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BUY DIRECT Iowa cooperative ready to directly sell soybeans worldwide BY MATTHEW WILDE
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owa’s largest cooperative is working to directly export soybeans and other commodities to customers overseas. Landus Cooperative officials hope it will boost demand for Iowa-grown ag products, which will increase revenue. That will likely mean higher prices for area farmers and increased patronage for members. The Ames-based co-op, with more than 60 locations throughout the state, has access to an export terminal on the Gulf of Mexico. The goal is to become the first farmerowned elevator in the state to offload trains full of soybeans, soybean meal or other ag products onto ships for direct export sale. Ron DeJongh, Landus Cooperative chief commodity marketing officer,
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attended the 2018 U.S. Soybean Regional Trade Exchange in Barcelona, Spain, late last year to drum up new export business. He informed soybean buyers from major feed mills and crushers in Europe, the Middle East and North Africa about the cooperative’s ample soy supplies and potential shipping capabilities. “All the uncertainty with China right now creates opportunities to create new supply chains,” DeJongh says. “Europe, Northern Africa and the Middle East are excellent, growing markets.” Indeed, they are. U.S. soybean and soybean meal exports to the regions are up 210 percent and 17 percent, respectively, as of mid-December since the
marketing year began, according to the U.S. Soybean Export Council (USSEC). This equals about 140 million bushels of additional soybean sales compared to last year. The surge is due to changing supply and demand dynamics and cheaper U.S. soy compared to South American competitors due to the U.S.-China trade war. USSEC and industry officials predict U.S. soybean sales to Europe alone could possibly double to 13 million metric tons (478 million bushels) this year. Meal sales could almost double as well at 1.6 million metric tons. Combine that with a trade truce with China and U.S. soy shipments resuming to the world’s largest buyer, DeJongh is excited about the future.
