U.S. soy remains America’s first agricultural export, adding USD 31.2 billion to the U.S. economy in marketing year (MY) 2023/24. While total soy export volumes were down from the year prior at 60.8 million metric tons (MMT), partly due to fewer carry-in stocks and expansion of domestic crush, U.S. soybean meal exports set a record based on increased supply, strong demand, competitive prices and its nutritional advantage.
“Last year at this time, the big question was ‘What are we going to do with all the soybean meal that stems from increased domestic crush as a result of the investments in sustainable fuels?’” recalled Jim Sutter, chief executive officer for the U.S. Soybean Export Council (USSEC). “The answer: export it.”
“Our team of experts operating in 80-plus countries has been working to showcase the value of U.S. soybean meal through one-on-one meetings, technical seminars, education and advertising campaigns throughout the years,” Sutter said.
Buyers listened. In MY 2023/24, exports of U.S. soybean meal reached a record 14.4 MMT, valued at USD 6.7 billion. This volume is up 10% from the year prior and 17% over the five-year average. The Philippines purchased the most U.S. soybean meal at 2.6 MMT in MY 2023/24; Mexico and Canada ranked second and third with 1.9 MMT and 1.4 MMT, respectively.
While the Philippines has traditionally shown an affinity toward U.S. soybean meal and continues to grow, other countries with growing demand for U.S. soy during the past five years are:
- Vietnam, up 110% at 743,942 metric tons (MT)
- Venezuela, up 94% at 653,217 MT
- Indonesia, up 49% at 192,922 MT
- Costa Rica, up 40% at 145,033 MT
- Sri Lanka, up 41% at 253,664 MT
- European Union - 27, up 37% at 721,473 MT
“USSEC continues to work with exporters and importers to diversify markets, expanding destinations while maintaining relations and sales with historic markets — not something that happens quickly. It takes years of work, relationship building and earning the trust of buyers,” Sutter added.
Market diversification in Egypt and Venezuela
With a population of 104 million, Egypt is the third most populous country in Africa. During the past ten years, and despite currency issues, imports of U.S. soybeans have grown 43% with an average annual value of USD 845.03 million. This growth is due to Egypt’s booming poultry and aquaculture industries, which have led the way for increased soybean crush in the region
While progress in Egypt has been years in the making, recent strides have also been made in Venezuela as a result of improved bilateral trade relations. It is among the Top 10 importing countries of U.S. soybean meal. Furthermore, U.S. soy enjoys over 90% of the market share when looking at all soy imports to Venezuela, thanks to its geographic location, strategic partnerships and the intrinsic advantages of using U.S. soy.
Looking at the year ahead (MY 2024/25) the U.S. Department of Agriculture (USDA) projects global soybean demand to increase 4.3% year-over-year to 346.2 MMT.
“Global demand for soy continues to rise,” Sutter said. “As a source of high-quality, sustainable nutrition, U.S. soybeans are an excellent solution to help meet the demand, enabling sustainable food and nutrition security around the world. USSEC’s job is to work in markets around the world to ensure customers understand the U.S. soy advantage and how to purchase U.S. soy.”
Supported by demand growth from expanding commercial livestock, poultry production, and adoption of modern feed rations in many regions of the world, USDA projects the world soybean meal trade to increase nearly 10.7% to 81.3 million metric tons (MMT) by 2033/34. Credits: USDA.
