USSEC strategically promotes U.S. Soy globally 

By Colby Pinkstone, USSEC Executive Director, International Strategy 

The U.S. Soybean Export Council (USSEC) works around the world on behalf of Indiana farmers. Our team actively attains access to markets for U.S. Soy, differentiates its quality from soy of other origins and elevates a preference for U.S. Soy among international customers. 

Every one of the more than 90 countries we work with has unique market factors. USSEC team members consider those factors as we encourage purchase of U.S. soybeans, soybean meal and other soy products. What does that look like?  

Here’s an overview of USSEC’s approach in different regions given the current global soybean market. 

East Asia: Scalability 

The USSEC team estimates that East Asia represents roughly 65 percent of the world’s soybean trade and 30 percent of global soybean meal trade. That means nearly two-thirds of soybeans sold from one country to another end up in markets like China, South Korea, Malaysia, Taiwan and their neighbors, including more than 50 percent of U.S. Soy exports. Projections estimate that soybean meal consumption in this region will increase by 35 million metric tons over the next decade. 

The volume and growth potential of this market means that effectively marketing U.S. Soy in these countries can move the export needle. Just a 1 percent increase in market share in East Asia equals about 1.4 million metric tons, or 51 million bushels, of soybeans, growing demand for Indiana soybeans. 

Thus, USSEC designs efforts in East Asia to be scalable. 

For example, aquaculture and livestock feeding trials seek to increase soybean meal inclusion rates in feed, while also differentiating the quality of soybean meal from U.S. Soy. Small increases in soybean meal inclusion in feed translate to millions of bushels of soybeans. In countries with large soybean meal demand but small U.S. Soy market share like Thailand, Indonesia and Vietnam, demonstrating real value from the consistency of U.S. soybean meal grows the market for the increasing volume of soybean meal produced in Indiana crush plants. The Indiana Soybean Alliance (ISA) support bolsters this work. 

USSEC protects and preserves market share where U.S. Soy comprises more than 80% of imports. Japan prefers whole U.S. soybeans for crushing and soy food beans for food manufacturing, and the Philippines relies on U.S. soybean meal imports. 

Americas: Growth 

About 24 percent of U.S. Soy exports go to this region. Many markets, like Colombia and Mexico, are and will continue growing. Emerging markets like Honduras and Nicaragua will increase as they develop. 

USSEC aims to grow exports by maintaining U.S. Soy’s strong market share as industries expand. Costa Rica’s crush industry relies exclusively on U.S. Soy, and Venezuela has been importing U.S. soybean meal for years. ISA supports USSEC work to increase soy protein use in foods like bread in Colombia. 

The U.S. is fortunate to have many free trade agreements in this region. These agreements have proven durable in the current trade environment, providing stability for both U.S. Soy and our customers. 

Europe: Sustainability 

As a region, Europe accounts for about 11 percent of U.S. Soy exports. But the European Union, which operates as a single market, has been the second-largest U.S. whole soybean customer behind China. 

In this mature market, sustainability matters. It will soon have an even larger impact on purchasing decisions. Major regional importers report to USSEC that some downstream customers request sourcing soy only from the U.S. because it helps them manage risk as they aim to meet sustainability requirements. Indiana farmer practices contribute to the data showing U.S. Soy has the lowest carbon footprint compared to soy of other origins. 

USSEC is working to grow this market through product diversification, as the U.S. currently has a low share of the soybean meal import market. As our team promotes the value, availability and sustainability of U.S. soybean meal, demand should increase. For example, Poland recently received shipments of U.S. soybean meal for the first time following a pause for a few years.  

Middle East, North Africa and South Asia: 4 Ds 

Geopolitical uncertainty marks this region, including the Iranian conflict in the Middle East and new governments in Bangladesh and Nepal following overthrows last year. At the same time, rapid urbanization and disposable income growth sparks great potential in these markets, which account for roughly 12 percent of U.S. Soy exports. 

Throughout this region, USSEC focuses on telling the story of U.S. Soy using what our team calls the “four Ds of differentiation” compared with soy of other origins. 

U.S. Soy is dried naturally in the field, with overall five times less damage as compared to other origins, allowing better digestibility due to higher nutrient availability because of lower total damage, and grown with limited deforestation. Strategically placed team members serve as boots on the ground to share this story using targeted, market-specific communications. 

As a result, U.S. Soy exports have increased year-over-year, up 54 percent to supply Algeria’s growing crush industry, 53 percent in Bangladesh with purchase intent agreements and 34 percent in Egypt, a flagship market in the region. In Pakistan, U.S. Soy exports have resumed after a few years of blocked market access, with the potential to reach 50 percent market share. 

On behalf of Indiana soybean farmers, USSEC is on defense for segments with high U.S. Soy market share, like whole soybeans in Egypt and soybean meal in Morocco and Sri Lanka. However, USSEC focuses on offense in markets with low U.S. Soy market share but high potential, like Saudi Arabia. 

Soy Excellence Center: Operational efficiency 

USSEC’s Soy Excellence Center, or SEC, provides workforce training for people working in the protein industry in developing markets. Its success has been made possible with ongoing support from the Indiana Soybean Alliance. 

Training offerings include aquaculture, livestock and poultry production, feed milling, soy processing and soy food manufacturing. The SEC works in five regions across the globe, soon to be six with the coming addition of China, thanks in part to an Indiana soybean checkoff investment. 

The goal of this training is for the early and mid-career participants to put what they learn into action. Educational content focuses on improving operational efficiency, primarily using U.S. Soy. They learn how to get the most value from U.S. Soy products. 

While many of these participants may not be in a position to buy products or influence purchasing decisions, they likely will be in the future. The SEC is an investment in long-term markets for U.S. Soy. 

Together, these strategies support the 68.7 million metric tons of U.S. Soy products exported in the last marketing year, worth $29.6 billion to farmers and the soy industry.