ST. LOUIS (Oct. 17, 2006) – U.S. soybean
farmers are partnering with Argentine soybean farmers to promote global demand
for soybeans in India. U.S. soybean farmer-leaders recently met with Argentine
farmers to discuss how they could work together to increase market potential
and improve soybean farmer profitability by removing trade barriers and
improving market access.
The farmer-leaders signed a Global Grower Development Agreement between the
United States Soybean Export Council (USSEC) and the Argentinean Soybean Chain
Association (ACSOJA). Farmer-leaders from the United Soybean Board (USB) and
American Soybean Association (ASA) were on hand to endorse the agreement. The
agreement will focus on removing barriers to trade to India, and the two
countries will work on reverse marketing in India, allowing that country to
consume more of its own soybeans and soybean meal. A similar agreement was
signed by U.S. farmer-leaders with Paraguayan farmers in June.
“The recent agreements with Paraguay and Argentina show that U.S. soybean
farmers are willing to work with our competitors to increase the use of soy in
markets like India,” says Neal Bredehoeft, USSEC chairman and a soybean farmer
from Alma, Mo. “These agreements mark new territory for farmer-to-farmer
discussion between U.S. farmers and our competitors.”
India’s population is rising rapidly, and it is expected to surpass China,
with a population of 1.5 billion people, by 2040. Currently, India produces a
large amount of soybeans, but the reverse marketing efforts could not only
remove Indian soybeans from the export market, but also create new Indian
consumers of soy. At one time, China was an exporter of soy, but today it is
the largest importer of soy, thanks in part to checkoff-sponsored reverse
marketing efforts.
The agreement with Argentina states that ACSOJA and USSEC agree to expand
cooperation in the area of market development. The countries will focus
building mutual benefit in marketing, technical assistance and other areas for
the global growth of the soy industry. The agreement will broadly promote the
development and use of the soybeans as a valuable commodity that advances the
interests of its producers, processors and users through product and market
development support. Further, the organizations agree to cooperate on
resolution of soy trade barriers and restrictions. A joint trip to India for
farmer-leaders from both countries is scheduled for December.
“Growing future demand for soybeans is going to help all soybean-producing
countries, not just the United States,” says Mark Pietz, USSEC Vice Chair and
a soybean farmer from Lakefield, Minn. “The Argentineans understand that it is
time for North and South America to begin identifying ways to share the cost
of building demand for soy products.”
The activities of the U.S. Soybean Export Council to expand international
markets for U.S. soybeans and soy products are made possible by producer
checkoff dollars invested by the United Soybean Board and various State
Soybean Councils, support from cooperating industry, and through the American
Soybean Association’s investment of cost-share funding provided by USDA’s
Foreign Agriculture Service.
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