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Brazil Projects 25% Increase in Production
March 15, 2002

The Brazilian government is projecting a 25.8% increase in the countrys dry bean production this year. Total supplies should reach 3,260,000 MT.

Brazil has three dry bean crops each year. The government estimates the first crop will total 1,432,000 metric tons (MT), up 23.2% from last year. The second crop is projected to reach 1,521,000 MT, up 33.1%. The third crop is expected to total 306,000 MT, up 7.1%.

Brazils national weather service is forecasting the development of an El Nino starting in April. During the 1997-1998 El Nino (a warming of the waters of the Pacific Ocean off Chile), parts of northeast Brazil suffered severe drought while parts of southern Brazil endured floods. However, the government says the 2002 El Nino will not be as strong as the 1997-1998 event.

Despite projected increases in production, there may be an opportunity for the U.S. to export dry beans to Brazil. A gap may open in April and May, prior to the entry of dry beans from Argentina in the market. Argentine dry beans are traditionally available in June and July.

Brazil isnt likely to export a large amount of black beans soon because there isnt a surplus supply. Consumption is projected at 240,000 MT, similar to the projected production under the first crop.

Source: National Dry Bean Council


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