How to Boost Your Soybean Export Business in 2024

Soybeans are one of the most traded commodities in the world, with a global export value of over $75 billion in 2021. The United States and Brazil are the largest exporters of soybeans, accounting for more than 80% of the market share. However, there are also opportunities for other countries to increase their soybean exports and tap into the growing demand from China, Mexico, the European Union, and other regions. In this article, we will share some tips on how to boost your soybean export business in 2022 and beyond.

Tip 1: Know Your Target Markets

Before you start exporting soybeans, you need to know who your potential customers are and what they are looking for. Different markets have different preferences, requirements, and regulations for soybean imports. For example, China is the largest importer of soybeans in the world, but it also has strict quality standards and phytosanitary measures that you need to comply with. Mexico is the second-largest importer of U.S. soybeans, but it also imports from Brazil and other countries depending on price and availability. The European Union is a major importer of soybean meal and oil, but it also has strict rules on genetically modified organisms (GMOs) and environmental sustainability. Therefore, you need to do your market research and understand the needs and expectations of your target markets.

Tip 2: Diversify Your Products and Services

Soybeans can be processed into various products, such as meal, oil, flour, tofu, milk, and biodiesel. By diversifying your product portfolio, you can increase your market access and competitiveness. For example, some countries may have a higher demand for soybean meal than whole soybeans, or vice versa. Some countries may prefer organic or non-GMO soybeans over conventional ones. Some countries may require value-added services, such as storage, transportation, or certification. By offering different products and services, you can cater to different segments of the market and increase your customer loyalty.

Tip 3: Build Strong Relationships with Buyers and Suppliers

Exporting soybeans is not a one-time transaction, but a long-term relationship. You need to build trust and credibility with your buyers and suppliers, as well as with other stakeholders in the supply chain. For example, you need to communicate regularly with your buyers and suppliers, provide timely and accurate information, deliver quality products on time and at competitive prices, and resolve any issues or disputes promptly and professionally. You also need to network with other exporters, traders, brokers, agents, associations, government agencies, and organizations that can help you access new markets, obtain market information, secure financing, or overcome trade barriers.

Tip 4: Stay Updated on Market Trends and Opportunities

The global soybean market is dynamic and constantly changing. You need to stay updated on the latest market trends and opportunities, as well as the challenges and risks that may affect your export business. For example, you need to monitor the supply and demand situation of soybeans in different regions, the price movements and fluctuations of soybeans and related products, the trade policies and agreements that may facilitate or hinder your exports, the consumer preferences and behaviors that may influence your sales, and the technological innovations and best practices that may improve your efficiency and profitability. You can use various sources of information, such as trade publications, websites, newsletters, reports, databases, webinars, events, or experts to keep yourself informed and prepared.

Tip 5: Seek Professional Assistance

Exporting soybeans can be a complex and challenging process that requires a lot of knowledge, skills, resources, and experience. If you are new to exporting or want to expand your export business, you may benefit from seeking professional assistance from various organizations that can provide you with guidance, support, training, or funding. For example:

The U.S. Department of Agriculture (USDA) Foreign Agricultural Service (FAS) offers various programs and services to help U.S. exporters of agricultural products access foreign markets.
The U.S. Soybean Export Council (USSEC) is a non-profit organization that promotes the use of U.S. soybeans internationally through market development activities.
The American Soybean Association (ASA) is a national trade association that represents U.S. soybean farmers on policy issues affecting their industry.
The World Trade Center (WTC) is a global network of organizations that provides trade-related services to businesses of all sizes.
The International Trade Administration (ITA) is a federal agency that helps U.S. businesses export their goods and services.
The Export-Import Bank of the United States (EXIM) is a federal agency that provides financing solutions to U.S. exporters.

These are just some examples of organizations that can help you boost your soybean export business in 2022. You can also consult with other local, regional, national, or international organizations that are relevant to your specific needs and goals.

Soybeans are a valuable and versatile commodity that can offer many opportunities for exporters. By following the tips above, you can increase your chances of success in the global soybean market and grow your export business in 2022 and beyond.

Soybean Export: A Global Overview

Soybeans are one of the most important crops in the world, with a wide range of uses in food, feed, fuel and industrial sectors. Soybeans are also a major export good, accounting for nearly 44% of all soybeans produced in 2017, or 150.1 million tons at a value of USD 58 billion. The global market value of soybeans was estimated at around USD 146.23 billion in 2017.

The main exporters of soybeans are Brazil, the United States, Argentina, Paraguay and Canada. These five countries accounted for about 94% of the global export share of soybeans in 2022. Brazil was the largest exporter of soybeans in 2022, with a share of 49.7% of the total export value, followed by the United States with 31.5%, Argentina with 6.9%, Paraguay with 3.4% and Canada with 2.5%.

Soybean Export: Trends and Challenges

The global demand for soybeans has been increasing steadily over the years, driven by the growing population, income and consumption of animal protein in developing countries, especially China and India. China is the largest importer of soybeans in the world, accounting for about 60% of the global import volume in 2022. Other major importers are the European Union, Mexico, Japan and Indonesia.

However, the global supply of soybeans has been facing some challenges in recent years, such as climate change, pests and diseases, trade disputes and environmental concerns. For example, the U.S.-China trade war has affected the soybean trade between the two countries, leading to lower prices and reduced exports from the United States and increased imports from Brazil and other countries by China. Moreover, the expansion of soybean cultivation has raised some environmental issues, such as deforestation, land degradation and biodiversity loss in some regions.

Soybean Export: Opportunities and Outlook

Despite the challenges, there are also some opportunities and prospects for the soybean export sector in the future. Some of the factors that could enhance the competitiveness and sustainability of soybean exporters are:

Innovation and technology: The adoption of improved varieties, biotechnology, precision agriculture and digital tools could increase the yield, quality and resilience of soybean production and reduce the environmental impact.
Diversification and value addition: The development of new markets and products based on soybeans could increase the demand and value of soybean exports. For example, soybeans can be used to produce biofuels, bioplastics, cosmetics and pharmaceuticals.
Certification and standards: The compliance with voluntary or mandatory certification schemes and standards could improve the traceability, safety and social responsibility of soybean exports and meet the expectations of consumers and stakeholders.

According to some projections, the global demand for soybeans is expected to grow by 1.8% per year until 2030, reaching 375 million tons by then. The main drivers of this growth will be China, India, Southeast Asia and Africa. The global supply of soybeans is also expected to increase by 1.9% per year until 2030, reaching 383 million tons by then. The main producers will be Brazil, the United States, Argentina, India and Paraguay.

References:

http://www.fao.org/faostat/en/#data/QC/

https://www.atlasbig.com/en-ie/countries-by-soybean-production

https://www.fas.usda.gov/data/commodities/soybeans

https://www.fas.usda.gov/soybean-2021-export-highlights

https://www.opportimes.com/the-5-largest-soybean-exporters-in-the-world/

https://oec.world/en/profile/hs/soybeans