News: North Asia
USSEC China successfully conducted the annual U.S. Soy Market Outlook Conference in Shanghai, one of the major soy trading centers in China. More than 100 importers, traders, crushers, feed millers and animal integrators from all over the country participated in this conference on November 16, which was fully funded this year by the North Dakota Soybean Council.
2015 marks the seventeenth year the U.S. soybean industry has conducted such an event for Chinese customers, who value such an opportunity to interact with U.S. grower leaders and market specialists to learn more information on U.S. Soy’s crop quality, market situation and price trend.
“We trust U.S. soybean growers and the industry as they have been providing not only the latest information on U.S. soybean crops through such an event, but also objective and impartial market opinions,” said one participant to the U.S. grower leaders and USSEC staff.
American Soybean Association (ASA) director Dave Poppens, a soy farmer from South Dakota, made a presentation on this year’s crop situation in the U.S. and his strategies in managing the risks in his farm operation. United Soybean Board (USB) director Dan Farney, a soy farmer from Illinois, also gave a presentation on U.S. sustainability in soy production.
For the first time, USSEC staged a grower panel discussion during this conference and Mr. Poppens and Mr. Farney were joined by two North Dakota grower leaders, Vanessa Kummer, former USB chairman, and ASA director Monte Peterson, to interact with customers on numerous topics such as selling strategies given current lower prices, production cost, farm operations, and their planting perspectives for next year.
In addition to the grower panel, USSEC also provided a crop quality summary presented by USSEC Regional Director – North Asia Paul Burke, a China macro economic situation outlook, and a meal market outlook presented by two local consultants, which were all well received by the participants. USSEC member company CGB sent their containerized soybean merchandiser to the event to introduce the business and company as they are exploring the potential to grow their business in China.
USSEC Country Director – China Zhang Xiaoping wrapped up the conference by presenting a soy trade summary to the audience. Based on such information, USSEC identified China’s top ten buyers and top loyalty buyers of U.S. soybeans who received awards from the U.S. soybean grower leaders.
Before this annual event, Ms. Kummer and Mr. Peterson traveled to Guangzhou on Nov. 11 to attend the 10th China International Oils and Oilseeds Conference organized by Dalian Commodity Exchange (DCE), a long-time partner to the U.S. Soy industry, to promote U.S. Soy and soy products among soybean importers, traders and feed millers.
Ms. Kummer was invited to join a panel discussion to talk about U.S. Soy production and provide a grower’s perspective on the current market situation, and Mr. Peterson led a private meeting with DCE top management during the conference on strengthening the partnership with each other to further promote U.S. Soy.
Escorted by USSEC China staff, Ms. Kummer and Mr. Peterson also traveled to Beijing on Nov. 13 to attend the 3rd China Food Security and Safety Strategy Summit organized by a major think tank to China’s top leaders on agricultural policy, the Development Research Center of the State Council. Grower leaders interacted with the participants on policy issues, specifically, the recent biotech approval delays in China that are affecting the commercialization of new biotech events.
Grower leaders’ participation and involvement in these important events have demonstrated the long-time commitments the U.S. Soy industry has made to supplying China’s increasing demand for soy, and has strengthened the partnership with Chinese industries to help achieve China’s goal in food security, food safety and sustainable soybean supply.
USSEC hosted the annual U.S. Soy Buyers Outlook Conference in Seoul, South Korea on November 13th.
The conference was attended by 61 members of the purchasing and technical staffs from Korea’s crushing, feed, and soy food industries; three USSEC member exporters, SunOpta, Scoular and CGB; and nine Korean representatives of U.S. soy exporters, including Cargill and Bunge. The conference’s objective was to update the target industries with U.S. new crop information and to assist them to interact with grower leaders and exporters for more business opportunities.
Two grower leaders, American Soybean Association (ASA) director Dave Poppens of South Dakota and United Soybean Board (USB) director Daniel Farney of Illinois, traveled to Korea and participated in the conference. Mr. Poppens shared information on this year’s farming progress and conditions, while Mr. Farney discussed sustainability in U.S. soybean production from the farmer’s perspective. Other conference topics included the 2015/16 crop quality, global supply and demand, and market outlook. Feedback from conference participants indicated that useful information was provided at the right time for their purchases of soy and soy products.
In addition to the conference, the grower leaders visited local crushing and soymilk plants that use U.S. Soy and met with the top executives of Korea Feed Association to provide them with updates on this year’s crop and benefits of the U.S. Soy Sustainability Assurance Protocol (SSAP).
This summary is based on reports from exporters for the period September 18-24, 2015.
Soybeans: Net sales of 2,506,000 MT for 2015/2016, up noticeably from the previous week, were primarily for China (1,178,400 MT, including 59,600 MT switched from unknown destinations and decreases of 2,500 MT), unknown destinations (826,800 MT), Germany (150,100 MT), the Netherlands (85,700 MT, including 78,000 MT switched from unknown destinations), Indonesia (85,200 MT, including 68,000 MT switched from unknown destinations), Japan (50,800 MT), and Mexico (42,500 MT). Net sales of 4,400 MT for 2016/2017 were reported for Panama. Exports of 814,900 MT were primarily to China (318,400 MT), Germany (150,100 MT), Mexico (119,100 MT), the Netherlands (85,700 MT), Indonesia (76,300 MT), and Costa Rica (16,500 MT).
Optional Origin Sales: For 2015/2016, outstanding optional origin sales total 175,000 MT, all China.
Exports for Own Account: The current exports for own account balance is 1,900 MT, all Canada.
Export Adjustments: Accumulated exports to the Netherlands were adjusted down 85,276 MT for week ending September 17th and 64,823 MT for week ending September 10th . The correct destination is Germany and is included in this week’s report.
Soybean Cake and Meal: Net sales of 17,600 MT for 2014/2015 were down 32 percent from the previous week and 9 percent from the prior 4-week average. Increases were reported for Mexico 2 (10,800 MT), Colombia (6,500 MT, including 5,000 MT switched from unknown destinations), El Salvador (6,100 MT, including 5,900 MT switched from unknown destinations), the Philippines (5,300 MT), and Canada (3,600 MT). Decreases were reported for unknown destinations (10,900 MT), the Dominican Republic (4,000 MT), and Burma (400 MT). Net sales of 246,400 MT for 2015/2016 were reported primarily for Mexico (112,600 MT, including 110,400 MT late reporting), Panama (56,600 MT), unknown destinations (24,000 MT), and Peru (16,400 MT). Decreases were reported for Nicaragua (500 MT). Exports of 179,900 MT were up 99 percent from the previous week and 24 percent from the prior 4-week average. The primary destinations were the Philippines (47,600 MT), Venezuela (30,000 MT), Mexico (27,900 MT), the Dominican Republic (24,800 MT), Colombia (16,300 MT), and Canada (11,700 MT).
Soybean Oil: Net sales reductions of 7,900 MT for 2014/2015–a marketing-year low–were down noticeably from the previous week and from the prior 4-week average. Increases reported for Mexico (1,900 MT) and Canada (200 MT), were more than offset by decreases for unknown destinations (10,000 MT). Net sales of 32,500 MT for 2015/2016 were reported primarily for Peru (19,000 MT), unknown destinations (12,000 MT), and Mexico (1,100 MT). Exports of 2,800 MT were down 89 percent from the previous week and 81 percent from the prior 4-week average. The primary destinations were Mexico (2,400 MT) and Canada (300 MT).
This summary is based on reports from exporters for the period October 2-8, 2015.
Soybeans: Net sales of 1,476,800 MT for 2015/2016, up 15 percent from the previous week, were primarily for China (1,143,400 MT, including 557,500 MT switched from unknown destinations and decreases of 132,100 MT), Russia (121,000 MT, including 52,000 MT switched from unknown destinations), Japan (81,600 MT, including 49,500 switched from unknown destinations), the Netherlands (75,700 MT, including 70,000 MT switched from unknown destinations), and Thailand (74,100 MT). Net sales reductions were reported for unknown destinations (205,400 MT). Exports of 1,627,600 MT were up 74 percent from the previous week. The primary destinations were China (1,327,700 MT), Japan (96,800 MT), the Netherlands (75,700 MT), Mexico (68,700 MT), and Russia (33,000 MT).
Optional Origin Sales: For 2015/2016, outstanding optional origin sales total 175,000 MT, all China.
Exports for Own Account: The current exports for own account balance is 1,900 MT, all Canada.
Soybean Cake and Meal: Net sales of 225,800 MT for 2015/2016 were reported for unknown destinations (68,200 MT), Poland (40,000 MT), Venezuela (30,000 MT, switched from Panama), Mexico (26,700 MT), and Guatemala (15,200 MT, including 9,200 MT switched from unknown destinations). Net sales reductions were reported for Panama (21,900 MT), Ireland (6,000 MT), and French West Indies (3,000 MT). Net sales of 700 MT for 2016/2017 were reported for Canada. Exports of 139,700 MT were primarily to Mexico (33,900 MT), Venezuela (30,000 MT), Canada (20,700 MT), Guatemala (15,200 MT), and Honduras (11,700 MT).
Soybean Oil: Net sales of 53,200 MT for 2015/2016 were reported for unknown destinations (20,000 MT), Morocco (18,000 MT), Mexico (12,500 MT), Nicaragua (1,800 MT), and the Dominican Republic (500 MT). Exports of 16,200 MT were primarily to Venezuela (10,000 MT), Mexico (4,900 MT), Trinidad (800 MT), and Canada (400 MT).
USSEC, together with the U.S. Grains Council (USGC), U.S. Meat Export Federation (USMEF), China Animal Agriculture Association (CAAA), China Chamber of Commerce of Foodstuffs and Native Produce (CFNA), and China Meat Association (CMA) organized and conducted the 2015 U.S. – China Swine Industry Development Symposium on September 16.
This is the symposium’s fourth year and this year’s topic was “Is Bigger, Better?” There were about 200 attendees, roughly 60 percent swine producers and the rest a mix of industry, government and association representatives.
Two grower leaders, John Heisdorffer, USSEC director and American Soybean Association (ASA) vice president, and Bob Metz, USSEC and United Soybean Board (USB) director, traveled to China to participate in this event. Mr. Heisdorffer provided opening remarks, talking about U.S. soybeans and his farm. Mr. Metz made a toast on behalf of USSEC at the gala dinner following the symposium.
USSEC Marketing Director – Animal Nutrition & Meal Pam Helmsing, USSEC Regional Director – North Asia Paul Burke, USSEC Country Director – China Xiaoping Zhang, and USSEC Animal Utilization (AU) Technical Director Dr. Richard Han also attended this symposium. Mr. Zhang chaired the session in the afternoon and Dr. Han provided comments on the China swine farm models.
Participants learned about models, management and challenges to both the U.S. and China swine industry during the symposium, which provided a good bridge to understand and communicate between the agriculture industries in the U.S. and China.
The group also participated in customer meetings on this trade mission.
On September 17, the delegation attended the Novus/USSEC Swine Master Academy in Xiamen. Mr. Heisdorffer and Mr. Metz both talked to the attendees about swine and soybean farming in the U.S. and the quality and safety of U.S. Soy. Dr. Han discussed the nutritional advantages of U.S. Soy and sustainability.
The following day, the group visited Hua Mei Swine farm outside of Xiamen, which has about 1,500 sows and finishes 20,000 head per year. The owner had attended the Swine Master Academy and USSEC consultant Dr. Mike Brumm provided suggestions to improve profitability, including reducing feed and water waste and optimal particle size for feed, noting that there is no need to further process U.S. Soy.
On September 19, the group was joined in Shanghai by ASA director Monte Peterson and Rob Westmoreland of Informa to visit an Intensive Pond Aquaculture (IPA) fish farm in the Songjiang District southwest of Shanghai. IPA technology can increase fish production in a pond threefold. The farm is experimenting with upping it to five times the fish that can be producing using conventional aquaculture technology.
At Shanghai Xinnong Feed Company, the delegation met with the purchasing manager. This company purchases three to four million metric tons (MMT) of soy per year for hog feed. They purchase U.S. Soy from November through June and prefer it because of its golden yellow color and the stable protein and oil levels. The company can and does specify country of origin and prefers U.S. soybean meal to Argentine even if the Argentine meal is cheaper.
On September 21, the group participated in the USSEC industry roundtable. Mr. Heisdorffer and Mr. Peterson talked about their farms, the markets and risk management. They fielded questions about weed management; GMOs; whether they will plant more corn or soybeans next year; freight rates; supply and capacity, particularly in the Pacific Northwest; crop insurance; credit and government subsidies; and why U.S. Soy has a better amino acid profile. At the break immediately following the grower leaders’ presentations, some of the participants remarked that this conference had been the most informative one they had ever attended.
USSEC hosted the U.S. Soy Buyers Conference and reception in Seoul, South Korea on September 18. The event commemorated USSEC’s 35-year presence in Korea and bid farewell to Say Young Jo, USSEC Country Director – Korea, who will retire on September 30 after 35 years of service to the U.S. Soy industry. 26 CEOs from the Korean crushing, feed and soy food industries attended the conference.
Belinda Burrier, United Soybean Board (USB) director, and Ray Gaesser, American Soybean Association (ASA) chairman, traveled to Korea for the events. Ms. Burrier presented the “2015-2016 U.S. Soybean Crop Forecast” and Mr. Gaesser spoke about “Biotechnology to Global Food Demand & Soybean/Corn to Export Pipeline” at the conference.
After the seminar, USSEC hosted a reception and dinner with more than 190 Koran customers attending. USSEC CEO Jim Sutter delivered his welcome remarks to the customers via video.
Leaders of Korea’s soy-using industries expressed their appreciation to USSEC and to Mr. Jo for their contributions to their industries by presenting plaques of appreciation and gifts.
USSEC Regional Director – North Asia Paul Burke, introduced Dr. Hyung-Suk Lee as the new country director and emphasized the continuous partnership between the U.S. Soy industry and Korea’s soy-using industries.
Buyers from China have agreed to buy $5.3 billion worth of U.S. Soy, totaling more than 484 million bushels of U.S. soybeans. The announcement was made today in Des Moines, Iowa.
“Anytime an agreement like this is made, it is great for U.S. soybean farmers,” says Laura Foell, U.S. Soybean Export Council chair and soybean farmer from Iowa. “Our international customers demand a product that is sustainable and high quality, and that’s what U.S. soybean farmers continue to deliver.”
In the most recent marketing year, U.S. Soy exports accounted for 62 percent of U.S. Soy production. China alone imports approximately 25 percent of all U.S. Soy. The country was the No. 1 buyer of whole U.S. soybeans in the 2013/14 marketing year and the second-biggest buyer of U.S. soybean oil.
“This is a great example of how our farmer-leaders’ work of establishing relationships in China are paying off,” Foell says. “We must continue this work with China and other countries since exports are so important to the U.S. Soy industry.”
In the most recent marketing year, U.S. soybean farmers exported 2 billion bushels of soy to international customers. The value of these exports set a record of more than $30 billion.
The U.S. Soybean Export Council aims to maximize the use of U.S. Soy internationally by meeting the needs of global customers that use U.S. Soy in human food and feed for poultry, livestock and fish. The organization uses a global network of stakeholder partnerships, including soybean farmers, exporters, agribusinesses, agricultural organizations, researchers and government agencies, to accomplish that mission.
USSEC will host a signing ceremony for Chinese customers on September 24 in Des Moines, Iowa. The purchase coincides with President Xi Jinping’s visit to the U.S.
USSEC chairman Laura Foell says this agreement demonstrates that U.S. farmers continue to produce high-quality, sustainable soybeans in response to demand from international customers.
China imports approximately 25 percent of all U.S. Soy. The country was the top purchaser of whole U.S. soybeans in the 2013/14 marketing year and the second-biggest buyer of U.S. soybean oil.
A Taiwanese delegation in Washington, D.C., signed a letter of intent on September 16 with USSEC committing to purchase between 2.6 and 2.9 million metric tons of soybeans valued between $1.13 and $1.26 billion U.S. dollars by 2017, as part of the Taiwanese Agricultural Goodwill Mission. The letter is evidence of Taiwan’s commitment to strengthening trade ties and maintaining the well-established trade partnership between the United States and Taiwan.
In 2014, Taiwan was the fifth largest market for U.S. soybeans, importing 1.3 million metric tons of U.S. soy, which represented a 55 percent market share. Taiwan imports more than 1.15 million metric tons of U.S. soybeans annually, valued between $600 and $720 million U.S. dollars. From January to June 2015, Taiwan imported nearly a million metric tons of U.S. soybeans valued at $442 million U.S. dollars.
“Taiwan has been a loyal, long-term partner of U.S. Soy for more than 40 years,” said USSEC Chairman Laura Foell. “The Taiwan Goodwill Mission helps the U.S. and Taiwanese government officials, traders and end-users to keep the lines of communication open, which is so important to maintaining our great relationship with this valuable buyer.”
While in Washington, members of the mission met with USSEC, the U.S. Grains Council, U.S. Wheat Associates, the North American Export Grain Association and the National Grain and Feed Association, as well as U.S. government officials. The mission delegates also signed letters of intent to purchase U.S. soybeans, wheat and co-products with USSEC and the U.S. Wheat Associates.
Following the signing ceremony at the U.S. Capitol complex, members of the Taiwanese delegation will tour the U.S. Grain Belt to see U.S. farms and grain elevators firsthand. They will meet with government officials, farmers, agriculture groups and other important international organizations in Iowa, Illinois, Kentucky and Minnesota.
The biennial Goodwill Mission has been organized by Taiwan’s Ministry of Foreign Affairs (MOFA) since 1998. USSEC’s participation in the mission is an important part of its work to continue Taiwan’s preference for U.S. soybeans.
USSEC hosted the 2015 soybean crushing workshop in Pyongchang, South Korea on August 21 and 22. The objective of the workshop was to discuss the benefit of the U.S. Soy Sustainability Assurance Protocol (SSAP) to the local crushing industry’s marketing strategy.
Participants included CEOs and executives from Korea’s two crushing companies and the Korea Soybean Processors Association (KSPA). USSEC gave a presentation on sustainability and how it is being pursued in the production of U.S. Soy. USSEC reviewed the agricultural environment, focusing on water and land, climate changes, and the increasing demand for foods. The presentation also emphasized a sustainable production system to meet the needs of current and future generations.
During the ensuing discussion, the KSPA chairman agreed with the SSAP and showed a willingness to use the sustainable U.S. Soy trademark in KSPA’s soybean oil and soybean meal marketing once the mark is registered in Korea. USSEC also discussed a mass media campaign to educate Korean consumers about U.S. Soy sustainability in FY16.
The team will visit Consolidated Grain & Barge River Terminal and Cargill AG Horizons before the roundtable begins. At the meeting, teams will hear an update on U.S. soybean production; crop condition; and soybean, soybean meal and soybean oil export and domestic production. Participants will also learn more about high oleic acid soybean production, non-GMO soybean production, the U.S. Soy Sustainability Assurance Protocol (SSAP), the current situation of soybean crush and oil in Japan, and labeling issues in the U.S. and the impact of the Food & Drug Administration’s (FDA) new rule on partially hydrogenated oil (PHO). Delegates will also have the opportunity to tour local soybean farms.
The U.S. Soy Buyers Conference is slated to take place in Seoul, South Korea from September 15 – 19.
The U.S. Soy family will commemorate 35 years of partnership between the U.S. Soy industry and Korea’s soy-using industries. United Soybean Board (USB) director Belinda Burrier will talk to participants about the U.S. soybean and corn crop forecast and provide a market outlook and American Soybean Association (ASA) director Ray Gaesser will address new biotech soybean and corn varieties that will appear in the export pipeline in the coming years.
On a recent grower leader marketing mission, U.S. soybean producers and qualified state soybean board (QSSB) staff learned about the aquaculture industries in China and Southeast Asia (SEA). China, the number one producer of seafood in the world (61 percent), and Southeast Asia, with five countries ranked in the top 10 in global aquaculture production, have been big contributors to the seven percent global annual growth in aquaculture production.
In China, the group visited two commercial freshwater farms, which have recently constructed the intensive in-pond raceway system in existing ponds. This technology was first brought to China via a USSEC feeding demonstration and received notice from much of the Chinese freshwater aquaculture industry because water is one of the largest constraints for the country. Since the first in-pond raceway system was constructed in 2014, there are now more than 100 in use or under construction by commercial industry after the environmental and economic benefits of using this technology were realized. This system allows for the same water to be used over and over, unlike traditional pond culture, which requires new water for each grow out. In addition to conserving water, it allows for the increase of biomass production by at least three.
In Southeast Asia, the group was taken offshore to see some hatcheries and marine species grow out farms. MarineLife Aquaculture, located in Singapore, is a forward-thinking group that is seeing significant growth as a fingerling provider of Asian sea bass to SEA. If SEA can improve the genetic quality of its fish through strong hatcheries as well as moving its offshore aquaculture to more modern production techniques, there will be tremendous growth in an already large producer/industry. MarineLife is working to reach the point where it can give a feedmill a desired formulation for feed, versus buying what the feedmill is selling. The company will begin working hand in hand with the USSEC aquaculture team on which is the best formulation for its fingerlings and then approach the feedmill.
Walter Godwin, United Soybean Board (USB) director, pointed out, “With the projected increase in the world population and the need for more protein, aquaculture is rising to the challenge. The use of soybeans to produce extruded feeds will help the bottom line of American soybean farmers.
In Malaysia, the final site visit for this mission was a tour of ocean cages off the coast of Langkawi. The group visited a pilot research farm that is in partnership with a private farmer and the Malaysian government. This is a new initiative to increase the production of seafood for consumption as well as improve the environmental footprint.
In addition to Mr. Godwin, the delegation of grower leaders included American Soybean Association (ASA) vice president Joe Steinkamp; Indiana Soybean Alliance (ISA) director Matt Chapman; Michigan Soybean Promotion Committee member Laurie Isley; Nebraska Soybean Board director Ed Lammers; and Nebraska Soybean Board director and USB director Greg Greving. QSSB staff included Tony Stafford of the Missouri Soybean Board; Andy Tauer of ISA; and Karen Claghorn of the Iowa Soybean Association.
The trip provided the U.S. Soy delegation with an opportunity to see the tremendous growth and further potential in China and SEA’s aquaculture industry.
USSEC participated in the International Soy Growers Alliance (ISGA) meetings in Montevideo, Uruguay from August 13-16.
American Soybean Association (ASA) first vice president Richard Wilkins and United Soybean Board (USB) treasurer John Motter participated in these meetings together with USSEC Marketing Director Market Access/FTO Roz Leeck. The agenda included listening to perspectives from the South American region and the world, along with an ISGA group discussion, moderated by Ms. Leeck. The ISGA’s next steps were discussed, including an April 2016 mission to China and a potential EU mission this fall. The group had the opportunity to visit the Uruguayan Chamber of Commerce and took an all-day tour of a local farm.
While the countries that make up ISGA typically are competitors in the world soybean market, the mission of the group is to collaborate in the development of select soybean markets and to speak with a unified voice opposing market restrictions, scientifically unsound non-tariff barriers to trade relating to health, environmental, chemical residues and biotechnology approvals. ISGA contributors work together to maintain the solid market position of soy against other competitor oilseeds and to communicate the social, economic, and environmental sustainability of the soybean chain.
United Soybean Board (USB) director David Williams traveled to China from July 10-21, participating in and presenting at USSEC’s Soy Trade Price Risk Management Workshop and the USSEC-sponsored 2015 China International Oils & Oilseeds Industry Summit in Ningbo City, Zhejiang Province, China. During his trip to China, Mr. Williams, escorted by USSEC marketing consultant Claudia Chong and China marketing staff, also made servicing tours to key customers in nearby Ningbo.
USSEC China has conducted 13 risk management workshops since 2012. The purpose of the workshops is to help major Chinese buyers improve their risk management skills in the face of an increasingly challenging global market. 40 participants representing major Chinese importers, crushers and feed and integrators from all over China participated in the training. USSEC consultant Sue Goll presented the global soybean market situation and risk management strategies.
In 2014, the Korea – U.S. (KORUS) Free Trade Agreement (FTA) obligated the Korean government to allocate 25,000 metric tons (MT) of food-grade identity preserved (IP) soybeans in the tariff rate quota (TRQ), allowing Korean soy food processing sectors such as tofu, soy milk, soy sauce and soy paste to import U.S. food-grade IP soybeans free of import duty. This number is equivalent to about 10 percent of the Korean food-soybean imports. To maximize the market share impact of U.S. food-grade IP soybeans imported under KORUS FTA, the U.S. Soybean Export Council (USSEC) has encouraged Korean soy food processors to execute TRQ as much as they are allocated, or transfer surplus of TRQ allocation in one sector to others who need more. One example of these tactics was the Korea food-bean buyers teams sent with funds provided by FMD and MAP to the U.S. Soy Global Trade Exchange in 2013 and 2014. This event provided a platform that facilitated food-soybean trade between Korea and the U.S. Coupled with this FAS-funded marketing program, KORUS FTA turned out to be instrumental for the U.S. to capture a dominant market share of Korean food-soybean imports. In 2014, the U.S. captured an 85 percent market share in the target market with 226,800 MT exported to Korea valued at $161 million. In 2013, the U.S. held an 84 percent market share with 207,300 MT valued at $153 million, with a 67 percent market share with 182,800 MT valued at $120 million in 2012. The ratio of TRQ executed by the Korean soy food processors against allocations increased to 95 percent in 2014 from 60 percent in 2013 and just 35 percent in 2012.
USSEC was invited to attend the recent 2015 Natto Queen Ceremony held in Ginza, Tokyo. USSEC Country Director – Japan Mitsuyuki Nishimura and USSEC North Asia Regional Human Utilization Manager & Japan HU Director Masi Tateishi represented USSEC at this gathering and more than 100 media outlets attended the event. The Japan Natto Cooperative Society Federation announced Yoh Yoshida, a successful Japanese actress, as the 2015 Natto Queen.
Beginning in 2002, the Japan Natto Cooperative Society has selected a natto queen every year among celebrities, based on their love of natto and their ability to help spread natto’s popularity to Japanese society. Ms. Yoshida is expected to increase the positive image of natto throughout 2015.
After the announcement of the natto queen, USSEC was recognized by the Japanese natto industry for its achievement on relief efforts of the 2011 Tohoku earthquake and tsunami. Mr. Nishimura was presented an award by the natto industry. Takahiro Noro, Chairman of Japan Natto Cooperative Society Federation, said, “When the big earthquake and tsunami hit Tohoku in 2011, the U.S. Soybean Export Council reached out a hand of early assistance to the affected areas. Thanks to the U.S. soybean industry, we were able to deliver 79,000 servings of natto to the shelters. And therefore, the Japanese natto industry still continues to work on a relief-effort project and that is due to the remarkable achievement of U.S. soybean industry.”
Japanese natto consumption in 2014 hit 125,000 metric tons (MT), all produced from non-GMO identity preserved (IP) food beans. The U.S. still enjoys an 80 percent market share of non-GMO IP beans in Japan. USSEC has supported the natto industry by sending a young Japanese management leader to the U.S. and sponsoring the U.S. Red River Valley award, among other endeavors, in the past. This year, USSEC is collaborating with the natto industry to launch a “natto master project” aimed to further expand the natto demand domestically and globally. USSEC will continue to support Japan’s natto industry to optimize the utilization and value of U.S. Soy.
U.S. agricultural and food products were showcased at the annual 2015 Taipei International Food Show (TIFS) in Taiwan. The American Institute in Taiwan (AIT)’s Agricultural Trade Office (ATO) welcomed Taiwanese agricultural and food service buyers to visit the USA Pavilion at the show, which was held June 24-27.
The USA Pavilion was the largest international pavilion, encompassing 74 booths with more than 20 exhibitors, according to the ATO. According to the U.S. Census Bureau Trade Data, U.S. high-value agricultural exports to Taiwan hit an all-time high in 2014, reaching nearly $1.4 billion. The U.S. has a 95.4 percent market share of soybeans imported for soy foods to Taiwan.
USSEC, together with the California Milk Advisory Board, the Idaho Potato Commission, the United Dairymen of Idaho, and the Wisconsin Ginseng Board, led delegations to exhibit new products, provide samples, and connect with potential buyers at the show.