Bean Marketing and Sales

Bean Marketing and Sales

          A visit to the planta procesadora UNAG (UNAG processing plant) in Jinotepe, Carazo gives one a much closer c45d6b42c3e51b192655931bc66c5e72look at the frijoles, or beans, that we work with here at La Semilla Ministries.  The cool breeze—keep in mind, high twenties is cool for us—of Jinotepe rattle the sheet metal on the walls and roof of our warehouse that protects our 55,000 pounds of red beans from heat, wind, and theft.  This week the classifying machine rumbles as our beans tumble down the belt while physics and good engineering weed out the grains that are damaged or too small for sale.  Magdiel, Franklin, Marcelo, and others haul sack upon sack into the feeder and bag up the sorted beans as they pour out the other end.  A couple of members of our team run the bagging operation—weighing out the beans into one or five pound bags, which are then sealed and ready for sale.  Dust dances in the sunlight that pours into the dim warehouse and the workers’ shouts fill the open spaces as they joke or poke fun or give instructions over the cacophony of the machines.  

         While many hours of hard labor pour into getting our beans loaded onto the last worker’s back and into the truck that will carry them off to our buyer, at times it seems as though the toughest part of the process is that which requires the least physical work—marketing.  

1c25da269e6078a01114fc819f84f9ea         Securing a fair price for our beans is a quintessential aspect to the work our ministry does.  In essence, after our producers have done all their work and sold us their product, selling the grain is our end of the deal.  We will not succeed in empowering small bean farmers if we buy their beans only to sell them at a low price or see them lost or wasted in storage.  Rather, we aspire to sell our beans at a fair market value which will then enable us to buy beans from our producers in the future at a just—and hopefully more stable and predictable—price.  Broadly speaking, our marketing goal is to integrate ourselves into the grain economy of Nicaragua as an actor that is not simply seeking personal profit, but rather hoping to empower many individuals through the economic activity of buying and selling beans.  This model is radically different than that of most grain buyers in this country.

         Unfortunately, we have faced numerous challenges in accomplishing our marketing goals over the past few years.  Overall, the market for red beans grown in Nicaragua is a difficult one to access.  Annual production of red beans in Nicaragua is double that of annual local consumption.  Thus, half of the red beans grown in the country are exported.  In our experience the export market is exceedingly difficult to access.  We have worked hard to develop the essential connections that could lead to a consistent bean buyer from the U.S. or Canada, but so far we have come up short.  With regard to sales in-country, the prospects are incredibly complicated.  Over-supply of beans locally and the fact that most of these beans are grown by small producers who are extremely vulnerable to market fluctuations contribute to the difficulty of local sale.  In addition, the volatile nature of the market in Nicaragua presents challenges as we sell our grain.  Just as with exportation, essential connections are difficult to make in a country where those with economic power are slow to give it away and thus even to include others in their economic activities.

         Despite these many challenges, we have seen encouraging prospects in the last weeks.  We have made a few key a48b5b1ad31c9ef0e5fcbe072593ec30connections with buyers in markets in Jinotepe who have begun to buy ten, fifteen, and even twenty quintales, or hundred pound sacks, of clean beans per week.  These relationships are essential links to the traditional local market that is often difficult to access.  We have also begun making connections on the less traditional side of the market.  Nicaragua abounds with mission organizations and other NGOs (non-governmental organizations) that work in development.  Many of these buy large quantities of beans for resale in business development programs, to give away to Nicaraguans in need, or for cafeterias or feeding programs.  Many of these organizations serve the same people that La Semilla Ministries serves.  We have recently discovered that many of these ministries buy their beans from the local market, where they have no particular investment or connection.  When presented with the opportunity, many of these NGOs have shown interest in buying beans from our ministry, and developing a long-term relationship of mutual benefit with us.  In this way, we will be able to support and be supported by like minded IMG_0439 (1)people that work in Nicaragua for the Kingdom of God.  As a result of these connections we’ve begun for the first time to package our beans into one and five pound bags.  This very week we’re busy at the UNAG processing plant cleaning, polishing, and bagging up our first new orders.

       Pray for us as we continue to seek a fair market for the growers we represent.  Thank God for His great faithfulness in opening new and exciting doors for the ministry in the past few weeks.  Pray that we will continually seek His guidance in how and where and to whom we should sell our product.  Pray that we will act wisely as we handle the immense responsibility He has given us of managing His resources—particularly red beans.