Bean Column

I read with great interest the “Spilling the Beans” column by Nebraska Dry Bean Growers Association (NDBGA) President Craig Henkel in the Winter 2003 edition of the “Bean Bag” Newsletter in which he laments the need for the United States to again to access the Iraqi market for Great Northern beans. I heartily agree with him. It is very important to producers of Great Northern beans to regain access to this market that historically has been an importer of up to 25% of production.

Nebraska farmers have long been recognized as the finest producers of high quality dry edible beans in the world. In addition to other varieties, Great Northern beans have long been a viable and hearty crop to grow in the western reaches of Nebraska, and these beans have long been considered a staple for Iraqis. Earlier this spring, possible trade with Iraq took a positive turn when U.S. Treasury Secretary John Snow on May 27, 2003 announced the lifting of U.S. sanctions against Iraq. This will begin trading between U.S. and Iraq so that for the first time in over two decades, Iraq will trade freely with the United States. This action follows the lifting of U.N. sanctions on May 22, 2003. While this was good news, traditional trade between our two countries has been slow to start, and as a consequence, I, and others saw food aid as an immediate way that we could begin to regain access to this important market.

Thus far, the United States has committed a total of $478 million for food assistance to Iraq. Under this commitment, the United States is shipping a total of 255,320 tons of U.S. commodities including wheat, flour, rice, soybean oil, nonfat dry milk and pulses (Great Northern beans, chickpeas and black eyed peas).

Early last spring, my office was contacted by the NDBGA regarding a pending food aid shipment through the United States Agency for International Development. This shipment included beans purchased under the program for food aid. The NDBGA was concerned that a tender had been issued for a substantial quantity of pinto beans to be sent to Iraq, while they knew from experience in the previous gulf war that the Iraqi consumers prefer the Great Northern variety. After several phone calls by my office and others in Nebraska’s delegation, USAID changed the food aid tender to limit the shipment to only Great Northern beans. As a result, over 34,000 metric tons were shipped to Iraq in April of this year. This offered a way to access the Iraqi market, and had a positive secondary impact on the market for Great Northerns, as the price soared to $22 per cwt. This was positive news for growers in western Nebraska, but it was shortlived.

In late summer, I was again contacted by the NDBGA after Great Northern bean prices plummeted to $14 per cwt. in reference to potential future shipments of food aid to Iraq. My staff had several discussions with high-level officials at USAID, and concluded that there was no anticipation of another food aid shipment, because food aid funds had been exhausted for that purpose. We were told that the Iraqi Coalition Provisional Authority (CPA) had budget authority to purchase these commodities from the world market. In order to ensure that the vast majority of these commodity purchases came from the United States rather than the world market, my office has communicated with the CPA Ministry of Trade in an attempt to determine how we might sell a vast majority of that commodity to the CPA. While we continue to work on that issue, we have been informed by the CPA Ministry of Trade that there will be tenders issued very shortly for Iraq’s Oil for Food Program. My staff has been in communication with several Nebraska processors of Great Northern beans to see how we best make our commodities available for this important purpose. I am hopeful that this will result in a substantial purchase by the Ministry of Trade for this program.

By taking these steps with the food aid program and with the Oil for Food program, we have made great strides in regaining access to this important market for this commodity. This is excellent news for those who produce Great Northern beans, and in turn, excellent news for Nebraska.

Senator Ben Nelson

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	Column	December 17, 2003
Bean Column I read with great interest the “Spilling the Beans” column by Nebraska Dry Bean Growers Association (NDBGA) President Craig Henkel in the Winter 2003 edition of the “Bean Bag” Newsletter in which he laments the need for the United States to again to access the Iraqi market for Great Northern beans. I heartily agree with him. It is very important to producers of Great Northern beans to regain access to this market that historically has been an importer of up to 25% of production. Nebraska farmers have long been recognized as the finest producers of high quality dry edible beans in the world. In addition to other varieties, Great Northern beans have long been a viable and hearty crop to grow in the western reaches of Nebraska, and these beans have long been considered a staple for Iraqis. Earlier this spring, possible trade with Iraq took a positive turn when U.S. Treasury Secretary John Snow on May 27, 2003 announced the lifting of U.S. sanctions against Iraq. This will begin trading between U.S. and Iraq so that for the first time in over two decades, Iraq will trade freely with the United States. This action follows the lifting of U.N. sanctions on May 22, 2003. While this was good news, traditional trade between our two countries has been slow to start, and as a consequence, I, and others saw food aid as an immediate way that we could begin to regain access to this important market. Thus far, the United States has committed a total of $478 million for food assistance to Iraq. Under this commitment, the United States is shipping a total of 255,320 tons of U.S. commodities including wheat, flour, rice, soybean oil, nonfat dry milk and pulses (Great Northern beans, chickpeas and black eyed peas). Early last spring, my office was contacted by the NDBGA regarding a pending food aid shipment through the United States Agency for International Development. This shipment included beans purchased under the program for food aid. The NDBGA was concerned that a tender had been issued for a substantial quantity of pinto beans to be sent to Iraq, while they knew from experience in the previous gulf war that the Iraqi consumers prefer the Great Northern variety. After several phone calls by my office and others in Nebraska’s delegation, USAID changed the food aid tender to limit the shipment to only Great Northern beans. As a result, over 34,000 metric tons were shipped to Iraq in April of this year. This offered a way to access the Iraqi market, and had a positive secondary impact on the market for Great Northerns, as the price soared to $22 per cwt. This was positive news for growers in western Nebraska, but it was shortlived. In late summer, I was again contacted by the NDBGA after Great Northern bean prices plummeted to $14 per cwt. in reference to potential future shipments of food aid to Iraq. My staff had several discussions with high-level officials at USAID, and concluded that there was no anticipation of another food aid shipment, because food aid funds had been exhausted for that purpose. We were told that the Iraqi Coalition Provisional Authority (CPA) had budget authority to purchase these commodities from the world market. In order to ensure that the vast majority of these commodity purchases came from the United States rather than the world market, my office has communicated with the CPA Ministry of Trade in an attempt to determine how we might sell a vast majority of that commodity to the CPA. While we continue to work on that issue, we have been informed by the CPA Ministry of Trade that there will be tenders issued very shortly for Iraq’s Oil for Food Program. My staff has been in communication with several Nebraska processors of Great Northern beans to see how we best make our commodities available for this important purpose. I am hopeful that this will result in a substantial purchase by the Ministry of Trade for this program. By taking these steps with the food aid program and with the Oil for Food program, we have made great strides in regaining access to this important market for this commodity. This is excellent news for those who produce Great Northern beans, and in turn, excellent news for Nebraska. Senator Ben Nelson ###