News: Middle East / North Africa
With the support of FAS’s Cairo office, USSEC has worked with poultry producers in the Middle East region for several years, focusing on the economic benefits of using high quality U.S. soybean products. Soybean meal is becoming the major source of high-quality protein used in poultry feed, replacing protein sources from animal origins. Using U.S. soybean meal, poultry producers are promoting their processed chicken as raised on a vegetarian diet, which they sell at a premium price in countries such as Saudi Arabia and Jordan. Many Middle Eastern consumers seek out poultry products produced using vegetarian diets for a variety of cultural and health-based reasons. In the Middle East region, soybeans have a strong reputation as a healthy product driving consumer preference for chicken raised on vegetarian meal rather than animal-based proteins. USSEC has been working closely with crushers in the region to help them with dehulling; improving the quality of both soybean meal and soybean oil; improving their ability to manage risk; and marketing their products in the region. Crushing plants in Egypt are mainly importing U.S. soybeans (55 percent U.S. market share in 2014/15). They then export their products of soybean meal and soybean oil to the neighboring countries in the region. Crushers prefer U.S. soybeans due to consistent quality and availability. Their customers also prefer the quality of soybean meal and soybean oil produced from U.S. soybeans.
USSEC held dairy nutrition seminars in cooperation with West Central (Wilmar, MN), Ag Processing, Inc, AGP (Omaha, NE), and Fornazor International (Hillsdale, NJ), covering the ins and outs of container logistics for bypass soybean meal AminoPlus®, a value-added product, from the U.S. to the Middle East. Many dairy farms in the Middle East have started to import AminoPlus® and SoyPlus® from AGP and West Central in containers. AminoPlus® is produced by AG Processing Inc., exported by Fornazor, and distributed by a Saudi company Nutriplus Commodities. Fornazor exports 40,000 metric tons (MT) of AminoPlus® from Houston to Saudi Arabia, equal to about 60 percent of AGP’s total exports of Amino Plus®.
USSEC, in close partnership with the U.S. Department of Agriculture’s (USDA) Foreign Agricultural Service (FAS), organized several events within the Maghreb region of North Africa to reemphasize the image of the U.S. as a major supplier of high-quality soybeans and soybean products. U.S. soybean products have traditionally enjoyed a dominant market share with a 100 percent share for soybean meal strengthened by the U.S. – Morocco Free Trade Agreement. However, reduced import duties on South America soybean meal in 2013 impacted U.S. market share. USSEC has had a program in Morocco for more than 20 years, working closely with the livestock sector, particularly the poultry and feed industries, and providing numerous teams with training and technical assistance. USSEC continues to promote the intrinsic advantages of U.S. soybean products to differentiate U.S. soybeans and build customer preference. Objectives of the programs developed by USSEC and with FAS support include increasing the use of U.S. soybean meal in poultry feed, addressing customers’ issues and needs, and competing with other unsustainable protein sources supplying end users with a reliable, trusted, constant quality source of highly available nutrients. Poultry roundtables for the Maghreb region’s feed industry, held over the last three years, as well as trade servicing, have successfully gathered leading poultry and feed customers from Morocco, Algeria and Tunisia, reflecting the importance of the three markets to U.S. commercial interests. Morocco, the largest buyer of U.S. soybean products in the Maghreb region, also remains among the top 10 export markets for U.S. soybean oil. Morocco remains one of the leading soybean meal users in North Africa and the Middle East with an estimated 600,000 ton market and the U.S. market share for soybeans in 2014/2015 has reached 73 percent.
USSEC organized a near infrared (NIR) one-on-one workshop for leading feed industry companies in Morocco in May.
USSEC consultant Denis Bastianelli, head of CIRAD France’s feed department, provided assistance to Morocco’s leading feed mills and integrations.
The main objectives of the one-on-one workshop were to improve further analytical knowledge of soybean meal composition and the nutritive value to the poultry and ruminant industries.
This activity aims to help differentiate U.S. soybean meal and improve its utilization through better characterization with the ultimate goal of increasing U.S. Soy’s share in the Morocco market, which imports U.S. soybeans, soy hulls, soybean oil and meal. Poultry remains the primary driver of Morocco’s soybean meal market.
Participants discussed technical issues during laboratory visits and showed high interest in U.S. Soy products and the efforts to take full advantage of their nutritional quality, including availability of essential amino acids and metabolizable energy.
USSEC continues to sustain demand for U.S. Soy and develop the loyalty of leading customers in Morocco.
USSEC hosted a poultry feed milling team from the Middle East/North Africa (MENA) region at Kansas State University from May 23 – 27. The International Grains Program (IGP) at Kansas State conducted a short course in Poultry Feed Manufacturing, from May 22 – 27.
During that week, twelve visitors from Egypt, three from Tunisia, and one from Morocco had the opportunity to see the latest technologies applied to poultry feed manufacturing, including problem prevention and problem management in commercial feed mills. The correct processing of feed and detailed pelleting manufacturing was a main topic discussed by IGP-KSU professors during the first two days of the course. USSEC consultant Carlos Campabadal was the course coordinator.
The supply and demand of U.S. Soy and U.S. soybean meal and the differences in nutritional quality of soybeans from different origins were also covered. USSEC consultant Miguel Escobar discussed these two topics at length with the participants, who demonstrated great interest with positive comments and questions derived from the presentations. At the end of the week, the group had the opportunity to visit KSU’s feed mill, a commercial feed mill, and a soybean farm.
USSEC organized a technical training program for veterinarians from Tunisia, Morocco, Egypt and Turkey at the University of Florida, College of Veterinary Medicine and Institute of Food and Agricultural Sciences in Gainesville, Florida from May 16-20.
Eighteen veterinarians from commercial poultry companies participated in a weeklong intensive training course on commercial poultry health and management. The objective of the program is to provide practical and technical updates for these commercial poultry industry veterinarians. USSEC consultant Dr. Gary Butcher, a professor at the University of Florida, conducted the program. Topics are varied and include updates on important diseases in the Middle East and North Africa such as avian influenza, Newcastle Genotype 7, and Mycoplasma infections, among others.
USSEC organized a “Full Fat One-on-One Workshop” as a follow-up to the second poultry roundtable for Maghreb’s feed industry. The workshop was held in May in Casablanca.
USSEC consultant and director of Texas A & M University’s Food Protein R&D Center Mian Riaz provided technical assistance to Alf Sahel, Morocco’s largest feed mill, and Copag, the country’s largest dairy cooperative.
The main objectives of the one-on-one workshop were to further assist with technical aspects of extrusion projects in both the poultry and dairy industries. USSEC’s assistance to key customers improves decision makers’ technical knowledge, leading to better utilization of U.S. soybeans.
The production of full fat soybeans is seen as a means of product diversification to increase U.S. Soy’s share in the Morocco market, which already imports U.S. soybeans, soy hulls, soybean oil and meal.
The animal production and poultry sectors have been the primary drivers of Morocco’s soybean market and would further benefit from full fat production.
The issues discussed not only showed high interest in the quality of U.S. Soy products, and but also the trust and confidence of the USSEC organization.
USSEC’s efforts will continue to sustain demand for U.S. Soy and develop the loyalty of leading customers.
USSEC conducted the third Poultry Roundtable for Maghreb’s feed industry on March 8 and 9 in Casablanca, Morocco.
The conference, part of USSEC’s FY16 promotion program in the Middle East / North Africa (MENA) region, provided an excellent platform to discuss current issues in poultry feeding in Maghreb. Thirty key customers from the feed and poultry industry attended the conference: 9 from Tunisia, 4 from Algeria and 17 from Morocco.
USSEC Regional Director – MENA Brent Babb emphasized the importance of the Maghreb markets within MENA and globally and presented the advantages of U.S. Soy. Morocco and Tunisia are the largest buyers of U.S. Soy products in Maghreb. These two partners are among the leading export destinations for U.S. Soy products. Maghreb is an important user of soybean meal with Morocco and Tunisia consuming over one million tons of soybean meal annually and Algeria about 1.4 million tons.
American Soybean Association (ASA) director Dean Coleman presented a farmer’s perspective of U.S. Soy production and provided customers with information on farming soybeans. Sarah Hanson, Agricultural Attaché for Morocco and Tunisia based at Rabat, welcomed attendees, highlighting soy as the leading U.S. agricultural value product in Maghreb and thanked customers for their business.
The presentations of visiting experts such as the president of the European branch of the World Poultry Association and University of Norway professor Birger Svihus focused on recent advances in improvements of feed quality; alternatives to antibiotics utilization in poultry feed were discussed by Mario Jimenez Garcia, CEO of 3F Feed & Food Company Spain; and Niels Hansen-Love, vice president of INTL FCStone Ltd covered the global supply and demand for soy, along with market trends and tools to hedge prices.
The program aimed to update feed mill owners and managers, nutritionists, integrators, traders, and others on the production of full fat soybeans. Kim Koch, feed center manager of the Northern Crops Institute at North Dakota State University, presented the latest on extrusion production, quality control, economics, technical specifications, nutritional advantages and other aspects of extruded full fat soybeans.
Nourredine Karim, president of the Moroccan Feed Manufacturers Association; Khantar Mouhamed, president of the Algerian poultry association; and Chaher Chetoui, director of Gipac, a group of poultry producers, updated attendees on poultry and feed industries in their respective markets and discussed various aspects of the soy business in Maghreb region.
Mr. Babb, together with local staff and Morocco consultant Khalid Benabdeljelil, organized the conference, which was followed by field visits with customers in Morocco.
The discussions held at Alf Sahel, the largest feed mill in Morocco, focused on the production of full fat soybean, its technical aspects, and the use of the extruded product in different feed, storage and handling.
The purchasing and logistics of soy products from the U.S. were discussed at Sofalim feed mill where USSEC highlighted the need for high quality feed and ingredients such as U.S. hipro meal to obtain top performance for the feed mill’s turkey and broiler productions.
Industrial compound feed production totals 5.1 million metric tons (MT) in Morocco with 80 percent going to the poultry industry. Poultry remains by far the main user of soybean meal. North Africa’s feed industry is among the fastest growing feed regions in the world.
USSEC recently conducted a full day training session focusing on one-on-one risk management to the Alf Sahel Company at their headquarters in Had Soualem near Casablanca, Morocco.
Representatives from the company’s finance, purchasing and manufacturing departments participated in the training, which was jointly conceived by USSEC and Trilateral, Inc.
The means to handle the volatility of the U.S. dollar and alternate ways to purchase raw materials were among the issues covered by Trilateral CEO Robert Bresnahan. The Moroccan dirham is closely linked to the euro and the strength of the U.S. dollar has increased the cost of feedstock. Mr. Bresnahan explained how to utilize the tools currently available to hedge risk through futures and options.
Further risk management developments aiming to improve procurements strategies are expected to be conducted at Alf Sahel, which is one of the largest compound feed producers in North Africa.
The company thanked USSEC for assisting in purchases that should improve its overall process efficiency, resulting in financial gain.
USSEC hosted a team of delegates from Morocco’s feed, egg and poultry industries at the International Production and Processing Expo (IPPE) in Atlanta, Georgia from January 26-28.
The show, ranked in the top 50 of all trade shows in the U.S., is a global meeting forum for suppliers, producers and processors displaying the latest equipment and services representing the entire chain of protein production and processing, and creating a platform for international soy buyers and US suppliers to meet.
It attracted key decision makers from poultry operations, integrated companies, feed mills, associations and allied industries professionals to share ideas, network and conduct business.
At USSEC’s luncheon meeting, the Moroccan delegates greatly benefited from the information presented by Dr. Armando Mirande on “True Costs of Avian Influenza,” the current market threat.
USSEC consultant Khalid Benabdeljelil accompanied the delegation and guided them through various activities conducted by USSEC and IPPE. They were invited to the USSEC booth where they learned more about USSEC and met soybean meal suppliers from the U.S.
Current issues were discussed with United Soybean Director (USB) director Robert White; American Soybean Association (ASA) directors Brooks Hurst and Steve Yoder; Minnesota Soybean Research & Promotion Council (MSR & PC) director Jim Call; and Minnesota Soybean Growers Association (MSGA) director Mike O’Leary.
USSEC’s St. Louis-based staff, along with several consultants from other markets including Europe, Asia and South America, discussed issues related to soybean use with the Moroccan customers at the USSEC booth.
The discussions and one-on-one interactions during the three-day event improved confidence and trust levels between the Moroccan delegation and the U.S Soy industry and USSEC’s worldwide operations.
USSEC – MENA recently arranged training for a new generation of Saudi soybean buyers. Robert Bresnahan, president of Trilateral, Inc., spent four days providing intensive training for seven Saudi soybean buyers at Soybean Crushing Co. & Derivatives in Yanbo, Saudi Arabia.
Trainees were comprised of seven employees, four women and three men, all between the ages of 25 and 30. Participants were eager to learn all aspects of the U.S. and world soybean markets. Major topics covered were “How Value is Determined,” “Reading the Market to Determine Entry Levels,” and “Introduction to Futures and Options.” The trainees’ attention level was intense as the Trilateral training program includes student participation along with several quizzes. At the request of the students, Trilateral will build upon this training session through the exchange of emails. One participant stated that the training increased job satisfaction and morale among the trainees and should result in increased efficiencies in processes, resulting in financial gain.
Mr. Bresnahan traveled on to Casablanca, Morocco and met with animal feed manufacturer Alf Sahel where a full day of training was conducted. Alf Sahel was very interested in how to control the volatility of the U.S. dollar and alternate ways to purchase raw materials. The Moroccan dirham is closely linked to the euro and the strength of the U.S. dollar has increased the cost of feedstocks. Trilateral explained Alf Sahel’s inherent market position and explained how to utilize the tools currently available to hedge their risk through futures and options. All departments of the company from treasury to purchasing to manufacturing participated in the training.
USSEC – Middle East North Africa (MENA) organized a regional workshop focusing on Grain and Feed Trade Association (GAFTA) / Federation of Oils, Seeds and Fats Associations, Ltd. (FOSFA) Contracts & Arbitration in Agricultural Commodity Trading from January 15 -17 at the Kempinski Hotel Ishtar, Dead Sea, Jordan.
The activity began with a two-day seminar in Jordan, followed by one-on-one meetings in Saudi Arabia and Morocco.
The conference was attended by more than 65 participants from 11 different countries: Egypt, Tunisia, Morocco, Algeria, Saudi Arabia, UAE, Lebanon, Syria, Iraq, Yemen, and Jordan. Participants hailed from major crushers and vegetable oil refineries and represented traders, poultry producers, feed millers, and poultry integrators.
Speakers at the conference included Wayne Bacon, President of Hammersmith; Bob Bresnahan, President of Trilateral, Inc.; and Jay O’Neil, Senior Agricultural Economist, International Grains Program at Kansas State University.
Lectures included: Contracts; The Arbitration Process and What You Need to Know & Do; Buying Raw Materials (Soybeans, Soybean Meal and Soybean oil) in a Down Commodity Cycle; Marine Insurance; Laytime and Demurrage; World Ocean Freight; Global Bulk & Container Shipping Outlook; Vessel Demand and Availability; and What Will The Next Two Years Hold?
With purchase contracts a major factor for the attendees, Mr. Bacon kicked off the workshop by covering the details and risks of GAFTA grain and FOSFA oilseed contracts. The presentation was very well received with many questions from the floor. Dr. O’Neil, who spoke about the problems that can occur, expanded on the first presentation and the use of the arbitration procedures offered by GAFTA and FOSFA, again answering many participant questions.
The day’s proceedings closed with Mr. Bresnahan’s presentation, “Buying Raw Materials in a Down Commodity Cycle.” Mr. Bresnahan showed the attendees the broad dynamics of regional and world market from the supply and demand side.
“The USSEC regional workshop at the Kempinski was an exceptional event with attendance by major users of soybeans and their products from 11 countries in the MENA region,” said Mr. Bacon.
“If one thing can be said about the workshop, it would be a comment on the very high level of participation by the audience, who asked very detailed questions and commented on each speaker,” USSEC Regional Commercial, Technical & Marketing Director – MENA Mousa Wakileh stated. “It seems that the presentations were exactly what was wanted.”
“I’ve been involved in USSEC customer events around the world for many years and I’ve always been impressed with the high caliber of the overseas staff and the truly beneficial relationships they have with our global soy buyers,” said Dr. O’Neil. “And the current contract and risk management workshop conducted in Amman, Jordan is a glowing example of such. The program quality and customer interaction encountered at this event is testament to the value of USSEC overseas staff and the programs they conduct.”
“North Africa is a very competitive market, yet we find loyal buyers who are eager to engage with USSEC representatives and to learn more about how to contract and ship U.S. Soy in the most competitive way,” he continued.
“The most common customer concern here has been that of quality, particularly as it relates to perceived differences in quality between origin and destination. From what I’m hearing, it appears these buyers need to gain a better understanding of how to apply the USDA grade standards to their specific needs and how the vessel load plan affects quality variability within each vessel shipment. A well-informed buyer is always a good and appreciative one,” concluded Dr. O’Neil.
USSEC organized the first USSEC Regional Aqua Investment Conference – MENA from November 20-23 at the Grosvenor House in Dubai, United Arab Emirates, for regional fish producers.
The activity started with one-on-one meetings in Egypt, followed by a two-day seminar in Dubai, followed by two days of one-on-one meetings in Turkey.
More than 80 participants from 10 different countries attended the conference. Participants hailed from major aquaculture producers and aquaculture feed millers in Turkey, Egypt, Tunisia, Morocco, Algeria, Saudi Arabia, Oman, UAE, Lebanon, and Jordan.
Speakers from different parts of the world included American Soybean Association (ASA) director Jeff Sollars; United Soybean Board (USB) director Robert Stobaugh; USSEC Regional Director – EU/MENA Brent Babb; Muntaser Dawwas, CEO, Invest Bank; USSEC Marketing Director – International Aquaculture / Customer Focus Colby Sutter; Mian Riaz, Director, Food Protein R&D Center, Texas A&M University; Michael Martin, Regional Sales Director, Insta-Pro International; Tim O’Keefe, President, Aqua-Food Technologies, Inc.; G. Ramesh, Technical Sales Advisor, Aqua Feed Division, Wenger Manufacturing Inc.; Djamal Djouhri, CEO, Al Ghurair Resources; and USSEC consultant Sirri Kayhan.
USSEC has a long-time relationship with Texas A&M University and sends participants from all over the world to attend aqua feed extrusion short courses offered by the Food Protein Research and Development Center in College Station, Texas. USSEC also has long-term relationship with Insta-Pro International, Wenger Manufacturing Inc, and Aqua-Food Technologies, Inc., where all parties cooperate to develop the international markets of soybeans and soybean products.
Information provided by the speakers included: update of USSEC’s global aquaculture programs; starting aquafeed production with small-scale, scalable extrusion plant; overview of aqua feed production; cost effective feed formulations in challenging economic times; managing the feed business around formulation; new advances in aqua feed extrusion technologies; investment opportunities in MENA’s aquaculture industry; financing and funding options by banks and investment funds for aquaculture projects; finance opportunities for the aquaculture industry; aquaculture developments in Turkey, Egypt, Saudi Arabia, and Tunisia; and success stories.
Insta-Pro’s Michael Martin commented, “The high level of audience participation and networking was a measure of the success of the event, which comes at a time when countries throughout the region are expanding their seafood production in response to consumer demand and food security concerns. Representing Insta-Pro International, a member of USSEC, I appreciated the opportunity to present Insta-Pro’s aquafeed technology to this high-level audience. As often happens at this type of event, the networking opportunities were as valuable as the presentations themselves.”
He also congratulated the USSEC team’s efforts on a “first-class event that will assist aquaculture operators in Turkey, the Middle East and North Africa to plan for the future and expand their operations, which will inevitably raise demand for U.S. Soy.”
G. Ramesh of Wenger stated, “Wenger has been a proud member of USSEC since its inception and we continue to enjoy the partnership in promoting the use of soy via extrusion processing across several food and feed related industries.” He continued, “The recent 1st Regional Aqua Investment Conference organized by the USSEC MENA regional office in Dubai was the latest example of the opportunities provided through this cooperation. The aquaculture industry in this region has shown significant signs of growth, and this conference provided a forum to educate participants in the benefits of soy inclusion in these extruded feeds.”
USSEC – Middle East North Africa (MENA) organized its first round table meeting for Egyptian soybean oil processors in Cairo, Egypt on September 10. Approximately 25 local key soybean oil refiners and crushers participated.
USSEC regional technical and commercial consultant Najeh Asad moderated the event and two Foreign Agricultural Service (FAS) staff members from the Cairo office attended the roundtable. Orestes Vasquez, Agricultural Attaché at the U.S. Embassy in Cairo, provided opening remarks on behalf of Ronald Verdonk, the Regional Agricultural Minister Counselor.
Mr. Asad highlighted USSEC’s mission and potential projects to be carried out in Egypt promoting the use of U.S. Soy in the Egyptian market. He also spoke on the trends and growth of Egypt’s soybean oil sector.
Addressing customer issues, the consultant discussed the related refining difficulties due to the associated high green color and the high free fatty acid content, in addition to the possible causes of the color reversion occurrence in freshly refined soybean oil produced recently by a large number of the local refineries using crude soybean oil produced by local crushers from soybeans of non – U.S. origin.
The roundtable meetings were followed by site visits to key leading customers, during which the consultant discussed and presented the importance and advantages of U.S. soy oil attributes either obtained by direct import from the U.S. or by local crush of U.S. soybeans, in addition to the high value of related logistics issues.
Currently, Egypt uses over 600 thousand metric tons (TMT) of soybean oil with a total vegetable oil consumption of about 2.4 million metric tons (MMT). Additionally, Egypt consumes over 2 MMT of whole soybeans, which are mostly used by crushers to produce oil and meal. The local crush industry supplies about 50 percent of the country’s requirement, while the rest is covered through imports.
USSEC and USSEC member Midwest Ag Enterprises are working together in Egypt to introduce soy protein concentrate (SPC) to a growing aquaculture market. USSEC organized an aquaculture seminar on optimized feed formulation for marine finfish and tilapia. A total of 95 participants attended the May 10, 2015 event, representing 40 of the top poultry and aqua feed producing companies and opinion leaders in Egypt’s aquaculture industry. The presentations’ main message emphasized the important potential of U.S. Soy in improving diet quality and performance, consequently providing an opportunity to increase returns for U.S. Soy farmers. USSEC consultant Sirri Kayhan concluded the conference by demonstrating the economic advantage of using SPC to replace fishmeal. Follow-up visits with feed manufacturers underlined the existing interest in marine feeds using SPC. All of the feed manufacturers visited have established projects to produce marine fish feed. Egypt’s aquaculture sector has been growing at more than 10 percent per year for the past 10 years. Today, the aquaculture sector produces approximately 1.1 million tons of fish, 40,000 tons of which are marine fish. This number is expected to double by 2017 as Egypt unveils plans to establish 2,400 hectares of marine fish farms along the Suez Canal waterline. The project is expected to produce 50,000 tons of fish annually and annual demand for marine feed is expected to reach 200,000 tons. Current marine feed production capacity is only 1000 tons, leaving great opportunity in terms of improving quantity as well as quality of marine aqua feed. FAS subsidizes two of USSEC’s representatives in the MENA region: Salah Taher, Egypt country representative, and Sirri Kayhan, USSEC’s country representative in Turkey, both have year-long contracts funded by FMD.
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 held its first roundtable meetings for soy oil processors in Casablanca, Morocco on June 2.
Local USSEC consultant Benabdeljelil Khalid opened the meeting, highlighting USSEC’s mission in the Middle East / North Africa (MENA) region and the importance of U.S. Soy in Morocco’s market.
USSEC MENA Regional Soybean Oil Technical and Commercial Consultant Najeh Asad gave an introductory presentation on the current status of the soybean oil market and industry in Morocco and the soy value chain in Maghreb, where soy is the leading U.S. agricultural value product. Morocco uses over 400 thousand metric tons (TMT) of soy oil of a total vegetable oil consumption of 676 TMT. The consultant addressed customers’ issues and presented the latest on optimization parameters of the refining process to produce high quality soybean oil.
The roundtable meetings were followed by onsite visits to key leading customers during which the importance of U.S. Soy oil was highlighted and differential advantages of crude U.S. Soy oil were presented such as lower refining losses, insured quality and logistics, which contribute to a higher quality product.
The consultants reminded customers of the National Oilseed Processors Association (NOPA) standards of soy oil and provided quality control benchmarking required for every step of the refining process. Topics covered included the latest innovations, analytical technology procedures, trouble shooting issues, and equations to evaluate losses, among others.
Maghreb remains the largest market place for soybean oil consumption in the MENA region where soy oil is the predominant vegetable oil.
USSEC recently provided a full fat soybean meal technical services program in Egypt.
USSEC consultant Dr. Mian Riaz travelled to Cairo from May 15-19. He first visited the Wadi Holding Co. and inspected their original feed mill. The company currently has three extruders making full fat soybean meal. It is planning to install a new extruder at its extraction plant facility at a different location. Dr. Riaz gave a presentation about full fat soybean processing and quality and showed some video on the subject. He discussed Wadi’s drawing and new site for full fat soybean production in detail.
On the second day, Dr. Riaz visited Pyramid Poultry in Sadat City. This feed mill plans to install 36 new extruders with presses to make mechanically expelled soybean meal for poultry. Currently, it is building its factory and then will start making full fat and express meal. The company has already bought all the extruders and presses for its operation. Dr. Riaz talked to staff about the quality of soybean meal and showed them some video about processing full fat and express meal. Pyramid Poultry is interested in refining soy oil from its mechanically expelled operation and has already purchased the refining equipment, which will be installed soon after the completion of the facility.
Dr. Riaz visited Cairo Poultry feed operation on his third day. Cairo Poultry is presently using Chinese extruders to make full fat soybean meal and recently installed an expander for full fat soybean meal production. Dr. Riaz presented a seminar to more than 15 feed mill staff on full fat soybean meal processing and its quality parameters. At this time, the company is having some issues with producing full fat soybean meal with its new expander. Dr. Riaz explained the principles of operation of dry and wet extruder as well as the expander.
USSEC and USSEC member Midwest Ag Enterprises are working together in Egypt to introduce soy protein concentrate (SPC) to a growing aquaculture market. USSEC organized an aquaculture seminar on optimized feed formulation for marine finfish and tilapia. A total of 95 participants attended the event, representing 40 of the top poultry and aqua feed producing companies and opinion leaders in Egypt’s aquaculture industry.
Egypt’s aquaculture sector has been growing at more than 10 percent per year for the past 10 years. Today, the aquaculture sector produces approximately 1.1 million tons of fish, 40,000 tons of which are marine fish. This number is expected to double by 2017 as Egypt unveils plans to establish 2,400 hectares of marine fish farms along the Suez Canal waterline. The project is expected to produce 50,000 tons of fish annually and annual demand for marine feed is expected to reach 200,000 tons. Current marine feed production capacity is only 1000 tons, leaving great opportunity in terms of improving quantity as well as quality of marine aqua feed.
USSEC feed milling specialist Tim O’Keefe met with several of the aqua feed producers to address specific technical questions about the use of U.S. SPC in diets for marine species. Aller Aqua, one of Egypt’s leading quality producers of feed, and Wadi Group expressed a keen interest in proceeding with the production and testing of a soy-based diet containing Nutrivance from Midwest Ag Enterprises. Wadi plans to independently register Nutrivance for importation and purchase feed for a trial with ten large cages of sea bass.
USSEC Marketing Director – Aquaculture/Customer Focus Colby Sutter attended the seminar and welcomed participants. Mr. O’Keefe delivered a presentation on feed formulation using soybean meal and SPC for sea bass and sea bream diets. Jim Moline, the president of Midwest Ag Enterprises, spoke about the nutritional advantage of SPC and USSEC speaker Sirri Kayhan, Regional Manager at Feed Management Systems Inc., concluded the seminar by demonstrating the economic advantage of using SPC to replace fishmeal.
The presentations’ main message emphasized the important potential of U.S. Soy in improving diet quality and performance, consequently providing an opportunity to increase returns for U.S. Soy farmers. Follow-up visits with feed manufacturers underlined the existing interest in marine feeds using SPC. All of the feed manufacturers visited have established projects to produce marine fish feed.
Mr. Moline participated in the follow-up visits and commented, “I am finding great opportunity for Nutrivance SPC in Marine Fish diets in Egypt. I see a quickly expanding marine aquaculture industry and the potential transition of the 80,000 tons of marine fish diets currently using trash feed. I am really excited to be on the ground floor in this market. I am especially excited to prepare shipment of Nutrivance to the Wadi Group to begin its use in sea bass diet formulations.”
USSEC held a poultry roundtable for Maghreb’s feed industry in Maghreb in Casablanca, Morocco from May 10-12 as part of the organization’s FY15 promotion program in the Middle East / North Africa (MENA) region.
The U.S. Ambassador in Morocco, Dwight Bush, opened the conference, highlighting the importance of U.S. Soy in exports worldwide and its contributing value to economy. “The global demand for soy will continue to increase, and North Africa’s feed industry was recently recognized as one of the fastest growing feed regions in the world,” he stated. “That growth is due to the dynamic poultry and milling industries that are represented by all of you here today; and at present, Morocco and Tunisia are the largest buyers of U.S. Soy products in the Maghreb, placing these two partners among the top ten largest export destinations for U.S. Soy products.”
Brent Babb, Regional Director – Europe and Middle East / North Africa (MENA), covered the advantages of U.S. Soy and the importance of international markets such as Maghreb in the soy value chain.
Bob Metz, United Soybean Board (USB) board director, and Willard Jack of the American Soybean Association (ASA)’s board of directors, explained the latest developments in farming soybean crops on their farms to the audience. Sarah Hanson, Agricultural Attaché, and the two agricultural specialists in the Maghreb region confirmed that soy is the leading U.S. agricultural value product in the Maghreb.
The presentations of visiting experts focused on broiler performance developments in the next twenty years, and the resulting requirements in the feed industry. USSEC consultant and professor at the University of Arkansas, Craig Coon, presented integrators, feed and poultry producers’ data showing the advantages of using U.S. Soy as compared to soybean meal of other origins to the audience of traders.
USSEC consultant and director of Food Protein R&D Center at Texas A&M University Dr. Mian Riaz discussed extrusion process and the advantages of different products made of soybeans.
Mr. Babb and his staff, the MENA team and local Morocco consultant Khalid Benabdeljelil organized the conference, which was followed by field visits and meetings with customers in the Moroccan markets.
The team discussed several issues regarding the importance of high quality ingredients in turkey feed during a visit to the Sofalim feed mill. This group will produce at full capacity feed for 60 percent of the turkeys grown in Morocco. Discussions held at Alf Sahel, the largest feed mill in Morocco, focused on extrusion, equipment and extruded soy products and soy oil. Other talks at Alf Al Mabrouk’s new feed mill focused on NIR and other analytical means to assess SBM quality and supply.
During visits, the team highlighted the need to use high quality feed and ingredients such as U.S. hipro meal to obtain top performance.
The Maghreb is the largest market in the MENA region for U.S. Soy products. Last year, Morocco imported over 300,000 tons of U.S. soybean meal. Traditionally, Morocco has imported a large percentage of its soybean meal needs from the U.S. Today, the U.S. maintains a market share in Morocco’s soybean meal market of about 35 percent. 80 percent of imported soybean meal goes to the poultry feed industry. Poultry remains by far the main user of soybean meal in this area.