October 18, 2006
US and Argentina join hands to build soy demand in India
US soy farmers are partnering their Argentine counterparts in an effort to promote soy demand in India, local media reported.
The two discussed measures to increase market potential and improve profitability by removing trade barriers and improving market access.
A Global Grower Development Agreement was signed between the US Soybean Export Council (USSEC) and the Argentinean Soybean Chain Association (ACSOJA). The focus of the agreement would be on removing trade barriers and reverse marketing in India.
US also signed a similar agreement with Paraguay in June.
Such agreements went on to prove that US soy farmers were willing to work with their competitors to promote soy in markets like India, pointed out Neal Bredehoeft, USSEC chairman.
Since India produced a large amount of soy and had a huge population to feed, reverse-marketing efforts could not only remove Indian soy from the export market, but also create new consumers. A case in point was China, which once used to be an exporter of soy and is today the largest importer, thanks to checkoff-sponsored reverse marketing efforts.
According to the agreement with Argentina, both countries would focus on building mutual benefit in marketing, technical assistance and other areas for the global growth of the soy industry. They would promote development and use of soy as a valuable commodity that advances the interests of its producers, processors and users. Further, USSEC and ACSOJA agreed to cooperate on resolution of soy trade barriers and restrictions.
Growing demand for soy would help all soy-producing countries, not just the US, said Mark Pietz, USSEC vice chairman.
The activities of the USSEC to expand international markets for US soy and its 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.
