SSGA joins India Soyfood Association, USSEC in new plan to cooperate

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With its rapidly growing economy and a population roughly the same as China’s, India represents a market of tremendous potential for U.S. Identity Preserved soya. One pillar of SSGA’s India strategy is to develop cooperative relationships with Indian soya food processors already familiar with the unsurpassed quality and consistency of our products.   

Toward that end, representatives of the Specialty Soya and Grains Alliance (SSGA)  met with the board of directors of the India Soy Food Processors Welfare Association (SFPWA) on April 26, to discuss business challenges in both countries. 

The meeting was hosted by U.S. Soybean Export Council (USSEC) regional director Kevin Roepke. SSGA Chair Bob Sinner, SB&B Foods, and Vice-Chair Rob Prather, Global Processing, were in attendance. 

In the days that followed, SSGA, USSEC and SFPWA agreed to and signed a memorandum of understanding, pledging to support each other and work toward achieving the collective goals of Indian and U.S. businesses.  

The collaboration will better enable all three groups to correspond and work to update the consumption and utilization of soyfoods in India. In remarks, Sinner said, “Right now what we can trade is information, and let’s begin with that.”  

The groups will meet again in upcoming weeks to set a work plan and discuss activities.  

IP crop report

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Note: This is a new, monthly feature from SSGA’s agronomy action team, highlighting growing conditions from different regions around the country. To contribute or for more information, please email us at dkee@agmgmtsolutions.com. 

Michigan
The past two weeks have been abnormally warm in many parts of Michigan. This fact, combined with drier–than–normal soil conditions, has allowed some farmers to get a start on planting soybeans. Most growers who have planted soybeans have been planting small fields or small areas as their confidence in the weather for the next 30 days can be described as cautious. One weather station in southern Michigan has reported soil temperatures above 50 degrees (at 2-inch depth) for 16 of the past 18 days, while other stations in central Michigan have reported three to five days above 50 degrees with most of those occurring after April 6. Because of good planting conditions and warm soil, germination and shoot elongation have been progressing in early planted fields. 

The planted soybeans are the exception as the vast majority of the expected 2.25 million acres to be grown in Michigan are not planted. There is a lot of activity in farm equipment preparation, seed delivery, fertilizer applications and some early tillage, as weather and field conditions have allowed.  There is a general optimism among growers and the field crops industry to start this growing season. 

Minnesota
Minnesota is dry, as 85% of the state is rated abnormally dry (D0) to severe drought (D2). A small section (0.11%) of the state in the northwest corner (Kittson County) is rated extreme drought (D3). Drought appears more severe in western Minnesota, compared to the east side of the state. The dry conditions are allowing growers’ time to finish manure applications and complete tillage operations. Soil temperatures (4–inch depth) are increasing with highs ranging in the upper 30s for Crookston to the lower 60s at Waseca. Mid- to late last week (April 7-10,) 0.5 to 2.0 inches of rain was reported by farmers, with snow in the forecast for the northwestern portion of the state. Farmers are still cautiously optimistic for an early planting season; several have started planting small grains.  

Missouri
Two weeks in February brought a harsher–than–normal winter in Missouri, averaging 20 degrees below normal, which equated to a state temperature average of 10.2 degrees, according to the Missouri Climate Center. Missouri finally experienced some above–normal temperatures in early April, and corn planting got off to a good start. Soft red winter wheat planting last fall was up considerably from the previous year – 650,000 acres, compared to 480,000 acres. The wheat crop survived the extreme winter cold temperatures very well, as there was adequate snow cover during the coldest periods. The largest areas of wheat in Missouri are in the southeast, southwest and central portions of the state. Wheat is generally in good condition, with no particular disease concerns at this time. 

The USDA has Missouri predicted for 3.4 million acres of corn and 5.8 million acres of soybeans. The USDA projection is steady for both major crops in Missouri. Soybean planting for 2021 will be underway soon. Many producers across the state are planting an earlier soybean crop, which is trending to what we’re seeing across the Midwest.

SSGA, WISHH meet to discuss shared interests

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The executive committees of the Specialty Soya and Grains Alliance and the American Soybean Association’s World Initiative for Soy in Human Health (WISHH) met on Monday, March 20, on Zoom to discuss joint projects and their shared interests in promoting human nutrition and intermodal transport.  

The two groups were joined by ASA CEO Steve Censky, ASA/WISHH Executive Director Liz Hare and SSGA Executive Director Eric Wenberg. 

SSGA has been supporting WISHH, providing data for various projects. SSGA also has much to learn from WISHH about how it is promoting new business strategies and using online collaboration tools in its market promotions. 

SSGA Chair Bob Sinner noted connecting WISHH’s work to business is an area he wants to support. 

“SSGA and WISHH had a good meeting to discuss opportunities to collaborate and work together,” said Sinner of North Dakota-based SB&B Foods. “WISHH has done an excellent job defining its soybean industry lane, creating activities and realizing meaningful successes. We are impressed with their work. In many ways, there are a lot of synergies in what we are each doing to create demand in a specific segment approach, while at the same time, appreciating the importance of strategic partnerships to grow our industry. I really liked the attitude and willingness to continue our dialogue.” 

WISHH Chair Gerry Hayden of Kentucky has devoted years and boundless energy to supporting soy exports through WISHH and was interested in developing further alliance partnerships.  

“New and innovative strategic partnerships both at home and abroad are a key part of WISHH’s new strategic plan,” Hayden said. “I’m so pleased with our dialogue with SSGA and look forward to building more new markets for U.S. soy together.” 

The two groups discussed the current crisis in intermodal shipping that U.S. companies are facing and how that impacts moving container shipments abroad.  

SSGA Vice-Chair Rob Prather of Iowa-based Global Processing stressed that we must continue expanding educational offerings to our customers and partners, focusing first on the Chicago Board of Trade (CBOT) as it relates to pricing levels and purchase timing. 

WISHH is doing that through its business mentorships. WISHH is also seeking more input and support about how to break down buyers’ resistance to making first-time purchases of U.S. soy. 

“Collaboration between WISHH and SSGA collaboration combines shared directives,” Prather said, “and I’m excited to see where the opportunities lead.” 

SSGA presents to Soy Excellence Center

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Invited by the U.S. Soybean Export Council (USSEC) as the experts in Identity Preserved field crops, the Specialty Soya and Grains Alliance (SSGA) presented at the Asia Soy Excellence Center’s Soy Food and Beverage Basic Course on March 16.  

During a session titled “Fundamental of Soybeans, Supply & Soy Derivatives for Food Application,” SSGA Executive Director Eric Wenberg introduced SSGA and its mission to more than 60 students representing importing companies across southeast Asian countries. The presentation provided a full picture of production, harvesting, processing, storage, certification and transportation of U.S. Identity Preserved soya and specialty grains in order to enhance the audience’s understanding of the U.S. IP system and help in their purchasing decisions. 

Wenberg’s presentation included a video, provided by SSGA member Global Processing, that highlighted the complete IP production process and concluded with a Q&A.

The session concluded with many thoughtful questions by students which Eric competently addressed them. 

The Asia Soy Excellence Center for Food Protein initiated in Singapore is USSEC’s first Soy Excellence Center dedicated to the advancement of soy-based foods and beverages for human consumption. It’s objectives include: building awareness of the benefits of soy through education, promoting strategic partnerships and serving as a resource point for the latest soy information. 

SSGA ‘IP B2B’ Philippines event kicks off

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The Philippines moved up the charts in 2020, rising to No. 8 in U.S. export value, Morgan Haas, agricultural counselor at the U.S. Embassy in Manila, told attendees of the Specialty Soya and Grains Alliance’s (SSGA) U.S. Identity-Preserved Soya and Specialty Grains Virtual Seminar, which began Monday evening (Tuesday morning, Philippines time).

Haas said during his opening remarks that U.S. ag exports to the Philippines set a record, totaling $3.2 billion in 2020.

“It’s an important market and a growing market, and it’s growing more and more,” Haas told the group of U.S. IP soya and specialty grains exporters and Philippines food manufactures. Representatives of those companies will be meeting individually later today (Tuesday, Wednesday in the Philippines) in a new SSGA business-to-business event called “IP B2B,” as part of the seminar.

According to Haas, the only country that gained more in U.S. ag export value than the Philippines in 2020 was China.

Following Haas was SSGA Chair Bob Sinner, president of SB&B Foods, who spoke about the IP process U.S. producers, processors and shippers go through. Sinner called U.S. IP “the gold standard of supply.”

“These are specific varieties for specific food use,” Sinner explained, “with full transparency and traceability as they follow the entire value chain.”

Timothy Loh, U.S. Soybean Export Council regional director for Southeast Asia, presented on sustainability initiatives, including the U.S. Soy Sustainability Assurance Protocol, which assures buyers that guidelines have been followed for responsible farming.

Manuel Sanchez, U.S. Grains Council regional director for Southeast Asia, gave a U.S. corn harvest quality report, stressing that the Philippines are a top-five country for U.S. corn exports.

The final speaker was Adam Sackett, director of sales operations and business development for Insta-Pro International, who gave a presentation on extrusion technologies.

The program was moderated by Hoa Huynh, SSGA technical adviser for Southeast Asia, and SSGA Executive Director Eric Wenberg delivered the closing comments.

Day 2, which takes place 7-9 p.m. CST Tuesday (09:00-11:00 PHT Wednesday) will feature the IP B2B meetings, following a report on the Philippines market from Ryan Bedford, agricultural attaché from USDA Foreign Agricultural Service-Manila.

There also will be presentations for attendees not participating in the IP B2B, including Chrissy Harris of Rabbit/broadhead on SSGA’s U.S. IP branding project, Ingrid Rix of Spire Research and Consulting on research conducted for SSGA on the Philippines market for IP field crops and Brian Sorenson of Northern Crops Institute on NCI’s upcoming educational courses.

Demand for traceable products keeps growing

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Demand continues to grow for traceable products such as identity-preserved field crops, and that growth brings some challenges now and for the future, says Lee Steinhauer, SSGA Market Development Project Manager.

Earlier this month, Steinhauer attended a virtual webinar by the Institute of Food Technologists entitled “Traceability in the Age of Supply Chain Digitization.”

Steinhauer reports that the primary goals for food traceability are food safety, improved public health, and better FDA response times.

One of the main topics was on the increased demand for traceable products. A lot of this focus is currently on aquaculture, but demand is quickly being required for all commodities, especially specialty grains. Some countries and products are requiring increased regulation and rules related to traceability information.

The biggest challenges at this time include the inconsistent regulatory landscape, the money required for hardware and software to be effective, and incompatible software that prevents the sharing or exchanging of data throughout the globe. It is projected there will be significant changes over the next 12-36 months with increased regulation and implantation on food traceability.

“I was a grain merchandiser and can definitely see the importance and challenges with food traceability,” Steinhauer said. “Logistics are a major part of farm to fork, and being able to trace those products adds value and confidence in the product to the end user. Transportation delays or damaged equipment can cause the quality of food and products to be compromised. With traceability implementation this could be monitored by buyers and sellers, as well as verifiable origination. To make this achievable, there would need to software that is compatible on a global level and have a level of simplicity to use.”

SSGA members could benefit from Ag Innovation Campus

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A first-of-its-kind crush facility under construction in northwest Minnesota could be a boon to the identity-preserved soya and specialty grains industry.

Ground was broken for the Ag Innovation Campus in late October, a 67,000-square-foot complex that will serve as a hub for the next generation of value-added processing. That could include identity-preserved (IP) field crops. The Campus, which will be located in Crookston, Minn., is on an ambitious schedule to begin production in late 2021.

Ag Innovation Campus (AIC) officials say Specialty Soya and Grains Alliance members could use the facility to process IP soybeans and specialty grains or to develop specific products for their farms and companies to offer.

“There are opportunities that this facility can bring the IP industry,” said Tom Slunecka, CEO of the Minnesota Soybean Research & Promotion Council, one of the AIC’s three founding members, along with the Minnesota Soybean Growers Association and the Agriculture Utilization Research Institute. “The plant will serve as an incubator for agricultural innovation, with a goal to foster new and novel products.”

The Ag Innovation Campus will feature a specialty crushing facility that will allow public and private ag groups, such as commodity organizations, universities and seed developers, access to affordable processing that aims to lower costs while promoting growth of value-added products.

The aim is for the AIC to produce about 64,000 tons of soybean meal per year (240 tons per day), crushing approximately 28,000 bushels of soybeans per day. That adds up to 2.5 million bushels a year. The 15,600-square-foot crush facility will support three separate crushing lines that can be operated all on organic, non-GMO or GMO soybeans as well as separately for different types of soybeans, such as the premium IP specialty crops contracted to food manufacturers in the U.S. and abroad.

Each line can be completely cleaned to avoid cross contamination with other lines, allowing for the segregation and full traceability that U.S. IP producers take so much care to ensure. The AIC will also set aside time for processing small quantities of “research” soybeans.

“Having a facility that’s larger than just a testing crusher but smaller than building one’s own facility – if you run a small- to medium-sized business – can be very beneficial to IP growers and processors,” SSGA Executive Director Eric Wenberg said, “especially those located in the Red River Valley region, which is home to one of the largest supplies of food soya in the world.”

In 2018, the Minnesota Soybean Research & Promotion Council invested checkoff funds in a feasibility study to support a regional soybean crush and research facility in northwest Minnesota.

In 2019, the Minnesota Legislature approved $5 million in state funding toward the AIC in a bipartisan omnibus agriculture finance bill signed by Gov. Tim Walz. Funds were released to the AIC in September of 2020, and the official groundbreaking took place in a ceremony on the AIC’s 10-acre site on Oct. 28.

Walz, who attended the groundbreaking, called the AIC “bold,” adding, “There’s no place in the world that has something like this.”

Once fully in operation, the AIC is projected to support 60 jobs and feature state-of-the-art laboratory and classroom space for hands-on agriculture production and technology training, and it will be open for tours with a biosafe observatory from which visitors can see processing in real time.

“There will be a lot of synergy that will come out of this facility,” AIC Project Manager Jim Lambert said. “(The AIC) is really more of an agricultural business incubator than anything. … There are a lot of good things going on here.”

SSGA Chair Bob Sinner presents at Asia Soy Excellence Summit

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Specialty Soya and Grains Alliance (SSGA) growers and exporters listen to their customers and ultimately provide them with the specific varieties they need for their food products, Bob Sinner explained during  the U.S. Soybean Export Council’s (USSEC) inaugural Asia Soy Excellence Summit.

“The decision is yours, not ours,” said Sinner, SSGA chair and president of SB&B Foods. “Our responsibility Is to listen and to provide you options.”

Sinner represented SSGA and its member companies, presenting during the virtual event, which was the launch of the U.S. Soy Excellence Centre in Singapore. The audience included around 60 invited guests from several Asian countries – key stakeholders from the soy food and soy beverage industry.

“At the end of the day, it’s all about the customer,” he said, “understanding what each food manufacturer wants in a variety.”

After an introduction from Hoa Huynh, SSGA I.P. technical adviser for Southeast Asia, Sinner explained how SSGA members work to meet customers’ needs throughout the I.P. process, including: research and testing, forward contracting, storage and shipping. He touched on challenges, such as the current container shipping crisis and urged the audience to plan ahead with suppliers to minimize the impact of those logistical issues. He also discussed opportunities such as the I.P. branding program that SSGA is undertaking.

Sinner praised the work being done on the Soy Excellence Centre, saying it “can be the vehicle to improve information exchanged between suppliers and buyers.”

Other avenues to improve that exchange of information, Sinner said, include Northern Crops Institute’s Soy Procurement Course for importers, which is scheduled to take place in October, and the U.S. Soyfood Variety Database.

Prior to Sinner’s presentation, Will McNair, USSEC’s director of oil and human protein, discussed the database as part of his talk on quality and sustainability. The database is a project led by several U.S. stakeholders, including USSEC and SSGA, and will act as a “catalogue” of soya varieties. It is scheduled to go live in 2021.

Following their talks, Sinner, McNair and presenters on consumer trends, nutrition and health, beverage processing, and innovation, participated in a Q&A panel discussion.

SSGA encourages all its members to take part in events such as this, as well as our organization’s own live and virtual events designed to educate the public, including potential buyers, about the I.P. system and industry. Members interested being presenters and sharing their expertise and experience can find more information as well as a short survey here.

 

SSGA featured on Philippines online food directory

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The Specialty Soya and Grains Alliance (SSGA) is part of Great American Taste PH, an online directory of virtual stores and supermarkets that showcase U.S. foods, beverages and ingredients in the Philippines.

The directory, compiled by the U.S. Department of Agriculture Foreign Agricultural Service in Manila, includes several downloadable recipes and includes a Facebook page to promote sponsors and participants.

SSGA’s recipe entry includes the videos it made with chef David Bonom for the U.S. Soy Global Trade Exchange & Specialty Grains Conference. The dishes, all influenced by soy, included coconut shrimp with mango ketchup, harissa apricot pork chops, honey miso tofu stir fry and lemon rosemary spatchcock chicken.

Study shows food-grade soybean acreage on the rise

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In 2020, U.S. producers grew 2.6 million acres of non-GMO food-grade soybeans. That represented an increase of 7% from 2019, according to a USSEC study.

The Non-GMO Food-Grade Soybeans Quantification Study was based on information collected from 101 non-GMO producers – as well as purchasers, exporters, state associations and other sources – in August and September. According to USSEC, the purpose was to update the organization about the number of acres currently produced in the United States, end use and destination and trends that impact identity-preserved (IP) production.

According to the study, U.S. soybeans were farmed on 83.8 million acres in 2020. Five million of those acres were devoted to non-GMO soybeans, and 52% of those acres were food grade, a slight drop from 2019. It was as high as 66% in 2015.

However, more growers – 19% of respondents — reported that they plan to increase, rather than decrease, their non-GMO food-grade acreage going forward. Fifty percent planned to grow the same amount, and another 19% were undecided.

Non-GMO soybean yields have increased by 2.8% annually since 2015 with a 56.9 bushels-per-acre-average expected in 2020.

Premiums are also expected to be on the rise in 2021, according to the study.

Eighty-seven percent of non-GMO food-grade soybeans are exported to other countries, with 47% used for tofu, 18% for soymilk, 14% for natto and 9% for miso.

Please see more information from USSEC, which can be found here.