Even though they couldn’t meet in person this year, members of the U.S. Soy Global Trade Exchange and Specialty Grains Conference still managed to accomplish what organizers set forth.
A thousand attendees from nearly 70 countries met virtually for the conference, all in the hope of sustaining and enhancing relationships between the United States soy value chain and international customers.
Co-hosted by the U.S. Soybean Export Council and the Specialty Soya and Grains Alliance, organizers hoped they could be able to address soy’s continued resilience during trade uncertainty, all while seeking new market opportunities.
Jim Sutter, CEO of the U.S. Soybean Export Council, said GTE is an important part of USSEC’s efforts to show how American soybean farmers are committed to providing a high quality crop and serving as a consistent supplier to partners around the globe.
“The goal of the GTE is to give our entire soybean value chain from farmer to exporter to importer, the opportunity to connect with each other to create new business relationships, and further demand for U.S. soy,” Sutter said.
Attendees were able to hear from industry leaders about global supply and demand trends, trade updates, as well as on the research on the quality and sustainable aspects of U.S. soy and specialty grains. Sutter said during the COVID-19 pandemic, USSEC has worked to maintain close contact with key customers around the world.
“We did this by nimbly transitioning to leverage digital technology platforms, and between April and August, we’re proud to report that USSEC has hosted 80 virtual events, with more than 25,000 participants in total,” he said. “Engaging key importers of U.S. soy, together with exporters and farmers from the United States.”
While soybean farmers and domestic processors faced $4.7 billion in losses because of COVID-19 between January and June 2020, Sutter is optimistic the resiliency of U.S. soybean farmers and other facets of the soy value chain will continue to pull through.
“We anticipate a return to more stable markets for soy in the coming year,” he said.
Good harvest anticipated
Sutter also sees several bright spots. U.S. farmers are projected to harvest a near record crop, with record-setting yields—even though much of the crop is still in the field or still growing.
“It’s looking very good at this point in time,” he said. “Global demand for soy is rising, and the United States is well positioned to be the premier supplier of choice.”
The U.S. supplies a range of products—from bulk commodities to highly specialized traceable products. Sutter said world demand is projected to be up 16 million tons year over year, outpacing a 10-year trend of 11.3 million tons per year.
“We’ve got a few countries that are really shining examples of the success we’re seeing in emerging markets,” he said. “For example, Bangladesh. Exports of whole beans, meal and oil to that country have grown by 50%, representing a value of $1.2 billion in 2019.”
U.S. soy exports to Egypt have “nearly quintupled in volume during that same time period with value over a billion dollars,” Sutter said. Pakistan U.S. soy exports have tripled in value by about $1 billion in 2019.
Sutter also sees the implementation of the phase one agreement progressing with China.
“We are so pleased that we’ve seen such an uptick in trade in the last few weeks,” he said. “We are optimistic that that phase one agreement will be implemented well.”
As USSEC continues to navigate these unprecedented times, Sutter believes it’s more important than ever to demonstrate to current and potential customers, the strength of U.S. farmers and the benefits of buying U.S. soy. During the pandemic, agriculture was deemed a critical infrastructure.
“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 US farmers and the benefits of buying U.S. soy,” he said.
From the farmer
Fourth generation soybean farmer, Monty Peterson is serving as chairman of USSEC, along with a director for the American Soybean Association. In the past, Peterson normally spends his time at meetings conversing with international buyers face-to- face, sharing the farmer perspective about sustainability, reliability and the high quality attributes of soy. This year it was accomplished virtually.
“We had to pivot to a virtual platform, but we were still able to give buyers a direct look at our product, and how it’s produced,” Peterson said. “Showcasing our current growing season through a 360 degree video and remarks from many of our farmer leaders.”
While Peterson’s farm in North Dakota has been extremely wet for the past year, his crop still looks pretty good and is progressing nicely. During the conference other growers shared they could use a rain, and Peterson said, it’s just an example of how everyone is facing challenges when it comes to weather and growing conditions.
“But overall, this U.S. soybean crop is looking pretty darn good this year,” he said. “I must reiterate, our success relies heavily on the international market for U.S. soy.”
According to Peterson, 60% of U.S. soybeans for export are in the form of beans, meal and oil. He also suggests taking into consideration the number of exports of animal proteins that are fed in the U.S.—soybean meal or soybean oil being used as a feedstock.
“That number is closer to probably two-thirds of U.S. soybean exports as either whole beans or co-products, animal protein or energy,” Peterson said. “The value of the partnerships that we have is immeasurable, not only for soy but for the world at large, and by hosting key events like this we can address the concerns of our partners.”
Peterson and U.S. farmers are well aware of their challenges, yet are working to provide solutions when they can.
“As we move ahead into the 2020 harvest season and beyond, U.S. soybean farmers are committed to provide a sustainable crop and serve as a consistent supplier to our customers.”
SSGA point of view
Specialty Soya and Grains Alliance Executive Director Eric Wenberg said helping to plan and pull off an event like GTE virtually has been a “real adventure.”
“We had staff up early in the morning and late at night and the USSEC staff up every hour of the day abroad,” Wenberg said. “It was a real marathon to get here but we did it. We have an incredible staff to pull that off.”
Wenberg was impressed with how so many people and companies have adapted to the current business practices—really turning to e-commerce to stay connected with customers abroad.
“We’re in an industry built on face to face interaction,” he said. “Since people aren’t able to travel, sales transactions have become even more complex. We’re making it work, and the GTE this week I think was a shining example of that.”
GTE really is a “global family meeting about the value and benefit of U.S. soy,” according to Wenberg.
“We’re grateful to our partners at USSEC for the worldwide outreach,” he said. “There remain challenges of course.”
Identity preserved crops, which need to be shipped in containers instead of bulk, have proved to be quite challenging during the pandemic.
“We know those logistics have been, in particularly, hard hit right now, but our companies are overcoming those to continue the delivery of their products,” Wenberg said.
Members of these associations are working hard to foster new relationships with foreign buyers and seeking out new customers.
Curt Petrich, chairman of Specialty Soya and Grains Alliance and founder and owner of HC International, agreed with Wenberg about how different GTE was minus the in-person aspect of the event.
“It has been interesting to see our friends and have our conversations and conduct the business that traditionally has taken place face to face, and do it in a virtual way,” he said. “But I will say that we are looking to getting back to the old ways. The virtual leaves a piece of it that we all, I think, find very important.”
SSGA is appreciative of USSEC’s efforts to connect overseas buyers with U.S. sellers at GTE.
“The entire U.S. ag business committee community owes them a big thank you and truly appreciate it,” he said. “This is a complex show with many different activities under one banner.”
Petrich lead a panel on traceability during the event and witnessed how it all came together.
“There’s a real commitment to make sure meetings like this continue take place, year after year, to keep everyone connected,” he said. “As a co-host and exhibitor at the GTE, SSGA and its members have been given the chance to tell our story to people all over the globe.”
Petrich said the U.S. grows some of the highest quality value-added soybeans in the world.
“Our identity preserved, or IP system, delivers customers premium products that benefit everyone along the value chain, whether that’s touching millions of customers, or even just one, we’re seeing those benefits in action this week,” Petrich said.
When COVID-19 came into the picture, and it looked like there was going to be a disruption in the markets and suppliers, SSGA—which plays a big part in the food sector—became hyper-aware.
“When we talked about soy, that is a core ingredient in their in their daily diet. If not three meals a day, certainly two meals a day, soy is consumed,” he said.
There was an increase in demand for both the 2019 crop and the 2020 crop that wasn’t even planted. Additional acres were planted to meet the increased demand.
“There was increased demand, increased interest in knowing that there was additional 2020 crop planted that their contracts were covered. There was confidence in the supply ability, going forward,” Petrich said. “Although many other businesses have been not so fortunate, I would have to say that this segment has been really quite fortunate to see a good solid strong demand for the, for the current with the current situation.”
Peterson said from a farmer’s perspective, there hasn’t been anything more encouraging than looking at the worldwide demand for soy and soy protein.
“It continues to increase year after year,” he said. “We’ve had some trade challenges. We’ve had some market challenges. All of that has created a little anxiety, but the underlying situation of this increased demand that we see, year after year is what really keeps me encouraged and likewise for my fellow producers.”
Kylene Scott can be reached at 620-227-1804 or [email protected].
