February 7, 2024

 

Total US soy exports add US$39.8 billion to US economy in marketing year 2022/23

 

US soy complex exports (whole soybean, soybean meal and soybean oil) added US$39.8 billion to the United States' economy in marketing year (MY) 2022/23 on a volume of 67.6 million metric tonnes (MMT), the United Soybean Board (USB) announced.

 

US soybean meal exports broke records for both volume and value at 13.2MMT and US$6.91 billion, respectively.

 

"US soy exports in marketing year 22/23 were nothing short of extraordinary. A standout achievement was the record-breaking performance of soybean meal exports, reaching unprecedented volume and value levels," said Steve Reinhard, United Soybean Board's chair. "As we strive to meet the growing international demand and address global food security challenges, sustainability remains at the forefront of our mission, ensuring that our products nourish and uphold environmental responsibility. With a commitment to innovation and sustainability, US soy continues to lead as a global force in agriculture, providing quality, reliability and a vision for a better tomorrow."

 

While US processors increased domestic soybean crush capacity, soybean meal has been at the forefront of many conversations. Increased demand in the last five years from both Colombia and Ecuador boosted US soybean meal exports by 15% and 36% respectively above their five-year averages. Meanwhile, increased volume and higher prices saw US soybean meal exports increase in value by 39% over the five-year average from MY 2017/18 to MY 2021/22.

 

"As we look out 10 years, soybean production is forecast to follow the rising productivity curve, continuing to increase on the same amount of land as new innovations, technologies and improved plant varieties become available to US soy farmers," said Jim Sutter, chief executive officer of the US Soybean Export Council (USSEC). "This will allow the US soy industry to continue to meet the need of international (excluding US) whole soybean export demand and US domestic soybean crush demand."

 

The top five markets by volume for US soybean meal exports in MY 2022/23 were Philippines (2.15MMT), Mexico (1.66MMT), Colombia (1.45MMT), Canada (1.2MMT) and the European Union (0.816MMT) with Ecuador, Venezuela and Guatemala following closely.

 

Despite persistent global challenges to international business, the volume of US whole soybean exports at 54.2MMT kept pace with the previous five-year average of 54.4MMT.

 

"The consistency of whole soybean demand is impressive given the challenges our international food, feed and retail customers continue to face," Sutter indicated. "I believe it is in recognition of the superior value of US soy, including its optimal nutritional bundle and refining value, lowest carbon footprint, low damage and reliability — all of which help our customers deliver high quality food and feed products, while improving their bottom lines and advancing sustainability."

 

Following US investment and demand for sustainable aviation fuel and other renewable fuels, US soybean oil exports dipped 82% from the five-year average to 171,500MT.

 

"This was not a surprise and reflects the investment in renewable fuels we see increasing in the United States," said Sutter.

 

Josh Gackle, American Soybean Association's president, noted the importance of the groundwork done in the US to cultivate international demand, saying: "Our industry has created a robust and well-oiled network for collaboration among our national soybean associations to create, develop and protect international markets for US beans, meal and oil. For us at the American Soybean Association, that means protecting trade and market development interests from a policy perspective, and then we have the similarly vital roles of the United Soybean Board and US Soybean Export Council in spearheading the actual development of those markets, ensuring the quality and reputation of our products is known, and continuing to pursue pathways whereby our farmers can efficiently get US soy into those global markets and meet the increasing level of international demand."

 

Looking at the total US soy complex, the top five markets during MY 2022/23 were China (31MMT), Mexico (6.6MMT), the EU (6.4MMT), Japan (2.7MMT) and the Philippines (2.3MMT).

 

A market that saw significant growth from the previous marketing year was Vietnam with total US soy complex imports up 40% at 1MMT. Markets demonstrating moderate growth year over year are the EU (15%), Indonesia (9%), South Korea (7%) and China (5%). Morocco, Philippines and Ecuador were also up slightly.

 

With export volumes keeping pace with the previous five-year average, higher prices drove an increase in value of the US soy complex exports which were 35.9% above the previous five-year average (2018/19 to 2022/23).

 

"The US soy export value chain is the best in the world. Our ability to meet the needs of consumers, companies and countries around the world due to our expansive and robust infrastructure and logistics despite challenges, has been proven time and time again," Sutter said. "The US export infrastructure has some valuable options which in times of challenge give us reliable flexibility. The US' ability to utilise a multi-modal approach allows for agility when necessary. US Soy delivers whether it be by bulk vessel, rail, or container – US East, West of Gulf Coasts, the Great Lakes, or the Pacific Northwest corridor so we can meet our customers' needs."

 

- USB