November 29, 2022
General director of Centro Abarrotero del Bajío, Santiago Del Rio Samano, chatted with Luke Wilkinson about the price of yellow beans and his optimism for the upcoming Mexican harvest.
My grandfather had arrived here at Puerto de VeraCruz as an immigrant from Spain when he was 17 years old. His uncle, who was a commodity trader, arrived in Mexico City shortly after and they worked together for around 40 years until my grandfather began his own business: Surtidora La Barrotera.
After that my father began to work with my grandad and the business grew, my grandad opened Surtidora del Bajio here in Querétaro and my uncle Juan Carlos started to work there. A few years later my grandfather asked my father to go to work with Juan Carlos, right up until 2008, when my father opened Centro Abarrotero del Bajío, where I currently work. I am part of the third generation working in the business of grains seeds, spices, and pulses.
Today I run the business. I started working here in 2018 after my father passed away, having previously worked in my own independent shop. I was only 21 when I began working here, but I knew the business well and had always worked here at weekends and during the holidays from when I was a very young child – I understood how the business worked, and I knew the people who worked here well.
I went through a steep learning curve at the company, undertaking a variety of different roles to get an idea for every position and a sense of what each worker does here day-to-day. Now I am the general director of the company and coordinate lots of different areas, most of all purchasing and sales.
We sell a lot of yellow beans and chickpeas locally but we aren't exporters or producers. Our yellow beans are mostly from Sinaloa. We also sell spices like cinnamon, pepper, cloves, and dried fruits and nuts like almonds, prunes, and raisins. Then we have lentils, imported in large part from Canada and the United States, then black beans and pinto beans - from the United States also.
The last few years have been unusual given the pandemic. We had really high bean prices in Mexico, especially for yellows, when we had previously come from a place of really low prices and bad harvests. Farmers also tell me that their different agricultural inputs have risen a lot.
The most difficult thing from my perspective was the lack of access to yellow beans in Mexico - farmers not wishing to sell. There was a kind of global panic and Mexican farmers kept their beans rather than selling them to bodegas. This speculation on the part of farmers made things really difficult for us to do our job.
When yellow bean prices reached 45/46/47 pesos a ton and farmers refused to sell to us at that price, the negotiations were really difficult and, in the end, I decided to pull out of the market completely; I just didn't buy anything at those prices. I spent around eight months to a year refusing the product because I felt that the prices were very speculative without any good reason.
I still see prices as being high, or they have been up until the most recent harvest. I think prices will have to come down because it simply isn't sustainable for the market for them to stay as high as they are.
What can you tell us about the recent bean seeding in Mexico?
I couldn't tell you exact figures, but I know that some seedings began a little late in Zacatecas and Durango – there were rains that delayed things. However, the farmers around the region tell me that it’s raining plentifully now and they're expecting a very good harvest.
They definitely feel optimistic about what they’ve planted and the rains that have fallen, so provided there is no early frost and the rains continue they’re expecting to have good yields.
In terms of lentils, black beans, and pinto beans I consider the relationship very important. The American harvest comes out before the Mexican one so American traders often speculate on the prices of beans, waiting until the Mexican harvest is finished to get a better idea of price.
That speculation is all part of the business we are in, it's a little like working in the stock market, isn't it? Every person takes their bets and hopes they come good.
Speculation in the US puts pressure on Mexican markets and vice versa, but I would also say that Mexican black bean and pinto bean consumption is very important for American traders as we import from them. That said, the internal market for blacks and pintos has also grown as of late.
Yes, I’ll be coming with my brother. I think it’ll be very useful because there will be a lot of information shared and provided by the speakers but also I believe in the human relationships that can be made and developed between providers clients, and traders. The networking that goes on at a convention like this can be the most important thing.
Over the medium term, we hope to continue growing in the organic way we have until now – consolidating that growth and knowing how to maintain it is important. We also want to bring certain parts of the company up to another level; diversifying packaging and products, involving ourselves a little more in understanding the harvests.
On a personal level, I just want to keep learning. I'm only 25 years old, so I think that in this industry there are many people with a lot of knowledge who I can learn from and bit by bit develop my own knowledge and ability. Then I would like to use that knowledge in the running of the company.
Mexico / yellow bean / Centro Abarrotero del Bajío / Santiago Del Rio Samano / beans / chickpeas / lentils / black beans / pinto beans
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