Soy and grain industry leaders gather for U.S. SOY Global Trade Exchange and Specialty Grains Conference

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Last week, over 800 soy and grain industry leaders, buyers and suppliers from 53 countries gathered in Chicago for the U.S. SOY Global Trade Exchange and Specialty Grains Conference (GTE). The event was co-hosted by the U.S. Soybean Export Council (USSEC) and Specialty Soya and Grains Alliance (SSGA).

With 52 trade show exhibitors, attendees were able to network and share ideas on how to move the industry forward.

“The trade show is a chance for us to meet new customers and discuss the quality and availability of products that are grown in the U.S.,” says Brandon Bickham, export sales manager for The DeLong Co., Inc.

Aside from the trade show, plenary sessions and breakout sessions allowed attendees to network and learn from experts in the soy and grain industry. Sessions were held on a variety of topics such as trade, crop production and supply, shipping, communications and more.

“We were honored to have USDA Under Secretary of Agriculture for Trade and Foreign Agricultural Affairs Ted McKinney address the crowd at GTE, says SSGA Executive Director Eric Wenberg. “McKinney and the other speakers at GTE presented critical topics being faced by those in the grain, soy and shipping industries. We have to export to survive and we need better agreements, faster.”

Pradnya Joshi, trade editor for Politico, led a conversation with Professor Mary Lovely from Syracuse University, on the future of trade. Lovely reported the need to stay positive on the current state of world trade.

“Traditionally, the United States has led the way in trying to make these trade agreements happen and maintain these open markets. We have taken our market access for granted,” Lovely said. “Policy has changed in all of those dimensions. There are large stakes at play and we need to focus on a positive outcome. If we get some decent policy, there is no reason why this trade expansion shouldn’t be robust. A recent survey shows that 62 percent of Americans support free trade and we need to keep educating about the benefits of working in trade with other countries.”

Breakout sessions included a panel presentation featuring four U.S. food soya exporters about the 2019 crop production outlook. Panel members included Sheila Sauve, Healthy Food Ingredients, Chase Holoubek, Scoular, Austin DeLong, The DeLong Co., Inc.; and Michael Youmans from Clarkson Grain Company. Gary Williams from United Grain Corp. moderated the panel.

Although they represent four different soybean-growing regions, panel members presented very similar outlooks.

“Overall, soybeans in the U.S. faced early rain and late planting, which led to many acres of Prevented Plant,” Holoubek says. “This year, September will likely be the most important month for the growing soy crop. Typically August is the most important.”

Another breakout session featured panel members from three major container shippers: Cameron Bowie, Hapag-Lloyd, Allen Clifford, Mediterranean Shipping Co. (MSC), and Paul Lesnefsky from Ocean Network Express (ONE). The panel discussed current trends and challenges in the global container shipping industry.

Bruce Abbe, SSGA Strategic Advisor for Trade and Transportation, moderated the panel.

“Global container shipping, like U.S. agriculture, is feeling the sharp impact of the trade war between China and the U.S. The normal trade lanes of imports bringing in manufactured products from China, and ag exports back from the U.S. are undergoing change,” Abbe sai. “We heard about the logistics challenges the shipping lines face needing to reposition empty equipment back to China from our new target markets in other countries.”

Shippers in the audience also heard more about the upcoming cost increases coming starting next year with the International Maritime Organization’s worldwide mandated use of low sulfur fuels or other pollution preventing technologies. MSC’s Allen Clifford called out the need for investment in the whole transportation infrastructure, “without more infrastructure at every level, trade will be something harder and harder for America.”

“Chicago is the inland center for container shipping in the U.S., and we were privileged to have a panel of very high level carrier leaders who are well informed about the trends underway,” added Abbe. “SSGA staff also invested time conferring with them separate from the conference session on some potential new developments for expanding intermodal shipping in the Midwest that hold promise.”

Going together: ATP funds start working for soya and specialty grains

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By Eric Wenberg

I have three big developments to write about on the export market promotion front. As previously reported, the Specialty Soya and Grains Alliance (SSGA) signed an agreement to use Agricultural Trade Promotion (ATP) funds with the U.S. Soybean Export Council (USSEC), per request by the Foreign Agricultural Service (FAS) and U.S. Department of Agriculture (USDA) in its award. July 19 was a big day, with a fair and equitable deal made to use USDA’s funds collaboratively with back office support from USSEC. That is a benefit we are pleased with. USSEC has an excellent compliance and regulatory record with USDA that we benefit and learn from. If we use ATP funds poorly, or make a mistake, we have to pay it back. This minimizes our risk and maximizes our learning opportunity. As they say in Africa: If you want to go fast, go alone. If you want to go far, go together. I think that’s true in this case.

Secondly, along with the soy industry associations, I met with USDA and FAS officials on July 23 in Washington, D.C. At that meeting  Mark Slupek, FAS Deputy Administrator, Office of Trade Programs, explained that the ATP funds were the first budget increases to the export market development program since 2006, and they had effectively even been cut since then due to budget sequestration. That’s when Congress cuts funds they already authorized. Thus, it’s important for SSGA to document and write about our successes. Rest assured, we will. Soon after, USDA, USSEC, and SSGA agreed on an additional allocation from FAS, increasing our ATP funding from $1.5 million to $2.0 million. We were invited to request additional funding next year based on our use of the funding. SSGA was also invited to join USSEC for $300,000 in additional funding to make joint strategy and activities to open the market in India. I have had several conversations and shared some work with USSEC’s operations professionals. As I’ve stated before, I am excited to work with them.

This all points to having the financing to achieve our aims to be a leading voice in identity-preserved (IP) field crops. We are happy to work through and with the groups making this a priority. At present, we are writing some Requests for Proposal (RFPs) regarding the digital IP marketplace project and working to get those funded for contractors. The action teams are making other plans for our projects abroad.

We will continue to keep our members engaged and updated on the latest SSGA news.

Hang Tung Resources supports U.S. soybean industry with GTE sponsorship

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Hang Tung Resources (USA) Co., a U.S. commodity trading company located in the Chicago area, is a new sponsor of the 2019 U.S. SOY Global Trade Exchange & Specialty Grains Conference (GTE).

Hang Tung Resources started in the 1960s doing textile trading in Asian destinations and officially registered in 1984. The company is made up of four areas: real estate, investment funds, agricultural processing and commodity trading. The company has had its U.S. location since 2014, focusing primarily on trading agricultural products such as cotton, oilseeds and grain.

“Hang Tung opened its trading headquarters in Chicago not only to be close to the global futures pricing center, the Chicago Board of Trade, but also to be in the heartland of one of the world’s largest crop production regions and transportation hubs,” says Chen Ding, merchandiser at Hang Tung. “This allows us to understand the crop status, ensure product quality, and establish connections between the origins and destinations of these products.”

With GTE being held in Chicago this year, Hang Tung employees are looking forward to taking advantage of the global event being held right in their backyard.

“The Global Trade Exchange provides an opportunity for us to meet with potential customers from around the world,” Ding says. “Last year we had a trade show booth at the event and not only did we talk to many buyers, we made great connections in many of our targeted markets. There is high enthusiasm among our staff for the event again this year.”

Events like GTE provide an opportunity to meet many customers and take Hang Tung’s core values worldwide.

“Our goal is always to provide the best quality of product we’re providing in the most productive and efficient way,” Ding says. “We hope to grow with our customers and we take great pride in every step of the export chain that we participate in.”

Attendees can visit Hang Tung Resources in booth 1113 at the GTE trade show Aug. 20-22. To learn more about GTE and other event sponsors, visit www.grainconference.org.

North Dakota, Wisconsin Soybean Boards see value in sponsoring the 2019 GTE conference

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The U.S. SOY Global Trade Exchange and Specialty Grains Conference (GTE) is approaching quickly and it could not happen without the support it receives from other businesses, companies and organizations. Five U.S. Qualified State Soybean Boards (QSSBs) are supporting this year’s conference, including the North Dakota Soybean Council (NDSC) and Wisconsin Soybean Marketing Board. 

NDSC is one of this year’s platinum sponsors. They have been sponsoring the conference for over five years, ultimately seeing this conference as an opportunity for farmer leaders to meet with international customers and connect with exporters. 

“The networking opportunities that the GTE continues to provide year in and year out are vital to promoting the equality of U.S. soy,” says Austin Langley, NDSC vice chair and market development committee chair. “GTE is an opportunity to show how dedicated the U.S. soybean industry is to its customers on providing the best product in the world.”

The second QSSB sponsoring the conference is the Wisconsin Soybean Marketing Board, an original sponsor of the annual event, and currently a gold sponsor. 

“GTE is a very important program,” says Bob Karls of Wisconsin Soybean Marketing Board. “The Wisconsin Soybean Marketing Board feels it is an excellent opportunity to bring buyers and sellers together to showcase the U.S. soybean industry to our international customers.”

Visit www.grainconference.org to view the full list of sponsors.

Taking care of business: following SSGA merger, Sue Schmitt signs off

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Any writer will tell you: It helps to have a proofreader with a keen eye. For Bruce Abbe, Sue Schmitt was that person for the Midwest Shippers Association (MSA).

“I helped Bruce with his communications and looking at things from a member’s point of view so that we sounded right and we’re getting our point across,” she says. “Somebody once asked me if I was a teacher. I have a knack for finding grammatical errors.”

Schmitt recently departed her position as MSA’s executive assistant following a merger with the Northern Food Grade Soybean Association to form the Specialty Soya and Grains Alliance (SSGA). She was the company’s jack-of-all-trades for eight years, handling memberships, registrations and helping to grow and coordinate what is now known as the U.S. Soy Global Trade Exchange and Specialty Grains Conference.

“I was the number one contact,” she says. “When people called or sent an email, I was the first one they talked to. I liked talking with people, getting our goals across and taking care of business. There was never a dull a moment.”

Former MSA President and CEO Bruce Abbe says Schmitt was vital to helping to build the U.S. Soy Global Trade Exchange and Specialty Grains Conference, which began in 2002, into an international tradeshow. When Schmitt worked on her first Conference in 2011, only a few hundred buyers attended. The joint SSGA/USSEC Conference has now grown to around 800 attendees.

“Sue’s been a mainstay support provider for me for a number of years, in particular in work on the Conference,” says Abbe, a strategic advisor for trade and transportation with SSGA. “She had considerable experience in conference support and management when she first stepped in to help me out several years back, and stayed on.”

Schmitt says one of her favorite programs during her tenure at MSA was working with an advertising co-op program offered to members.

“That allowed them to advertise on more of a level than they could afford, or didn’t have the opportunity to show their information,” she says. “We really helped members who didn’t have large budgets.”

Prior to joining MSA, Schmitt says she didn’t fully appreciate the business instincts needed to excel in agriculture.

“Generally, people think Mr. Farmer is out just there growing crops and they take it to a grain elevator,” she says. “People don’t realize the entrepreneurial instincts of farmers. It was very informative and eye-opening.”

Schmitt isn’t retiring, but hopes to spend more time with her five grandchildren.

“My house needs to be cleaned, but I don’t want to do that,” she says, laughing. “I’m still keeping busy and wish everyone well with the new organization.”