by Sara Schumacher, former visiting assistant professor, Department of Agricultural Economics, Kansas State University, and Michael Boland, professor, Department of Agricultural Economics, Kansas State University, mboland@ksu.edu

Profile written October 2005. 

Demand

The major uses of dry beans include dry packaged beans for home use, canned beans (both whole beans and otherwise), brine-packed whole beans and bean flour for commercial baking. The four largest producers of beans are India, Brazil, Mexico and the United States. The United States exports pinto, navy, great northern and light red kidney beans. The majority of U.S. exports are purchased by Mexico (22 percent), United Kingdom (16 percent), Canada (9 percent), Italy (6 percent) and Japan (5 percent). The United States held 95 percent of the Mexican import market and 80 percent of the Canadian market. The percentage of production that is exported varies by bean class, but on average 20 percent of U.S. dry edible beans were exported between 1994 and 2004 (Figure 1).   

Per capita consumption of edible dry beans has been relatively stable from 1991 to 2002 with an average of 7.4 pounds (Figure 2). This is an increase in average per capita consumption of 22 percent from the 1980s. The U.S. population consumed an average of 3.4 pounds of pinto beans per person annually from 1991 to 2002, which is an increase of 43 percent from the 1980s. The increase in per capita consumption may be due to increased public recognition of possible health benefits of beans and to the increase in the Latino population, which consumes more beans on average than the population at large.

Both supermarket sales and restaurant use of edible dry beans has increased during the past ten years. Supermarket sales include bagged dry beans and canned products such as refried beans, soups, chili and baked beans. Restaurants use edible dry beans in foods such as tacos, burritos and chili. Approximately 77 percent of all beans consumed were obtained from retail stores and considered food at home (Lucier et al. 2000). Away from home sources accounted for 23 percent of the total cooked bean consumer market, which includes fast food, restaurant, schools and other. Restaurants and the fast food market accounted for 11 percent and 9 percent, respectively, of cooked bean consumption.

Households in the lowest-income bracket, with income less than 130 percent of the poverty level (the cutoff point for food stamp eligibility), have the highest per capita consumption of dry cooked beans. In contrast, individuals in the higher-income bracket, with income above 300 percent of the poverty level, have the lowest per capita consumption of dry cooked beans.

The consumption of edible dry beans by income group differs by variety. Lower income individuals consume a larger share of pinto and lima beans, while higher income individuals consumed more black and garbanzo beans. Dry beans are a relatively inexpensive source of protein, which explains why they are more heavily consumed by lower income groups. In contrast, garbanzo beans are salad beans that are favored by upper income consumers, particularly in the West.

The consumption of edible dry beans is concentrated in the southern and western states, which account for 39 percent and 38 percent, respectively, of all bean consumption. These areas have the highest percentage of Hispanic population, which account for 33 percent of all edible dry bean consumption, despite comprising only 11 percent of the population. U.S. consumers of Latino descent eat the greatest amount of beans, which consist of 21 percent of the total volume (Lucier et al. 2000).

Health Benefits of Edible Dry Beans

The wide variety of beans available, each with its own unique characteristics, offer versatile ingredients that can be used in virtually any type of cooking (Table 1). Beans are one of the most nutritionally complete foods available. They are an inexpensive source of both complex carbohydrates and protein and provide iron, magnesium, zinc, potassium and soluble fiber in high amounts (Table 2). Beans are considered healthy because they are high in complex carbohydrates, high in protein, high in dietary fiber, high in folate, low in fat, low in sodium, cholesterol-free and rich in vitamins and minerals.

Beans are an excellent, nonfat source of protein, with one cup providing as much as 16 grams of protein. Adults generally need to eat between 50 to 60 grams of protein a day. Protein is needed to repair muscle and bone tissue. It also fights infections, helps heal wounds and regulates enzymes and hormones.

Beans are high in complex carbohydrates, with one cup providing 40 to 48 grams of carbohydrates, which is 15 percent of the carbohydrates needed daily. The carbohydrates they provide have a low to moderate glycemic index, which means they have the ability to provide energy over a longer period of time (compared to simple carbohydrates) by being slowly released into your bloodstream to provided sustained energy.

Being a source of both soluble and insoluble fiber, beans can help reduce the risk of some types of cancer and lower risk factors associated with the development of cardiovascular disease. Soluble fiber forms a gel-like substance, which helps the body handle fats, cholesterol and carbohydrates and plays a role in lowering blood cholesterol levels. Insoluble fiber provides “roughage” that helps in digestions and can reduce the risk of some types of cancer.

Folate is needed in the diet for proper cell division and overall good health. Folate has been shown to reduce the risk of heart disease, stroke and certain types of cancer. It has also been shown to improve glucose control in diabetics. Studies have shown that folate may also help reduce the risk of certain birth defects. Eating one cup of cooked dry beans provides, on average, 264 micrograms of folate, which is 66 percent of the recommended dietary allowance.

Marketing

At the level of the producer, dry beans are usually grown under contract with a processor (elevator) (Liang et al. 1998). Fom the producer's perspective, the motive for contracting is to address price risk, rather than quality issues. Quality issues tend to be addressed by “informal” means, such as communicating standards to growers and payment of bonuses (Chambers 1999). 

In most producing regions, processing is highly concentrated relative to production (Liang et al. 1998). In general, the bean producers and processors are not vertically integrated. Elevators sell to second level domestic users, brokers and export markets. Domestic users (for example, canners) use both contracts and spot markets for purchasing beans. A high level of interaction and coordination is required to communicate what product is needed and to agree upon a price, which is a very subjective process. Individual buyer’s quality specifications are not included in a formal contract, rather they are handled by communicating desired standards, monitoring and by the seller’s desire to maintain its reputation as a high-quality producer. Elevators have developed education programs to show farmers what types of products to grow and offer premiums for high-quality beans. Elevator managers have found that education programs are more effective than production contracts in obtaining nonstandard goods because a contract alone does not guarantee quality. Even though the edible dry bean market is complex and has subjective marketing specifications, the use of spot markets and marketing contracts have effectively coordinated the buying and selling of nonstandard dry beans (Chambers).

Prices

Average grower prices in the marketing year 2000/01 were the lowest since the 1991/92 marketing year but have rebounded since then (Figure 3). Much of this is due to supply issues, which can be seen in the next section.

Supply

The edible dry bean industry consists of many different types of beans, which include navy, pinto, Great Northern, pinto, light red kidney, dark red kidney, large lima, baby lima, small white, blackeye, pink, small red, cranberry, garbanzo, black and other beans. Five states produced 77.2 percent of the total U.S. output in 2002, which includes North Dakota (35.0 percent), Michigan (16.3 percent), Nebraska (11.5 percent), Minnesota (8.2 percent) and Idaho (6.2 percent). Pinto beans are by far the most widely grown and consumed type, with 43.1 percent of total U.S. production and 45 percent of per capita consumption in 2002.

North Dakota was the leading producer of pinto beans, with 52.5 percent of the total U.S. production in 2004 and the second leading producer of navy beans with 41.2 percent of the national total. North Dakota bean producers also grew great northern, dark red kidney, pink, garbanzo and black beans.

Similar to acreage, production of dry edible beans has been cyclical from 1993 to 2002 (Figure 4).  Pinto, black, navy and small red beans decreased in production from 1999 to 2001 and then increased from 2001 to 2002. Great Northern bean production declined by 37 percent from 2000 to 2002.

Yields per acre increased in 2002 after several years of decline but have since declined (Figure 5). Yields in Kansas and Colorado have increased due to improvements in varieties, better management practices and increased use of irrigation. The reduced yield in Kansas from 2001 to 2002 was associated with drought conditions in the state.

Beans are a high-cost, irrigated crop compared to sunflowers and wheat. Beans require two to three fungicide treatments to combat disease, are prone to iron deficiency, leave little crop residue to inhibit postharvest erosion and require irrigation. Multiple irrigation applications may also lead to the fungus problem. Beans are an excellent crop to grow in rotation with grain and root crops. Wheat, corn, barley, soybeans and sugar beets are the most common crops grown in rotation with dry beans (USDA, Briefing Room Dry Beans Background).

Competitiveness

Producers typically market their beans by contracting with an elevator, the first level of processing where beans are sorted, cleaned, graded and packed for transport. At the second level of processing, beans are treated quite differently, depending on the intended final use. At this level, beans are further processed as in cooked and canned, preserved in brine, ground into flour or dry bagged for later use. Depending on the end use, the bean type and seed coat quality requirements differ across processors.

USDA quality specifications for edible dry beans include moisture content, broken seeds, uniformity of size, color and specification of foreign matter. These quality characteristics are easily measured by an elevator and bean canner. Depending on the intended use of beans, quality requirements differ with respect to seed coat integrity. For beans used in canning, it is important that beans have few seedcoat “checks,” or breaks, because these checks can cause the bean to burst, leading to a mushy, less desirable product. This seed coat characteristic is not included in the USDA’s grading standard for beans. Seedcoat checks are designed to identify small breaks in the seedcoat that are difficult to locate and not an objective measure of quality. An elevator can also use an on-site canning lab to test the product for canning quality before selling to a canner. Producers have a great deal of control over canning quality that is affected by variety, timing of harvest and handling procedures.

References

American Bean Board, Available online July 10, 2003,  Http://www.americanbean.org.

Chambers, W. 1999. “Role of Traditional Ag Markets: The Dry-edible Bean Industry.” In Agricultural Outlook, U.S. Department of Agriculture, Economic Research Service, November.

Ling, C.L., D.M. Feuz, and R.G. Taylor. 1998. Spatial and Varietal Price Analysis of Dry Edible Bean Market.  International Food and Agribusiness Management Review 1:417-433.

Lucier, G. 2001. “Briefing Room: Dry-edible Beans.” U.S. Department of Agriculture, Economic Research Service. Available online May 28. Http://www.ers.usda.gov/briefing/drybeans/background.htm.

Lucier, G., B. Lin, J. Allshouse and L.S. Kantor. 2000. “Factors Affecting Dry Bean Consumption in the United States.” In Vegetables and Specialties Situation and Outlook, U.S. Department of Agriculture, Economic Research Service, NGS-280, April, pp.26-34.

U.S. Department of Agriculture, Agricultural Marketing Service (USDA AMS). Bean Market News, Greeley, Colorado, selected years.

U.S. Department of Agriculture, Agricultural Research Service (USDA ARS). 1998. “1994-96 Continuing Survey of Food Intake by Individuals and 1994-96 Diet and Health Knowledge Survey.”

U.S. Department of Agriculture, National Agricultural Statistics Service (USDA NASS). Online Database of Production and Economic Statistics, various years.

Figure 1. Average Production of Dry Edible Beans, 2001 to 2004

Figure 3. Average Prices of Dry Edible Beans, 1993 to 2004

Figure 4. Dry Bean Acreage Over Time, 1993 to 2005



Figure 5. Dry Bean Yields per Acre

Table 1.  Bean      Variety	Variety and Use     Use in Cooking
Baby Lima		Popular as a side dish or added to soups and casseroles
Black		A favorite in South and Central American and Caribbean cuisine
Blackeye		Popular in Southern cooking in recipes and traditionally served in the South on New Year's Day to bring luck
Cranberry		A favorite in Italian dishes
Dark Red Kidney		Popular in chili, soups and salads
Garbanzo		Popular in soups and salads; main ingredient in Middle Easter dishes such as hummus and falafel
Great Northern		Often used in soups, stew and cassoulet
Light Red Kidney		Used in chili, soups and salads
Large Lima		Popular as a side dish or added to soups and casseroles
Navy		Often used in baked beans, soups and salads
Pink		Often used in South American recipes and chili
Pinto		Often used whole or refried in Mexican dishes such as tacos, burritos, and enchiladas
Small Red		Often used in soups and Creole dishes

 

Table 2. Nutrient Profile for 1 Cup of Cooked Dry Beans
	Baby Lima	Black	Black-eye	Cran-berry	Garb.	Great Nthrn.	Large Lima	Navy	Pink	Pinto	Red Kidney	Small Red
Calories	230	228	200	240	270	210	218	260	252	236	218	226
Carbohydrates (grams)	42	40	36	44	46	38	40	48	48	44	38	40
Protein (grams)	14	16	14	16	14	14	14	16	16	14	16	16
Fiber (grams)	12	8	12	10	6	10	12	10	8	12	8	8
Folate (micrograms)