January 2015

Inaugural Dry Bean Outlook Conference identifies trends, issues critical to expanding Michigan’s agriculture sector

Outlook meeting brings more than 200 farmers, grain handlers, agronomy professionals together in Bay City

BAY CITY - The Michigan Bean Industry this week hosted its inaugural Dry Bean Outlook Conference at the DoubleTree Riverfront in Bay City, bringing together more than 200 industry leaders and farmers to learn more about emerging trends for Michigan agriculture. “Michigan’s bean industry is rapidly growing and evolv-ing, and it’s important to provide those in the industry with insight into the latest trends,” said Joe Cramer, ex-ecutive director of the Michigan Bean Commission. “To-day’s meeting demonstrates the growing interest among those in the dry bean industry when it comes to identi-fying trends, being ahead of the game and leading the way on bean production.” Michigan Bean Shippers (MBS) president Jim Byrum said this is an exciting time for agriculture, with emerg-ing trends that show potential for growth. “It’s critical that as we ramp up production to meet demand, we also seek new market opportunities, and stay in tune with emerging developments in agriculture,” said Byrum. “We’re seeing cropping patterns shift and expand. We’re seeing growing interest in technology. We’re beginning to experience the impacts of climate change in the form of more extreme weather patterns. We must be looking at how we respond to these chal-lenges and create innovative solutions.” Byrum discussed the expansion of crops such as dairy and soybeans across Michigan, along with dry beans. He also noted that planted acreage looks different today, with planting moving further north in the state. Planted acreage of corn, wheat and soybeans reached a record in 2014, and some production is even beginning to take hold in Michigan’s Upper Peninsula. Increased produc-tion raises a host of issues - from energy, transportation and broadband infrastructure, to new efforts on sustain-ability. Speakers throughout the day also discussed the need for producers to be proactive on water quality. New technology is providing innovative ways to improve wa-ter quality, increase sustainability and protect the Great Lakes. Meanwhile, new programs in the 2014 Farm Bill and new efforts by food companies to improve sustain-

able sourcing could provide additional opportunities for partnership. “Michigan’s bean industry continues growing, and to-gether, we can keep our business on a solid footing for the future,” said Cramer. “We must always be asking how we can better position our industry to meet emerg-ing market demands and opportunities.” In addition to introductory remarks from Clint Stouten-burg, Chairman of the Michigan Bean Commission, and keynote remarks from Byrum, speakers throughout the day included:• SaraRoseofBushBrothersonemergingmarketop-portunities in the bean industry;•Dr. JimKelly, a dry beanbreeder atMichiganStateUniversity, on genetic research to enhance bean pro-duction;•DanArmbruster ofCo-opElevatorCompany on drybean fertility;• LesDaleofJLDaleandAssociatesonfoodsafetyis-sues;• AmySweeneyofStaroftheWestMillingCompanyonpest management;• TrevorKrausofBASFonwhitemoldcontrolheadinginto 2015;• Scott Dumaw of Crop Production Services on 2014desiccant performance;•ChuckLippstreuofMABAonthe2014FarmBillandthe new Regional Conservation Partnership Program;• PatrickNellenbachofStarof theWestMillingCom-pany on sustainability issues in production agriculture;• TimBoringofMABAonemergingagronomic trendsand water quality concerns;• LarrySpragueofKelleyBeanCompanywithanup-date on domestic and international bean markets; and•Mike Janowicz of Co-op Elevator Company with a2015 production forecast.

2015 Dry Bean & Sugar Beet Symposium, January 20, 2015, Horizons Center,

Saginaw, Michigan

GOVERNOR SNYDER RE-APPOINTS KRICK TO

SECOND TERM

MIChIGAN BEAN COMMISSIONERS CAll ON MExICO CITYMexico is the Michigan Bean Industry’s largest trading partner with most of our dry bean exports destined for Mexico City. This city, with approximately 22 million inhabitants, has an appetite for high quality, Michigan grown, black beans. Processors have established loyal relationships with buyers over the years (second and third generations in some cases) and continue to service this market with their brands. This market, like most, is continually evolving. Several members of the Michigan Bean Commission recently travelled to Mexico City to learn more about the marketplace and its direction. Consumption — Generally speaking, dry bean consumption in Mexico is trending downward. Like everyplace, the demands on a family’s time may be the biggest factor negatively affecting consumption. Canned bean products have become more popular but haven’t yet proven to be capable of offsetting the reduction in the traditional practice of cleaning and soaking beans every day.Domestic Production versus imports — There is a relationship between dry bean production in Mexico, the price of beans from various production areas and the amount of beans that Mexico will import. Michigan black beans have carved out a niche in this market where tonnage will vary somewhat annually but a level, not to be taken for granted, can be “counted on” year in and year out.

Reputation — Michigan grown and processed black beans have for years, been regarded as the cleanest, most uniform, most consistent, safest black beans available anyplace in the world. Our premium brands earn premium prices like in most global markets. Mexico City is no different. This premium has given growers and processors from around the globe (Minnesota, North Dakota, Ontario, Manitoba, China, Argentina, etc.) something to strive for. Growers and processors from these production areas have really stepped up their

game with increased production, quality and consistency. But, without the premium.Changes on the horizon — Accessing segments of this market in the future will include:Packaging• Some buyers will require product in less than 45 kg bags

in the near future. The willingness to or capability of handling the traditional 100 pound poly bag is waning. There was some mention of new bag styles/type with modern day traceability features.

• Thebagandthebrandonitwilldefinethequalityinthebag more so than ever eliminating the need to sample.

Warehouse Distribution is:• modern• secured• computerized• temperature controlled• humidity controlled• “racked”• engaged in pest control• able to offer cold storage

The Central de Abasto is Mexico City’s main wholesale market for produce and other foodstuffs run similarly to traditional public markets. It was constructed to be the meeting point for producers, wholesalers, retailers and

consumers for the entire country. Located in the eastern borough of Iztapalapa, it is the most important commercial establishment in Mexico and the largest of its kind in the world. The market handles over 30,000 tons of merchandise daily, representing 80% of the consumption of the Mexico City metropolitan area. The market was established on app. 800 acres of farmland to ease congestion in the historic center of Mexico City, but since then, the city has grown around it. To learn more go to: http://ficeda.com.mx/SummaryAs a valuable trading partner for our Michigan dry bean industry, the Michigan Bean Commission, working in concert with the Michigan Bean Shippers, believes that strong relationships and communications are essential to being prepared for these ever changing dry bean markets. We will work hard at being prepared.

Sign in sheets, hard hats, etc. are now required. As this trend continues, one may wonder what the role of the Central de Abastos will be in our industry in the (near) future.

Neil French, MBC Shipper Representative, compares black beans from various origins.

Michigan Bean Commissioner John Krick was re-appointed to a secondterm by Governor Snyder. Krickcurrently serves as treasurer. This term runs from January 2015 through December 2017.

MEET ThE ChAIRMAN — ClINT STOuTENBuRGClinton,Carolyn,KentonandIsabellaStoutenburgresideinSandusky,Michi-gan on the family farm. Clint farms with his dad, Al and is a fourth generation farmer. Clint’s greatgrandfather, Abe Stoutenburg, purchased the home farm in1901.ThisCentennialfarmisMAEAPverifiedbytheMichiganDepartmentof Agriculture and Rural Development. Clint grows multiple crops including dry beans, corn, sugar beets, soybeans and wheat along with feeding beef cattle. Many hours are spent making this farm a success but almost a hobby for Clint. There is not anything else he would rather do with his time than spend it in the field,withhisdadandchildren.Clint graduated from Central Michigan University with a Bachelor of Science in Business Administration. While attending CMU, he met his wife, Carolyn. She is a practicing attorney in the Sandusky area. Both Clint and Carolyn actively sup-port the local community. Carolyn is the Sandusky Community School Board of EducationsecretaryandamemberoftheRecipient

Rights Committee advocating for people challenged with mental illness and developmental disabilities. For the past several years, Clint has been an active member of the Sanilac County Fair Board and dedicates many hours to making the local county fair a success for the children and community. He is part of a charity group known as the “Goodtimers.” Through local support and fund-raising efforts of the group, they provide money to individuals in need, additional support to school activities and other causes within the Sanilac County area.ClintandCarolynareblessedwithtwowonderfulchildren;Kenton(13)andIsabella(9)bothofwhichhelpregularlywiththefarm operation. The farm provides wonderful opportunities for them to learn and discover just what farming means. Therefore, participating in the local county fair and continuing to support the local FFA, provides not only their children this experience but many other children too. However, farming is not the only activity Clint spends with his family, as an avid boater, they enjoy making memories on the water. He enjoys the water as much as farming. Clint believes it is important to show his children you can work hard and still have fun at the same time. Good work ethics and dedication go hand in hand with farming, something that Clint knows very well. ClintproudlybelongstoandinvolveshimselfinmanyagriculturalorganizationsincludingtheMichiganSugarCooperative,Michigan Corn Growers and Bayside Best Beans LLC. The agricultural business is just like any other industry that requires members to facilitate growth with a commitment to the public. Therefore, as a member and current president of the Michigan BeanCommissionandanExecutiveBoardMemberoftheUnitedStatesDryBeanCouncil,heisproudtorepresentthedrybean growers of Michigan. With the Commission, he attends various conferences in the United States, Mexico and all around theworldpromotingdrybeanshopingtopositivelyinfluencedrybeansandtheoverallagriculturalbusiness.Hebelievespro-motion is as important as the beans themselves.

uSDA JOINS MBC STAFF AT MEETING WITh MORGAN FOODS lEADERShIP TEAM

The research efforts of the Michigan Bean Commission focus primarily on increasing the yield potential of dry beans and maintainingcustomersatisfactionwiththefinalproductinthecanorpackage.Inaperfectworld,ahighyieldingbeanwouldinclude a great “yield” for our end users. MBCExecutiveSecretaryJoeCramer recentlyarrangedameetingbetweenUSDAPlantGeneticist,USDABio-SystemsEngineer,bothstationedatMichiganStateUniversity,andmembersofMorganFood’sleadershipteamtodiscussthesetwoobjectives. The discussion focused on customer complaints and meeting customer expectations. The Commission strives to match on-goings research with grower’s needs and end-user’s needs.Morgan Foods is a long standing supporter of Michigan’s dry bean growers and processors. They have invested heavily in their Austin, Indiana facility over the past several years. Dry beans are an important component of the products and services they offer.

516 South Main St., Suite D

Frankenmuth,MI48734

STANDARDU.S.POSTAGE

PAIDLANSING, MIPERMITNO.37

Published by the:Michigan Bean Commission

516SouthMainStreet,SuiteD,Frankenmuth,MI48734Office:989-262-8550

Email:jcramer@michiganbean.comWebsite: www.michiganbean.org

The offical broadband supplier of the MBC:Air Advantage, llC.

465 North Franklin St., Suite C, Frankenmuth, MI 48734Phone: 989-652-9500 Ext 2224

Fax: 989-652-4959http://airadvantage.net

DRY BEAN SEED IS IN ShORT SuPPlY FOR 2015

Being prepared with an adequate inventory of each variety within each class of beans for the planting season two years out isthechallengethatmakestheseedbusinessverydifficult.Thecrystalballthathelpsmakestheseforecastsdidn’taccountfor drought, heat, frost, blight, anthracnose, etc. all of which have turned an adequate seed supply into what appears to be the shortest supply of dry bean seed in memory. Seedsmen advise patience at this point as processors work through their inventories. Throughout processing, more weights canbetaken,germinationtestscanbeconducted,seedsizeevaluated,andsoon.Stretchingseedsupplybyplantingbinrunseed is not a good option. The infections and devastation have so negatively impacted our growers and processors. Growers are encouraged to stay in regular communication with their suppliers who will do their very best to meet everyone’s needs.

2015 Dry Bean & Sugar Beet Symposium, January 20, 2015, Horizons Center,

Saginaw, Michigan