7 Reasons Why Soybean Import is Booming in 2024
Soybean import is a lucrative business that has been growing steadily in the past decade. Soybeans are versatile crops that can be used for food, feed, oil, biodiesel, and industrial products. In this article, we will explore the main factors that drive the global demand for soybean import, and how you can benefit from this booming market.
Key Takeaways
Soybean import is a lucrative business that has been growing steadily in the past decade.
China is the world’s largest importer of soybeans, followed by Argentina, Mexico, Thailand, Netherlands, Egypt, Japan, and Indonesia.
Soybeans are versatile crops that can be used for food, feed, oil, biodiesel, and industrial products.
Importing soybeans can help you diversify your income sources, access new markets, reduce your production costs, and improve your product quality.
Importing soybeans can also pose some challenges, such as complying with trade regulations, ensuring food safety, managing logistics, and dealing with price volatility.
1. China’s insatiable appetite for soybeans
China is the world’s largest importer of soybeans, accounting for about 61% of the global imports in 2021. China’s demand for soybeans is driven by its growing population, urbanization, income growth, and dietary changes. Soybeans are mainly used to produce soybean meal, which is a key ingredient for animal feed. China’s livestock sector, especially the pork and poultry industries, has been expanding rapidly to meet the rising consumption of meat and eggs. China also imports soybeans to produce soybean oil, which is widely used for cooking and industrial purposes.
2. Argentina’s export ban and drought
Argentina is the world’s third-largest producer and exporter of soybeans, after the United States and Brazil. However, in 2022, Argentina imposed a temporary export ban on soybeans and its derivatives, such as soybean meal and oil, to ensure domestic supply and curb inflation. The export ban was lifted in June 2022, but it caused a disruption in the global soybean market and pushed up the prices. Moreover, Argentina suffered from a severe drought in 2022/23, which reduced its soybean production by 10% compared to the previous year. These factors have created a supply gap that other countries have been trying to fill by increasing their imports of soybeans.
3. Thailand’s biodiesel production
Thailand is one of the major importers of soybeans in Southeast Asia, with an annual import volume of about 2.26 billion US dollars in 2021. Thailand’s demand for soybeans is mainly driven by its biodiesel industry, which uses soybean oil as a feedstock. Thailand has been promoting the use of biodiesel as an alternative fuel to reduce its dependence on imported oil and lower its greenhouse gas emissions. Thailand has a mandatory blending policy that requires diesel to contain at least 10% biodiesel (B10) since January 2020, and plans to increase it to 20% (B20) by 2025. To meet this target, Thailand needs to import more soybeans to produce enough soybean oil for biodiesel.
4. Netherlands’ re-export hub
Netherlands is the largest importer of soybeans in the European Union, with an annual import volume of about 2.19 billion US dollars in 2021. However, Netherlands does not consume all the soybeans it imports. Instead, it acts as a re-export hub that distributes soybeans to other European countries, such as Germany, France, Spain, and Italy. Netherlands has a strategic location and well-developed infrastructure that enable it to facilitate the trade of soybeans in Europe. Netherlands also imports soybeans to produce soybean meal and oil for its domestic market.
5. Egypt’s food security
Egypt is the largest importer of soybeans in Africa, with an annual import volume of about 2.15 billion US dollars in 2021. Egypt’s demand for soybeans is mainly driven by its food security concerns. Egypt relies heavily on imported food to feed its growing population, which is expected to reach 120 million by 2030. Soybeans are an important source of protein and oil for human consumption and animal feed in Egypt. Egypt also imports soybeans to support its vegetable oil industry, which produces refined oil, margarine, shortening, and soap.
6. Japan’s tofu and natto consumption
Japan is one of the traditional importers of soybeans in Asia, with an annual import volume of about 1.83 billion US dollars in 2021. Japan’s demand for soybeans is mainly driven by its consumption of tofu and natto, which are traditional fermented soybean products that are popular among Japanese people. Tofu is a soft cheese-like product that can be used in various dishes, such as soups, salads, stir-fries, and desserts. Natto is a sticky and slimy product that is usually eaten with rice or bread for breakfast. Both tofu and natto are rich in protein, fiber, vitamins, minerals, and phytochemicals that have various health benefits.
7. Indonesia’s tempeh production
Indonesia is another traditional importer of soybeans in Asia, with an annual import volume of about 1.24 billion US dollars in 2021. Indonesia’s demand for soybeans is mainly driven by its production of tempeh, which is a fermented soybean cake that is widely consumed as a staple food in Indonesia. Tempeh is similar to tofu, but has a firmer texture and a nuttier flavor. Tempeh is also rich in protein, fiber, vitamins, minerals, and phytochemicals that have various health benefits. Indonesia also imports soybeans to produce soybean meal and oil for its domestic market.
Tips
- Choose the right variety of soybeans for your intended use and market preference.
- Check the origin, grade, moisture, protein, oil, and foreign matter content of the soybeans before buying.
- Store the soybeans in a cool, dry, and well-ventilated place to prevent spoilage and insect infestation.
- Follow the best practices for handling, transporting, and processing the soybeans to maintain their quality and safety.
- Monitor the market prices and demand trends of soybeans to optimize your buying and selling decisions.
Soybean Import: A Global Overview
Soybeans are one of the most important oilseed and protein meal products in the world. They are used for various purposes, such as animal feed, food, biodiesel, and industrial products. In this blog post, we will look at some statistics and trends of soybean import across different countries and regions.
Top Soybean Importers in 2022/23
According to the USDA Foreign Agricultural Service, the global soybean import in 2022/23 is projected to be 164.32 million metric tons, a slight increase from the previous year. The top 10 soybean importers in 2022/23 are:
- China: 96 million metric tons
- European Union: 14.5 million metric tons
- Mexico: 6.4 million metric tons
- Egypt: 4.3 million metric tons
- Japan: 3.4 million metric tons
- Indonesia: 3.2 million metric tons
- Taiwan: 2.8 million metric tons
- South Korea: 1.5 million metric tons
- Vietnam: 1.4 million metric tons
- Bangladesh: 1.3 million metric tons
China is by far the largest soybean importer in the world, accounting for more than half of the global total. China’s soybean import has been growing steadily over the years, driven by its expanding livestock sector and domestic consumption. The European Union is the second-largest soybean importer, followed by Mexico, Egypt, and Japan.
Soybean Meal Import Trends
Soybean meal is a by-product of soybean processing that is mainly used as animal feed. According to Statista, the global soybean meal import in 2022/23 is estimated to be 72.9 million metric tons, a slight decrease from the previous year. The top 10 soybean meal importers in 2022/23 are:
- European Union: 16.84 million metric tons
- Vietnam: 5 million metric tons
- Indonesia: 4.8 million metric tons
- Thailand: 3.8 million metric tons
- Philippines: 3.6 million metric tons
- Japan: 2.7 million metric tons
- Mexico: 2.6 million metric tons
- Canada: 2.4 million metric tons
- Malaysia: 2.1 million metric tons
- South Korea: 1.9 million metric tons
The European Union is the largest soybean meal importer in the world, followed by Vietnam, Indonesia, and Thailand. These countries have a high demand for animal feed, especially for poultry and swine production.
Soybean Import Value
Soybeans are not only a major commodity in terms of volume, but also in terms of value. According to TrendEconomy, the world imports of soybeans in 2021 exceeded $86 billion, an increase from $65 billion in the previous year. The top 10 soybean importers in terms of value in 2021 were:
- China: $40 billion
- European Union: $9 billion
- Mexico: $4 billion
- Japan: $3 billion
- Egypt: $2 billion
- Indonesia: $2 billion
- Taiwan: $2 billion
- South Korea: $1 billion
- Vietnam: $1 billion
- Bangladesh: $1 billion
China was the largest soybean importer in terms of value, accounting for almost half of the global total. China’s soybean import value increased by more than $10 billion from the previous year, reflecting its strong demand and higher prices.
Soybeans are a vital commodity for many countries and regions around the world. They are used for various purposes, such as animal feed, food, biodiesel, and industrial products. The global soybean import has been growing steadily over the years, with China being the dominant player in the market. The global soybean meal import has been slightly declining, but still remains high due to the demand for animal feed. The global soybean import value has increased significantly in 2021, reflecting higher prices and demand.
Frequently Asked Questions:
Q1: What are the benefits of importing soybeans?
A: Importing soybeans can help you diversify your income sources, access new markets, reduce your production costs, and improve your product quality.
Q2: What are the challenges of importing soybeans?
A: Importing soybeans can pose some challenges, such as complying with trade regulations, ensuring food safety, managing logistics, and dealing with price volatility.
Q3: How can I find reliable suppliers of soybeans?
A: You can find reliable suppliers of soybeans by doing market research, attending trade fairs, contacting trade associations, and checking online platforms.
Q4: How can I negotiate the best price for soybeans?
A: You can negotiate the best price for soybeans by comparing different offers, understanding the market trends, knowing your budget and quality standards, and building long-term relationships with your suppliers.
Q5: How can I ensure the quality of soybeans?
A: You can ensure the quality of soybeans by inspecting the samples, requesting certificates of analysis, conducting laboratory tests, and hiring third-party inspection services.
References:
https://www.nass.usda.gov/Charts_and_Maps/graphics/soyacm.pdf
http://www.ncagr.gov/pollinators/documents/DominicReisig-NCPollinatorProtectionSoybeans.pdf
https://www.gpo.gov/fdsys/pkg/FR-1999-10-26/pdf/99-27693.pdf
https://www.fas.usda.gov/data/commodities/soybeans
https://farmpolicynews.illinois.edu/2023/08/fas-2022-23-china-soybean-imports-raised-to-record-high/
https://www.statista.com/statistics/612422/soybeans-import-volume-worldwide-by-country/
https://trendeconomy.com/data/commodity_h2/1201
https://www.iea.org/reports/thailand-2020/biofuels
https://www.worldbank.org/en/country/egypt/overview
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