give brokerage services and consultations regarding different markets and work as representatives for companies abroad who wish to deal in Mexico. We represent Mexican companies who wish to export too – again, mainly beans and chickpeas.
Everything we do, we do with passion and enthusiasm, and that's brought us great things. People say you should dream big, but work hard, and I think they're right.
Most of the pulses that are imported into Mexico come from Canada and the United States, that's beans, lentils, and although it's not a pulse, we also import some canary seed.
Well, we export chickpeas and yellow beans to the United States, but I often consider that an extension of the Mexican market within the US as the consumer of beans in the US is often Mexican. There are also many Peruvians who live there that consume yellow beans. We do also export directly to Peru as the Mexican internal market for yellow beans is fairly limited. They are our main markets for beans, but also we have markets that pop-up every now and then with some demand and we might send some containers over to them – like Portugal or Italy.
Chickpeas have a much bigger export market. We represent a lot of exporters here in Mexico who export to Peru, Columbia, Spain, the UAE, Saudi Arabia, Turkey, and even India - India are usually exporters but they can suddenly be importers when the need arises.
Of course there was the pandemic, during which consumers began to buy in huge amounts which had a huge effect on the market. Prices went up to extortionate levels. For example, producers in Sinaloa saw the high prices of yellow beans and decided that a fairer price for their beans would be a minimum of $1500/$1800 a tonne. If they didn’t get that then they wouldn’t sell. Things just got much too expensive.
A lot of importers here in Mexico ended up stuck with very expensive inventories because they paid the expensive prices during a period of high demand that in the end was related to panic, rather than a jump in demand that would become the new normal.
One of the other big problems has been the issue with transport, of course. Certain ports began to close, or they didn't have available containers - sometimes, you could buy, but you couldn't transport the goods. Even today, things are still crazy, and I think it's one of the factors that means chickpeas haven't risen in price despite there being a short crop.
That's right, I'm going to be an analyst on the black bean, pinto bean, chickpea, and yellow bean panels. Those are the markets of which I have a good grasp and regular updated numbers for where each one stands and where it's going.
One of the topics that I have in mind to speak about is a particular personal interest I have in the habit of everyday consumers right now in Mexico. I'd like to talk about the quantities of beans that are really consumed here;
many people talk about an average per capita of 7 kg of beans, whereas when I started in this industry, the numbers were more like 12 or 13 kg per capita.
We’ve had a big drop in consumption, and I think that's a really important topic. I'd like to go through the different varieties of beans, their consumption levels and the behavior of prices for the consumer.
I think so, yes. Often we say that Mexico produces just over 1 million tons of beans, more or less, and that we consume more or less exactly the same. Then every year people say, "Why do we have so many beans left over?” - I think that's because if you look at updated numbers we simply aren't consuming the same amount as we used to.
There are a lot of different benefits to an event like this: firstly, the panelists all have a great deal of market knowledge that they're able to share with the attendees. In our business, information is key, so getting to hear up-to-date information about the internal movements of different markets is always really useful.Then there is the element of networking.
At these events you get to chat with a variety of different people who really know the industry well.
I always bump into different people at conventions who say, "Hey, Felipe, what do you think about this, or what do you think about that?” - we can talk, swap cards and share really interesting conversations that can help us make the right decisions for our businesses.
I think the future for BeGrait can be really interesting. I definitely see us expanding into new markets internationally, but we will always maintain and consolidate great business relationships that we already have. For us, that is a core value.
Felipe Sandoval / BeGrait / Americas Pulses Congress / beans / chickpeas / black beans / pinto beans / and yellow beans / Mexico / lentils
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.