1. UHBDP
Український проект бізнес-розвитку плодоовочівництва
Kakhovka, Ukraine September 14, 2015
Dry Beans.
Prospects for the product that generates high added value.
2. Overview
UHBDP
• Dry edible beans, or field beans, come in a wide variety of market classes, including kidney
bean, navy bean, pinto bean, and black bean. These beans, although differing in the size and
coloring of the seed, are all just different types of a single species, Phaseolus vulgaris L.
• Originally domesticated in Central and South America over 7000 years ago, dry beans
moved their way northward through Mexico and spread across most of the continental U.S.
• Although grown on a much smaller acreage than soybeans, dry beans are still an important
food crop in the U.S. The leading states in dry bean production are North Dakota, Michigan,
Nebraska, Colorado, California, and Idaho (The same climate of South Ukraine).
• However, the advantage of dry beans as an alternative is their relatively high price, ranging
from $12 to $20 per bushel (0,88-1,46 USD/kg).
ttps://www.hort.purdue.edu/newcrop/articles/ji-beans.html
3. Overview
UHBDP
• According to the 2007 Census of Agriculture, 6,236 U.S. farms produced dry edible beans (excluding
dry lima beans) on 1.46 million acres, 24 percent of which was under irrigation. More than a fourth of
that irrigated land was in Nebraska. North Dakota produced the most dry beans, 38 percent of the
national output, in 2006-08. Michigan (14 percent), Nebraska (11 percent), Minnesota (10 percent),
and Idaho (7 percent) were among the top five States. The average farm value of the dry bean crop
was $759 million in 2006-08, with about $2 billion in estimated consumer sales
http://www.ers.usda.gov/topics/crops/vegetables-pulses/dry-beans.aspx
Exports
• The United States shipped more than 8.9 million cwt of dry beans, a slight increase from the previous
year, to 102 nations in 2010. Mexico, Canada and the United Kingdom (UK) remained the top
three destinations, accounting for 50 percent of dry bean exports. The volume shipped to Canada
rose by double digits (38%) while the volume shipped to Mexico and to the UK dropped by double
digits (-23% and -10% respectively). (ERS 2011)
http://www.agmrc.org/commodities__products/grains__oilseeds/dry-edible-bean-profile
5. Overview
UHBDP
• The mature pods prior to harvest. Modern varieties of the crop stand erect with
most of the pods high up the stem where they can be easily harvested. Typically
beans contain twice the protein content of cereal crops like wheat - a factor that has
contributed to their continued use in the UK over the last 3000 years.
• Harvesting beans The national bean crop typically covers between 110 and 170,000
hectares each year. Average yields for the UK crop are around 3.75 tonnes per
hectare with typical values between £70 - £90 per tonne.
• Most of the bean crop is grown for stock feed and is used as a locally grown GM
free alternative to protein crops like soya.
• The major human consumption market for beans is the Middle East where
beans are used prior to the Ramadan fasting period.
http://www.ukagriculture.com/crops/field_beans_uk.cfm
6. Overview
UHBDP
Canada's Dry Bean Industry
• There are several types of dry beans (Phaseolus vulgaris) produced in Canada including white
pea beans (navy beans), red kidney beans, great northern, black, small red, pink, pinto and
cranberry (Romano) beans. A warm-season crop, sensitive to frost, dry bean quality is
evaluated on the basis of three main criteria: size, shape and colour. Dry beans are a
leguminous crop and are able to fix their own nitrogen. Crop rotation with cereals grains or
corn is recommended to reduce disease, improve soil fertility, and help in overall weed control.
http://www.agr.gc.ca/eng/industry-markets-and-trade/statistics-and-market-information/by-product-sector/crops/pulses-and-special-crops-
canadian-industry/dry-bean/dry-bean-statistics/?id=1174506503179
7. Overview
UHBDP
Canadian Bean Acres, Production, Exports Up (Sep 14,
2012)
• According to Statistics Canada’s survey of farmers, dry bean
acres have rebounded from last year. Statistic can estimates
white dry bean acreage at 100,000, up from 55,000 last year,
an 82 percent increase. Acres of colored beans are pegged
at 182,000, up 58 percent from the 115,000 acres planted in
2011.
• As a result, total Canadian dry bean production and supply
are expected to rise, especially for the larger classes of dry
beans such as white pea and pinto types. Exports are
forecast to increase due to the increased supply and carry-
out stocks are expected to rise. The US and the EU-27 are
forecast to remain the main markets for Canadian dry beans,
with smaller volumes going to Japan and countries in Africa.
• Agriculture and Agri-Food Canada pegs total Canadian dry
bean area at 291,000 acres, up 71 percent from 2011.
Production is expected to jump 59 percent from last year, to
230 million tons. Exports are estimated to rise 20 percent
from the previous marketing year, and the average dry bean
price is projected to decline 12 to 13 percent.
http://www.farms.com/news/canadian-bean-acres-production-exports-up-55224.aspx
8. Overview
UHBDP
• Over 12 million tons of dry beans are produced annually world-wide, with a total
production value of US million $5717.
• Of this production, 81 percentage occurs in tropical countries.
• Today, Brazil remains the most important country for production and consumption of
beans in the world (13), followed by Mexico. These two countries are nearly self-
sufficient in the crop, but bean imports can be essential to supplement periodic
production shortfalls.
The United States has lost its position as top world exporter to China.
Unlike rice and wheat, fundamental to the Chinese diet, dried beans are not
government controlled in China. Farmers have a valuable cash crop with
production almost wholly for export. This has made China the fastest growing
supply source in the world although quality control is lacking.
http://www.fao.org/3/a-av015e.pdf
10. • Beans - traditional culture for Ukraine. Unfortunately, in recent
decades, the area under this crop was small, it mainly grown in
home gardens. According to the State Statistics Service of
Ukraine, on the basis of bean production in 2014 amounted to
43.3 kT, which is almost 20% higher than the previous year and
reached record levels (2014). Over the last five years, production
of beans varied from 28.8 to 43.3 kT.
• The main factors that influence the production include cultivation
area and yield of crops. Thus, last year the beans were grown on
an area of 28.7 kHa, more than the previous year by 13%.
• Thus in recent years the area under the crop was less than last
year. The actual yield of beans in all categories Ukraine
significantly inferior biological.
• If potential yield varieties of beans exceed 2 t/Ha, in fact located
within 1,7 t/Ha. In addition, in some years did not exceed 1 t/Ha.
• http://www.agro-business.com.ua/ekonomichnyi-gektar/3047-pryvablyvist-kvasoli.html
Overview.
Dynamics of production beans in Ukraine
UHBDP
11. UHBDP
Український проект бізнес-розвитку плодоовочівництва
Kakhovka, Ukraine, October 7, 2015
«BEANS WAY»
FIRST phases
Sustainable development of
small farms in Southern Ukraine
Creating a Service Cooperative as a collective of like-minded
12. Main objectives for the Project UHBDP
• The Project UHBDP should create the opportunity to
develop the greatest possible number of small farms
(SHF&MHF, from 2 to 50 hectares) to get more income
every new year in particular region.
• The Project UHBDP helps to create and rooting new for
the region efficient forms cooperation small producers
of fresh fruits and vegetables - a new generation of
Service Cooperatives.
• The Project UHBDP creates a successful example of
small growers, followed by multiple repetition of the
experience for other regions and other crops.
• The Project UHBDP creates the preconditions for the
development of financial instruments for the
development of both small growers and Service
Cooperatives.
• The project should make an attempt to find new
avenues for sales (export other direction, except for
Russia and Europe) products with High Added Value.
UHBDP
13. Main objectives for small growers (SHF&MHF)
• Small growers (SHF&MHF) are eager to find a crop
that allows them to stable every year get added value
and not lose money.
• Small growers (SHF&MHF) looking for a culture that
would be involved in the crop rotation and created
ideal conditions for the cultivation of vegetables after
harvesting of this crop.
• Small growers (SHF&MHF) looking for additional
sources of funding (financial instruments) for use as
working capital for agro inputs.
• Small growers (SHF&MHF) trying to find a permanent
and stable markets for their products and be able to
plan their family budget or their company.
• Small growers (SHF&MHF) looking to stay in a
comfortable and easy to understand for themselves
zone - growing area, not distracted by trade
processes.
UHBDP
14. Assumptions for FIRST phases (climate & farming community):
• Kakhovka region has become vegetable growing epicenter of
Ukraine.
• Over 50% of all open field vegetable drip irrigation is used in Kherson
region where of Kakhovka is the pioneering growth driver
• Dry climate (average annual rainfall less than 400 mm), ideal soil
types for vegetables and sustainable water availability for irrigation
are exists
• The region has scaled in vegetable growing the past 10 years 8 times
which 2010 represents an utilization of 24% of irrigated land
availability
• Solid base of reliable farmers that are keen to develop ( «Chumak»
15 year experience, «Green Team» 5 year experience).
• All major agriculture input suppliers have their main offices in
Kakhovka region which is proving strategic viability.
• The population of Kherson region (TOTAL) on 1 July 2015 amounted
to 1065.0 thousand people, including in urban areas - 651.7 thousand
people, rural - 413.3 thousand people.
• Approximate number of small farms in the Kherson region, the main
source of income is the cultivation of vegetables
is estimated 60 000 households (SHF).
UHBDP
15. Assumptions for FIRST phases (climate in relation to the cost):
UHBDP
Northern regions Southern regions
Yield less 2,2 MT/Ha
• Enough rain. No drip irrigation.
• You can not make additional fertilizer
and anti-stress agents directly
to the plant.
• The unstable weather during
the harvest creates additional risks,
and reduces the quality for storage.
• The fungicidal agents can be added
only by leaf, and the main
problems accumulate inside.
• Insufficient rainfall,
drip irrigation needs
• Fertilizers, plant protection
products (fungicides) and the
anti-stress agent may be delivered
directly to each plant.
• Dry weather during the harvest
allows you to get the beans with
the required humidity value.
• Bean pod needs further treatment
to avoid the early disclosure.
cost price up
cost price down cost price up
cost price up
cost price up
cost price down
cost price down
cost price up
16. Assumptions for FIRST phases (growers):
• grow crops, which each year produces high
added value and provided the requirements of
the export specification leaves the country. This
culture does not generate a crisis of
overproduction because of the need the high
cost of manual labor and relatively low yields
(unattractive to large farmers and agricultural
holdings).
• gets an ideal precursor for vegetable crops,
which restores the balance of nitrogen in the
soil.
• at relatively low investment in the cultivation
generates income to grow steadily the
household in general.
UHBDP
With the ability to sell the beans to the export market
small farmers gain:
17. Assumptions for FIRST phases (product):
• Beans - traditional crop for Ukraine.
• Small growers (SHF&MHF) do not feel fear for a new culture
and do not engage in cultivation due to lack of a market strategy
(e.g. export deliveries).
• At this point in time the culture of growing uniform product to
create export consignments is not widely used.
• The increase of Muslims among the European population (eg
refugees from Syria) form additional opportunities for the
development of exports of dry beans.
• Low investment in the cultivation of one hectare – at level 28
000 UAH (1120 USD)/per 1 Ha make this product available for
growing small farmers (SHF&MHF) without much financial
assistance.
• If the expected yield (worst case of drip irrigation) to 5 tons per
hectare cost of beans in the rolls will be within 5.6 UAHkg
(`0.22 USD).
• Difficulties in harvesting and (important!!!) threshing -
creating an opportunity for the creation of cooperatives
(service cooperatives of the new generation).
• Beans refer to products with a high protein content at a low
cost to the poor and is widely used for food in developing
countries.
UHBDP
20. Assumptions for beans for the export market
UHBDP
Ø soybeans (100g = 600-800 pcs)
Max 2,5 Ø soybeans Min 2,5 - Max 6,5 Ø soybeanshigh export opportunities
100g = 600-400 pcs 100g = 350-150 pcs
21. The real situation with the harvest of beans for small farmers
UHBDPLabour productivity is 100 kg of dry beans after winnowing (shift - 4 men who have threshing)
Women to harvest beans in rolls (run-up) Men prepare rolls for threshing
Men threshed beans rolls Gathering beans in the bucket before winnowing
https://youtu.be/pczYaQ3db7U https://youtu.be/vvhZjvXbm8E
https://youtu.be/upi7l5Wa0Rk https://youtu.be/S4vsTxpwcb8
22. Assumptions for two ways of harvesting & threshing dry beans
UHBDP
Ø soybeansMax 2,5 Ø soybeans Min 2,5 - Max 12 Ø soybeans
Yield less 2,2 MT/Ha Yield more 2,2 MT/Ha
Mechanical harvesting with harvester directly into the hopper
mechanical sorting (loss of 5-11%) mechanical sorting (loss of 2-3%)
product with
high added value
Picking of rolls in the trailer Thrashing roll on a special
threshing drum
of less than 300 rpm
23. Assumptions for fixed assets owned by the cooperative
UHBDP
http://store.farmstart.ca/blogs/farmerreviews/12062361-growing-grains-dried-beans-on-small-farms-5-tools-to-buy-if-
you-can-t-buy-everything-by-simon-jacques
pick-up rollers thresher for dry beans
devices for treatment against pests grain storage for dry beans (optional)
24. Assumptions for Coop triggers for creating (by Alexandra Garmash)
UHBDP
https://meda.sharepoint.com/Contracts/1064/_layouts/15/Lightbox.aspx?url=https%3A%2F%2Fmeda.sharepoint.com%2FContracts%2F10
64%2FShared%2520Documents%2FCoop%2520triggers%2520for%2520creating.png
26. Assumptions for FIRST phases
(commercial, for a trial period):
• for the first year of production,
we can not fully appreciate the
yield and costs level.
• for small farms, using their own
labor and traditional fertilizer, we
can not fully calculate the costs
• value GM 40% for SHF is
sufficiently high, but requires
additional knowledge of this
product
UHBDP
0,226 $
0,15 $
0,10 $
0,224 $
cost
of
Growing
(yield 4 or 8 MT)
added
Value
SHF
1 kg
gross income
Cooperative
gross income
Aggregator
average price
for export (split)
- 700 $/MT EXW
basic model
see Appendix
27. Assumptions for FIRST phases
(EXPECTED RESULT):
UHBDP
1 year 2 year 3 year 4 year 5 year 6 year
Participating SHF number 60 150 300 1000 3000 2500
Average size of beans plot Ha 1.5 2 2 1.3 1 2
The total beans area Ha 90 300 600 1300 3000 5000
Cost of growing 1 ha of beans USDHa 900 900 900 900 900 900
Yield (plan) MTHa 4 5 6 6 7 6
Expected sale price for the farmer USDMT 376 400 400 420 420 400
Gross yield MT 360 1500 3600 7800 21000 30000
Gross turnover SHF kUSD 135.36 600 1440 3276 8820 12000
Gross income SHF kUSD 54.36 330 900 2106 6120 7500
Gross margin % 40% 55% 63% 64% 69% 63%
28. 40%
55%
63% 64%
69%
63%
1 year 2 year 3 year 4 year 5 year 6 year
%
Assumptions for FIRST phases
(EXPECTED RESULT):
UHBDP
60 150 300
1000
3000
2500
1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR
ParticipatingSHF
Development Project "Beans". First phase .
Numbers of SHF
-5000
0
5000
10000
15000
1 year 2 year 3 year 4 year 5 year 6 year
kUSD
Development Project "Beans". First phase
Gross turnover SHF & Gross income SHF
Gross turnover SHF Gross income SHF Linear (Gross income SHF)
29. UHBDP
Український проект бізнес-розвитку плодоовочівництва
Kakhovka, Ukraine October 26, 2015
Creating a Service Cooperative as a collective of like-minded
«BEANS WAY»
SECOND phases
Sustainable development of small farms in
Southern Ukraine
Lima Beans (unshelled)
30. Assumptions for SECOND phases :
• Fresh beans - a more attractive product for export.
• Sale price at the conditions EXW could reach more than $ 4 per 1
kg with a relatively small change in the cost of growing and
harvesting.
• This stage requires a higher level of preparation infrastructure.
• Requirements for products can be found at the link
http://www.oecd.org/tad/code/46591391.pdf
UHBDP
