RALEIGH, NORTH CAROLINA, U.S. — The current global supply for soybean is 365 million tonnes with a compound annual growth rate (CAGR) of 3.1% even though demand for the commodity is increasing at CAGR of 3.4%, according to a report by Beroe Inc., a procurement intelligence firm.
The report noted that the United States, Brazil and Argentina account for 82% of the global soybean production and that the top soybean consumers include:
- China 30%
- United States 18%
- Argentina 14%
- Brazil 13%
“Brazil and the U.S. are the largest soybean exporting countries, responsible for almost 85% of global exports, while China is the largest importer of soybean,” the report said. “However, an increase in domestic soybean production is expected to reduce the Chinese import demand in international markets in the upcoming years.”
According to the Beroe report, demand for soybeans is being driven by soy meal and oil via crushing soybean, then for food use and animal feed.
“Demand from the crushing industry and growing mandates for using bio-fuel are further driving the growth of the soybean market,” the report said. “A decrease in Chinese imports and impending La Niña weather conditions are expected to pose a challenge to the global soybean market.”
Another factor is that trading houses are purchasing soybeans directly from aggregators and farmers who are utilizing new technology to increase the yield of soybeans being produced.
“After nearly a decade of development, new soybeans have been adapted with the high-yielding germplasm providing growers with outstanding performance in their efforts to produce the best crop possible,” the report said. “In addition, the new soybeans tolerate both glyphosate and dicamba herbicides. New engineering systems enable soybean breeders to better analyze soybean genetics, helping create better high-yielding soybean.”
Beroe provides procurement intelligence and supplier compliance solutions. The company provides market information and analysis that allows companies to make sourcing decisions with a goal of leading to lower costs, greater profits and reduced risk. Beroe has been providing these services for more than 13 years and currently works with more than 10,000 companies worldwide.