Emerging markets, research, partnerships expanding soybean demand
Monroe County, Ark., farmer and USB Chair Jim Carroll is a fourth-generation farmer. His 3,200-acre operation is located just outside of Brinkley, Ark.
By Brad Robb, Delta Farm Press
When the trade war slammed the export market door to China, U.S. soybean's largest customer, an effort through the U.S. Soybean Board looked for export and domestic opportunities.
The U.S. Soybean Export Council (USSEC) increased exports to North African countries like Morocco, which doubled imports the last two years. The USSEC also identified Egypt several years ago as a country with export market growth potential.
"I think we're in a new market paradigm shift," says Jim Carroll, an Arkansas soybean farmer recently elected 2020 chairman of the United Soybean Board (USB) at its annual meeting. "Our leadership could see the impact from the loss from the Chinese market, so through USSEC, our international marketing partner, we worked to expand other markets even before the trade disruption, and those efforts have been successful."
U.S. soybean imports into Morocco went from 122,674 metric tons in 2016-17 to 532,270 metric tons in 2017-18.
U.S. soybean exports to Egypt increased by 1.3 million metric tons in 2017-18 over 2016-17. "Many factors were right for that explosive growth in Egypt," Carroll says. "As an export partnering country, they showed strong economic and population growth and an increasing demand for protein."
USDA is estimating 84 million acres of soybeans will be planted this year. If that holds true, it could be the fourth largest crop on record. "Market expansion is critical," Carroll says.
Partnerships
USB hopes partnerships with the U.S. Department of Defense (DOD) and the Foundation of Food and Agriculture (FFAR) will extend the reach of USB research investments. "One of four shared funding projects with FFAR, through a team of interdisciplinary researchers at the University of Nebraska-Lincoln, looks to improve the genetic diversity, seed composition and yield of soybeans through biotechnology and genomics," Carroll says.
"Improved protein content and quality hold potential for increased soybean demand, and this research could improve the protein level in soybeans as a source of nutrition for people and animals while helping economies grow."
USB approached the DOD a few years ago to implement soy bio-based penetrating lubricants and spill absorbents and other products as part of a "Go Green" initiative. Another USB-funded research project is evaluating a soybean oil-based motor oil.