|
|
|
|
|
|
GCC-5 Pulses Market: Worth More Than a Hill of Beans
By Hovaguim Kizirian and Mohamed Taha
Like those garbanzos on your plate? So do diners in
member countries of the Gulf Cooperation Council (GCC-5) that
includes Bahrain, Kuwait, Oman, Qatar and the United Arab
Emirates (U.A.E.). Shoppers there are demonstrating an
ever-increasing fondness for many varieties of dried beans, or
pulses.
Total GCC-5 imports for pulses are estimated at 150,000 metric tons annually and valued at $90 million. Dried pulses account for 90 percent, or $81 million, of this amount. Canned pulses make up the other $9 million.
U.S. suppliers claim a 3-percent share, or $2 million, of the dried pulses and 7 percent or $600,000 of the canned pulses market in the GCC-5.
With market growth expected to continue at 5-10 percent yearly and given the high regard for U.S. food products, U.S. exporters can foresee plenty of opportunity.
Re-Exports Surpass Domestic Sales
Leading the region in dried pulse imports, the United Arab Emirates accounts for nearly 80 percent of the total.
About 60 percent of these dried pulses are re-exported, usually after some processing (cleaning, grading and rebagging), primarily to Asia, Africa and India, as well as neighboring Gulf countries.
Local GCC-5 dried pulse consumption is estimated at 55,000 tons annually. About 80 percent of these bulk imports are repackaged and sold in retail outlets, usually under a local brand name.
Lentils (red split and whole green) comprise about 40 percent of local dried pulse consumption. Other popular varieties include broad beans, chickpeas, red kidneys and blackeye beans (peas).
Gulf nationals and expatriates from the Indian subcontinent and other Arab countries are the principal pulse consumers in the region.
Convenience Puts Sales in the Can
Due to increased demand for easy-to-prepare foods, canned pulse consumption is on the rise. The U.A.E. and Kuwait account for about 70 percent of total canned imports.
U.S. canned pulse exports to the region are mostly red kidney, lima and blackeye beans.
Malaysia and China provide about 65 percent--better than 11,000 tons--of the canned pulses imported annually.
Besides the total 17,500 tons imported annually, an additional 9,000 tons of canned pulses are produced locally. Broad beans, chickpeas, blackeye beans, kidney beans and peas, imported from various countries in bulk (there is no domestic production), make up most of the pulses canned in the Gulf region. Almost half of this domestic production is re-exported to countries outside the GCC-5.
Continuing expansion of this local processing industry offers good market prospects for U.S. dried pulses, particularly chickpeas, red kidney beans and blackeye beans.
The largest domestic canning operation, located in the Jebel Ali Free Zone near Dubai, U.A.E., produces about 5,500 tons annually, selling under the U.S. brand name, "California Garden." About 80 percent of its output is broad beans.
A second company, sited in Kuwait, produces 1,200 tons yearly, primarily under the "Dania" brand. Broad beans, garbanzos, peas and lentils constitute the bulk of production.
Two years ago, a third major company opened near Muscat, Oman, and currently produces about 2,000 tons yearly under the "Jumbo" brand. Management hopes to increase production by 25 percent during 1997. Here, chickpeas account for about 60 percent of production.
Bean Counters Add Up Sales
U.S. dried pulse exports to this region consist of blackeye beans, kidney beans and other bean varieties. The large-sized 10- to 12-millimeter chickpeas from U.S. suppliers are very popular with consumers.
Other major dried pulse suppliers to this market: For lentils, India and Turkey (70 percent); for chickpeas, Iran, Australia and Turkey (85 percent); for dried peas, Australia and Canada (85 percent); for broad beans, Australia (90 percent).
Dried pulse packing operations outnumber the canneries--two major and five minor facilities are located in the U.A.E., and the other GCC-5 countries each have at least two operations.
Packaging, Pricing and Customs
It=s not hard to export pulses in this market. Dried pulses are usually imported in bulk or large bags, then cleaned, graded, dehulled and/or split and repackaged. Beans destined for retail sales are usually bagged in 0.5- or 1-kilogram nylon bags; wholesalers or re-exporters prefer 20- to 50-kilogram bags. No regulations govern package size.
The retail price of imported dried pulses is about 33 to 40 percent over the import price; retail prices of canned pulses range from 30 to 45 percent above the import price.
A sampling of retail prices of dried pulses (per kilogram) ranges between $1.06 for red split lentils and $2.18 for dark red kidneys. The low and high prices for canned pulses--$0.38 and $0.83 per 0.425-kilogram can--were both for green peas.
The shelf life of canned pulses is restricted to 18 months by Gulf Standard (GS) 150/93. Dried pulses have no official shelf-life requirements. Local traders normally require that prepackaged dried pulses carry an 18-month shelf-life duration and that pulses for further processing carry a two- to three-year shelf-life. Arabic or English lettering denoting shelf-life are acceptable.
Customs clearance usually only takes a few days, but health clearance can take seven to 10 days if laboratory analysis is required. (Pulses rarely are tested.)
Import documents include commercial invoice, packing list, bill of lading, certificate of origin and health or phytosanitary certificate.
Import duties are minimal, ranging from 0 to 5 percent. There are no import quotas, licensing requirements or other non-tariff barriers affecting imported pulses.
All GCC-5 countries enforce CODEX Alimentarius standards for food additives and maximum allowable pesticide and other food contaminant residues.
Labeling
Food labeling is regulated under GS 9/1995. Most GCC-5 countries enforce this standard, with various local amendments. One absolute: Labels must not contain pictures or recipes requiring pork or alcohol.
Though rules call for Arabic language labels, the requirement is not always enforced. However, on prepackaged food, the exporter should use Arabic stickers with English labeling, if not Arabic labels.
Generally, prepackaged food labels must contain the following information on the original label or primary packaging:
Products imported for wholesale or further processing require the following labeling information:
Love Those Legumes, Arabic Style
Long celebrated for the use of spices, Middle East cuisine transforms the common bean into a savory delight. Various ethnic recipes whet the appetite for more mouth-watering dishes.
Beans are served boiled, steamed or fried and used in salads and soups. They also are cooked with spicy tomato sauce, meat or chicken and other vegetables.
Garbanzos are very popular, eaten hot or cold with lemon juice and olive oil, or ground into hommos.
Red kidney beans are used to make the Indian dish rajma and the Iranian khorma sabzi.
Lentils are cooked whole or split. Indians prepare the dhansak and dal dishes while Iranians prepare halim with whole brown lentils. Yellow split lentils are used to make the ever-popular lentil soup.
Dried peas are usually cooked with other vegetables to make the Indian masala dish, but are also used for soup.
Whole broad beans, not a common item on U.S. grocery shelves, are boiled and mixed with herbs, spices, edible oils and possibly eggs and fresh tomato to make foul (pronounced "fool"). Crushed skinned broad beans are made into a paste mixed with spices and parsley to make falafel.
Ready for More Info?
For a copy of a complete market report that lists major importers for each GCC-5 country, contact:
Trade Assistance and Promotion Office
AgBox 1052
AGX/FAS/USDA
1400 Independence Ave., SW.
Washington, DC 20250-1052
Tel.: (202) 720-7420
Fax: (202) 690-4374
E-mail: FASInfo@fas.usda.gov
For supplier lists and foreign buyer lists:
Ag Export Connections
AgBox 1052
AGX/FAS/USDA
1400 Independence Ave., SW.
Washington, DC 20250-1052
Tel.: (202) 720-7103
Fax: (202) 690-4374
E-mail: FASInfo@fas.usda.gov
The authors are agricultural specialists at the FAS Dubai Agricultural Trade Office. Tel.: (011-971-4)314-063; Fax: (011-971-4)314-998. E-mail: atodubai@emirates.net.ae.
|
|