Soybean Export News

U.S. Soy Export News  

Meet The Market

International Marketing Begins at Home

Soy Buyers Visiting USSEC Director John Hoffman Farm

    The mention of soy exports and international marketing quickly brings visions of China, Japan, and other exotic locales but the reality is that the success of U.S. soy exports begins at home with decisions made every day by U.S. soybean farmers and U.S. citizens.
    "Many people think that international marketing of U.S. soybeans only occurs in some far-off land, but the fact is it starts right here on our farms," says John Hoffman, USSEC Board Member and a farmer from Waterloo, Iowa.
     Factors such as foreign economies and currencies clearly impact the demand for U.S. soy products, but many of the positive attributes for purchasing U.S. soy products result from choices made right here at home. Decisions made at the farm level, such as seed selection and production methods, affect the product the farmer will be selling. Decisions made within the greater U.S. economy positively influence the export of U.S. soy such as increasing soybean crush for biodiesel and opportunities for bulk containerized shipments.  
     U.S. farmers are world leaders in productivity but global leadership does not stop there. U.S. farmers also set standards for quality products and environmentally sustainable production methods. Hoffman notes “It’s a balancing act to grow a large crop to keep my farm financially viable while at the same time producing a soybean that meets the needs of my customers and to do that in an environmentally friendly manner.” Hoffman selects seeds, in part, based on protein and oil content to ensure he’s growing a competitive quality product. He also utilizes no-till farming, which reduces energy consumption, conserves moisture, and leads to less soil compaction and soil erosion. “We are in a global market - as U.S. soybean farmers, we must realize that almost half of our soybean crop is exported.”
     It’s this attention to external customers that also make U.S. soybean farmers some of the best salesmen for our industry. The highlight of international buyers’ visits to the U.S. is the chance to speak directly with soybean producers during a farm visit. International team members are continually impressed by the professionalism, pride, quality and environmental consciousness U.S. soybean farmers have in their occupation.

USB Director Vanessa Kummer Explains Soybean Seed Selection to Chinese Buyers

     "Decisions on the farm, such as quality seed selection, clearly have an impact on increasing U.S. soy exports," says Vanessa Kummer, USB Director and farmer from Colfax, North Dakota, "but larger economic trends in the U.S. also support overall U.S. soy competitiveness." The emphasis on biofuels is revitalizing the U.S. soybean crushing industry and will lead to increasing crush of soybeans and larger export of soybean meal. Soybean meal exports last year accounted for 19% of U.S. soybean meal production. That number should grow as expectations of a higher soybean oil price leads to U.S. soybean meal being more price competitive in the world market. U.S. soybean meal already maintains a quality advantage with higher digestible protein and favorable amino acid profiles over competing soybean production areas.
    Taking advantage of a new trend in transportation, an increasing amount of U.S. soy will be exported to Asia in bulk containerized shipments. This will fulfill the need to return shipping containers back to Asia that arrived in the U.S. with flat screen televisions, tennis shoes, and other consumer goods.
     Hoffman has hosted numerous trade teams on his farm and notes ”The decisions made on the farm have a lasting impact on the success of exporting our soybean crop along with the ability of our industry to optimize the benefits of greater economic trends. It’s up to us to make the most of the opportunity.”

Selling Soy

International Marketing consultants in Europe are making the most of a sponsored meeting of the Spanish Feed Federation by inviting Polish feed nutritionists to the meetings focusing on the practical aspects of feeding specially processed soy feed to young pigs, poultry, rabbits and ruminants. The recognition of quality feedstuffs continues to grow in Poland as ongoing promotions and increasing markets for AGP’s AminoPlus demonstrates. Local dairy feeding demonstrations indicated substantial improvements in milk production in high-yielding dairy cows fed bypass soybean meal.

Feed nutritionists in Tunisia are learning the Protein Dispersibility Index (PDI) method on measuring soybean meal quality in a seminar presented by local International Marketing technical staff and the national Veterinary School Nutrition Department. PDI testing generally provides an excellent method of highlighting the improved protein feeding value of U.S. soybean meal compared to soybean meals from other origins. Work is also underway to transfer PDI equipment and technology to the feed industry in neighboring Morocco.

Growing dairy herds in Turkey provide the chance to increase soybean meal inclusion rates in dairy feeds through nutrition and feed formulation seminars. Computer-based feed formulation training highlights the actual value of high quality soybean meal and these training courses are often followed by increased exports of U.S. soybean meal to participating companies.

Impacts from the Middle East Regional Buyers Conference held in Egypt in September are occurring as several Romanian integrated companies seek to import U.S. soybean meal. They are also utilizing technical support from Middle East International Marketing representatives to help them reduce feed costs and improve the feed quality for production of both poultry and swine.

Latin American International Marketing staff completed the first intensive training seminar with the Colombian Swine Producers Association. Thirty-four participants attended the seminar, representing 1/3 of the total Colombia swine population and consumption of over 110,000 metric tons of soybean meal annually. Professors from the University of Illinois, along with Dr. Carlos Campabadal, Animal Nutrition Consultant, presented information on the use of soy products and advantages of U.S. produced soybean meal. U.S. soybean meal exports to Colombia increased by 76% in the last year.

Baking trials using soy flour in bread will soon lead to increased use of soy flour in the Palestinian territories. Mohammed Abu-Sneneh, owner of the largest bakeries in Jordan, will introduce the soy flour technology he uses to several bakeries in the area. Three bakeries agreed to carry out the trials in their facilities and a wheat miller that supplies these bakers with wheat flour is interested in joining the trial to adapt his facility for direct supply of soy-fortified products. Similar baking trials are also occurring in Cairo, Egypt and Kenya.

Taiwan Country Director Anthony Thang escorted a team of 10 preferred customers from the Taiwanese crushing industry to Minnesota, Illinois, Missouri and New Orleans to meet with farmers and exporters to exchange ideas on soybean quality and collect information on the production of 2006/07 crops. Because of the newly developed opportunity of exporting soybeans in containers to Taiwan, team members met with exporters, including Consolidated Grain & Barge (CGB), and USSEC members Scoular Company, Grain Millers Specialty Products, SunOpta, The DeLong Company, and Pattison Brothers to discuss the future of containerized soybeans shipments.

Dr. In Soo Shin, International Marketing Feed Consultant in Korea, hosted a seminar on the feeding value of soy hulls targeting Korean dairy cattle industry leaders. He emphasized how performances of dairy cows fed soy hulls could be improved in terms of milk yield, milk fat percent and milk production costs.

Korea International Marketing staff hosted a technical meeting on dehulled meal targeting key representatives of Korean broiler integrators. The meeting heightened interest in dehulled meal processed from U.S. soybeans by sharing technical information and data. International Marketing staff highlighted the economic benefits of increasing dehulled meal inclusion rates in terms of feed costs. These meetings build on the overall strategy of high value U.S. soybean meal promotion to all sectors of the Korean feed industry. Recent visits with U.S. exporters by several Korean feed industry executives resulted in U.S. soybean meal purchases of over 2 million bushels.

Spotlight

New Livestock Technical Director Joins China Staff

Dr. Huang with ASA Director Jack Trumbo in China

    Please join us in welcoming Dr. Min-Yu
Huang as the new Livestock Technical Director in our Beijing, China office. Dr. Huang was born in Taiwan and received his undergraduate study at the National Taiwan University. He earned his Masters degree from the University of Hawaii and his Doctorate at the University of Illinois.
     Dr. Huang started his career with the Sino-American Joint Commission on Rural Construction and the Pig Research Institute in Taiwan and then worked with the Thailand-based Charoen Pokphand Group. From 1985-87, Dr. Huang held the Technical Director of Livestock position in the Southeast Asia International Marketing office in Singapore. During that period, he conducted some of the earliest swine industry technical service in China. Since then Dr. Huang has gained broad industry experience working for PIC/Sygen International and Farmers Hybrid in the U.S.
     We are all very happy to have Dr. Huang joining us. He brings a very rich background of industry experience to work with the China swine industry, which produces half of the world's pork.

2006 Crop Quality Survey Results

     The 2006 U.S. Crop Quality Report was presented in Taiwan, Japan, China and Korea to international buyers and media. Overall, international customers were pleased with the crop survey results and asked numerous questions, including the potential impact of U.S. biofuels on soybean production, need of increased protein in shipments from the Pacific Northwest, and availability of bulk containerized shipments.
     This years survey, which was conducted by University of Minnesota Professors Dr. James Orf and Dr. Seth Naeve indicated average protein and oil concentrations for the U.S. soybean crop were similar, but slightly lower than the 2005 quality survey. Of the 1,593 samples received, overall average protein levels came in at 34.51; average oil levels were 19.17.
     The region-by-region analysis indicates that the Western Corn Belt states produced a crop with a very similar protein and oil profile to that produced in 2005, while Eastern Corn Belt states produced seed with lower protein and oil concentrations than last year. The Southern regions tended to produce soybean crops with lower protein and slightly higher oil concentrations than were produced in 2005.
     To review details of the 2006 survey and see archived Crop Quality Survey's, refer to the Resources section of the USSEC web site www.ussoyexports.org.

New USSEC Members

USSEC welcomes two new members - the South Dakota Soybean Research and Promotion Council and Wenger Manufacturing, a manufacturer of soybean extrusion equipment for feed and food applications.

Flourishing Soyfood Markets

Southeast Asia markets provide increasing opportunities for soy food and beverage markets for high value U.S. soybeans. Economic growth in Vietnam is leading to a fast growing soy beverage market for products such as soy milk. International Marketing staff in Southeast Asia are working closely with several multi-national corporations to produce and promote soy milk. In addition, International Marketing staff is also having discussions with the Vietnamese National Institute of Nutrition and the Food Administration on national nutrition and food safety programs.

Southeast Asia International Marketing staff are also working with local industry in the Philippines to promote the health and nutrition benefits of soy food. One soy food manufacturer that imports all its soybeans from the U.S. will start an advertising campaign promoting the nutrition benefits of soy. Programs are also underway in the Philippines to increase consumption of tempeh, a popular soybean-based food in Indonesia. Indonesia tempeh manufacturers are providing multiple training courses in Manila and surrounding cities to ensure quality production methods.

Southeast Asia International Marketing staff will host the 7th International Soy Symposium and 5th Southeast Asia Soyfood Seminar and Trade Show in Bangkok, Thailand during March of 2007. U.S. industry are invited to participate in this event. An additional opportunity to promote U.S. soyfoods in China is available during the China Food Grade Soybean Conference and Trade Show, also in March 2007. For more information, contact Alan Poock, USSEC Marketing Manager, at 314-754-1309 or e-mail him at apoock@ussoyexports.org.

The first Latin American Sausage Manufacturing Course took place in Costa Rica with twenty sausage specialists from Mexico, Guatemala, Honduras, Costa Rica, Colombia, Venezuela, Peru and the Dominican Republic participating. The specialists learned innovative uses of diverse soy products in meat sausages and the economic and functional benefits of including soy protein in sausage production.

Biodiesel Taking Root in Taiwan

Biodiesel in Taiwan is now a reality with the establishment of a new biodiesel pilot plant by Taiwan’s Industrial Technology Research Institute. Through efforts coordinated by Taiwan Country Director Anthony Thang, the industry and local government recognized the necessity of using biodiesel for their long-term energy plans and environmental protection. It is expected that a mandate for using B-1 (1% biodiesel blend) will be announced in 2008 and initially generate a demand of 11 million gallons of biodiesel.

U.S. Exports Marketing Year-to-Date
(USDA-FAS data November 16, 2006)