US soy open for business, USSEC says

Jim Sutter, CEO of the U.S. Soybean Export Council, said following a two-day U.S. Soy Connection: Global Digital Conference and Situation Report, April 14 and 15, that despite the COVID-19 pandemic’s global impact, soy in America is open for business.

“USSEC swiftly adapted to the current circumstances and evolved our focus to connect with customers virtually, and demonstrate that our entire supply chain is working to ensure a sustainable, safe and reliable supply of soy for global customers,” Sutter said.

During the two-day conference, there were more than 2,000 participants from 100 countries registered. Sutter hoped the conference was able to showcase the benefits of soybeans, and in the meantime, build relationships.

“As we continue to navigate these unprecedented times, it’s more important than ever that we demonstrate to current and potential international customers. The strength of our farmers and the benefits of buying U.S. soy,” Sutter said.

The Department of Homeland Security named agriculture a critical infrastructure amid the pandemic, and Sutter said farmers take their job very seriously to “globally provide food, feed, fuel and fiber along with the whole export supply chain that USSEC also represents.”

“Collectively, the farmers and the exporters have created a wonderful opportunity to be able to supply the global industry,” Sutter said.

Overseas growth

Brent Babb, regional director, greater Europe and Middle East and North Africa (MENA), USSEC, said his region covers about a third of the world’s GDP—a large market for U.S. soy.

“This year, we’ve exported 6.8 million tons to the region and that’s about 250 million bushels of soybeans,” Babb said. “That’s 21% of our total U.S. whole soybean exports going to Europe.”

In the MENA region, despite the COVID-19 pandemic, the markets are working and their supply chains are working, Babb said. There’s some anxiety about the ports and supplies being maintained, but so far they’ve experienced minor exceptions, Babb said.

“For the feed industry, actually it’s been a very busy time,” Babb said. “The supplies have been okay. The feed industry continues to work, and is actually increased from earlier in the year, especially in the animal agriculture.”

Poultry, eggs and pork in Europe have continued to increase their production and the consumption of these products. Higher prices for bread, meat, beef and lamb products have decreased and that’s been very similar in the MENA region. Babb said food security is becoming an issue.

“Actually supplies have increased a little bit more to make sure both at the home and at the supply—to the feed and the animal producers in that region,” he said. “So in general, there are some minor anxieties about the supply chain.”

Buyers in the MENA region still continue to buy U.S. soybeans and have been in touch with Babb.

“We look forward to continue working with our key customers in that region,” he said.

Global view

Senior director, market access and regional director North Asia Region, USSEC, Rosalind Leeck said it’s certainly a challenging time around the world.

“The way that we work has changed, but the work we’re doing hasn’t changed that substantially,” Leeck said. “We still continue to support the U.S. industry as well as the importers and any kind of task.”

Leeck said the overall demand situation in Japan and Korea is largely unchanged from the last year.

“We haven’t seen any significant demand destruction and Japan is right on target year over year, Korea is down a little bit,” she said. “And that is largely as a result of very inexpensive Brazilian soybeans that are competing with us a little bit more.”

Leeck expects when the end of the marketing year nears, there will be similar style market share and demand as in previous years.

“The one sector that has struggled is the soybean oil sector because with the hotel, restaurants and industrial use sector, has been down slightly,” Leeck said. “We expect that we’ll see probably something between 5 and 10% decline in that sector in both countries as a result of COVID-19.”

Pacific Rim outlook

But on the other hand, Japan and Korea both are significant in the soy food market—70% combined.

“That’s been actually a very bright spot,” she said. “Because particularly in Japan and Korea, they perceive soy foods as having a lot of health benefits.”

Those markets with health concerns or challenges tend to have increased demand in both areas.

“There has been some opportunities that we continue to see emerge and the resilience of the marketplace, as well as the resilience of the human condition is really quite impressive during this time,” Leeck said.

USSEC chairman and North Dakota soybean farmer Monte Peterson said for farmers in his area during the COVID-19 pandemic, life has been generally business as usual.

“We continue to do what we normally do to prepare for planting in the spring,” Peterson said. “We’re getting ready to get out in the field and plant seed. I’m just so, so thankful that we have this opportunity with the technology that we have in place to engage with our customers in our in our trading partners all around the world.”

Kylene Scott can be reached at 620-227-1804 or [email protected].