Consultants Jorge Martinez and Pedro Gonzalez organized the USSEC booth at the Exphotel Trade Show 2015 in Cancun, Mexico from June 16-18. Exphotel is the major trade show for the hotel, restaurants and institutions (HRI) segment in Mexico and Latin America. More than 20 soybean products were exhibited and promoted in the USSEC booth, including soybean oils, soy beverages and soybean texturized protein foods manufactured by six companies that consume U.S. soybeans in the Americas region.
A chef was also hired to prepare different recipes at the USSEC booth using these soybean products and invited the public to taste these foods. Mr. Martinez and Mr. Gonzalez helped managers and representatives of the six companies to exhibit and promote their products, making more than 50 new commercial contacts.
Soy beverages and soyfoods have a great potential of growing sales in Cancun, which receives a large amount of visitors from the U.S., Europe and Asia who demand vegetarian and vegan foods. The Exphotel 2015 trade show promised productive results for increasing the sales of the participant companies’ soybean products and the consumption of U.S. Soy.
USSEC is hosting the International Oilseed Producers Dialogue (IOPD) annual meeting in Chicago, Illinois from June 28-July 1. An ISGA meeting is being held prior to and in conjunction with IOPD XVIII. Eleven (11) countries and the European Union are present at the IOPD annual event which is being held in the United States for the first time in 6 years.
USSEC chair Laura Foell, American Soybean Association (ASA) president Wade Cowan, United Soybean Board (USB) chair Bob Haselwood, USSEC senior technical consultants David Green and Benno Van Der Laan, USSEC CEO Jim Sutter and USSEC marketing director Rosalind Leeck will speak at the ISGA meeting. Their comments will focus on China and the EU.
At the IOPD meeting, USB director Nancy Kavazanjian is slated to speak, along with Mr. Cowan, Mr. Green and Mr. Sutter. Charlie Arnot from the Center for Food Integrity, Richard Jackson of the Center for Strategic and International Studies, and David Hightower of The Hightower Report are also featured.
More detailed information to follow.
USSEC hosted a Korean soybean meal (SBM) and crushing buyers’ team in the U.S. from June 11-18. The team’s visit was funded by the Indiana Soybean Alliance (ISA). The objective of the visit was to promote the intrinsic value of SBM processed from U.S. soybeans and discuss the U.S. Soybean Sustainability Assurance Protocol. Another goal was to develop business partnerships between the Korean buyers and U.S. suppliers of soybeans and SBM.
Team members included the leadership of Korea’s crushing and feed industries including the CEO and chairman of Korea Feed Association and the chairman of Korea Soybean Processors Association. The delegates visited export elevators in New Orleans; the Indiana State House, crushing plants and soybean farms in Indiana; and containerized soybean and SBM suppliers, CME and BNSF in Chicago. The CEO of ISA and her staff accompanied the team on the visits and meetings in Indiana. Through these meetings and observations, the Korean team members improved their understanding about the U.S. Soy industry’s commitment to supply U.S. Soy products to the global market in a sustainable manner.
A USSEC team recently examined soy opportunities for feed and food applications in Sri Lanka. The team met the commercial specialist for the U.S. Embassy in Sri Lanka and expressed USSEC’s renewed interest in Sri Lanka in reference to the growing economy, sales and market share of U.S Soy. During 2013 and 2014, Sri Lanka imported 100,695 metric tons (MT) of U.S Soy meal valued at $58.29 million, partly due to residual effects of USSEC’s marketing efforts from 2008 to 2012.
The team also took field trips to note developments in the feed and human food sectors. Two poultry layer farms, which import 500 MT of U.S Soy regularly each month, were visited. The largest chicken processor in Sri Lanka, Pussulla Meat Producers, operate through 75 chicken outlets in the tiny island country and are constructing a new feed mill which will use a monthly volume of 1000-1500 MT of U.S Soy meal in the future. The USSEC team noted that Sri Lanka has developed a unique practice of marketing at least 75 percent of its chicken through cold chains, in contrast to India and other Asian countries where wet markets usually dominate. Chicken consumption grew from 5.5 kilogram (kg)/year to 8.5-9.0 kg/year in the past three years and is expected to reach the 12 kg mark in 2016. Consumption is slated to further increase as Sri Lanka’s economy improves and people seek more meat in their diets.
The presence of soy-based human foods was examined through visits to selected retail distribution outlets and grocery stores. The stores offered a full range of meat and fish products. Soy products sold as meat substitutes were popular, with brands produced by five different manufacturers. Soymilk, soy protein supplements and soy oil also had a presence on the shelves.
At a USSEC-hosted event, USSEC Director International Program Strategy & Research/Regional Director – ASC Drew Klein provided remarks and took questions on USSEC and U.S. Soy from 21 invited industry guests. The guests represented poultry and egg producers, feed millers and technical consultants. GMO safety and regulation was also a topic of discussion.
Overall, the industry situation in Sri Lanka looks positive with signs of increasing sales of poultry and eggs and an expanding economy.
USSEC Southeast Asia conducted a Farmers’ Field Day on April 10 in Panabo City, Davao del Norte, Philippines. Held at the Bureau of Fisheries and Aquatic Resources (BFAR) – Regional National Mariculture Center (NMC) Training Center in Panabo Mariculture Park, the field day was attended by USSEC technical managers for aquaculture Levy Lorento Manalac (Philippines) and M. Pamudi (Indonesia), as well as USSEC SEA Technical Director – Aquaculture Lukas Manomaitis and USSEC Asia Marine Aquaculture Specialist Lan Hsiang Pin.
The objective of the Farmers’ Field Day was to share the information and data collected from the FY12-FY13 USSEC milkfish feeding demonstration project using the Low Volume High Density milkfish cage culture in cooperation with the BFAR-RFTCEC milkfish farm and Santeh Feeds Corp. as the feedmill cooperator.
In the opening and welcome remarks, Dr. Andrew M. Ventura, Center Chief of BFAR National Mariculture Center, acknowledged the technical support provided by USSEC through the BFAR-NMC program in helping to improve the fish cage aquaculture in the Philippines.
Mr. Manalac presented “USSEC’s Milkfish Feeding Demonstration Project – Preparation and Results.” Sharing their respective experiences working with USSEC were Albert Lanojan, manager of Regional Fisheries Training Center Employees Cooperative (RFTCEC), Panabo Mariculture Park, and Diomede Bucog Jr., area sales manager of Santeh Feeds Corp.
Mr. Manomaitis welcomed the participants with an introduction to USSEC’s Soy in Aquaculture program, and also presented the topic of “Industrialized Marine Fish Aquaculture – Benchmarks for ASEAN Aquaculture for Future Improvement.” Mr. Pamudi went on to share “Indonesia’s Milkfish Hatchery and Grow-out Industry.”
Mr. Lan spoke on “Fish Health Management Program for Fish Cage Culture in Panabo Mariculture Park”, while Katherine B. Bentoy, who is in charge of the BFAR-NMC Satellite Fish Lab, shared iformation about fish health management in Panabo Mariculture Park.
The USSEC Farmers’ Field Day was attended by 45 participants representing cage owners, feed managers, technicians, feed millers, hatcheries, BFAR-NMC staff and investors.
During the World Aquaculture Society (WAS) 2015 meeting on Jeju Island, South Korea, Professor Rokhmin Dahuri, a former Indonesia Ministry of Marine Affairs and Fisheries (MMAF) minister and advisor to Indonesian President Jokowi, gave a speech on the potential and challenges of aquaculture development in Indonesia. He highlighted that since 2003, the MMAF has stipulated top species priorities for aquaculture development, including grouper, sea bass, pompano, milkfish (marine fishes), vannamei and black tiger prawn (crustacea), and tilapia, Pangasius and catfish (freshwater fishes).
Professor Dahuri said that Indonesia could lead world aquaculture production in 2025, since China, which is the current leader, has reached its maximum production due to limited carrying capacity. Indonesia has enormous resources for coastal and marine aquaculture development. He estimated that economically important marine fish production such as grouper and sea bass would double in the next five years, and vannamei production would grow six percent per annum.
Increasing fishmeal prices are inevitable and are impacting aquafeed prices. The production of domestically consumed fishes such as carp, catfish, and gourami will highly rely on homemade, low quality feed. However, production of high value marine fishes and vannamei will continue to expand and will require large volume of high quality protein, such as U.S. soybean meal, in the future. Steadily increasing fishmeal prices and pressures from marine conservationist provide USSEC with a good opportunity to promote soy for aquafeed, particularly for marine fish and shrimp feed.
USSEC was mentioned in a release put out by the U.S. Grains Council (USGC) that featured the 1st Association of Southeast Asian Nations (ASEAN) Aquaculture Industry summit that took place from June 2-4 in Singapore. The release was picked by the High Plains Journal and was reprinted in the Undercurrent News.
The release discusses the strategic opportunity for U.S. producers and explains how the Singapore conference helps explore long-term options for Southeast Asia’s quickly growing aquaculture industry.
The High Plains / Midwest Ag Journal is a regional weekly agriculture publication featuring ag news and markets, editorial, and farm and ranch classifieds with a core circulation reaching twelve states in the Great Plains and Midwest region. The Undercurrent News is a seafood business news site reaching over 88,000 unique monthly visitors across the world.
Click here to read the release: Landmark aquaculture summit encourages diversification of feed and US export potential – High Plains Journal Livestock General
USSEC participated in the international soy conference, “World Soy Feeds,” in Saint Petersburg, Russia from June 3-6. United Soybean Board (USB) director Bob Metz of South Dakota and American Soybean Association (ASA) director Bill Wykes of Illinois traveled to Russia with USSEC Regional Director – Europe and Middle East / North Africa (MENA) Brent Babb to attend the conference. USSEC technical consultants Dr. Gonzalo Mateos and Dr. Iani Chihaia joined the group under the coordination of the USSEC local consultant, Dr. Maria Domoroshchenkova. The delegates also paid a visit to Kalingrad’s Sodrugestvo Company a day before the event in Saint Petersburg.
During the two-day event, the grower leaders and USSEC consultants gave four presentations with the goal to promote and demonstrate the quality of U.S. Soy, showing U.S. Soy’s commitment to Russian soy customers and end users. Besides sharing technical knowledge and information related to farming practices in the U.S., the conference provided a unique opportunity to interact with professionals from Russia’s commercial feed, poultry and swine integrators.
The keynote speaker, Thomas Mielke from OilWorld, provided attendees with a clear message about the future trends of world soy production and consumption and the impact of the potential development of the Russian livestock industries.
Dr. Chihaia stated, “Poultry production has increased almost overnight due to the modern broiler genetics today. Pork and beef will take a little while longer until Russia’s domestic meat production will created self-sufficiency. The next thing Russian feed and livestock industries have to focus on is improving efficiency by reducing the animal’s growth period through more efficient feeding programs and use of high quality soybean meal.”
Dr. Mateos said, “Russian feed and livestock sectors are quite clear on the growth trend and goal to be less independent on meat from the rest of the world. Their aim is to reduce its meat imports in 2020 by two-thirds, compared to the volume they imported last year. That will mean they will import less animal protein and more vegetable protein. This will generate more business for U.S. Soy exports for the coming period.”
USSEC conducted a technical mission at Sodrugestvo, one of the largest European soy crushing facilities, based in Kaliningrad, Russian Federation. During the first week of June, U.S. Soy grower leaders Bob Metz, United Soybean Board (USB) director, and Bill Wykes, American Soybean Association (ASA) director, were invited to lead the mission in supporting and promoting U.S. soybeans.
USSEC local consultant Dr. Maria Domoroshchenkova helped arrange the visit under the coordination of USSEC Regional Director – Europe and Middle East / North Africa (MENA) Brent Babb and USSEC St. Louis staff. USSEC European consultants Dr. Gonzalo Mateos and Dr. Iani Chihaia were invited to join the mission with the goal to provide technical support during the visit and to better understand the customer’s technical needs.
Sodrugestvo was the first Russian private company that saw the potential of the development of the soybean meal market. Originally, business focused on the sales of fodder ingredients, but over the years, Sodrugestvo has acquired the features of a global agro-industrial holding. In a very short period of time, they built impressive oilseeds crushing facilities, logistics, port infrastructure and rolling stock. In the meantime, they quickly developed the market, becoming the largest player today and leaving less room for other soy trading companies at this stage. The company’s goal is to become the first Russian agricultural company to become a global player on the international soft commodities market.
Starting its first crushing plant in 2007 with follow-up facility expansion, Sodrugestvo currently can crush up to 8,500 metric tons (MT) of soybeans per day (up to 2.8 million metric tons (MMT) per year) or 7,000 MT of soybeans and 1,100 MT of rapeseed per day at the Kaliningrad site. The company manufactures a wide range of soy products: soybean meal, soybean oil, white flakes, soy protein concentrate (SPC), soy lecithin, and pelletized soy hulls. The deep-water terminal enables vessel acceptance on pier with capacity up to 50,000 MT.
From 2004 to 2011, Russia was the world’s fastest growing protein industry. Poultry output doubled while its pork output increased 53 percent, with those increases boosting Russia’s soybean business. An increase in Russian livestock production automatically means more a greater need for animal feed and, thus, soybean meal.
The country changed from animal protein to vegetable protein import and a Russian ban on imports doesn’t involve feed ingredients. In the current marketing year, Sodrugestvo has contracted more than 350 thousand metric tons (TMT) of U.S. soybeans. Perdue Inc. is one of the leading suppliers of soybeans to Sodrugestvo. Among other U.S. sellers this year are Chicago & Illinois River Marketing/Great Lakes, Gordon Russell, Agrex, Intergrain, and Seaboard.
USSEC hosted a group of Chinese pork and feed industry officials on a ten-day mission to the U.S. in early June. The 24-member delegation visited the World Pork Expo, the University of Nebraska – Lincoln, South Dakota State University and soybean farmers in Nebraska and South Dakota.
USSEC Animal Utilization (AU) Technical Director Dr. Richard Han led the group. Dr. Han said that China is switching the country’s swine industry from backyard production to a vertically integrated system, which will increase the demand for U.S. soybeans and products. USSEC’s goal, Dr. Han told local reporters, is to provide technical assistance to key leaders so they turn to the U.S. to supply their feed needs.
“We are hosting customers from large swine production companies and feed companies as they come to learn more advanced swine production technology or models from the U.S,” he said. “China has the largest swine production in the world,” he continued. “About half of the hogs produced in the world come from China,” leaving a lot of room to grow U.S. soybean export demand in China.
“[This visit] helps their industry to grow and make them more sustainable while boosting the demand of U.S. Soy,” Dr. Han summarized.
USSEC also talked to the group about some of their concerns with biotech soybean production in the U.S.
USSEC is working with Cargill and the Egyptian Milk Producers Association (EMPA) to introduce soybeans and soybean co-products to Egypt’s dairy industry. 55 participants representing Egypt’s top dairy producing companies attended a seminar that took place on June 9 in Cairo. In the two days following the seminar, the USSEC team conducted four one-on-one industry visits to large dairy farms to provide the necessary support for the adoption of soybeans and soybean co-products into dairy feeding.
USSEC consultant Dr. Jan van Eys served as the keynote speaker at the seminar. He remarked, “The Egyptian dairy sector is a rapidly developing industry, moving to increased concentrations and industrial means of dairy production. Two main aspects drive the development of the dairy industry: a) the relatively high population growth rate which is greater than three percent a year; and b) the increased standard of living; all this at a time that Egypt is a net importer of dairy products.”
Egypt’s dairy sector has about four million dairy cows. Of those, approximately 15 percent (600,000) are kept under industrial production conditions with levels of production approaching those of similar operations in the U.S., Canada and Western Europe. The remainder is kept in small farms or under backyard conditions.
“Soybean meal plays a major role in the diets of these animals – now and even more in the future,” Dr. van Eys continued. “The current use rates of soybean meal in lactating cow diets is between two to four kilograms per cow daily and these levels are likely to be sustained. The potential use of soybean meal in the industrial sector of the Egyptian dairy industry is 500,000 to 1,000,000 tons annually while the potential use of hulls is estimated at 1,000,000 tons annually at least.”
Most of the concentrated raw materials to support the dairy industry are imported or locally processed. The Egyptian soy crushing industry has a capacity of approximately 1,850,000 tons of beans, with more than half of those being of U.S. origin. The growing demand for Hi-Pro soybean meal is pushing the growth of the local crushing industry. To meet this growing demand of the poultry, livestock and aquaculture sectors, the Egyptian soy crushing industry is building new capacities for Hi-Pro soybean meal production and the industry will double in size over the next three to four years.
Soy hulls are probably the most valuable co-product from the Hi Pro soybean meal production. USSEC and Cargill have joined forces in order to position the product on the local ingredients market and educate the local dairy industry on nutritional benefits and proper use in the feeding of dairy cattle.
USSEC consultant Dr. Iani Chihaia presented the advantages of soy hulls and extruded full fat soybean meal use in dairy feeding at the seminar.
“At this stage, soy hulls seem to be an underestimated feed resource, simply because there is a lack of understanding regarding the advantages of this raw material in dairy feeding and competition from the sugar beet pulp. However, besides the excellent nutritional profile, the soy hulls are available twelve months per year from the local crushing industry. Educating end users will create a proper understanding of the nutritional value of soy hulls and consumption will increase in dairy feeds, as a substitute for sugar beet pulp, which is available just four months during the year,” Dr. Chihaia stated.
“Attending the USSEC event and receiving USSEC’s technical experts’ visit to our farms was an excellent opportunity to understand the latest trends in dairy nutrition and opportunities created by the availability of the soy co-products from the local crushing industry,” said Mr. Abdul Latif Shash, dairy farm owner.
USSEC Southeast Asia Regional Technical Director – Aquaculture Lukas Manomaitis traveled with USSEC Asia Marine Specialist Hsiang Pin Lan to Langkawi, Malaysia to meet with representatives of the AquaGrow Corporation to discuss a possible 2016 marine fish demonstration project. AquaGrow has concessions from two government investments in marine aquaculture, a land-based hatchery and offshore cage site that they are using to pilot the idea of offshore marine aquaculture. The Malaysian government has also invested in other facilities, such as a large cage net washing station and supporting boats and equipment.
USSEC anticipates running a demonstration with a sinking, extruded, U.S.-sourced soy protein concentrate (SPC) diet in FY16 with AquaGrow at this location. In preparation for this project, USSEC plans to bring a grower leader group in August to this site and start collaboration with AquaGrow after November 1. The SPC source is expected to be Nutrivance from Midwest Ag Enterprises.
The focus on this move to industrial aquaculture is important, as it will allow a greater production of fish on feed-based systems, increasing feed demand and U.S. Soy use.
USSEC’s India Human Utilization program conducted a one-day national conference, “Soybean Oil for Health and Industrial Applications,” on June 6 in Hyderabad. This seminar, which promotes soybean oil in India, was held for the first time in two decades and was co-hosted by the Oil Technologists Association of India (Southern Zone).
The conference was held against the backdrop of increasing imports of edible oils to bridge the ever-widening edible oil gap in India. Consumption of soybean oil for food uses in India is currently 3.4 million metric tons (MMT) representing around 15 percent of the total consumption. 50 percent of soybean oil demand is met by import. There is a distinct opportunity to further enhance the share of consumption of soybean oil through increased imports. The objective of this national event was to increase the awareness of soybean oil as a healthy cooking oil and expand its consumption as a standalone healthy oil as well as in the form of blended vegetable oils.
Dr. Martin Kropp, Managing Director, ADM Agro Industries, India gave the inaugural address, highlighting supply and demand aspects as well as the advantages of soy and soybean oil. He also discussed the extremely tight supply situation in India, and the high process cost that makes India noncompetitive in the world market. USSEC Director International Program Strategy & Research/Regional Director – ASC Dr. Drew Klein delivered the keynote address on global experiences with retailing soybean oil and strategies for reinvigorating the product growth through innovative market campaigns and appropriate market centric product diversification. He also drew attention to the value differentiation of U.S. origin soybean oil, especially from the point of sustainability assurance. Industry experts from India and abroad presented on supply and demand, market dynamics, and new and emerging technologies for more efficient extraction and refining of soybean oil. R & D scientists presented information on the health and wellness attributes of soybean oil and soy protein, expanding the use of soybean oil as a standalone oil as well as by blending and inter-esterification with other edible oils and industrial uses of soybean oil.
Other national organizations and allied industry, trade and professional associations – Association of Food Scientists and Technologists India, Soy Food Promotion and Welfare Association of India, Indian Institute of Chemical Technology and Soy Processors Association – actively supported the event and interacted with and shared their experience with the participants during discussions. R & D Scientists from leading companies in the soybean oil industry chaired and moderated the technical sessions. USSEC Director – India Soy Food Program Dr. M. M. Krishna welcomed the participants and summed up the event with a call to the stake holders and opinion leaders to position soy and soybean oil as integral components of India’s food and nutrition security programs.
The national conference on soybean oil was successful in improving awareness of the benefits of soybean oil among a broad spectrum of stakeholders and opinion leaders. The forum also provided a platform for networking and meetings between industry and technology and R & D resource persons. The event was covered in the English and local language press.
USSEC worked with the Czech Grain & Feed Association to share scientific and market information on the special characteristics of U.S. soybean meal as compared with soymeals of other origins and other types of protein-rich ingredients. USSEC consultants Professor Gonzalo Mateos and Dr. Jan van Eys presented this data to top local commodity traders, livestock growers and compound feed manufacturers in Prague.
Dr. van Eys also introduced the commodity traders, livestock growers and compound feed manufacturers to the most current analytical procedures for soybean products used by the international leaders in the feed industry.
The Czech professionals were interested in the developments in the global soymeal markets and asked for price projections, which were presented to them by USSEC consultant Lola Herrera.
The USSEC team also talked about the European Commission’s (EC) proposal that would give member states the right to restrict or ban the use of biotech products in their territory. Jerzy Kosieradzki, USSEC Northeast European consultant, made the Czech customers aware that governments of exporting countries, along with industry and NGOs, were concerned that it would lead to disruption of trade through an ‘opt out’ on imports and seriously harm European livestock and poultry producers and the feed industry, ultimately resulting in higher prices for supplies. The current approval system could be compromised during the proposal legislative debate. The U.S. Department of Agriculture (USDA) has also warned that the proposal could impact Transatlantic Trade and Investment Partnership (TTIP) negotiations with the European Union (EU).
USSEC’s Czech partners were encouraged to demand a clear definition of the use mentioned in the proposal and work at both national and international levels to prevent this harmful “opt out” legislation.
Josef Svoboda, Director General of the Czech Grain & Feed Association met with USSEC reps after the event and said that the seminar provided local industry members with a great deal of professional information delivered in an easy to understand format.
USSEC recently conducted a course on sales strategies for soybean oil in Costa Rica. Two refining specialists led the course and participants included the sales force of a Costa Rican soybean oil refinery. The main objective was to provide the skills necessary to increase attendees’ self-confidence and sales strategies.
The leaders provided theory and dynamic practices to strengthen participants’ knowledge and made it a fun course where students were attentive and hands-on, which helped them discover strategies to achieve more sales. Attendees learned that relationships are an important aspect of doing business and learned strategies to achieve empathy with customers and mutually communicate to steer negotiations toward success. Participants also learned how to know if the sale is closed, what they need to do if customers accept the sale and received tips to know when customers want to buy or when they have to use more strategies to convince them.
USSEC consultants Pedro Gonzalez and Jorge Martinez presented topics related to soybean oil in order to provide additional sales tools to the participants in the event. Mr. Gonzalez spoke about market opportunities for soybean oil in different market segments and Mr. Martinez spoke about the characteristics and health benefits of soybean oil.
This course was very well received and useful for the participants.