Soy Demand is Growing All Over

Not just China, but the Middle East, North Africa, Southeast Asia and Latin America are demanding more soybeans

Growth in demand for U.S. soybeans outpaces that of other major U.S. field crops, and the market promises to only get bigger. Some say the world will have to produce additional soybeans equivalent to the current production of Brazil, Paraguay and Uruguay combined, just to keep up.

Global Demand Growing Fast
The soybean sector continues to enjoy by far the fastest global demand growth of major U.S. field crops. Global demand for soybeans has increased by 145 percent since the 1990/91 marketing year. That compares with about 76 percent for corn, 35 percent for cotton, 31 percent for rice, and 21 percent for wheat. It is important to note that it has been market-driven, global demand for animal proteins and vegetable oil for food that have driven soybean demand.

Indian Demand for Soy Meal and Soyoil Beginning to Rise Rapidly
After years of stagnation it appears India’s consumption of soy meal and soyoil are beginning to increase rapidly. India’s consumption of soy meal is forecasted to be 238 percent higher in 2010/11 than in 2006/07 and its consumption of vegetable oils is forecasted to be up by 43 percent in the same period. The result has been a sharp decrease in Indian soy meal exports and in India’s vegetable oil imports.

Demand Growing Not Just in China and India
Soy demand also has grown sharply in the Middle East, North Africa, Southeast Asia, and Latin America. People around the world are increasingly capable of affording more animal protein and vegetable oil in their diets. The global population also is growing. This all has been good for soy demand.

Future Population Growth Will Mean Big Increase in Soy Demand
The next decade will see a huge increase in the global population. India is expected to add 153 million people to its population in a decade and China is expected to add more than 54 million. Other countries forecasted to add large numbers to their population include Ethiopia (32.4 million), Nigeria (30.1 million), Pakistan (27 million), Congo (24.7 million), Indonesia (24.6 million), Bangladesh (22.7 million) and Brazil (21.5 million).

Global Annual Demand for Soybeans to Grow by 70 to 80 Million Metric Tons in a Decade
Based on the rate of growth in global demand over the last 20 years, the world is projected to consume 70 to 80 million metric tons of additional soybeans annually over the next 10 years. That means the world in a decade must somehow produce an additional amount of soybeans equivalent to the current production of Brazil, Paraguay, and Uruguay combined. A lot of that likely will come through higher yields, but a lot also will need to come from additional land planted to soybeans. That means great opportunities for U.S. soybean farmers, processors, and exporters in the future.