INTERVIEW: US soybean group seeks diversification amid tariffs, farm challenges

Amid market uncertainty and tariffs affecting the US relationship with the largest soybean buyer worldwide, the US Soybean Export Council is set to expand its promotion of US soybeans in non-China destinations and intensify efforts to promote US soybean meal.

USSEC Vice Chair Roberta Simpson-Dolbeare, an Illinois soybean farmer and a director at the American Soybean Association, serves on the association's Trade Policy & International Affairs Committee.

Platts, part of S&P Global Energy, spoke to Simpson-Dolbeare in Chicago during the USSEC's flagship Soy Connext event about the most promising destinations for its efforts and the struggles of US farmers. This interview has been edited for clarity.

Q:Where is USSEC focusing the promotion efforts aimed at diversification amid the complex situation with China?

A:I just recently had the opportunity to travel to Egypt. It has become a very good market for us, and it's good to see that they like the US soy. We were able to see a lot of the work they're doing with aquaculture and how important fish protein is becoming in diets.

We're always looking for ways to develop new markets around the globe, and our USSEC team is always seeking opportunities to expand the use of soy. I know that there's also a lot of focus on aquaculture and poultry within the Americas, and I think that's where the US is going to be in a position to have a lot of soybean meal to provide.

Q:Will some of the USSEC's efforts to promote US soybeans be transferred to US soybean meal?

A: I think there are a lot of countries that would want to buy whole beans because there are a lot of crushers around the globe, so they crush them themselves. But, if they're able to get the soybean meal ready to use, it could be an economic advantage for them. There will probably be a bit more concerted effort to let people know that that's available. We want to be able to provide however people prefer to receive US soy.

Q:Which destinations do you think are more receptive to US soybean meal?

A:We certainly think Mexico is an excellent market for us, and then we want to maintain the relationship with Egypt. They're now our No. 2 market. In Canada, we're all trying to think positively that the USMCA will be approved again.

Q:What alternative uses for soy are you exploring?

A:Just within the state of Illinois, their soybean association is doing a lot of research and working with other companies to try and develop new uses. I believe it's one of the key components of fire foam. I know that it's becoming a popular item because it's a safe product to use and it becomes more economical for fire departments.

Q: US soy and US soybean meal are a bit pricier than others. What do you think are the main advantages of US soy against other origins?

A: Our soybeans dry in the field, so they're naturally dried, not wood-burnt. Others are forced to dry their soybeans because they're trying to get that crop out earlier so they can get corn planted. US soybeans are of higher quality, so the digestibility is stronger. They also sustain less damage and involve lower deforestation. I also think our infrastructure is still better as we can move our soybeans either down the river or via rail to the ports.

We are promoting a lot of biofuels in the US, and we're open to conversations across the Americas to see how we can provide them or how they can best utilize them.

Q:What about the plans for markets like Venezuela?

A: I think that if there's a way that we can work well within a country such as Venezuela, I think they certainly will be looking for those opportunities. There's ongoing work within Colombia as well, and trade with them seems very strong and really in tune with the situation in a variety of countries.

Q:What are the obstacles for promoting US soybean oil?

A: Part of it is just because there's such a big demand domestically for soybean oil. We're using it in Illinois with the B20 fuel for our tractors, and I heard the other day that tractor companies are looking into promoting that.

Q:How do you see the current situation for US farmers?

A:Farmers are resilient and positive. Our political climate is a little challenging at times, and just with the cost of production, the expenses that we incur on a yearly basis, our investment in our land, our equipment. It's a little staggering. It concerns me how the new generation will be able to come into farming if they don't have someone ahead of them to help them do that.

We're hoping that the farm bill gets passed this fall. We're hoping we can resolve this conflict with Iran so that supplies can start flowing a little more easily.

I think that some of the trade barriers hopefully will be on the decline, so that trade opens a little more freely.

Q:USSEC's CEO, Jim Sutter, said that exports to non-China destinations were up 9% compared to last year's. Would you say that USSEC efforts have been successful in that sense?

A:We know that the overall amount we're selling to China is down from what it was at its high, but we have the meeting between US President Donald Trump and Chinese President Xi Jinping. Hopefully they will be expanding their orders not only of US soy, but of other agricultural products.

Q: The situation with China has been challenging. How has USSEC navigated that environment?

A:I think realizing the challenges there makes you see the importance of all our markets. China has big potential, but there are other providers around the globe. I think that's why diversification is so important right now.

We don't want aid from our own government for farmers. We want to see fair trade opening and be able to work with these partners around the globe.