April 15, 2014

Livestock production in EU boosts US soymeal exports

Although the market share of US soy in the EU has declined over the last 30 years, US soymeal exports to the region grew stronger in 2013 and currently make up 13% of total US soymeal exports.

The increase in imports of soymeal is driven by EU's livestock production. Also contributing to the jump in soy exports was shipment delays encountered by Brazil during their harvest season beginning in March, which led to increased shipping costs for Brazilian farmers and made US soymeal the more affordable option. Even after those shipping costs eased, importers had already committed US soy to Spain, Italy, France and other countries.

"The EU's swine and poultry sectors make it an excellent export market," says Scott Singlestad, vice chairman of the United Soybean Board's Meal Action Team and farmer from Waseca, Minneapolis. "Supplying soybean meal to European customers provides a major destination that drives US soy demand and helps keep the US soy crushing industry strong."