December 6, 2006

US, South American soy growers to have joint trade mission to India

After investing checkoff dollars to fund reverse marketing activities in India, implemented by the American Soybean Association International Marketing, the US now looks set to hold a joint trade mission with growers from South America.

The mission would be held from Dec 8-17 this year. The partnership would allow them to open up new markets, felt United Soybean Board chairman Curt Raasch. A soy producer from Iowa believed soy farmers from the US, Brazil, Paraguay and Argentina would now be travelling to India to get a first hand report of what the US soy checkoff has been doing to promote soy in India.

Considering India's growing population, soon to surpass China, per capita consumption of soybean meal is less than one-tenth than that of China. Reverse marketing strategies could result in significant growth for soy farmers.

A close cooperation with US and South America would help India in dealing with issues like non-tariff barriers, phytosanitary issues, chemical residue limits and excessive duties on soy products, said American Soybean Association chairman Bob Metz. The aim of the partnership would be to open a global market for soy.

Incidentally, South America would gain from this partnership by exploring opportunities for its own market development activities in India. Exports for South America are as important as for the US. South America therefore, also looks forward to reverse-marketing efforts in India by funding activities like feed technology workshops, marketing support, soyfoods training programs and others.

Grower agreements for joint activities have already been signed between the US Soybean Export Council and grower organisations in Paraguay and Argentina.

The fact that China, which once used to be a net exporter of soy has recently become the largest importer of US soy, thanks to reverse marketing efforts by US soy farmers has proved to be morale booster for the US.