What do international customers look for when they buy soybeans? For some, it may be performance advantages such as reliability and high-quality. For others, delivery confidence and a consistent supply chain might help differentiate them from the competition. And overall, a long-term partner that meets emerging global needs and enhances customers’ measurably and sustainably is important to all customers.
The U.S. Soybean Export Council (USSEC) uses these three pillars to show that the U.S. soy industry is a trusted partner, providing its customers with a total quality experience: high-performing products delivered by the most reliable, consistent and sustainable soy supply chain in the world.
For customers in China, the destination for about half of U.S. soy exports, a reliable supply as a performance advantage is likely at the top of the list. A high-quality product is important to markets that have a growing animal ag sector, such as Vietnam, where high protein content is preferred; it’s also sought after in parts of the world where food-grade soybeans are used to make human-food products, such as tempe in Indonesia and natto in Japan. Confidence in an efficient delivery system is often essential in sealing the deal, and a long-term partner that produces sustainable products is important in European countries, where consumers want food that was produced in a responsible manner.
“The soy checkoff and U.S. soybean farmers strategically position ourselves to international customers by reminding them of the broad area where soybeans are grown in the U.S.,” said Jared Hagert, United Soybean Board (USB) International Opportunities Target Area coordinator and soybean farmer from Emerado, N.D. “To stay competitive, we rely on the different ports of call to ship product, our transportation- and storage-infrastructure advantages, and our reliability in providing product with the attributes customers need.”
Throughout the year, the soy checkoff remains in contact with international customers to discuss soy industry issues, quality, current crop conditions and more. This constant communication helps farmers maintain international market share.
The Soy Performance Advantage That U.S. Farmers Supply
International customers know they can count on U.S. soybean farmers every year to produce a reliable and high-quality supply of soy that will help meet all of the world’s needs. To paint a picture of that supply, U.S. soybean farmers exported 1.7 billion bushels of soy during the 2012-2013 marketing year, at a record-breaking value of more than $28 billion, a 19 percent increase from 2011-2012, according to the U.S. Census Bureau.
For customers in China, many have continued to do business with U.S. farmers because they always deliver when it comes to quantity. Once that high-volume demand is met, then customers can make additional demands, such as quality components, sustainability and specialty product.
This past September, 200 global buyers of U.S. soy from 40 countries gathered at the U.S. Soy Global Trade Exchange in Davenport, Iowa. This soy-checkoff-sponsored event, hosted by USSEC, offered attendees the opportunity to meet with existing and potential customers to promote the export of U.S. soy products.
While there, a Chinese customer (pictured below) said she needs an abundant supply of soybeans for a reasonable price, although quality is the most important attribute when purchasing soy.
Likewise with animal ag, which remains the No. 1 customer of U.S. soy at home and abroad, using 97 percent of U.S. soybean meal, these customers need high levels of protein for making animal feed. And to grow demand for U.S. soybean meal, the soy checkoff supports USSEC’s outreach to international feeds formulators and nutritionists to increase soy inclusion rates in poultry, livestock and aquaculture feeds.
In an effort to highlight oil quality to Japanese customers, USSEC recently hosted 11 soybean crushers and importers from the Japan Oilseed Processors Association (JOPA) and the Japan Oil and Fat Imports and Exports Association (JOFIEA) on a visit to Michigan to learn more about high oleic soybeans.
The team heard about high oleic soybean oil, which avoids trans fats and contains 20-60 percent less saturated fat than commodity soybean oil.
In addition, Michigan’s unique growing environment helps its farmers produce soybeans with higher-than-average protein levels, making these soybeans popular for specialty export markets, such as for food uses in Japan.
Delivery Confidence Puts Customers at Ease
International customers are able to reap the benefits of U.S. soy because of the confidence the U.S. soy industry provides them in delivering their products in a safe and efficient manner.
“I’m most interested in the logistics of how U.S. soy flows down to New Orleans and over to Japan,” said Koji Miki, who manages the meal and oilseed division of Japan’s largest crushing company, Tokyo-based Nisshin OilliO Group, Ltd., which processed approximately 25.7 million bushels of soybeans last year.
And with a robust transportation infrastructure that supports containerized shipping and an incredible amount of on-farm storage to separate different soybean varieties, U.S. soybean farmers are able to provide food manufacturers, especially in Japan and Southeast Asia, with specialty products.
Tak Noro, executive director of Japanese food company Noro Foods, chooses soy from the United States over other countries because U.S. farmers produce a stable supply of non-GMO soybean varieties suitable for making natto.
“It’s good to be able to offer our customers choices,” said John Motter, USB director and soybean farmer from Jenera, Ohio. “We will continue to plant biotech crops, but there are these other markets that demand non-GMO soybeans, and I’m proud that our farmers can supply these customers, too.”
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