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Trade Consultant Expects Soybean Exports To Remain Strong

An international trade consultant says enormous soybean demand will continue even through what could be a record U.S. harvest.

"This time of the year in August, we're normally not selling a whole lot because it's prime time for South America," said John Baize of Falls Church, Virginia, "but this year, late in the season here, we're seeing fantastic demand for U.S. soy."

For the first time ever, Baize says a million tons of soybeans were exported in one week this month. And the USDA reported Monday that more than 900,000 tons were inspected for export this past week. South America had a short crop, said Baize, while the U.S., with big crops in 2014 and 2015, has had soybeans, with the ability to move them to ports.

"So we had a lot of soybeans to move, and we've been able to do that," Baize told Brownfield Ag News. "We're talking about a carryout this year that's only about a 19 day supply, which is very small."

Global demand for soybeans is growing at a rate of about 12 million tons a year, said Baize.

"People around the world have more money in their pockets, they want to eat a better quality diet, so they're eating more pork, particularly in China, but also in Vietnam and other places," he said. "But also [there's] growth in poultry demand around the world and increasingly, more soy is being fed to farm raised fish."

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Moving Ag Research Forward Through Collaboration

Video: Moving Ag Research Forward Through Collaboration



BY: Ashley Robinson

It may seem that public and private researchers have different goals when it comes to agricultural research. However, their different strategies can work in tandem to drive agricultural research forward. Public research may focus more on high-risk and applied research with federal or outside funding, while private sector researchers focus more on research application.

“For me, the sweet spot for public private sector research is when we identify problems and collaborate and can use that diverse perspective to address the different aspects of the challenge. Public sector researchers can work on basic science high risk solutions as tools and technologies are developed. They then can work with their private sector partners who prototype solutions,” Mitch Tuinstra, professor of plant breeding and genetics in Purdue University’s Department of Agronomy, said during the Jan. 10 episode of Seed Speaks.

Public researchers they have the flexibility to be more curiosity driven in their work and do discovery research. This is complimentary to private research, which focuses on delivering a product, explained Jed Christianson, canola product design lead for Bayer CropScience, explained during the episode.

“As a seed developer, we worry about things like new crop diseases emerging. Having strong public sector research where people can look into how a disease lifecycle cycle works, how widespread is it and what damage it causes really helps inform our product development strategies,” he added.

It’s not always easy though to develop these partnerships. For Christianson, it’s simple to call up a colleague at Bayer and start working on a research project. Working with someone outside of his company requires approvals from more people and potential contracts.

“Partnerships take time, and you always need to be careful when you're establishing those contracts. For discoveries made within the agreement, there need to be clear mechanisms for sharing credits and guidelines for anything brought into the research to be used in ways that both parties are comfortable with,” Christianson said.

Kamil Witek, group leader of 2Blades, a non-profit that works with public and private ag researchers, pointed out there can be limitations and challenges to these partnerships. While private researchers are driven by being able to make profits and stay ahead of competitors, public researchers may be focused on information sharing and making it accessible to all.

“The way we deal with this, we work in this unique dual market model. Where on one hand we work with business collaborators, with companies to deliver value to perform projects for them. And at the same time, we return the rights to our discoveries to the IP to use for the public good in developing countries,” Witek said during the episode.

At the end of the day, the focus for all researchers is to drive agricultural research forward through combining the knowledge, skills and specializations of the whole innovation chain, Witek added.

“If there's a win in it for me, and there's a win in it for my private sector colleagues in my case, because I'm on the public side, it’s very likely to succeed, because there's something in it for all of us and everyone's motivated to move forward,” Tuinstra said.