St. Louis, Missouri
October 17, 2006
U.S. soybean
farmers are partnering with Argentine soybean farmers to promote
global demand for soybeans in India. U.S. soybean farmer-leaders
recently met with Argentine farmers to discuss how they could
work together to increase market potential and improve soybean
farmer profitability by removing trade barriers and improving
market access.
The farmer-leaders signed a Global Grower Development Agreement
between the United States Soybean Export Council (USSEC) and the
Argentinean Soybean Chain Association (ACSOJA). Farmer-leaders
from the United Soybean Board
(USB) and American Soybean
Association (ASA) were on hand to endorse the agreement. The
agreement will focus on removing barriers to trade to India, and
the two countries will work on reverse marketing in India,
allowing that country to consume more of its own soybeans and
soybean meal. A similar agreement was signed by U.S.
farmer-leaders with Paraguayan farmers in June.
“The recent agreements with Paraguay and Argentina show that
U.S. soybean farmers are willing to work with our competitors to
increase the use of soy in markets like India,” says Neal
Bredehoeft, USSEC chairman and a soybean farmer from Alma, Mo.
“These agreements mark new territory for farmer-to-farmer
discussion between U.S. farmers and our competitors.”
India’s population is rising rapidly, and it is expected to
surpass China, with a population of 1.5 billion people, by 2040.
Currently, India produces a large amount of soybeans, but the
reverse marketing efforts could not only remove Indian soybeans
from the export market, but also create new Indian consumers of
soy. At one time, China was an exporter of soy, but today it is
the largest importer of soy, thanks in part to
checkoff-sponsored reverse marketing efforts.
The agreement with Argentina states that ACSOJA and USSEC agree
to expand cooperation in the area of market development. The
countries will focus building mutual benefit in marketing,
technical assistance and other areas for the global growth of
the soy industry. The agreement will broadly promote the
development and use of the soybeans as a valuable commodity that
advances the interests of its producers, processors and users
through product and market development support. Further, the
organizations agree to cooperate on resolution of soy trade
barriers and restrictions. A joint trip to India for
farmer-leaders from both countries is scheduled for December.
“Growing future demand for soybeans is going to help all
soybean-producing countries, not just the United States,” says
Mark Pietz, USSEC Vice Chair and a soybean farmer from
Lakefield, Minn. “The Argentineans understand that it is time
for North and South America to begin identifying ways to share
the cost of building demand for soy products.”
The activities of the U.S. Soybean Export Council to expand
international markets for U.S. soybeans and soy products are
made possible by producer checkoff dollars invested by the
United Soybean Board and various State Soybean Councils, support
from cooperating industry, and through the American Soybean
Association’s investment of cost-share funding provided by
USDA’s Foreign Agriculture Service. |