USSEC Examines Sri Lanka for Opportunities for U.S. Soy in Feed and Food Segments
- General News
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.