By Jeff Caldwell

The movement of U.S. soybeans, particularly to Central America and southeast Asia, has, in recent years, been left short of its full potential.

To address this situation, officials and soybean industry members discussed how to streamline and bolster U.S. exports during the 2005 Commodity Classic. In addition, American Soybean Association (ASA) delegates approved resolutions Feb. 26 supporting and recognizing the importance of the ratification of the Central American Free Trade Agreement (CAFTA) and other international market opportunities for U.S. soybeans.

"Free trade is necessary to the success of America's corn and soybean growers and to the entire American economy," U.S. Secretary of Agriculture Mike Johanns told attendees to the Feb. 25 general session in Austin. "Huge new markets are out there waiting to be tapped."

To this end, specifically in Central America, Johanns stressed the importance of ratification of CAFTA, through which he said U.S. ag exports, particularly corn and soybeans, could double. Without CAFTA in place today, some U.S. products reach foreign consumers, but accompanied by sometimes up to 75% import duties. Once in place, however, duty-free U.S. ag products can reach countries like Costa Rico and the Dominican Republic, with the U.S. grower being an ultimate benefactor.

"Who's the winner here? The winners are in this room: They are America's producers," Johanns said. "Can there be any doubt that we need to pass CAFTA for the benefit of the producers in this room and the producers that you represent? We ask for your leadership in that area."

Neal Bredehoeft, ASA president, echoed Johanns' sentiments on the opportunities it will provide, in the end, boosting the grower's bottom line.

"ASA is urging the U.S. Senate to approve CAFTA, because this will improve trade between the U.S. and Central America," said Bredehoeft, an Alma, Mo., soybean grower. "Exports of soybean meal and oil currently account for $260 million in annual sales, and CAFTA will help us secure these markets."

Southeast Asian nations have long been consumers of U.S. soybeans, but in recent years, other nations have become net-exporters of soy products. In order to restore the marketshare it has lost, the U.S. industry should match its production traits better with those Southeast Asian consumers want, like higher protein and oil contents.

"The U.S. no longer leads the market in quality. It's not that the U.S. has gone downhill, but the competition has grown better," said John Lindblom, ASA Southeast Asia regional director, during a Feb. 25 United Soybean Board seminar. While U.S. soy meal and oil exports to Southeast Asia have more than doubled in the past decade, according to Lindblom, Argentina's exports are 17 times larger than they were 10 years ago.

Rebounding in this market can be done not only by catering more specifically to the Southeast Asian consumer, but by aggressively promoting these efforts, according to Dr. Neoh Soon Bin, Director of the Soon Soon Companies in Malaysia.

"We've established that performance of different corn and soy meals aren't the same," Neoh said. "Customers must recognize American soybeans. You should do further research to show the superiority of U.S. corn and soybeans and improve marketing of these products through the ASA and USGC."

Date: 3/24/05