Guanajuato 91,216 58,335 0.640 Durango 243,326 120,280 0 ......NAYARIT 53,886 58,490 58,330 160 76,373 63,767 1.417 1.093 OAXACA 5,772 6,056 3,265 4,791 2,659 0.83 0.815 ... One of

San Juan de los Lagos 52, Santa Mónica, Estado de México, 54050 Tel. (0115255) 5362-7407, 5398-4443, Fax. 5362-6724, Email: [email protected]

USDBC Mexico April 2013 Report 1

USDBC MEXICO MONTHLY REPORT APRIL 2013

SAGARPA'S 2013 SPRING/SUMMER BEAN PLANTING PROGRAM

IRRIGATED + DRY LAND

State

Programmed

Planting Surface

(HA)

Programmed

Production (MT)

Programmed

Yield (MT/HA)

Aguascalientes 10,046 6,926 0.689

Baja California 215 187 0.870

Baja California Sur 1,063 1,481 1.393

Campeche 72 72 1.000

Coahuila 5,973 4,458 0.746

Chiapas 72,289 42,297 0.585

Chihuahua 133,210 112,833 0.847

Distrito Federal 114 112 0.987

Durango 243,326 120,280 0.494

Guanajuato 91,216 58,335 0.640

Guerrero 10,655 7,743 0.727

Hidalgo 30,587 33,283 1.088

Jalisco 15,982 15,448 0.967

Mexico 10,429 9,859 0.945

Michoacan 4,727 5,764 1.219

Morelos 1,098 1,220 1.111

Nayarit 174 310 1.783

Nuevo Leon 3,238 2,722 0.841

Oaxaca 37,638 24,696 0.656

Puebla 63,396 48,744 0.769

Queretaro 12,235 7,548 0.617

Quintana Roo 20 18 0.900

San Luis Potosi 119,657 49,748 0.416

Sinaloa 650 479 0.737

Sonora 3,600 5,023 1.395

Tabasco 83 58 0.699

Tamaulipas 5,180 4,818 0.930

Tlaxcala 5,474 5,123 0.936

Veracruz 13,827 7,659 0.554

Yucatan 62 35 0.561

Zacatecas 556,517 277,883 0.499

TOTAL 1,452,753 855,162 0.589

Preliminary Data by: SAGARPA-SIAP



2013 FALL-WINTER BEAN CROP PROGRESS REPORT

SITUATION UNTIL MARCH 31, 2013

programmed planted harvested damaged programmed obtained prgrammed obtained

BAJA CALIFORNIA SUR 196 749 51 96 266 48 1.351 0.931

CAMPECHE 2,504 2,668 2,565 42 1,769 1,659 0.706 0.647

COLIMA 30 66 28 0.933

CHIAPAS 42,880 40,800 21,534 24,728 12,313 0.577 0.572

CHIHUAHUA 26 26 7 0.26

GUANAJUATO 1,800 1,537 638 3,564 1.979

GUERRERO 5,000 4,563 1,174 3,828 777 0.766 0.662

HIDALGO 5,605 5,640 4,806 83 4,816 2,363 0.859 0.492

JALISCO 3,390 2,752 2,041 5,886 2,822 1.737 1.383

MEXICO 92 72 106 1.144

MICHOACAN 2,186 2,112 448 118 2,885 588 1.32 1.311

MORELOS 168 178 314 1.87

NAYARIT 53,886 58,490 58,330 160 76,373 63,767 1.417 1.093

OAXACA 5,772 6,056 3,265 4,791 2,659 0.83 0.815

PUEBLA 771 760 40 45 764 40 0.991 1

QUERETARO 269 235 308 1.145

QUINTANA ROO 3,200 2,026 1,798 149 1,944 959 0.607 0.533

SAN LUIS POTOSI 2,702 2,052 140 366 1,997 210 0.739 1.5

SINALOA 79,469 82,099 73,239 7,451 138,244 115,083 1.74 1.571

SONORA 4,075 3,310 1,204 394 6,543 2,132 1.606 1.771

TABASCO 5,090 4,664 2,126 2,990 1,114 0.587 0.524

TAMAULIPAS 1,366 800 2 1,214 0.889

VERACRUZ 24,590 20,544 5,610 20,466 3,953 0.832 0.705

YUCATAN 580 595 595 224 211 0.387 0.354

TOTAL 245,647 242,795 178,965 9,543 304,052 210,699 1.238 1.177

Preliminary Data: SIAP-SAGARPA

State

Surface (HA) Production (MT/HA) Yield (MT/HA)

2013 FALL/WINTER BEAN CROP PROGRESS REPORT

IRRIGATED+DRY LAND

2012/2013 Fall-Winter Cycle Sinaloa.- .- Final production numbers reported from SAGARPA in Sinaloa indicate that the y produced around 111 thousand MT of Azufrado and Mayocoba beans. Prices are around 25 pesos per kilo paid to the producers. At this point, they were not able to provide with inventory numbers, however, they expect that all the production will be traded outside of the state in a few more weeks. Nayarit.- Sagarpa Nayarit reported that their final production was around 65 thousand MT as reported last month. They consider that most of the beans have been sold at this moment, however, there are no inventory numbers at this moment.

CENTRAL MARKET PRICES AND SALES ANALYSIS BY USDBC

USDBC Disclaimer: In the following section the USDBC Mexico office analyzes dry bean prices from

SNIIM reports. In addition, the USDBC Mexico office place calls to the Mexican trade to complement

the information. The USDBC will not be responsible for third party transactions based on this report.



Comments from the Industry: The trade continues to report a slow market for beans and

other products. An important packer informed that has been having problems to collect bills

pending from the processing of imported beans, a situation that never happened in the past.

This company considers that this situation reveals the low sales and the difficulties within

the segment and highlighted the damage that is causing the extra cost on imported beans

that importers have to pay to clean the product.

Wholesale Prices Report

US Black beans prices have remained around 17.00 pesos per kilo in Mexico City.

Prices in Monterrey and Guadalajara remained the same as in March at around 18 pesos

per kilo. US Pinto beans: U.S Pinto prices remained at 17 pesos per kilo in Mexico City

Central Market and in Monterrey in April. Peruanos, Mayocoba, Azufrados from Sinaloa,

prices in April were 31 pesos per kilo average in Mexico City, Guadalajara and Monterrey.

Bayos, Canarios, Flor de Mayo and Flor de Junio: Flor de Mayo and Flor de Junio

preferred varieties remained at 20-24 pesos per kilo in Mexico City, Monterrey and

Guadalajara in the month of April.

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MONTH: April 2013

MONTHLY CENTRAL MARKET WHOLESALE PRICES REPORT

PRODUCT product VAR VAR VAR VAR

VARIETY origin PRICE ($/KG) % PRICE ($/KG) % PRICE ($/KG) % PRICE ($/KG) %

( state ) current before current before current before current before

29 04 13 30 03 13 29 04 13 30 03 13 29 04 13 30 03 13 29 04 13 30 03 13

BEANS

Azufrado SIN.

Bayo Berrendo JAL. 24.00 24.00 0.00%

Bayo Berrendo SIN.

Bayo Berrando NAY.

Garbancillo DGO.

Bayo ZAC. 21.00 20.00 5.00%

Canario SIN.

Cacahuate Bola GRO. 22.50 24.00 -6.25%

Canario ZAC. 18.00 #DIV/0!

Flor de Junio GTO.

Flor de Junio ZAC. 21.00 20.00 5.00% 16.00 16.00 0.00%

Flor de Mayo SIN.

Flor de Mayo GTO.

Flor de Mayo ZAC 22.00 22.00 0.00% 17.50 17.00 2.94%

Garbancillo ZAC. 21.00 21.50 -2.33%

Garbancillo zarco JAL. 27.00 28.00 -3.57%

Imported Black IMP. 17.00 17.00 0.00% 16.50 17.00 -2.94% 18.00 18.00 0.00%

Nayarit Black NAY. 14.00 12.50 12.00%

Black S.E.

Black SIN.

Black QRO.

Black bola ZAC. 14.00 14.00 0.00%

Veracruz Black VER. 14.50 14.50 0.00%

Peruano S.E.

Peruano SIN. 30.00 30.00 0.00% 31.00 31.00 0.00% 27.00 29.00 -6.90% 25.00 27.00 -7.41%

Imported Peruano IMP.

Imported Pinto IMP. 17.00 17.00 0.00% 17.00 17.00 0.00%

Pinto NAY. 16.00 15.00 6.67%

Pinto ZAC.

Pinto JAL.

Pinto SIN.

Mayacoba SIN. 25.00 27.00 -7.41%

Pinto CHIH. 16.50 16.00 3.13% 14.50 15.00 -3.33%

Pinto DGO.

PRODUCT product VAR VAR VAR VAR

VARIETY origin PRICE ($/KG) % PRICE ($/KG) % PRICE ($/KG) % PRICE ($/KG) %

( state ) current before current before current before current before

29 04 13 30 03 13 29 04 13 30 03 13 29 04 13 30 03 13 29 04 13 30 03 13

BEANS

Bayo DGO. 13.50 12.50 8.00%

Bayo SIN.

Bayo D.F. 22.00 24.00 -8.33%

Azufrado NAY. 18.00

Canario ZAC.

Flor de Junio ZAC. 19.00 19.00 0.00%

Flor de Mayo DGO. 13.50 12.00 12.50%

Flor de Mayo D.F.

Flor de Mayo ZAC. 19.00 19.00 0.00%

Ojo de Cabra D.F.

Ojo de Cabra DGO.

Mayacoba NAY. 23.00 24.00 -4.17%

Mayacoba SIN. 33.00 31.00 6.45%

Garbancillo ZAC.

Black NAY. 15.00 15.00 0.00%

Black DGO. 12.00 10.00 20.00%

Black S.L.P.

Black ZAC. 11.00 11.00 0.00% 14.00 15.50 -9.68%

Peruano IMP.

Peruano SIN. 33.00 31.00 6.45%

Pinto N.L.

Pinto DGO. 14.00 12.50 12.00%

Imported Pinto IMP.

Pinto CHIH.

Pinto ZAC. 14.00 14.00 0.00%

ZACATECAS MERIDA DURANGO NAYARIT

MARKET MARKET MARKET MARKET

MEXICO CITY MONTERREY GUADALAJARA SINALOA

MARKET MARKET MARKET MARKET



MEXICO NEWS CLIPPINGS

USDBC Disclaimer: In the following section the USDBC disseminates information published

in Newspapers and Magazines related to beans. The statements or numbers shown in each

article are not necessarily in agreement with the USDBC.

20 Million Pesos Authorized to Subsidize Certified Bean Seed: Andres Fernandez GrupoGarzaLimon April 28, 2013 Durango.- 20 million pesos are available to subsidize the purchasing of certified bean seed and support the bean growers in Durango for the upcoming Spring-Summer cycle, said the President of the Bean Product System Andres Fernandez Dominguez. SAGARPA had authorized 16.2 million pesos and through lobbying, these resources increased to 20 million pesos with the possibility to expand it to 40 million pesos. 2,600 hectares were planted in Nayarit to supply certified seed to the Durango bean producers. 3500 MT were produced for this purpose and 500 MT more were in the warehouses in Nayarit, so there are 4 thousand MT available to be planted. This seed is in the hands of traders in Nayarit, who made a written commitment to sell at 20 pesos per kilo and in excellent conditions to be planted. “We do not want to have old or mixed seeds” Fernandez asked the producers interested in the seed to go to the Rural Development Support Centers (CADER) to do the paperwork. The program starts with support for 3 hectares per producer and it will gradually increase according to the needs. 3 States Provide 54.8% of the Beans Siglo de Durango April 22, 2013 Durango.- According to Roberto Delgado a Market Consultant, the average bean production in the period 2006-2012, fluctuates from 900 thousand to 1.18 million MT, the main producer states are Zacatecas, Sinaloa and Durango, providing 54.8% of the average production in the mentioned period. He precised that Zacatecas and Durango produce 55% of the total Spring-Summer cycle, while Sinaloa produces 52 percent of the average Fall-Winter production. In terms of varieties, Sinaloa produces Azufrado beans mainly; Chihuahua and Durango produce Pinto beans; Nayarit, Zacatecas, Oaxaca and Chiapas plant black beans and in San Luis Potosi and Guanajuato Flor de Mayo and Flor de Junio are the predominant varieties. In this sense, the stated that at the national level, the agricultural authorities most take into account the needs and preferred bean varieties of each region in the country. For example, he specified that when grouping the consumption by region, it can be seen that the northwest consumes more Azufrado beans; in the north they consume pintos; in the



central region Flor de Mayo and Junio and Black beans, while in the southeast black bean consumption prevails. Lastly, he highlighted that the production volumes by bean variety in the exporter states fluctuate according to the market situation, the knowledge and cultivation practices in the production regions, the support programs to increase of rotate to other crops and the inventories from past crops among other. Cimate Change and the Agricultural and Live Stock Sector El Economista April 21, 2013 By: Freddy Yair Montes There are two different definitions of climate change, one of the most accepted is the proposal by the Inter-government Experts Group on Climate Change (IPCC), which defines this concept as: an important statistic variation of the weather’s median status or its variability, that persists over a long period of time (decades of more), this variation derives from the increase of the Greenhouse Effect Gases (GEI) in the atmosphere as the result of the anthropogenic activities that are provoking the climate change of the earth that are adversely affecting the natural ecosystems and the humanity. One of the most vulnerable economic sectors is the agriculture because it is directly related to the climate varieties (precipitation, temperature and external events). Because of this it is very important to know what will happen in the agricultural sector and if the results will be catastrophic or insignificant. To answer these questions the reference is the study “Mexico: the Agricultural and Live Stock Sector and the challenge of the Climate Change”, made by SAGARPA in collaboration with United Nations-FAO. In this study are measured the impact of the precipitation variation and the temperature over the economic activities of the Mexican Ag sector in the 2013-2099 period. The precipitation and temperature data used in this study are estimated using the general circulation model Miroc 3.2 of high resolution. The two econometric methodologies used are the production functions with longitudinal data and the Ricardian focus with crossed section data. The first results from the Ricardian model show that there will be mostly negative effects if the weather change over the income if the Rural Economic Units (UER). In most of the analyzed regions the temperature increase and the precipitation changes have negative effects over the value of the earth affecting adversely the net income obtained by the production unit’s agricultural activities. Amongst the external phenomenon affecting Mexico, because of their impact over the UER are: frosts and hail storms, flooding with losses, tropical typhoons and drought. Amongst the results found in this study, are the following: in general for Mexico, estimated precipitation shows a negative tendency in the long term while temperature shows a positive tendency in the length of the analysis. This translates into stress over the plants in the phase of growing, animals and an increase of plague in place where climate conditions didn’t permit it before. In terms of production the affectations will be heterogeneous within the Mexican territory, temperature variations or precipitations will not have the same effect in the different regions in Mexico since some municipalities with the current temperature are still below the optimum production point while others have already passed it. In these last



municipalities the production of some crops will stop meaning that there will be a reduction in the availability of food and therefore an increase in the price of it. Predictions for year 2050 show that the most affected municipalities in terms of agricultural production will be those located in the southern region of the country, while some in the north and central parts could show increases in the agricultural production associated with the presence of warmer weather. In the Yucatan Peninsula, some municipalities will even report total losses. Finally, in this study it can be found that one of the most important effects of the climate change in the agricultural sector will be the great volatility with years of important losses, followed by years if important gains in terms of production. This will provoke a higher uncertainty for the producers at the time to decide if it will be profitable or not to work the agricultural and live stock activities. Because this study quantifies the effects of the climate change without considering the adaptation activities, showing the costs of inaction, the results obtained show why it is important the implementation of programs oriented to adapt and mitigate the effects of climate change. Also, the programs of risk administration will be more important especially in the low incoe producers’ level, which are the most vulnerable. It is also suggested the implementation of climate information systems to have a higher precision in terms of monitoring and follow up of the climate changes in the country. *Fredy Yair Montes Rivera is a specialist form the Programs Evlauation Subdirection at FIRA. The opinion of the author does not necessarily reflect the official point of view of FIRA. Desperation Pushes Producers to Sell Cheap Beans and other Products NTR Zacatecas April 15, 2013 Fresnillo.- Santiago Vidales who is dedicated to sell beans on side of the roads informed that approximately 50 people go everyday to his business, 70 percent looking to sell to him beans and only 30 percent to buy from him. He also said that the price he sells at to the public is 15 pesos per kilo and he buys at 11 pesos per kilo. He sells around half a ton per day and his main clients are people from the private ranches nearby, who have more money to spend. However, he mentioned that the bean producers that come to sell to him are low income people and offer to him because they are desperate with no other source of income, “They prefer to obtain lees money than having nothing” Vidales lamented that the 2012 production was very poor since form most of the hectares planted, all they got was seed. “All of the growers are looking for food, because beans are not a good business anymore because of the lack of rainfall”, he added.



He lamented that the investment made by a bean producer in the municipality is very costly since the seed and the diesel which are the main tools, are very expensive. Because of that, he argued that many of the growers have chosen to abandon this duty. SAGARPA PRESENTED THE AGRICUTURAL EXPECTATIONS REPORT FOR 2013 (excerpt) SAGARPA Press Release April 16th, 2013 International and national experts underlined the importance of statistical information systems and the satellite monitoring to make decisions. The XIII Forum of Agricultural Sector’s Expectations organized by SGARPA reunited over 1600 people interested in themes related to the Mexican agriculture In this event SAGAPRA presented for the first time the 2013 Report and Production Expectations of 7 strategic agricultural products, 5 live stock products and 3 fishery products. They spoke about the probable scenarios considering elements such as the size of the agricultural border of Mexico (26 million hectares, 22 used and 4 million unused), the meteorological impacts and sanitary contingencies. The General Director of SIAP (Ag Information System from SAGARPA) said that by the instructions of the Secretary of Agriculture Enrique Martinez, satellite images are being used to build 3D digital land elevation models, and with help of LIDAR technology can be identified and classified areas that can be recovered to become productive land or hydraulic systems for different uses. The G20’s Secretary of the Ag Markets Information System Abdolreza Abbassian highlighted in his presentation: Is Food Security Guaranteed in the World?: A worldwide scenario of the production of humanity’s strategic grains and accurate agricultural statistics. He referred that an accurate follow up of the four most important grains for humanity (rice, sorghum, wheat and corn) are tools to mitigate the market’s volatility, a situation affecting directly the economies, and recognized SAGARPA through SIAP for the work done to have trustable sources of information. The event lasted two days and developed in a plurality context reuniting distinguished personalities. Proposal to Order the Bean Market El Siglo De Durango April 10, 2013 A way to revert the structural problems in the agri-food chain of beans, is improving the production systems and plan ahead the production by variety in relation with the needs of the market. Situation – The objective must be to support the trading process of those dedicated to produce beans, warned the delegate. That is why in order to reduce the regional unbalance between production areas, it is necessary to re-order the production according to the



demand in the consumption areas, estimated Roberto Delgado, a consultant in Agricultural Markets. In a few months more, -he added-, 2013 Spring-Summer bean planting will resume and without a master plan to re-order the production, there will be no subsidy enough to help in the trading of the beans, since every year is the same situation: low yields, lack of added value, excess of intermediaries, lack of connection between the social sector organizations and the potential buyers, enough financing through the commercial process, etc. He also considers that our country should invest in larger biotechnology resources in order to design higher productive potential varieties resistant to the lack of water. He said that there should be efforts made in planning the production according to the market’s consumption. “Besides, -he said-, all of the producers must have the culture of the grain quality certification to be able to compete in yields and qualities vs. our main competitors that are the United States, Canada and China. At the national level, he suggested that the agricultural authorities should take into account the needs and preferences of beans in each region of the country. Drought Affects More than Half of Mexico Milenio Notimex April 8, 2013 MÉXICO, D.F.- The National Farmers Confederation (CNC) informed that this year, more than half of the Mexican territory has suffered of drought, particularly the north-central part of the country. Through après release, the CNC explained that the most important water dams in the irrigation areas are in its lowest levels at 25-30 percent of its capacity. Agricultural and live stock producers are worried that dry land and pasture land are the most affected for the lack of moisture and most of these are already prepared for the next cycle, said the CNC’s President Gerardo Sanchez. He indicated that because of the drought, the land will not be cultivated since there is the risk that the seeds will not sprout. Sanchez, who is also a Senator, said that there are damages in the vegetative cycle of the Fall-Winter crops, especially in cereals such as corn, wheat, sorghum and forage, while the live stock looks thinner. He added that the pasture land are dry, there are no mating taking place and the females have started to abort because of the lack of water, according to the reports from the leaders of the agricultural associations in the states of Sonora, Chihuahua, Durango, Zacatecas, Coahuila, Tamaulipas, San Luis Potosi and Nuevo Leon among other. In the frame of this situation, Sanchez asked the government instances to expedite the institutional programs and reassess the financial support schemes paying as soon as possible.



The CNC leaders coincided that if it’s true that the dry season runs from January through June, and it is characterized by high temperatures and lack of rainfall, the recent years experiences forces to take precautions to avoid damage in large grain planting extensions or the death of the live stock because of lack of feed and water. “Ag producers do not have to be the only ones paying the consequences” -they said-and expressed their confidence that the federal and states governments will canalize the drought support given the different circumstances with the climate change. No to “Junk food” in the Fight against the Hunger (excerpt) UnomasUno Abril 20, 2013

Harmful participation of Nestle, Pepsico, Walmart, Gruma, Sigma, among others

After highlighting that in Mexico more than 50 million people live in extreme poverty and 28 million suffer hunger, the PRD (left wing party) Congressmen and women, are promoting a law that forces the participation of all the government instances in the Agricultural recovery in order to be able to produce the foods that Mexicans consume. They are also working in the agreement to request the Federal Government to ban the participation of companies such as Nestle, Pepsico and Walmart in the National Fight Against Hunger Initiative “because the products that are being donated by these companies are considered junk food, that only cause diabetes and child obesity” said Congresswoman Socorro Cesenas. Bimbo Concludes the Purchase of Beefsteak El Financiero-Notimex April 5, 2013 Relevant information sent to the Mexican Stock exchange indicates that the operation was financed with Bimbo’s own resources. Beefsteak is a rye bread brand in the United States with strong presence in the Middle East regions and the central coast of the Atlantic, representing a big expansion of BBU in that country. As part of the bankrptcy process, Hostess Brands sold several brands amongst which are Twinkies for US410 million Grupo Modelo Sells Extra Stores (excerpt) Milenio.com April 2013 Grupo Modelo has started with the first steps to sell the convenience store format that operates since several years ago with the brand Extra. It s all about strategy, the first adopted in the 100% purchase context of this beer company by the Brazilian AB InBev, once the operation is approved by the U.S. Department of Justice. In the case of the convenience store format, with a thousand points of sale nationwide, there is the vision of a multinational, that will be looking for the productivity in the fundamental and this is the beer manufacturing.



The sale of a thousand stores in one operation is an excellent business opportunity that has the interest of the most important actors of this segment including OXXO-FEMSA with 11 thousand stores. Their participation cannot be discarded since Modelo will choose the best model for the sale. Those who know the business, consider that the sale can be made in parts of 200 units with the best profit for Modelo. Besides of FEMSA, Grupo Chapa-7 Eleven with 1500 units must also be considered. There will be also SORIANA-Super Citi, Circle K Mexico with 250 stores and Mambo with 160 units. It is estimated that there are some 15 thousand stores in the national market, however, some people consider there is the potential to have 50 thousand. Within the industry, this is the largest growth segment and it is considered to continue growing in the years ahead. FEMSA Buys YZA Drugstores El Semanario Mayo 3, 2013 The Mexican company informed through a press release about the purchase through their subsidiary FEMSA Comercio. Femsa closed the acquisition with 75% ownership of Farmacias YZA after obtaining the approval from the authorities. They indicated that they can apply their experience in the convenience store segment (OXXO) and this is a great opportunity of growth for FEMSA. YZA is a leader in the segment in the southeast part of Mexico and has more than 300 points of sale.

Economic Report The Mexican President Enrique Pena-Nieto, traveled this month to Asia. During his trip to China, the President assured that if the structural reforms that are underway at the Congress are passed, Mexico will have a secure growth higher than 6 percent, allowing becoming one of the ten most important economies in the world. He called the countries of Latin America and Asia to strengthen the relationships taking advantage of the regions’ competitiveness vs. other parts of the world. Pena-Nieto at some point stated that an alliance against protectionism for the free trade of basic products would be one of the objectives these are strong words in the context of great number of Chinese products currently affecting several industries in Mexico because of the low prices and low quality.



During his trip to Asia, the President highlighted the good economics of Mexico with a deficit zero, low public debt, an annual inflation rate below 4 percent and the lowest interest rates in decades currently around 4.19 percent. In the meantime, specialists from different economic international institutions stated this month that the Mexican economy could at least grow 3.5 percent this year. The Inter American Bank for the Development predicts that Mexico will grow this year even more than Brazil and surpass China to become the largest supplier of the United States especially if the Pena-Nieto administration is able to pass the different structural reforms currently being revised by the Congress in Mexico. The IBD Economist highlighted Mexico’s capacity to resist the China competition in the United States in the last decade, showing that with a good administration and the necessary reforms it is possible to compensate the differences with China, and be on the tracks to start growing faster. Mexico currently has signed 12 Free Trade Agreements with 44 countries allowing the imports and exports with those countries, however, the United States continue to be the most important export destination for the Mexican products. In 2012, 74.2 percent of the Mexican exports went to the United States according to SAGARPA, accounting for 77.2 percent of the total national agri-food trade. The most important Mexican agricultural products exported to the United States are: beer, tomatoes, avocados, and peppers accounting for 27.7 of the value. In a lower scale are the exports to countries like Japan, Canada, Venezuela and Guatemala in order of importance. It is clear that the United States continue to be the most important agri-food export partner however specialists consider that there is a great opportunity for Mexico to increase the exports to other markets mainly in the European Union and Asia. The most important Mexican products exported to Europe were: coffee, beer, tequila and frozen fish. While the products sent to Asia were: frozen pork, avocados, frozen bovine meat and cotton. Exchange Rate The trend of revaluation of the Mexican currency vs. the U.S. dollar continued in the month of April. The average exchange rate in April was 12.20 pesos per U.S dollar and the exchange rate in the last working day of April was 12.24 pesos per U.S. dollar. Political Environment and Security In the first week of May, President Barak Obama visited President Enrique Pena-Nieto in Mexico City. According to specialists, the visit was positive, with a multi-theme agenda in which all the subjects had a balanced importance. The agenda included economic aspects among which one of the most relevant is the Trans Pacific Partnership negotiations. Not less important were the mentions about security and President Obama’s commitment on working towards the drug demand in the United States and fighting against the crossing of weapons from the United States to Mexico. The Mexican political parties in general, also considered that the visit was positive and they see a clear interest in President Obama about the different subjects related to the cooperation between both countries and a good and respectful relationship between President Pena-Nieto and himself.



NEW BEAN AREAS PRECIPITATION REPORT In order to serve you better, we have produced the following precipitation report with available information from the meteorological stations in different strategic points located in or nearby the municipalities of the most important bean production areas. Unfortunately at this moment, we were not able to include temperatures because that information is not available at the moment. However, this report will be improved as more information becomes available from the different government instances. We are also including the satellite maps from each state, except for the state of Chihuahua which is not being published as of yet. Your comments on this new report will be greatly appreciated.

Monthly Precipitation Record in Mexico's Main Bean Production Areas Year: 2013

State Region Station

Rainfall

mm

Jan-13

Rainfall

mm

historic

avg.

Jan

Rainfal

l mm

Feb-13

Rainfal

l mm

histori

c avg.

Feb

Rainfal

l mm

Mar-13

Rainfall

mm

historic

avg.

Mar

Rainfal

l mm

Apr-13

Rainfall

mm

historic

avg.

AprChihuahua Chihuahua City Ciudad Guerrero 14 -999 0 -999 0 -999 0 -999

Chihuahua Nuevo Casas Grandes Casas Grandes 12.4 12.28 1.6 24 0.6 14.6 0 -999

Chihuahua Cuauhtemoc Campo 101 11.4 -999 0 -999 0 -999 0 -999

Chihuahua Cuauhtemoc Campo26 0 -999 0 -999 0 -999 0 -999

Chihuahua Cuauhtemoc Campo 6 1/2 4.8 -999 0 -999 0 -999 0 -999

Total rain mm in Chihuahua's main bean areas 42.6 1.6 0.6 0

Durango Guadalupe Victoria Rancho Saldivar 2.6 16.77 0 5.96 0 4.04 0 6.13

Durango Guadalupe Victoria Rancho Sn. Pedro 4 16.26 0 6.03 0 3.75 0 5.68

Durango Cuencame Ramon Corona 9.4 12.17 0 6.45 0 3.36 0 5.4

Durango Cuencame La Granja 8.6 15.05 0 5.9 0 4.02 0 6.32

Durango Cuencame Cuauhtemoc 16.4 14.74 0 7.23 0 3.57 0 5.37

Total rain mm in Durango's main bean areas 41 0 0 0

Zacatecas Miguel Auza-Rio Grande Campo Uno 15.4 7.48 0 4.83 0 3.03 0 3.38

Zacatecas Rio Grande Progreso 10.6 10.97 0 7.65 0 3.41 0 4.45

Zacatecas Rio Grande Sombrerete 13 11.1 0 7.52 0 3.73 0 3.73

Zacatecas Rio Grande - SombrereteEjido Zaragoza 3 14.99 1 9.26 0 4.11 0 4.48

Zacatecas Rio Grande - SombrereteZapata 25.8 14.83 0 10.8 0 5.29 0.8 5.12

Zacatecas Fresnillo Abrego 19.8 17.32 0 6.94 0 3.63 0 4.03

Zacatecas Fresnillo Emancipacion 19.6 13.84 0 8.59 0 4.1 0 5.94

Zacatecas Fresnillo El Pardillo 22.2 12.8 0 7.81 0 3.74 0 7.34

Zacatecas Fresnillo Rancho Grande 22 12.1 0 7.13 0.2 3.93 0 6.23

Zacatecas Calera Campo Experimental 28.6 16.96 0 7.99 0 1.72 0 5.29

Zacatecas Luis Moya El Gran Chaparral 33.8 17.61 0 7.71 0 4.28 0 8.75

Zacatecas Gonzalez Ortega Estancia de Animas 43.4 17.64 0 7.95 0 5.91 0 9.75

Zacatecas Francisco Murguia Mogotes 20.6 7.74 0.2 5.24 3.8 3.31 0 3.71

Zacatecas Jerez Santa Rita 34.2 23.72 0 7.63 0 6.56 0 4.44

Total rain mm in Zacatecas' main bean areas 312 1.2 4 0.8

San Luis PotosiSanto Domingo Banderillas 37.6 17.64 0 7.84 0 3.87 0 10.63

San Luis PotosiSanto Domingo La Victoria 96.6 19.21 0.8 7.19 0 7.82 0.6 19.15

San Luis PotosiSanto Domingo Sta. Matilde 50.4 15.06 0 6.75 0 7.92 1.2 15.97

San Luis PotosiVilla de Ramos Yoliatl 50.6 17.25 0 8.63 0 6.46 0 10.57

San Luis PotosiVilla de Ramos BuenaVista 51.4 16.89 0 7.67 0 4.86 0 9.3

San Luis PotosiVilla de Ramos La Dulce 0 16 0 6.7 0 4.8 0 8.9

San Luis PotosiVilla de Ramos La Herradura 83 15.21 0 6.45 0 9.77 0 15.93

Total rain mm in SLP's main bean areas 369.6 0.8 0 1.8

Source: INIFAP and CONAGUA

*Information from the available meteorological stations located

in the main bean production areas in the different states



Zacatecas Precipitation Map from January 1 to April 30th, 2013

Durango Precipitation Map from January 1 to April 3, 2013



San Luis Potosi Precipitation Map from January 1 to April 30th, 2013

Mexico Precipitation Map from January 1 to April 30th, 2013

Documents

Guanajuato 91,216 58,335 0.640 Durango 243,326 120,280 0 ......NAYARIT 53,886 58,490 58,330 160 76,373 63,767 1.417 1.093 OAXACA 5,772 6,056 3,265 4,791 2,659 0.83 0.815 ... One of