Let's Make a Deal

U.S. SOY SHINES AT GLOBAL TRADE EVENT

BY BETHANY BARATTA

Global soybean customers trust the consistent quality of U.S. soybeans. That’s why they traveled to Chicago this summer to the U.S. Soy Global Trade Exchange and Specialty Grains Conference. It was hosted by the U.S. Soybean Export Council (USSEC) and the Specialty Soya and Grains Alliance (SSGA). The Iowa Soybean Association (ISA) was a sponsor of the event.

Buyers and end-users from more than 50 countries explored the opportunities for sourcing U.S. soybeans for food or feed.

“I came into this with open eyes and an open mind,” says ISA Board Treasurer Dave Walton, a first-time attendee. “I’ve been pleased to see the broad base of buyers and countries represented here. That’s encouraging. They are still looking to do business with us.”

Sales pitch

Soy sellers met with potential customers during trade team invitational meetings. Divided into regions, U.S. grain company representatives had 30 minutes to make their sales pitch.

“The best way to describe it is speed dating,” says Sibley farmer Brian Kemp. As a USSEC director representing the American Soybean Association, Kemp was a moderator with customers from the Middle East- North Africa (MENA) region.

Sibley farmer Brian Kemp

Joseph L. Murphy/Iowa Soybean Association

USSEC has identified MENA as a growing opportunity for U.S. soybean exports.

“We are working diligently to foster new relationships and broaden the portfolio of U.S. soybean buyers and this is one way to do that — to expose buyers from all over the world to U.S. soybean products,” Kemp says.

Top quality, consistency

Diaa Ghaly, managing director at Trans Globe LLC, a feed, grains and forage company based in Woodstock, Georgia, reiterated the attributes of U.S. soy to potential buyers. “There is a great opportunity in the market because of our prices and consistent quality. The U.S. product has consistent quality. You can depend on it,” Ghaly says.

That’s attractive to buyers like Mahmoud Al Anani of Cairo, Egypt. He’s the chairman of Dakahalia Group, which operates one of the largest fully integrated chicken production systems in the region.

The company-owned feed mill processes nearly 4,500 tons of feed per day. The protein content of U.S. soybeans (at 35-38%) is one of the biggest reasons he buys from the U.S.

“For me, the two biggest factors are quality and price. Often, the (U.S.) soybean quality is better than the rest of the world, but sometimes the price is higher,” Al Anani says. “Sometimes, I sacrifice a few dollars to get U.S. products.”

Together, Egypt, Tunisia, Morocco, Saudi Arabia and Israel import more than 150,000 metric tons of U.S. soy. The region represents 4% of total U.S. soy exports.

Increased poultry and aquaculture production in the region and three new soybean crushing facilities in Algeria will ramp up demand for U.S. soybeans, says Mousa Wakileh, USSEC regional consultant for the MENA region.

“The facilities will have huge capacities, so they will want bigger vessels of soybeans from reliable sources,” Wakileh says. “They will look to the United States to fulfill that need.”

China focuses on relationships

Though tariffs between the U.S. and China have slowed soy sales, that didn’t stop soy discussions between the two countries at the exchange.

“We want to maintain and expand these relationships to build the customer’s preference for U.S. soy,” says Xiaoping Zhang, USSEC director of the Greater China Region. “We think the trade issue is temporary and it’s something that, sooner or later, will be solved.”

The trade impasse with China reiterates the value of expanding the soybean sales portfolio, Kemp says.

“We’ve been working on expanding markets for a long time with USSEC, but it’s more important now in light of the China trade situation.”

China is mainly buying soybeans from Brazil, displacing other Brazilian soybean buyers to source their supplies from the U.S. and elsewhere.

Shawn Hulm, oilseed product line manager for Gavilon, says China is an important market for the company, and he hopes to restore soybean shipments to the country soon.

“We want to get back to normal trade flows, normal marketing, normal distributions,” Hulm says. “I would love to start selling soybeans to China again.”

ISA officials tour an Intensive Pond Raceway technology site in Egypt. The country is an important producer of Tilapia and is increasing its imports of U.S. soy.

Joseph L. Murphy/Iowa Soybean Association

The bigger picture

ISA District 3 Director Suzanne Shirbroun from Farmersburg says the event helped make the connection between her farm and customers around the world.

“As a farmer raising soybeans and corn, I know it goes on a barge and down the river, but I don’t understand the whole system as to how it gets there,” she says. “Touring the trade show and talking to importers and shipping companies, I realized there are a lot of people involved. I appreciate what it takes to get my product across the ocean.”

An abundance of soybeans and an uncertain trade outlook with China means extra efforts to increase opportunities for U.S. soybeans in other parts of the world.

“USSEC representatives are our salesmen; they are my representatives in the other countries,” Shirbroun says. “They are educating and motivating end-users to utilize my product. I see that as a win for my checkoff dollars.”

Innovation Sparks Growth in Soy Products Worldwide

Soy and soy products are staples in the Asia market. One in five new Asian products launched from 2014 to 2018 contained soy or soy ingredients. And soyfood innovation is growing, according to an Innova Market Insights study.

To keep its rank above other plant protein options, soyfood companies must branch out, says Linda Funk, executive director of The Soyfoods Council.

“Innovation is key; we have to continue to look at new opportunities and new products. I think there’s also an opportunity for new forms and flavors,” she says.

The soyfood market goes beyond tofu, says Tom Vierhile, vice president of strategic insights for the North America region for Innova Market Insights.

Around the world, soy protein is used in everything from baby food to ice cream and hot drinks to sauces and seasonings.

It makes sense, says April Hemmes, Iowa Soybean Association District 2 director, and United Soybean Board member.

April Hemmes

Joseph L. Murphy/Iowa Soybean Association

“We often think of soybean meal as a great source of protein for animals, but it’s a great source of protein for humans as well,” says Hemmes, who farms near Hampton.

“And for people who choose to have a plant-based diet, you can’t get a better source of protein than soybeans.”

Sagamiya Food, a 60-yearold company known for its tofu, understands opportunity. It launched a vegan cheese-like product, called Beyond Tofu Miracle Protein, using low-fat soy milk. Offered in block type and cubes, the product tastes like cheese and has similar properties so it can be melted or grated.

Soy-derived proteins are leading plant protein innovation in Asia, Vierhile says. Soy protein was found in more than half of new product launches tracked with plant proteins between 2014 and 2018, according to Innova research. In China, 42% of the new food and beverage products launched there between 2014 and 2018 contained soy protein. But India and Southeast Asia are also expanding their offerings of products containing soy protein.

An Innova survey of Asian consumers found that health and nutrition aspects of the food and beverages they purchase and consume were the top considerations. The survey showed the importance of the healthfulness aspects of food and beverages grows as consumers age.

Novel and ethnic flavors, plus new soyfood formats, are shaking things up in the global market, attracting and building consumer bases globally, Vierhile says. And that’s good for farmers, Hemmes says.

“It’s another outlet for our product. As we see in the disruption in the normal trade that we have, any market we can get is very welcome for producers.”

Contact Bethany Baratta at bbaratta@iasoybeans.com.