Market development efforts reach worldwide
China’s appetite for soybeans is well documented and shows little sign of being satisfied. As the world’s No. 1 soybean importer and U.S. soybean farmers’ top export customer, China’s total soybean consumption is expected to top 3 billion bushels this year. In 2014, China imported a record 1.1 billion bushels from the U.S.
“As long as we do not have trade disruptions with China, our customers there will continue buying a substantial percentage of their soybeans from the U.S.,” says Laura Foell, United Soybean Board (USB) director from Schaller, Iowa and chair of the USB Meal Action Team and chairman of the U.S. Soybean Export Council. “But as in every industry, we need to make sure that we have diverse markets.”
Trade disruptions could come from China’s concern over GMO and acceptance of new products. Denial of new traits could jeopardize U.S. market share.
A USB project to diversify markets and avoid relying too heavily on China is having a positive effect. Exports to the European Union, Southeast Asia, Mexico, the Middle East and North Africa are steadily increasing and could make up for bushels lost from China.
Global soybean demand is expected to grow substantially in the next decade. Soy checkoff consultant John Baize estimates the world will need an additional 80 million metric tons of soybeans by 2025, roughly 2.94 billion more bushels. Much of that demand growth stems from Asia, where about 70 percent of U.S. soy exports currently go. Besides China, nations with significant growth potential include Taiwan, Indonesia, Bangladesh, Vietnam, the Philippines, Thailand and India.
India’s population is expected to surpass China’s by 2030, and its food demand is increasing at the same pace. India has been a net exporter of soybeans and meal, but thanks to a checkoff-funded project to increase domestic consumption, India now uses more of its own soy and exports less. Baize estimates within a few years India may not export any soybean meal, opening up neighboring countries served by India to U.S. exports.
Adds Foell, “These countries will continue to be important markets for us to supply a consistent, reliable and sustainable product that meets their needs.”