January 12, 2007

USDA: Norway soy production falls; imports up

Due to harsh climate conditions, there is no domestic soybean production in Norway, says the US Department of Agriculture in its report.

Norway is, however, a significant crusher of soybeans. The sole soybean crusher in Scandinavia, Denofa, is a Norwegian company with a crushing capacity of 400,000 tonnes.

Denofa produces about 320,000 tonnes of soybean meal and about and 80,000 tonnes of soybean oil annually according to the USDA report.  Due to Norway's highly restrictive legislation on biotech food, feed and seed, the company is reduced to using non-GMO soybeans in its crushing plant. 

Prior to the entry of GM soybeans on the market in 1996, US exporters enjoyed a 60-80 percent market share in Norway.  Today, Denofa is using identity preserved (IP) conventional Brazilian soybeans. 

Norway's production of soybean meal at 320,000 tonnes by far exceeds domestic consumption.  Due to the country's relatively large exports of soybean meal, however, imports are needed to cover domestic demand.

Soybean meal is used as a protein source in livestock and salmon feed. 

The domestic use of soybean meal increased in 2006 as a result of increased salmon production.  Since there was no room for an increase in domestic production of soybean meal, this was reflected in higher imports and somewhat lower exports, says the agency report. 

During Jan-Oct 2006, Norwegian soybean meal imports increased by 27 percent to 86,000 tonnes.  Exports dropped by 5 percent during the same period to 132,000 tonnes. 

Norway's main export markets are Sweden and Denmark.  The country imports about 30,000 tonnes of soybean oil, most of which goes in the domestic market.

For the full USDA report, please click here.