Despite work to diversify the soybean industry’s export portfolio since the 2018 trade war, China still accounts for 25% of U.S. soybean exports.
So as the Trump administration works to ink trade deals, groups like Northern Soy Marketing continue to expand agricultural exports through trade missions. Last week, they hosted a trade team in Minnesota and South Dakota.
And with China currently not buying U.S. soybeans, those trade missions have taken on a whole new level of importance.
Trade Team Learns About Advantages of Northern-Grown Soybeans
A team of feed buyers and poultry producers from Indonesia and Vietnam toured soy processing facilities, elevators and farms in South Dakota and Minnesota to build relationships and learn about the quality of northern-grown soybeans.
Ann Tang is a feed buyer for Viet Nhat Technology Nutrition Joint Stock Co. in Vietnam.
“I am learning that the protein in the soybean meal in the U.S. has some of the more essential amino acids compared to the soybean meal from South America. That is information that I can take to bring back to my company to the nutritionists so they can consider,” she says.
Indonesian poultry producers already buy U.S. soybean meal for their operations and prefer it for the quality and consistency, including Andri Widjaja with Arya Agro Wijaya.
“I use the U.S. soybean meal because the amino acid is higher [and] the digestibility is better. When I use the U.S. meal, the productivity increases, the quantity of the egg will increase and the egg weight will increase, too,” he explains.
Price Still Dictates Buying Decisions
But he feeds 250,000 birds, which means price dictates his buying decisions.
“Now, the price is very competitive. I use a lot right now,” he says.
Tang agrees U.S. meal prices have fallen under $300 per ton and have become more attractive. When the price is the same as South American meal, the U.S. product wins out.
“When U.S. soybean meal has a competitive [advantage] in the price, definitely it can be considered more,” he says.
The group also visited Jeff Thompson’s farm to see this year’s soybean crop. The Colton, S.D., farmer was in the middle of harvest and has hosted several teams at his farm.
“That’s their highlight of these trips, meeting with the farmer — seeing the crops we are growing,” Thompson says.
Trade Teams More Important Than Ever
Thompson says these trade missions and diversifying exports is even more important with the current trade war with China.
“We’re building new markets trying to get some of these small, developing countries to get them up and running so hopefully they become customers down the road. But it takes time,” he explains.
Tariffs Increase Purchases of U.S. Soybeans and Meal
Tang says, for Vietnam, their government is encouraging them to purchase more U.S. ag goods due to the threat of tariffs.
“The tariffs are actually pushing us to buy more U.S. soybean meal because we have a trade deficit — we export more,” she adds.
The hope is trade deals will soon open the door to more U.S. soybean exports to make up for China’s absence in the market.
