Association invited to meet with major U.S. canner of dry bean
June 01, 2002
Northarvest Bean Growers Association directors will soon meet with representatives of Bush Brothers & Company, Knoxville, Tennessee, to discuss the recent trends in the navy bean business that appear to be depressing the navy market.
Price later contracts, and their relationship to a sluggish market in the face of tightening supplies, will make up the core of the agenda.
"I am pleased that Bush Brothers has agreed to discuss our concerns and is genuinely interested in hearing from us," says Mark Streed, Northarvest president and a Milan, Minn., farmer.
Buying navies via auction/internet
A major canner from the United Kingdom, recently started negotiating purchase contracts using an internet auction system.
In May, the company invited six suppliers (U.S. and Canadian companies) to bid for 2002 new crop business. Origin of beans was to be Michigan, MN/Dak, Ontario, or Manitoba.
Beans are to be processed through suppliers own facilities. Bid price was to include net weight of beans, tote, pallets, cardboard liner and freight to the U.K. and be limited to $484/metric ton or less. The company was looking to buy 15,750 metric tons of navy beans.
What does this mean for the producer? After Northarvest learned that bidders were not to offer beans at more than $484/metric ton and taking in account all the other costs, the producer may be left with $13-$14 per cwt.
Is this an indicator where your navy market is headed?
-- Source: Northarvest Bean Growers Association.