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The global marketplace is changing every day, and U.S. soybean farmers must stay ahead with marketing strategies that will build international demand and preference for U.S. soy. Currently, soy exports represent 46 percent of U.S. soybean production. Recently farmer-leaders of the United Soybean Board’s (USB) International Marketing Committee and American Soybean Association’s (ASA) Trade, Policy and International Affairs Committee met at the 2008 U.S. Soy Industry Strategic Planning Conference in Puerto Rico to discuss future international marketing efforts and determine budget allocations for the 2010 fiscal year. These joint meetings were then followed by a board meeting of the United States Soybean Export Council (USSEC), the international marketing contractor for USB and the soybean checkoff. The two committees divided the projected budget among the Commodity Marketing, Value Enhanced and Global Affairs target areas.

“We had a successful planning meeting, which included great presentations by the country directors,” says Ike Boudreaux, Chairman of USB, a board member of USSEC and a soybean farmer from Lebeau, Louisiana. “It’s exciting to see our outlook of selling soybeans globally. The checkoff-based marketing plan and strategy we approved at this meeting will allow us to better position U.S. soy overseas.”

Key information from the country directors’ presentations included:

• U.S. soy exports are on track to set records for both volume and value this marketing year.

• Economic growth in developing countries such as China and India are quickly increasing demand for food, feed, and fuel.

• Opportunities are increasing for exports of U.S. value-added soy products such as soy protein concentrates, soy flour, and packaged soy products.

• The U.S. soybean sector must not only compete for export markets, but also for production resources in the United States. Development, recreation, conservation and other crops all compete for land to an extent that our competitors do not face.

• The competitive pressure between acres for corn and all other row crops will likely cause soybean prices to be volatile.

• As biodiesel production continues to expand there will be increased volumes of soybean meal available, which raises the need to develop demand for U.S. soybean meal in export markets.

• A weak U.S. dollar makes U.S. soybean meal more affordable. It is imperative that whenever international feed millers or integrators are exposed to U.S. soybean meal, they fully experience the value of U.S. soybean meal in terms of both quality and technical servicing.

• This marketing year also saw a surge in U.S. soybean oil exports. The U.S. soy industry needs to capitalize on this surge when new customers are exposed to U.S. soybean oil and find ways to keep these customers for the long term.

One of the key areas to which additional checkoff funding is proposed to go is the global aquaculture industry, which has been increasing by 9 percent to 11 percent per year. Global demand for cultured aquatic products is expected to grow well into the future because the world’s population is expected to increase. In fact, 40 to 50 million metric tons of additional aquaculture production will be needed by 2050.

Two other promising growth markets are Latin America and Southeast Asia. The Latin American region is a key strategic market for U.S. soy as it is the largest export market for both soybean meal and soybean oil and the second largest market for U.S. soybeans. Southeast Asia has been a large growth market. Most of this increase is in poultry and livestock feed production, which is growing by 5 percent to 10 percent annually. Over the past five years overall soy import demand has grown 21 percent with soybean meal imports increasing by 46 percent.

A USSEC board meeting was held at the conclusion of the joint USB-ASA International Marketing planning meetings. The newly elected USSEC board was announced, with Indiana soybean farmer Scott Fritz elected as chair and Missouri soybean farmer Terry Ecker as vice chair. The newly elected board includes representatives of the following organizations:

USB is made up of 68 farmer-directors who oversee the investments of the soybean checkoff on behalf of all U.S. soybean farmers. Checkoff funds are invested in the areas of animal utilization, human utilization, industrial utilization, industry relations, market access and supply. As stipulated in the Soybean Promotion, Research and Customer Information Act, USDA’s Agricultural Marketing Service has oversight responsibilities for USB and the soybean checkoff.

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