Since the the Dominican Republic-Central America Free Trade Agreement kicked off in 2007, agricultural export dollars to that region from the United States jumped 126% from about $1 billion in 2007 to more than $2 billion in 2024. The schedule called for the elimination of all tariffs on U.S. exports to the Dominican Republic as of Jan. 1, 2025. Dry beans are an important part of that overall trade.
A market development trade mission sanctioned by the U.S. Dry Bean Council to the Dominican Republic and Jamaica by dry bean industry members sought to continue to strengthen that market. The results were swift during the Feb. 10-15 visit, according to Greg Ackerman of the Michigan Bean Commission.
“We met with some customers who were having issues obtaining permits to release containers of products from us,” Ackerman explained. “We were able to meet with (Foreign Agricultural Service) and help get the product moving. Remember, beans are a perishable product, so we don't like to see them parked in that environment.”
Import permit delays from the Dominican Ministry of Agriculture posed a significant challenge to some buyers.
Joining Ackerman on the mission was David Scholand, bean dealer from Central Valley Bean in North Dakota; Jay Ewald, a Colorado bean dealer at Northern Feed and Bean; and Jose Barrios Turk, a U.S. Dry Bean Council representative.
The team wanted to show appreciation to the trade relationship that had been built up over the years and wanted to ensure their product was making it to the buyers in a timely fashion so they were getting the best quality. Continuing to monitor the container issue is important to Ackerman and the rest of the U.S. dry bean sector.
“The Caribbean region is an important market for U.S. dry beans,” Ackerman added. “We currently have open trade with them, which is important in today's trade environment. They also prefer our beans, and we provide the best quality available anywhere in the world. Our growers and processors are onboard to provide the highest quality beans with the most stringent food safety standards known today.”
One buyer, Casa Chepe, noted the challenges of storing beans in the Dominican Republic without refrigeration. This is a growing challenge as temperatures rise. He emphasized that the higher quality beans can handle storage better and hold coloration. Both make for a much more valuable bean.
Ackerman represents Michigan bean growers who produce over 400 million pounds of edible beans annually, the second-largest producer of total dry beans in the nation, trailing only North Dakota. Michigan leads the country in the production of organic beans.
With uncertainties building in other markets, it’s all the more important to ensure relationships are maintained where trade remains free.
“Maintaining our relationship with countries like this is paramount today,” he said.
The Dominican Republic is the largest economy in the Caribbean and the seventh-largest economy in Latin America, according to the USDA. The Dominican Republic is the 14th-largest export destination for U.S. agricultural products, importing $2.2 billion in 2024, a 6% increase from 2023.
Regarding U.S. pulses exports, the United States exported from Sept. 2023 to Aug. 2024, $53.87 million worth of dried beans in 2024, a 10% increase over the previous year.
The majority of the pinto and black beans imported there come from the United States.
Jamaica is also a significant importer of dry beans, particularly small red beans, with the United States being a major supplier. The U.S. exported from Sept. 2023 to Aug. 2024 $4.46 million worth of dried beans to Jamaica, an 11% increase compared to the previous year.
Challenges persist with Jamaica as the U.S. must compete with duty-free Caribbean counterparts. Jamaica has a free trade agreement with Caribbean countries but places large tariffs on U.S. imports, bringing cost challenges.