Indiana soybean, corn checkoffs developing new global markets

Indiana soybean, corn checkoffs developing new global markets

BY DAVE BLOWER JR.

The process of farming corn, soybeans and other commodities is often seasonal. There is a season for planting, a season for cultivating and a season for harvesting – among others. Often these seasons are determined by the weather or timing.

Marketing those commodities, though, is more about relationships. Going to meet buyers around the world or hosting those buyers on an Indiana farm is often the final step in securing new customers for the soybeans and corn grown in this state. Taking the time to travel or preparing to host a foreign trade group is usually profitable and worth the time and effort.

In recent months, Indiana corn and soybean checkoff staff and farmer-leaders have traveled to Asia and South America to create new markets. Indiana Soybean Alliance (ISA) board member Mike Koehne, a farmer from Greensburg, Ind., took time out of harvest to meet potential trade partners in Vietnam and Thailand. At about the same time, Indiana Corn Marketing Council (ICMC) board member Tim Gauck, also a farmer from Greensburg, Ind., hosted trade teams from Vietnam.

ICMC board member Tim Gauck, a farmer from Greensburg, Ind., hosted a group of Vietnamese grain buyers this fall.

“If you don’t go anywhere or if you don’t meet anyone from anywhere else, then the world can seem like a small place,” Gauck said. “When you meet people from other places, you tend to see the world through their eyes. That gives you a new perspective. It changes the way you see your own farm. We love to share what we do with foreign visitors –we’re proud of the work we do. But we also learn a lot from our visitors. Relationships and breaking down obstacles are essential to creating new markets.”

In mid-October, ICMC board member David Ring, a farmer from rural Dubois County, Ind., hosted farmers from Mexico who were interested in seeing his turkey production facilities as well as his row crops. “The language barrier is something that is quickly overcome,” Ring said. “The bottom line is sharing what we know with people who are interested in learning.”

ICMC board member David Ring, a farmer from Huntingburg, Ind., hosted a group of grain buyers from Mexico in October.

Going to Southeast Asia

Rainy September weather, which delayed harvest, made the trade mission to Southeast Asia easier for Koehne. From Sept. 17-25, he was among a group of Indiana farmers who visited Thailand and Vietnam to participate in a variety of meetings and events that ICMC and ISA fund.

“The delay to harvest made it easier for me to travel and connect with customers in Southeast Asia,” Koehne said. “This was a priceless opportunity to talk with customers, learn what they look for in soybeans and gain insight into how we as farmers can better meet those needs.”

In Bangkok, Thailand, the Hoosier farmers attended a joint conference hosted by the U.S. Soybean Export Council (USSEC) and the U.S. Grains Council (USGC) to meet grain buyers from throughout the region. Other farmers provided crop updates, and speakers described global demand, U.S. yield potential, ongoing supply chain issues and the challenges of rising input costs.

“In both Thailand and Vietnam, we visited with local officials from the USDA Foreign Ag Service (FAS) offices in those countries,” Koehne said. “During these meetings, we learned about needs and market trends in those specif ic countries, the Southeast Asia region and neighboring regions.”

The U.S. Meat Export Federation (USMEF), an organization committed to building global markets for U.S. meat products, coordinated the trip. “Livestock farmers rely on U.S. soybean meal to produce those products, so we work closely together,” Koehne added.

In Ho Chi Mihn City, Vietnam, ISA and USMEF sponsored a pork cooking contest for local chefs to show off a wide variety of creative ways to use U.S. pork in dishes appealing to Vietnamese customers. During a trip to a supermarket promoting U.S. pork, the Hoosier delegation learned that Vietnam has a growing demand for packaged meat, rather than relying solely on local live markets to purchase meat.

ISA Directors Mike Koehne and Denise Scarborough look at items imported from the United States at a grocery in Vietnam.

“I was amazed at how many (Vietnamese grain buyers) were interested in soy food beans from the U.S.,” Koehne said. “The market for the specialty soybeans I raise is growing, and that’s exciting.”

While at a Bunge soybean facility and port, the team saw where U.S. soybeans were unloaded from ocean ships for crushing. Soybean meal was then loaded onto barges that travel up Vietnam’s rivers to other areas of the country.

“A trip like this is well worth the time — even when it is scheduled right before harvest,” Koehne said. “We learn so much more by talking to actual end users. And, it means a lot to our customers when we show up and want to learn from them. I come back from these trips with information to share with other farmers that helps us all make better management decisions on our farms that allow us to better meet those needs. As I raise my soybeans, I will adjust my decision-making to raise a better product that they want to purchase.”

The Indiana trade delegation walks through an outdoor food market in Ho Chi Minh City, Vietnam.

Southeast Asia-U.S. ag conference

Food stability, security and sustainability were on the minds of more than 300 industry participants who gathered at Together in Trade, the 2022 Southeast Asia U.S. Agricultural Co-operators Conference in Bangkok, Thailand, in September. Jointly organized by USSEC and USGC, with support from the soy checkoff, the event tackled trade topics through conversations, panel discussions and networking.

Market prices for corn, soybeans and wheat remain a top concern. USSEC CEO Jim Sutter said COVID climate change and conflict largely contribute to volatility and price surges. He noted those factors are also setting the pace for sustainability and sustainable practices for global agriculture and agribusiness.

Sustainability was a recurring theme throughout, with the need for sustainability to underpin the future of food production and feed more people with fewer resources resonating across audiences.

As sustainability is becoming increasingly critical and a passport for businesses to operate, certifications have proven valuable in stemming the challenge of “greenwashing.” Certifications provide consumers with greater confidence that the products they are consuming are truly contributing to the sustainable development of the planet.

While sustainability remains crucial, the value of addressing nuances related to starting sustainable farming practices was also discussed. Dr. Scott Hutchins, Sustainability and Value Creation Consultant for ICMC and ISA, said economic sustainability must be clear when considering new practices.

“Farmers can’t think green if they’re in the red,” Hutchins said. “We have to make sure it’s viable for both the small and large farms, and ensure we design these systems to be more efficient and effective.”