Growing the Global Store for U.S. Soy
USSEC and the U.S. Department of Agriculture’s (USDA) Foreign Agricultural Service (FAS) are helping U.S. agriculture to be the store where international customers want to shop. U.S. high-value food grade soybean marketers liken international buyers to U.S. customers who go to a store because it offers a preferred or unique product. If the customer learns to love that store, then they will become loyal and shop for even more products.
With USDA and USSEC assistance, companies such as SK Food International and Natural Products Inc., both USSEC members, are doing their part to cultivate this preference for U.S. specialty soybeans. U.S. Soy competitors also pursue the Asia and Pacific region’s soy food market that according to Technavio’s Global Soy Food Market 2016-2020 analysis was valued at $17 billion in 2015. Technavio projects the Asia and Pacific regional market will reach $24 billion by 2020, growing at a compound annual growth rate (CAGR) of 7 percent. The need for soy protein ingredients to fuel that region’s soy foods sector will grow at an even faster pace — reaching an estimated 10 percent CAGR.
To capture this business, USSEC works with Foreign Market Development (FMD) -supported trade services to constantly monitor the markets and policies.
“USSEC is doing a good job of helping us make the necessary changes to meet the customer,” says Natural Products General Manager Paul Lang. “The way grain moves into Korea is a government-controlled process. If someone wants to do business in Korea, then they have to stay in tune with their government. FAS and USSEC are on the ground. We expect them to know the current situation of the law, the standards and what changes.”
USDA FMD-funded activities allowed SK and other U.S. specialty soybean exporters to meet overseas food manufacturers.
“The biggest benefit from our USSEC relationship is creating new leads and the connection to new buyers,” says SK Marketing Coordinator Tara Froemming.
“It is good to have the USSEC support of these missions,” she concludes.