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USA Dry Bean Council

Final Report June - July 2012

E11MXDRMX6 Seminar and Study Mission to Promote Introduction

of Japanese Type Bean Paste and Sweet Bean Products in Dominican Republic and Mexico

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I. Introduction

Funding approval This EMP proposal for 2011 was approved in May 2011, with the total budget awarded at USD 114,720. Project background The Dominican Republic and Mexico have experienced increased consumption of processed foods at the same times as per capita consumption of traditional foods such as beans has dropped. In order to maintain per capita consumption of traditional foods such as dry beans in developing economies the US dry bean industry has been looking for ways to make sure that US dry beans are included in new product development by the food-processing sector. One such opportunity is introduction of Japanese style bean paste and sweet beans to food processing sectors in Dominican Republic and Mexico where manufactured sweets, in many forms, are popular. Many processed foods are unique to certain regions or countries. Such is the case with products made from bean paste or sweet beans. Food processors in the Dominican Republic and Mexico are unaware of the wide variety of products produced from bean paste and sweet beans. However, in the Dominican Republic the people do have a tradition of consuming a soup-like dessert known as “habichuelas con dulce” that is traditionally made in the month leading up to Easter holiday. The existence of this sweet dessert made with beans was the genesis for idea of seminar introducing food processors in Dominican Republic and Mexico to Japanese style confections made with sweet beans / sweet bean paste.

II. Executive Summary:

The following information has been provided in prior reports but it bares repeating. Final approval for this project was not received until May 2011. Upon approval the regional representative started making plans to coordinate the event. He contacted the regional representatives in Japan and Mexico in furtherance of activities. One of the first steps in doing so was to coordinate a date for the seminar with our primary bean paste expert speaker from Japan.

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EMP Deadline Extended as a Result of Japan Earthquake Unfortunately, the earthquake in Japan caused such significant problems for the Japanese bean paste industry generally and the business of our featured speaker specifically that our Japanese bean paste specialist found it impossible to travel to the United States in the necessary time frame of latter 2011. The downturn in business that occurred throughout the Japanese bean paste industry as a result of the earthquake made it necessary to focus on priorities at home because not only were consumers buying less of the traditional Japanese confections but businesses in the confections industry found it much more difficult to obtain necessary inputs, to coordinate transportation, etc., during the recovery period. As a result, the US Dry Bean Council requested and received an extension of complettion date to July 31, 2012.

III. Project Overview and Objectives

Objectives of Project The overarching goal of the project was to introduce the concept of Japanese style bean paste and bean paste confections to appropriate audiences (bakeries, confection producers, hotel and restaurant trade) from the Dominican Republic and Mexico. The major objectives of this project are to:

1. Prepare promotional materials in Spanish language that highlight and project the key features and benefits of utilizing beans as an ingredient in processed foods;

2. Organize an introductory 1 day seminar for 25 or more research, development, marketing and management staff of Dominican and Mexican food processors that introduces them to the wide variety of Japanese style bean paste and sweet bean based processed foods;

3. Take group of up to 6 screened representatives of Dominican and/or Mexican food processors to Japan to study and learn first-hand about the production of bean paste and sweet bean foods;

4. Create opportunities for the Japanese bean paste industry (which is in decline) to partner with the rapidly growing food processing sectors of Dominican Republic and Mexico;

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5. Prepare quarterly and final reports summarizing progress, successes achieved, lessons learned and next steps.

Projective Activities This project consisted of 4 main activities:

1. Travel by a regional representative to Dominican Republic and Japan for purpose of facilitating seminar, speakers, samples and follow-up mission to Japan.

2. Travel by food processors from within Dominican Republic and from Mexico to location in Dominican Republic for seminar;

3. Travel by food processors from Dominican Republic and Mexico to learn more about and study the manufacture of processed foods with bean paste and sweet beans;

4. Ongoing technical support to food processors interested in pursuing research and development of processed foods with bean paste and sweet beans;

Program Planning and Implementation

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Summary of June 2012 DR Seminar Participants at the seminar learned about use of U.S. beans in a wide range of Japanese style bean paste products and information about the manufacturing process of bean paste. Additionally, the participants learned about how Japanese style bean paste and sweet beans could be used to produce western style desserts and confections as well as Dominican influenced recipes. With part of our mission being the expansion of the participants’ mindset in terms of the versatility of U.S. dry beans we also took the opportunity of the seminar to teach the attendees about some other products that are made with U.S. dry beans. Applications that were discussed included dry beans in flours and dough systems, fried and extruded snacks, noodles and pasta, and bakery products. Participants also learned about some of the food science research that is being done in relation to U.S. dry beans. Participants were provided with all the seminar lectures and seminar materials on a pre-loaded USB flash drive. The flash drive also included a technical manual for dry beans that the participants could consult later – as well as a directory of U.S. dry bean suppliers.

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June 2012 Seminar Participants 1. Rosa Columna De la Casa Pastelería 2. Isabel Morel Nene Pastelería 3. Victor Muñoz Little Desserts 4. Pedro Pablo Ramírez Infotep 5. Teresa Tatis Pan y Pastel 6. Luis Ramón Mercedes Infotep 7. Andry Segura Pan y Pastel 8. Santiago Muñoz Sosa Hotel Meliá 9. Gabriel Castelar Hotel V Centenario 10. Miguel Isaac Nova Restaurant Pata e'Palo 11. Hugo de la Cruz Restaurant Pata e'Palo 12. Bernardo Javier Rodríguez Restaurant Pata e'Palo 13. Tomás Batista Lige Bakery 14. Juan Francisco Beras Lige Bakery 15. Emilio Figueredo Plaza Lama 16. Jeury Vargas Le Croissait Dore 17. Gabriela Calderón Delicias Mi Vieja 18. Josefina Mieses de Calderón Delicias Mi Vieja 19. Gabriela Henríquez Guli's Goodies 20. Alfredo Cruz Hotel Lina 21. Carlos Nolasco Hotel Lina 22. Mildred Gómez Ureña Exquisiteces Virginia 23. Virginia de Gómez Exquisiteces Virginia 24. Félix María Ramírez Félix María Ramírez 25. Rosa María Borbón Félix María Ramírez

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26. Rosa Elena Ruíz UMPIH 27. Jaime Romero Delgado Grupo Bocel 28. Roberto Falcone Portorreal Grupo Bocel 29. Humberto Salazar Marte Grupo Bocel 30. Hector García Dulces Jomisardys 31. Ismael Alvarez Supermercados Bravo 32. José Encarnación Supermercados Bravo 33. Amaury Mora Supermercados Bravo 34. Arai Valdes Helados Bon 35. Cesar Aybar Nikay BioProceso 36. Katiuska Vicioso Nikay BioProceso 37. Fradbelin Escarraman Strategos DR Mexico Participants 38. Dafne Valdés Atilano Marketing Solutions Firm 39. Isabel Ranz Lopez Artesanos del dulce 40. Laura Gutierrez Jimenez Productos Rich 41. Karla Herrera Salgado Cuetara 42. Mariana Ortega Gutierrez Cuetara 43. Pamela Yañez Maricu 44. Roberto Uicab New York Bagel and Deli 45. Karen Rios Polito Barcel 46. Eduardo Salgado Lopez Barcel USA Participants 47. Randy Duckworth US Dry Bean Council 48. Jeane Wharton US Dry Bean Council 49. Nathan Sano California Dry Bean Advisory Board 50. Masahiro Koishi Koishi Seian Co. Ltd. 51. Thanyaporn Jeradechachai Northern Crops Institute 52. Hector Li USDA FAS – Santo Domingo Japan Participants 53. Koishi Masahiro Koishi Seian Co.

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(Above: Mr. Koishi Masahiro gives his presentation at June 2012 seminar) Activities Accomplished from June 21, 2012 – July 30, 2012:

• Followed up with speakers regarding expenses and other matters related to their participation and presentations at the seminar;

• Followed up with all the speakers and seminar attendees to assess effectiveness of the seminar;

• Followed up with seminar participants; • Identified parties that were interested in participating in follow-up trip

to Japan to view first hand the types of products produced by Japanese bean paste industry and how the products are manufactured, distributed and consumed;

• Worked with Mexico representative and Dominican Republic assistant to extend formal invitations to those identified as candidates to participate in mission to Japan;

• Worked to quickly secure transportation and hotels for the participants from Dominican Republic and Mexico participating in trip to Japan;

• Worked extensively with Japan representative to make necessary itinerary preparations including setting up meetings with bean paste manufacturers, confectionary companies, and bean paste ice cream companies.

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• Reviewed invoices for seminar and arrange for payment of service providers;

• Obtain information about EMP program regulations and state department per diem for foreign participants in mission to Japan;

• Obtain information about domestic rail transportation in Japan for the group;

Budget Utilization for June – July 2012: Invoices were received in June – July 2012 timeframe from those that participated in or helped set up the June 2012 seminar. These invoices were all paid after careful review. Over the June – July 2012 period, funds were used by USDBC representative to pre-pay for airline tickets and lodging for five participants on mission to visit Japanese bean paste industry in late July 2012. Participants were provided with advance per diem to pay for their meals and incidental expenses. In addition, the USDBC representative paid for extensive domestic travel (trains, bus/van, and taxis) within Japan.

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MISSION TO JAPAN

Date: July 22 (Sun) ～ July 28 (Sat), 2012 July 2012 Japan/Sweet Bean Paste Mission Itinerary

Elizabeth Peña, Helados Bon (Dominican Republic) Participants:

Fradbelin Escarraman, Strategos DR (Dominican Republic) Dafne Valdes, MSF (Mexico) Joan Bagur, Artesanos Del Dulce (Mexico) Randy Duckworth, USDBC Representative for Caribbean Region Moto Kitazawa, USDBC Representative for Japan

Depart Dominican Republic, Mexico and United States. July 22 (Sunday)

Arrive afternoon/evening of July 23 at Narita airport. July 23 (Monday)

Duckworth to meet participants at airport and arrange transport to Tokyo.

Meeting Jeff McNeill and Moto Kitazawa/USDBC-Japan at hotel for introductions and overview of week’s activities.

July 24th (Tue):

08:45 am - Leave hotel for “Matoba Bean Paste plant” in Matsudo, Chiba prefecture. Address: 158 Kamihongo, Matsudo, Chiba Tel: 0473-63-5255 10:00 am - Arrive at Matoba Bean Paste Plant 14:00 pm- Arrive at bakery shop “Home bakery An-desu MATOBA” in Asakusa 15:30 pm- Look at Japanese retail

08:45 am - Leave hotel for Tokyo station July 25th (Wed):

09:30 am - Leave Tokyo for Nagoya by bullet train to Tsu-city, Mie 12:20 - Arrive in Tsu, check in hotel

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Hotel: Hotel Greenpark Tsu Address: 700, HADOKORO-CHO, TSU 514-0009

1:20 pm- Leave hotel for “Imuraya ” plant. 14:00 - Arrive at Imuraya Co., Ltd. Address: 1-1, Takachaya 7, Tsu, Mie 17:00 – Retail visits

AM : visit to “Akanemaru” Dorayaki production line July 26th (Thu):

Mid-day departure from Tsu City to Kyoto by train Check in hotel in Kyoto Hotel: Hotel Avanshell Kyoto

(http://travel.rakuten.com/hotelinfo/83/8083/) Address: 36, NISHIHIRAKI-CHO, TAKANO, SAKYOU-KU, KYOTO 606-8103,

11:00am ～12:15 Experience class for Wagashi (Traditional Japanese Sweet confection making )

July 27th (Fri):

Visit at “Toshoan”, Anko café for creative and original confectionery using bean paste. Visit plant producing “Yatsuhashi”, Kyoto’s famous gift item using bean paste

July 28th (Sat):

Travel back to Tokyo then Narita airport. Departing Kyoto Station around 8:00am Our primary objective in visiting bean paste manufacturers, food processors, bakers, retailers and others in Japan was to learn about the process of making bean paste (“An” paste) and the many uses of bean paste and sweet beans. Below is a brief summary of the process of manufacturing that we sought to learn about.

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July 24, 2012

MATOBA BEAN PASTE PLANT Our first visit in Japan was to the Matoba bean paste plant. At the Matoba plant the participants had an opportunity to learn about the bean paste manufacturing process and also the exacting standards by which bean paste is produced in Japan. The Matoba plant is fairly typical of the Japanese bean paste industry in that it’s a relatively modest-sized and compact older manufacturing plant. Like nearly all food processors in Japan the plant has very high standards when it comes to ingredients. This is one reason why the Matoba plant has been a long-time user of U.S. lima beans. Participants had an opportunity to see U.S. lima beans being made into bean paste (as well as

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Japanese adzuki beans). At the end of the tour participants were provided an opportunity to sample some fresh bean paste from the plant.

Group was impressed with the spotless facility

(L) Boiling beans (R) Drying beans

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(R) Heating and cooking baby lima beans

(L) Plant manager shows quality sampling process (R) Bean paste processing equipment

(L) Group inspects partially processed beans

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(L) Adding sugar (R) Processed bean paste powder. The finished bean powder is sold to some bakeries and other industries that prefer to finish the product into bean paste themselves. AN-DESU MATOBA BAKERY SHOP

In addition to having a production facility Matoba also owns a baking facility at which they produce baked goods with bean paste and sweet beans. Participants had an opportunity to see and taste several different types of fresh baked goods made with bean paste from the Matoba bean paste factory.

Participants enjoyed the “citrus” flavored bean paste though some commented that this particular bean paste might be a bit heavy for western or

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Latin tastes. It was explained that bean paste can be made less heavy (cream style or other less dense styles)

Bean confection process

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RETAIL OUTLETS

(L) advertisement for baked breads with sweet beans

(L) retail outlet (R) bakery with bean paste products

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The group saw products above that demonstrate both the seasonal nature of bean paste products in Japan and the wide scope of products that can be produced. The bean paste products above are designed to look like seasonal nuts.

Participants were impressed to learn that a “Mont Blanc” western style dessert made with bean paste was reported to be winner of a prestigious international culinary award.

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The group was very impressed with this colorful, traditional wagashi

Above: Even more intricate examples of traditional wagashi

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July 25, 2012

IMURAYA COMPANY Imuraya Company is one of the largest ice cream companies in Japan. Its billboards and advertisements could be seen throughout Tokyo and Kobe at time of our visit. During our visit the process of making ice cream confections using bean paste and sweet beans was explained. Red bean ice cream is particularly popular in Japan and Imuraya is the largest maker of red bean ice cream and ice cream novelties in the country. The representative of the Dominican ice cream producer Bon Helados had an opportunity to ask many questions about the manufacturing process of Imuraya Company. The management of Imuraya was very responsive to the questions. We had an opportunity to see the manufacturing process of Imuraya but were unable to document that part of the visit with photos. Imuraya has a very modern facility that was the most automated of all the places we visited.

Meeting with management of Imuraya Co. – one of Japan’s largest ice cream manufacturers

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The Bon Helado representative from the Dominican Republic was very interested in the numerous ice cream products being produced by Imuraya Company and had many opportunities to ask questions of the company leaders.

(Above) Daifuku processing

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July 26

AKENAMARU COMPANY We next met with the Akanemaru company. The Akanemaru company is famous for manufacturing a very high quality “Doriyaki” made with bean paste. Doriyaki is something akin to two very high quality sponge like pancakes that have a thin layer of bean paste between them. Akan

Meeting with management of Akanemaru Company

Doriyaki “pancake” production machinery line. We learned during our visit that fresh Doriyaki has a shelf life of about 3 weeks but has a shelf life of several months when frozen.

(L) Preparing popular fresh cake with bean paste filling (R) Cake making equipment

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Visiting the bean paste cake finishing line area

(L) Doriyaki production line (R) The group members were impressed with ability to customize doriyaki products (shown here with owner’s son’s photo)

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July 27

WAGASHI CLASS The group went to Wagashi Class for personal instruction of how to make traditional bean paste confections. Making Wagashi from bean paste is a very long tradition in Japan.

(L) Ready to make traditional wagashi confection (R) Group members discuss the experience

Examples of bean paste confections made by the group

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TOSHOAN COMPANY

Mission group gets a great overview of the production process

Guide explains the manufacturing process to the group

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(Above: Yokan manufacturing) TOSHOAN COMPANY - COMPANY CAFÉ & RETAIL STORE

The new gluten free cookies made from bean paste powder proved a big hit with the group

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Cheesecake made with bean paste powder Gluten free and the group thought it was delicious.

Custard made with bean paste Cookies made from bean paste powder

The regional U.S. Dry Bean Council representative received excellent support for this successful program from a number of people and organizations. These included staff of Strategos DR, the Northern Crops Institute, FAS Dominican Republic, the USDBC representative offices in Japan and Mexico, the USDBC Executive Director, and the Manager of the California Dry Bean Commission.

IV. Collaboration

While it is very early in the process we can point to the participation of people from several different sectors as some evidence of the success of the activity. Its still too early to determine success in terms of whether or how the participants at the seminar and trade mission will use bean paste or sweet beans. Below, are accomplishments of the project in relation to performance measures in the original EMP proposal.

V. Successes/Accomplishments

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Performance Measures Versus Actual Performance

1. At least 25 interested persons will attend bean paste and sweet beans foods seminar in Dominican Republic. Actual Performance. The June 21, 2012 bean paste seminar was attended by 43 persons from the Dominican Republic and Mexican food processing and baking industries as well as a US dry bean industry representatives and USDA FAS representative. We were very happy with the number of attendees – particularly in light of fact that bean paste and confections or bakery products made with bean paste were completely foreign to virtually all of the attendees.

2. More than 85% of attendees that fill out survey provided at seminar will rate the seminar as being valuable and worthwhile to attend. Actual Performance Only 50% of respondents responded to survey. However, all of the respondents rated the seminar as valuable or very valuable.

3. At least 5 representatives of food processors will participate in Fall 2011 mission to Japan to view and research manufacturing processes for bean paste and/or sweet bean products. Actual Performance Because of the very short time window after the seminar in which to invite and organize trade mission we were only able to bring a group of 4 people from Mexico and the Dominican Republic, plus the USDBC representative. There were others in the Dominican Republic and Mexico that were interested in participating but due to long processing times for U.S. transit visas they were unable to participate.

4. At least 2 food processors will incorporate bean paste and/or sweet beans

into their research and development programs after Fall 2011 mission (Year 2).

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Actual Performance Due to the Japan earthquake everything was delayed – including mission to Japan. USDBC will monitor developments resulting from the trade mission.

5. At least two food processors will purchase U.S. dry beans during the first 3 years after project initiation in order to use the beans in research & development of new bean paste or sweet bean based food.

Actual Performance Status to be monitored over time

6. At least one new bean-based product will be launched by food processors

commercially or be near commercial launch (Year 3).

Actual Performance Status to be monitored over time

VI. Difficulties Encountered/Lessons Learned

We faced a significant delay in final approval of the project that affected our ability to meet the original timelines. In addition, the 2011 Japan earthquake had a serious impact on our initial ability to carry out the activities under the EMP. The earthquake affected virtually all industries in Japan – including the bean paste industry. As a result, we had great difficulty with our initial planning to bring expertise from the Japanese bean paste industry to participate in the Dominican Republic seminar. After things in Japan returned a bit to normal we were able to establish a new date for the seminar.

As a result of the delay in presenting the bean paste introduction seminar in the Dominican Republic we had very little time to plan the follow up mission to Japan. Originally we had planned to have 6 people participate in the follow up mission but due to the short time frame we had 5 people participate.

One of the other important lessons learned in carrying out activities under this EMP was the level of planning and supervision required. We underestimated

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the tremendous amount of time that would be required to coordinate the seminar and participation of all the seminar activities. Additionally, the follow up mission required much more pre-planning and staff time than was originally anticipated.

Consumers in the Dominican Republic and Mexico both have very high obesity rates that are rising rapidly. In an effort to battle their bulging populations, food processors, bakers and other food service providers are interested in providing healthier options. Consumers in both countries are also interested in healthier products. As mentioned in the EMP application Dominican consumers have one sweet bean type product already so its not a huge leap for them conceptually to try other sweet bean products. The U.S. dry bean industry should continue to work with food processing, bakery and food service sectors to provide technical information necessary to facilitate introduction of healthier products for consumers in the Dominican Republic and Mexico.

VII. Recommendations for Future Programs

The major players that were involved in planning and implementing this program and their roles were the following.

VIII. Principals

• Randy Duckworth, the Caribbean Region Representative of the USDBC. Randy Duckworth was responsible for planning, liaising with the speakers from Japan, the Northern Crops Institute and the California Dry Bean Advisory Board. He was also responsible the development of the seminar in the Dominican Republic, invitations and travel logistics for speakers and participants, obtaining samples for NCI and the Dominican Republic baking expert. Randy Duckworth was responsible for liaising with the other USDBC representatives in Mexico and Japan. He helped organize the follow up mission to Japan in in coordination with other representatives and served as group leader for the mission to Japan.

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• Thunyaporn “Naggie” Jeradechachai of the Northern Crops Institute (NCI) and North Dakota State University, Fargo, North Dakota was very involved in the seminar and training the participants about use of bean paste and sweet beans.

• U.S. Agricultural Offices in Santo Domingo, Dominican Republic was very helpful in making the seminar and follow up mission possible. They provided support for the projects at various phases as well as providing an introduction at the seminar.

• Mr. Koishi Masahiro and the Japan Bean Paste Producers association were very important to the success of this activity. Mr. Masahiro, who is President of his company, volunteered over a week of his time to make this project a reality.

• Nathan Sano of the the California Dry Bean Advisory board provided information about California baby lima beans production and processing as well as information about the bean paste industry generally. He expended significant time preparing a presentation for the seminar as well as traveling to participate in the seminar.

• Strategos DR is very well connected with the Dominican Republic baking industry, food service industry and the hotel industry. They proved invaluable in helping promote the event to Dominican companies. Because of their regular work and influence with these Dominican industries (baking industry in particular) a representative of Strategos DR was selected to participate in the mission to Japan.

(Financial Report continued on next page)

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Budget Year Data: IX. Financial Report

Budget Description Cost Category Request

Actual Spent versus requested

Participant(s) Cost Share Contributions

Participant(s) Actual Contributions

Third Party Contributions (Foreign)

Third Party Actu Contributions

Seminar samples, bean samples, shipping, import charges COMSAM $3,000

$2,676.51 3,000 0 0 $1,000 (free bean paste & Bean paste Produc

Japan based bean paste & sweet beans consultant, 15 days @ $496/day, covering ongoing technical consultation, local preparations for Japan trade mission and in-country travel with food processors.

CONSLT $7,440 $10,912 0 0 0

USDBC representative in the Dominican Republic (45 days) @ $496 per day for planning and management of seminar, organizing press coverage, liaising with food processors, reporting, and travel to and from Dominican Republic and Japan.

REPCOS $22,320 $20,535 0 0 0

USDBC representative in Mexico (10 days) @ $496 per day for organizing and liaising with Mexican food processors to attend seminar and/or study mission.

CONSLT $4,960 $4,960 0 0

Japan food processors’ professional time and consulting hours required for seminar preparation and attendance under this proposal, 3 persons at x 7 days @ $496 per person

CONSLT 0 0 $10,416 $9,920 (20*496)

Travel associated with Japan study mission trip: $2500 x 6 persons airfare and local transport; $2000 x 6 persons (4 days lodging and 5 days per diem)

TRAVEL $27,000 $27,305.73 0 0

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Budget Description Cost Category Request

Actual Spe versus requested

Participant(s) Cost Share Contributions

Participant(s) Actual Contributions

Third Party Contributions (Foreign)

Third Party Actu Contributions

International travel (airfare, lodging, per diem) associated with preparation for and/or attendance at seminar: DR Representative international travel =$3,000; Mexico based food processors travel = $1,500 x 12 persons; Japanese Representative/Technical Consultant Travel = $4000 x 3 persons.

TRAVEL $33,000 $24,468.10 0 0

US Dry Bean Industry travel to Dominican Republic and/or Japan for activities

TRAVEL 0 $3,000 $3,314.38 0

Seminar costs: Conference facilities rental; A/V equipment; translation services; local assistance; promo materials; lunch and afternoon coffee break for attendees

SEMINAR $15,000 $19,422.47 0 0

Participants time at seminar, .75 day x 25 persons x $496, $9300 CONSLT 0 0 $9,300

$29,016 (30*.75*$496) + (12*3*$496)

Participants’ time Japan Study mission, 6 persons, 6 days @ $496, $17,856 CONSLT 0 0 $17,856

$15,872 (4*8*$496)

Taxi, visas, other misc. travel Costs

TRAVEL $2,000 $1,397.82 0 0

Total $114,720 $111,677.63 $6,000 $3,314.38 $37,572 $55,808