Mission Statement:

1

• Mission Statement
• The USDBC exists to increase the consumption of
  U.S. dry beans worldwide

2
USDBC Organizational Structure

• US Dry Bean Council Membership 
• 13 dealer, grower and corporate association
  members      
•             
• California Bean Shippers           
• New York State Bean Shippers Assoc.           
• North Central Bean Dealers Assoc.           
• Rocky Mountain Bean Dealers Assoc.           
• Washington Bean Dealers Assoc.           
• Western Bean Dealers Assoc.     

3
USDBC Organizational Structure

• Six Grower members         
• California Dry Bean Advisory Board           
• Colorado Dry Bean Administrative
  Committee           
• Idaho Bean Commission           
• Michigan Bean Commission                      
             
• Nebraska Dry Bean Commission           
• Northarvest Bean Growers Assoc.       
• One Corporate Member          
• Bush Brothers

4
USDBC Executive Committee

• Equal Dealer-Grower Representation
• President Cindy Brown
• Secretary/Treasurer Doug Carlquist
  
• Vice President Steve Brown
  
• Neal Gettel
• Immediate Past President Joe Cramer
• Mark Myrdal

5
USDBC Committee Structure

• USDBC Committees
• Agricultural Issues Govt Affairs
• Health Promotions Committee
• International Programs Food Aid
• Transportation
• Membership Development
• Conventions Events
• National Pulse Trade Rules
• Bylaws Nominations

6
USDBC Management Team

• Executive Director Randy Duckworth
• Government Liaison Bob Sindt
• FAS Compliance Director Connie Bradford
• Accountant - Bernie Rielley

7
Food Aid

• USDA Dry Bean Food Aid Purchases
• Year Quantity purchased Total Value
• 2005 28,040 MT
• 2006 30,920 MT
  15,847,864
• 2007 (YTD) 32,120 MT 21,662,308

8
Food Aid

• Current Invitation 087 August purchase
• 1170 MT Garbanzo beans
• 1500 MT Substitutables (Pintos, DRK LRK)
• 810 MT Pinto beans
• 3480 MT Total

9
Substitutable Purchases

• Benefits to Industry
• 1. Keeps beans in food aid program
• 2. Creates opportunities for multiple classes
• 3. More closely mirrors available supplies

10
Substitutable Purchases

• Benefits to PVOS Government
• 1. Reduces total cost
• 2. Reduces unexpected price spikes
• 3. Reduces pipeline breaks

11
EBES

• USDAs PL-480 Electronic Bid Entry System (EBES)
• 1) New format
• 2) Constraints
• 3) Public Information
• 4) Lowest landed cost
• 5) Grouping Substitutable Classes

12
Moisture Issue

• USDA Moisture Specification 13.5
• 1) USDBC letter to USDA
• 2) Action plan

13

• WASHINGTON REPORT
• ROBERT H. SINDT
• GOVERNMENT AFFAIRS LAISION

14
North America Free Trade Agreement

• Full Bean Implementation Jan 2008
• 2007 US Share of Bean TRQ about 74,000 MTs
• 2007 Canada share of Bean TRQ About 2,200
  MTs
• 2007 Over Quota Tariff -11.8
• TRQ and Tariff Scheduled to be Eliminated
  January 2008

15
STATUS OF MEXICO COLLABORATION REQUEST

• Mexico Focus on Corn and Beans
• Initial Request to Extend TRQ
• Request to U.S. to spend at least 25 million on
  improved seed, marketing, infrastructure, etc.
• Concern they would be flooded with bean imports
• Mexico/USDA/Industry Meeting
• Presidents Calderon and Bush meet
• Mexico and U.S. Ag Secretaries, other officials
  meetings

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USDBC POSITION

• Cooperate in mutual areas of interest research,
  nutrition, increasing consumption, etc.
• Avoid areas of market competition
• Offer to meet on issues with Mexico industry
  counterparts
• Work closely with USDA to avoid recurrence of
  border shutdown.

17
Present Status

• Appears on track for full implementation in
  January 2008
• USDA has stood firm for accord
• USDA refocused on alternative crops/uses for
  beans in Mexico
• USDA committing modest funds to this effort
• USDA maintaining close and open contact with
  USDBC on issue.

18
NEW FARM BILL

• HOUSE JUST PASSED HR 2419
• SENATE NOT EXPECTED TO CONSIDER BILL UNTIL
  SEPTEMBER
• STUMBLING BLOCK HAS BEEN BUDGET
• 20 BILLION NEW SPENDING AUTHORIZED, BUT MUST BE
  OFFSET
• HOUSE AG COMMITTEE WORKED TO GET UNANIMOUS
  BILLLARGELY EXTENSION OF CORE PROGRAMS
• FOUGHT FLOOR EFFORT TO ELIMINATE BASIC PRICE
  SUPPORT PROGRAMSKIND AMENDMENT

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HOUSE BILL - BEAN INTEREST

• MAINTAINS PLANTING RESTRICTIONS
• GREATLY ENHANCES GOVERNMENT PURCHASES OF FRUITS
  AND VEGETABLES
• ENHANCES SPECIALTY CROP BLOCK GRANTS,
  RESEARCH/RESEARCH PRIORITIES, TECHNICAL
  ASSISTANCE
• EXPANDS MAP BY 25 MILLION/YEAR
• REJECTS OVERSEAS FOOD AID PURCHASING MANDATE

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HOUSE BILL - COMMODITY TITLE

• MAINTAINS FRUIT AND VEGETABLE PLANTING
  RESTRICTIONS
• ADDS PILOT PROGRAM FOR TOMATOES FOR CANNING IN
  INDIANA
• NOTEREDUCES LOAN RATES FOR PEAS (.82) LENTILS
  (.44) INCREASES CHICKPEAS (1.11)

21
HOUSE BILL - NUTRITION,DOMESTIC PROGRAMS

• INCREASES SECTION 32 PURCHASES FOR FRUIT,
  VEGETABLES, NUTS FROM 190 MILLION TO 206
  MILLION
• INCREASES EMERGENCY FOOD ASSISTANCE PROGRAM
  FUNDING FROM 60 MILLION TO 100 MILLION
• INCREASES FRESH FRUIT AND VEGETABLE PURCHASES TO
  75 MILLION

22
HOUSE BILL - RESEARCH

• ADDS NATIONAL AG RESEARCH PROGRAM OFFICE
• ESTABLISHES SPECIALTY CROP RESEARCH INITIATIVE
  FOR PLANT BREEDING, GENETICS, SAFETY, QUALITY,
  YIELD, PEST RESEARCH
• SCRI AUTHORIZES 100 M/YEAR, BUT MANDATES 215 M
  OVER LIFE OF BILL
• ADDS BEAN HEALTH RESEARCH PROGRAM TO HIGH
  PRIORITY RES. AND EXT. AREAS
• INCREASES SPECIALTY CROP BLOCK GRANTS MANDATORY
  FUNDING FROM 60 M TO 95 M

23
HOUSE BILL - TRADE AND FOOD AID

• INCREASES MAP FUNDING TO 225 M YEARLY, FMD
  CONTINUED AT 34.5 M
• INCREASES SPECIALTY CROP TECHNICAL ASSISTANCE
  FROM 2 M TO 10 M/YEAR
• NO CHANGE IN LAW TO ALLOW TITLE II OVERSEAS
  COMMODITY PURCHASE
• ADDS 450 M ANNUAL MINIMUM FOR TITLE II
  NONEMERGENCY PROGRAMS
• INCREASES OVERSEAS PREPO COST ALLOWANCE FROM 2 M
  TO 8 M

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HOUSE BILLMISC.

• AGREEMENT REACHED TO ALLOW COOL TO PROCEED
• ALLOWS MATCHING GRANTS FOR STATE/LOCAL GOVT,
  GROWER, COOP, SHIPPER GROUPS FOR IMPROVED
  MOVEMENT OF SPECIALTY CROPS
• INCLUDES SPECIALTY CROPS IN AG CENSUS

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WTO and OTHER TRADE AGREEMENTS

• WTO
• --Talks restarted with new talking paper
• --Will resume again in September
• Bilateral Agreements
• --Pending are Peru, Columbia, Panama, Korea
• --Agreements to include labor, environmental
  conditions

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• Farm Bill
• NAFTA, WTO Other Trade Agreements
• International Programs - 1.5 million in FAS
  Funding, Mexico Bean Congress, SIAL, etc..
• Domestic Programs - Health Research - Bean
  Brief, ADA Trade Show, Website, etc..
• Food Aid

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• MARKETING REPORT
• RANDY DUCKWORTH
• EXECUTIVE DIRECTOR

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International Domestic Marketing

• "Building brand loyalty is at the very heart of
  every good direct marketing campaign"

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High Income Countries Regions

• United States
• United Kingdom
• Japan
• France

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UK and Japan

• Challenges
• Increased competition for spot on plate
• Declining and aging consumer populations
• Consumer trends
• In UK two companies responsible for imports
• Opportunities
• Food Safety
• Consumer trends

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Middle Income Countries

• Mexico
• Malaysia
• Philippines

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Mexico

• Challenges
• Rising Incomes
• Increased Competition from Canada
• Increased Competition for a Place on Plate
• Creating brand identity with 10 market share

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MEXICO Planting Intentions 2007
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2007 Cancun Bean Congress
10 Speakers 200 participants 300 one on one
meetings
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www.usbeancongress.com
SIGN UP NOW
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Low Income Countries

• Guatemala
• Dominican Republic
• Jamaica
• South Africa
• Angola
• Haiti

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Philippines Malaysia
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Angola Haiti

• Challenges
• Low income levels
• Lack of retail infrastructure for promotions
• Opportunities
• Young and growing population
• Long term need for food imports

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US Pinto Bean Promotion - Luanda
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USDBC Trade Shows Trade Missions
Gulfood Dubai February 2007 Mark Streed Sam
Peck
USDBC Trade Mission to Jamaica, Haiti Dominican
Republic March 2007 Gary Paur, Steve Brown,
Randy Duckworth
USDBC Trade Mission to Angola South Africa May
2007 Bill Thoreson Jim Byrum Rob Chandonnet
China Market Intelligence Mission September 2007
Mexico Harvest Tour October 2007
Mexico Bean Congress February 2008
Alimentaria Spain March 2008
ANUGA Cologne 1317 October 2007
Argentina Peru Market Intelligence
Mission March 2008
Alimentaria Spain March 2008
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www.legumechef.com
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www.legumechef.com
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Domestic Marketing
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Domestic Marketing
Trade Shows
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Domestic Marketing
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Domestic Marketing
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USDBC Challenge

• - Defining the Enemy

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• Opportunities
• - Collaborative mindset
• - Category growth
• - One merged voice
• - Can we adapt?