Organic Outlook: Corn, wheat face supply glut; soy market expected to remain strong

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Larger-than-expected beginning stocks and more harvested acres have placed organic corn and wheat on a bearish trend over the 2019/20 market year, according to the new Mercaris Organic Commodity Outlook. Meanwhile, strong demand and lower imports have provided support to organic soybeans markets.

Mercaris, the nation’s leading market data service and online trading platform for organic, non-GMO and certified agricultural commodities, today released its spring outlook.

Despite poor planting and harvest conditions in 2019, additional certified corn and wheat farms helped push harvests above previous estimates. In addition, corn imports rose sharply at the end of the 2018/19 market year, 12% above projections.

“Feed-grade organic corn prices have experienced a lot of pressure since last August, as harvest exceeded the industry’s expectation,” said Ryan Koory, Director of Economics for Mercaris. “With buyers expecting tighter 2019/20 supplies, a lot of organic corn was imported and stored at the end of 2018/19 putting corn markets in a perpetually long supply position this year.”

For organic soybeans, a collapse in imports from China and a reduction from Canada and the Black Sea Region point to supply constraints and higher prices.

“With China and the Black Sea Region sending less organic soybean meal to the U.S., domestic organic soybean crush has picked up the slack, tightening the overall U.S. soybean supply situation,” Koory said. “We may see this pressure back off this fall if we experience a good organic soybean harvest. But, through the remainder of 2019/20 organic soybean prices look firmly supported.”

Additional findings from today’s report include:

  • U.S. organic corn production is estimated at 39.7 million bushels for 2019/20, up 9% from the previous outlook but still down 4% year-over-year.
  • Organic soybean production is estimated at 7.6 million bushels, also up 9% from the previous outlook, but down 4% year-over-year.
  • Organic feed demand is projected at 31 million bushels, with organic wheat and organic corn silage making up a growing percentage of overall feed.
  • Organic wheat production saw a 15% year-over-year increase in 2019 at 20 million bushels, driven mostly by an increase in acres in the High Plains.

Today’s report includes additional data and commentary on expected yields, use, prices and more for organic commodities. For more information and to purchase a copy of the report, visit Mercaris. There will be a webinar on April 30 at 10:30 a.m. CT to cover these findings for those who purchase the report.

For information about COVID-19-related risks to organic markets, a free Mercaris report is also available here.

Traceability: The IP advantage

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By Eugene Philhower

Eugene Philhower, SSGA Technical Adviser for Europe

In these days of polarization on just about every topic, there is at least one concept that those of us in the food and farming sectors should all agree upon — that traceability means “back to the farm.” As an identity-preserved (IP) technical adviser for the Specialty Soya and Grains Alliance (SSGA) covering Europe, one of my roles is to help enable increased exports by communicating about the benefits of IP crops and their traceability.

With the ever-increasing interest from consumers in the U.S. and Europe to “know where our food comes from,” the pressure is on every stop along the food value chain to provide “back-to-the-farm-level” information for more and more products, particularly for traditional bulk commodities like soy. If a food product cannot currently be traced back to the farm or farms from where the raw materials came from, it will be expected to do so in some form in the not too distant future.

Here in Europe, there is another factor that needs to be considered. The images of the burning rainforest in Brazil last fall have rallied governments, particularly in Northern Europe and the European Commission, to take visible action on deforestation. This is not new as environmental groups and organizations such as the Consumer Goods Forum have long called for decisive actions on deforestation. However, with broader and more governments actions, the momentum is building.

For example, earlier this year, the seven signature countries of the 2015 Amsterdam Declaration issued a statement on conversion-free soya, calling for national action plans to ensure that “100 percent of our (countries’) soya consumption is produced according to the law and in a way that protects forests and valuable native vegetation (deforestation and conversion free).” It is interesting to note that the commitment is not just limited to deforestation but includes the prohibition of conversion of valuable native vegetation to crop production.

Just last week, the German government adopted guidelines for the promotion of deforestation-free supply chains. In its guidelines, the government commits to promote the cultivation of European Union (EU) and locally produced protein. While details are vague, the German government also intends to increase and improve information of consumers and support more uniform and more stringent approaches at EU level.

Additional sources of plant protein are in demand in Europe as manufacturers experiment with new products. According to Bridge2Food, European companies are looking for long term sources of supply to build out food production lines, and some of them for re-export to Asia. Working in the high-end manufacture means traceability.  There is a new government commitment to action and that connects deforestation, choosing a source for imports, and the promotion of local protein.

Back to traceability, the current grain marketing infrastructure in the U.S. has developed on the handling of bulk commodities. The system efficiently manages both a large volume and a large number of products. Over time, this has allowed for efficiencies and lower costs all along the value chain. The foundation of the U.S. position as the number one ag exporting country is this infrastructure. For bulk commodities, the county elevator serves as close to the farm as economically and physically possible and there are very good reasons for this. Under the current system, starting at the local elevator, products are mixed and processed at the individual steps along the way. As a result, each step only needs information on the product as delivered from the previous step. With this “one step forward, one step back” approach, along with appropriate testing and quality inspections, each step along the way has the responsibility to ensure quality and safety standards are met.

In recent years, back-to-the-farm-level traceability has become routine for certain commodities and products. U.S. Department of Agriculture (USDA) regulations require comprehensive traceability in meat due to concerns on animal health and food safety while trade in organic products relies on segregation and certification starting at the farm level.

Whether consumers are motivated out of concerns for the tropical rainforests and habitat destruction or in the interest in supporting “local” production, more and more consumers, and the competitive retail sector, will be demanding to know where all of its products are produced. Back to the farm traceability is a fundamental aspect of the SSGA IP effort that promotes the origin of products and the U.S. is in a great position to respond to these growing demands.

Import tariff exemptions available to China-based enterprises

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According to the Customs Tariff Commission of the State Council, Chinese companies who meet certain requirements can apply for tariff exemptions on imports. Exempt items include: wheat, soybeans, corn, and sorghum. This new policy shows China’s commitment to purchasing more U.S. produce in the near term.

It’s important to note that the exclusion process only pertains to Section 301 tariffs and does not apply to Section 232 tariffs. Applicants must be China-based enterprises and submit their applications through the Ministry of Finance (MOF) website.

The Foreign Agricultural Service (FAS) has prepared a sample letter and related attachments for industry use in communicating with Chinese importer contacts about the tariff exclusions. FAS is making these available to U.S. exporters in case companies need some ideas about what to include in a letter of their own. Please note that this is a sample letter and should not be used directly. Contact Alyson Segawa, Specialty Soya and Grains Alliance (SSGA), to receive this sample letter.

Exporters are reminded that China has a zero tolerance of genetically modified (GM) mix-in on non-GM shipments. SSGA is addressing this with U.S. regulatory authorities and hopes for a resolution that makes the market more fair and transparent.

Find out more about the tariff exemption announcement here.

Thailand government reconsiders ban of chemical use

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The Thailand National Hazardous Substance Committee (NHSC) has overturned their earlier decision to ban three agricultural chemicals. The Oct. 22 decision to classify glyphosate, paraquat and chlorpyrifos as Category 4 substances was to start Dec. 1. This classification would have banned the chemicals from production, possession, importation and exportation and would require a zero maximum residue level (MRL) applied to possible exposure.

The Nov. 27 decision keeps glyphosate as a Category 3 substance (restricted use and sales), while a classification of paraquat and chlorpyrifos as Category 4 substances will become effective June 1, 2020.

Recently, Specialty Soya and Grains Alliance (SSGA) member Rob Prather of Global Processing, traveled to Southeast Asia to meet with buyers and learn more about the Thai ban. Read that story here.

SSGA looks forward to discussing this issue at the annual meeting Tuesday.

SSGA takes part in Japan Soy Buyer Outlook Conference, Taiwan’s 50th U.S. Soy anniversary and buyer event

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By Bruce Abbe, strategic advisor for trade and transportation

The Specialty Soya and Grains Alliance (SSGA) took part in two significant trade events in North Asia over the last two weeks hosted by the U.S. Soybean Export Council (USSEC). SSGA attended the Taiwan U.S. Soy Outlook Conference and 50th anniversary celebration of the American Soybean Association’s (ASA) presence in Taiwan in Taipei, Nov. 14-15. SSGA also exhibited at the Japan Soy Buyers Outlook Conference in Tokyo Nov. 18 -19.

Japan Food Soybean Trade Show
SSGA unveiled a new exhibit at the Japan event’s trade show that promotes the identity-preserved (IP) handling systems of SSGA member companies for sourcing soybeans and food grain products for international customers, as well as the organization’s trade referral services.

The trade show also featured several participating U.S. food soybean exporting companies, including SSGA members Bluegrass Farms of Ohio, Pipeline Foods, Scoular, Star of the West, and Stonebridge. The exporters also held one-on-one meetings with buyers during their Japan visits to explore contracts and commitments for the 2020 growing season.

Japan Soy Outlook Conference
U.S. Soybean Export Council (USSEC) North Asia Regional Director Roz Leeck and U.S. Embassy Agricultural Trade Office Deputy Director Barrett Bumpas greeted attendees at the Soy Outlook Conference. Leeck also gave the 2019 U.S. Soybean Production Quality Report, noting projections for a decline in production due to late planting and harvesting conditions, but assured buyers that reports across U.S. production regions point to continued high quality of the 2019 crop.

Masanori Natsuka from the Japan Ministry of Agriculture provided the Japan Soybean Supply and Demand report.

Nancy Kavazanjian, a director on the United Soybean Board (USB) and a non-GMO food soybean producer from Wisconsin, presented the U.S. Non-GMO Soybeans Update: Production Growing Conditions and 2020 Planting Intentions report. Kavazanjian will be a featured speaker at SSGA’s upcoming annual meeting in Minneapolis on Dec. 3.

Attendees also heard reports on U.S. soy sustainability, and the potential impact the 2020 Japan Summer Olympics will have on trade and logistics next year. ASA president Davie Stephens emphasized the commitment of U.S. farmers to free trade and continuing to be reliable suppliers to international customers.

SSGA meets with Foreign Agricultural Service and Japan Consumer Affairs Agency on new labeling law
While in Japan, Bruce Abbe, SSGA strategic advisor for trade and transportation and consultant Hoa Huynh, a recent USDA Foreign Agricultural Service (FAS) retiree, met with officials of the USDA FAS Office of Agricultural Affairs at the U.S. Embassy in Tokyo. Abbe and Huynh, along with FAS officials, also met with the Japanese government’s Consumer Affairs Agency on new Non-GMO product labeling regulations that were approved earlier this year and will take full effect in April of 2023. Under the new rules there will be zero tolerance for any unintended GMO content for food products to be labeled “Non-GMO” or with no genetic engineered content.

SSGA exporter members will want to track implementation developments for this new labeling regime in the coming months. More in-depth coverage will be included in the upcoming issue of SSGA Member News Update next week.

Taiwan U.S. Soy Outlook Conference and ASA’s 50th Anniversary in Taiwan
Taiwan is the world’s 20th largest economy, with a population of 23 million people, large high technology industries, a vibrant democracy and strong ties to the U.S. in trade and policy.

USDA FAS Associate Administrator Clay Hamilton traveled from Washington, D.C., to take part in the celebration of ASA International Marketing’s 50th anniversary of having an office in Taiwan.   Mark Petry, chief of the Agricultural Trade Office at the American Institute of Taiwan (the equivalent in Taiwan of a U.S. Embassy), and Deputy Director Lucas Blaustein, gave U.S. attendees reports on the Taiwan market, which has consistently ranked among the top importers of U.S. agriculture goods.

ASA Director Stan Born, an Illinois soybean farmer, gave a presentation on the 2019 U.S. soybean production year and supply outlook, and emphasized U.S. soybean growers’ commitment to continue to serve their global customers. Guy Allen, senior agricultural economist at the IGP Institute at Kansas State University, gave the global soy supply and demand report. A host of U.S. farmer representatives were on hand for the festivities.

USSEC Senior Director Paul Burke presented the 2019 U.S. Soybean Quality Survey results.  While U.S. crops were generally four weeks behind normal schedule, and planting problems led to reduced production, Burke noted again that quality reports on the 2019 crop were good across the country.

U.S. exporters, including SSGA member International Feed also participated and held one-on-one meetings with buyers. SSGA had an exhibit booth that provided information on SSGA’s trade referral service to Taiwanese buyers in attendance.

More Green From Beans

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Specialty Soybeans Help Grow a Profit

By Matthew Wilde for Progressive Farmer

Growing specialty soybeans can make a lot of dollars and sense.

Ray Gaesser said it’s almost a must in today’s farm economy. The Corning, Iowa, farmer has grown seed soybeans for about 25 years. He contracted nearly 2,000 acres this year with Stine Seed.

The seed soybeans will generate about $50 more per acre compared to commodity counterparts, Gaesser said.

“That can be the difference between making money and not making money today,” Gaesser claimed. “Earning a premium is a huge deal.”

It may take extra work to grow and store identity-preserved soybeans, but farmers who do say it’s well worth it.

Soybean farmers are finding ways to boost revenues despite market and trade challenges. This story is the second in a six-part series, More Green From Beans. The series will look at ways soybean farmers are finding ways to answer trade challenges by boosting revenues through switching up agronomics and finding new markets.

Thanks to the foresight of the Illinois Soybean Association (ISA), with financial support from neighboring state soybean groups and industry partners, farmers from across the nation can find value-added opportunities at www.soybeanpremiums.org. It’s the only national website that informs farmers about different types of premium programs in their areas.

Some of the more common types of higher-value soybeans include non-GMO, food-grade, organic, high oleic and soybeans for seed.

FILLING A NEED

“There’s premium opportunities in almost every growing region, which surprises a lot of folks,” said Mark Albertson, ISA director of market development. “The website is an excellent resource to connect farmers with companies that want to buy premium soybeans.”

The soybean premium marketplace was not well-defined until soybeanpremiums.org, Albertson said.

ISA launched the website in 2008. At the time, commodity soybean prices averaged just below $10 per bushel, according to government statistics. For most farmers, that barely covered cost of production.

As of Nov. 5, January soybeans closed at $9.34 1/4 per bushel. Association officials contend the website is more important and popular than ever. Data on usage isn’t currently available.

“Farmers are looking for any opportunity they can to command a higher premium for soybeans … and make a profit,” Albertson said.

About 75 companies are listed on the website. Buyers post premium programs, details and contact information, including links to additional sources.

You can search by state to find companies and contract opportunities close by. Buyers are encouraged to post premium offerings, which can range from 40 to 50 cents per bushel for high oleic to more than $1 for non-GMO food-grade soybeans. Some organic soybean contracts are worth $16 or more per bushel.

“Growing specialty soybeans takes a lot of work, and it’s not for everyone,” Albertson added. “Some contracts are easier to get than others.”

NON-GMO SOYBEANS BOOST BOTTOM LINE

Joe Rosenberg, of St. Ansgar, Iowa, said he got tired of losing money or just squeaking by raising conventional soybeans. The 46-year-old farmer searched the Internet for ways to boost his bottom line and found multiple buyers within a reasonable trucking distance willing to pay a premium for non-GMO food-grade soybeans.

Rosenberg signed a contract prior to this year’s growing season with Stonebridge, a soybean marketing company from Cedar Falls, Iowa, to grow 1,200 acres of non-GMO soybeans. He’ll earn $1.50 per bushel above the Chicago Board of Trade price, which he locked in at $9.90 per bushel.

When local basis — the difference between futures and cash prices — is figured in, Rosenberg said he’s actually making more than the additional premium. Not long ago, he said, the basis at a local elevator was $1 under.

“I had to do something different; breaking even and just surviving wasn’t working anymore,” Rosenberg said. “I went non-GMO and back in the black.”

Non-GMO soybean yields ranged from mid-50 to low-60 bushels per acre in 2018, Rosenberg’s first year raising them. He said seed is cheaper, but weed control is tougher yet manageable since the soybean plants aren’t engineered to tolerate herbicides.

Tim Daley, Stonebridge production agronomist, said demand is strong for non-GMO food-grade soy here and abroad. Most of it is made into tofu or tempeh, or used as an ingredient in food such as Clif Bars.

“The future looks fairly good to maintain premiums at a good level,” Daley said, noting different varieties have different premium offerings.

Stonebridge contracts are buyer’s call, meaning farmers deliver soybeans to processors when needed. The company contracts thousands of acres across the country — 60% for domestic use and 40% for export, primarily to Japan.

“I already have farmers calling me up about contracts for 2020,” Daley said. “With the downturn in the grain markets, farmers are looking for any options they can to capitalize on better prices. Every penny counts.”

PROCESSORS OFFER HIGH OLEIC PREMIUMS

The United Soybean Board (USB) first invested checkoff dollars to develop and commercialize high oleic soybeans more than a decade ago.

Soybean farmers lost food-oil demand after mandatory trans-fat labeling. High oleic soybeans provide food companies and restaurants an oil alternative with zero grams of trans fat per serving and 20% less saturated fat than commodity soybean oil, as well as longer shelf and fryer life.

Many processors across the country, including ADM, Bunge and Perdue AgriBusiness, offer high oleic soybean premiums.

All of Linda Burrier’s 304 acres of soybeans are high oleic. The USB board member, from Union Bridge, Maryland, receives a 40-cent-per-bushel premium from Perdue for soybeans delivered after harvest to the end of the year and 50 cents in January and thereafter.

“This is a good option for farmers to earn extra money without changing their management besides segregating beans after harvest,” Burrier said.

High oleic yields are as good as or better than conventional soybeans, she said. Domestic and international demand is also growing, Burrier believes. She recently participated in a trade mission to Taiwan. Buyers expressed interest in importing the beans and building a crush plant.

Gary Cordier, senior vice president of global grain and international commodities for Perdue, thinks high oleic premiums are here to stay. The company made additional investments at its Marietta, Pennsylvania, crush plant to better receive and process soybeans this year, including high oleic. Perdue also upgraded its Salisbury, Maryland, facility that’s been crushing high oleic soybeans for more than five years.

“It represents an opportunity for a value-added product for our refinery and farmer customers,” Cordier said. “The premium should stand the test of time.”

GETTING A SEED BEANS CONTRACT

Garnering a seed soybean contract is one of the tougher premium gigs to get, industry officials say. It also requires meticulous record-keeping, tedious cleanout of equipment and bins to prevent commingling of varieties and enough storage for the same reason.

Gaesser Farms typically raises eight to 10 soybean seed varieties each year. “There’s more management and definitely more cleanout involved with seed beans. But, it’s more dollars, too,” Gaesser said.

If farmers are interested in growing seed beans, he recommends they establish a good relationship with seed companies and demonstrate they can be a high-quality, reliable producer. He also said farmers should sign a contract to guarantee compensation.

“There’s always extra management to get a premium, which doesn’t come for free,” Gaesser said.

SSGA’s ‘action of opportunity’

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Last week, Thailand announced it will ban the herbicide glyphosate effective Dec. 1. In a letter to Thailand Prime Minister Prayut Chan-o-cha, USDA Undersecretary Ted McKinney urged a focus on “scientific evidence,” warning that a glyphosate ban would “severely impact Thailand’s imports of agricultural commodities such as soybeans and wheat.”

In 2018, the U.S. exported $2.1 billion in agricultural products to Thailand. Soybeans are the largest U.S. agricultural commodity exported to Thailand, equating to $593 million in 2018, primarily for animal feed. SSGA members ship soybeans for tofu, and specialty grains such as rye hybrids. All these crops move in containers with U.S. identity preserved practices.

“Moving grains and oilseeds to Thailand is a business, and specialty field crops are sold by small businesses who need support to be informed about these changes and react to them,” says SSGA Executive Director Eric Wenberg. “It’s SSGA’s job to make sure our members have the information they need to educate their buyers about what’s happening in the market.”

SSGA is making proactive moves to ensure strong relations continue with its trading partners. Rob Prather, an SSGA member and chief strategic ambassador for Iowa-based Global Processing, is traveling to Southeast Asia in November to meet with several buyers.

“We’re hoping to get the story behind what’s going on,” says Prather, who holds more than a decade of experience connecting growers with international buyers.

Wenberg helped connect Prather with USDA’s Foreign Agricultural Service office in Bangkok, and provided Prather with the necessary background information to represent himself and the industry.

“Eric wants us to be an organization of quick action, an action of opportunity,” says Prather, who serves on SSGA’s food grade soya action team. “Both countries addressed this last week and now we’re going to address it personally with FAS in Thailand, which is a huge opportunity.”

Prather has traveled several times to Southeast Asia previously, but this will be his first visit as an SSGA member. He says the connections brought forth from his SSGA membership are paying dividends.

“It gives us another facet to what we can do. As SSGA members, now we can interface directly with FAS — we couldn’t do that before,” he says. “If I have a problem with shipping to Thailand, I don’t have a solution for it, but because of SSGA now I do. I feel like I can get more of a quicker solution to help not only myself and my company, but other people and SSGA members who are doing the same thing.”

Prather says his SSGA membership allows him to connect more directly with Southeast Asia on the specific issues he cares about and, by extension, a firmer grasp of trade relations with Thailand when he returns home.

“This shows that we’re fairly connected and we’re not starting from scratch,” he says. “We’re utilizing our knowledge base in an efficient and effective way.”

While the United States faces the loss of potential Thai sales, Thailand has problems with its sales to the United States, adding to trade tensions between the countries. Recently, the Office of the U.S. Trade Representative issued a statement halting $1.3 billion in trade preferences for Thailand, citing labor rights concerns.

“This is another example of circumstances where trade concerns outside agriculture can complicate finding solutions,” Wenberg says. “We hope the Thai government and the United States can work together to solve each other’s trade concerns in a way that doesn’t stop our exports.”

SSGA talks transportation, research on Michigan tour

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With more than 300 commodities grown, Michigan boasts diverse agriculture, so it’s understandable why staff from the Specialty Soya and Grains Alliance (SSGA) wanted to introduce the organization to the agricultural industry in the state.

SSGA Executive Director Eric Wenberg met with the agribusiness industry in Michigan Oct. 23-25 to learn more about Michigan’s identity-preserved (IP) industry and to see how SSGA can work for its member across the nation.

SSGA kicked off its trip at Zeeland Farm Services, Inc. (ZFS), in Zeeland, Mich., where ZFS officials shared transportation hurdles they’re facing. Among their concerns was the perception that heavy trucks damage the roads more than lighter trucks.

In Michigan, the allowable truck weight limit is 164,000 pounds on an 11-axel truck, which averages 14,900 pounds per axle. The federal limit of an 80,000-pound truck with 5 axels equals 16,000 pounds per axle. Despite the heavier federal allowance, neighboring states are adapting to Michigan’s rule to alleviate stress on roadways and increase efficiency by using fewer trucks, drivers and fuel. ZFS also shared other transportation concerns such as not being able to transport a fully loaded, 40-foot container to Chicago because of weight limits when driving between states.

“Visiting member companies like ZFS helps bring more awareness to issues they’re facing when growing, brokering and transporting identity-preserved crops across America,” says SSGA Executive Director Eric Wenberg. “By listening to our members, SSGA can bring these issues to the forefront and help create a better environment for the entire IP industry.”

Another stop for SSGA staff was to the Michigan State University agronomy farm to learn about soybean breeder Dr. Dechun Wang’s research. Wang considers the 11,000 non-GMO soybean breeding lines he planted in 2019 like his children and relayed the importance of support for public research breeding programs.

“Both public and private breeding programs are vital to the success of crops like soybeans,” Wang says.  “Public programs like the one at MSU ensures that growers have unbiased research solutions to an ever-changing agricultural climate.”

SSGA also met with new Michigan Soybean Promotion Committee director Janna Frisk, and with Michigan Agricultural Commissioner Gary McDowell, to discuss the issues Michigan faces with identity preserved crops, practices, and shipping.

Soybeans are the Michigan’s top food export and 12 percent of all soybeans grown are IP. Michigan also leads the nation in production of the dry edible bean classes of black, cranberry, navy and small, red beans.

Weather or not: SSGA sponsors soy procurement course for importers

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Sun, rain and then a blizzard: participants in the Northern Crops Institute (NCI) Soybean Procurement Management for Importers Course seemingly experienced each of North Dakota’s seasons in the span of a few days during their stay in Fargo on Oct. 7-11. Soybean buyers from Cambodia, China, Vietnam, Nigeria, India and the U.S. completed the course to learn about merchandising and purchasing soybeans from the U.S.

Experts in commodity trading lectured on cash and futures markets, while grain merchandisers spoke about international grain markets.

“The course provided an overview of many different topics related to buying soybeans,” says NCI Program Manager Brian Sorenson. “Participants learned about cash and futures markets, how to hedge properly and about different risk management tools.”

After three days of lectures and tours in the Fargo area, participants broke into three groups: bulk soybean merchandising, food grade soybean merchandising and container soybean merchandising, for more specialized training.

Participants in the food grade and container tracks toured the SB&B Foods farm and processing facility and Maple River Grain and Agronomy, both in Casselton, ND, and Brushvale Seed in Breckenridge, Minn.

Participants from Vietnam, sponsored by the Specialty Soya and Grains Alliance (SSGA), were impressed by the steps taken by farmers and suppliers to control their product. Although Vietnamese participants were limited on which tours they could attend due to African swine fever concerns in their home country, they enjoyed learning about the quality of U.S. soybeans and meeting suppliers of food grade soybeans.

Sorenson also noted that lectures about the nutrition and quality of soybeans were very popular among participants, as well as the farm and infrastructure tours.

SSGA speaks up for identity-preserved farmers in D.C. testimony

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Eric Wenberg tells USTR committee farmers need more market opportunity

Identity-preserved (IP) crop farmers were represented at a hearing Wednesday about China’s compliance with its commitments to the World Trade Organization (WTO), regarding China’s current zero threshold presence limit placed on imports of non-genetically modified (non-GM) field crops.

On behalf of the Specialty Soya and Grains Alliance (SSGA) and with coordination and support of the U.S. Soybean Export Council (USSEC) and American Soybean Association (ASA), SSGA Executive Director Eric Wenberg provided testimony to the Trade Policy Staff Committee (TPSC) in preparation of the Office of the United States Trade Representative’s (USTR) annual report about China’s compliance with WTO rules. Wenberg was one of six individuals providing testimony on a range of issues, including intellectual property among others.

Non-GM food variety soybeans from the United States have been excluded from Chinese imports, although genetically modified soybeans are allowed for import, due to China’s lack of a nonzero low level presence threshold allowing for biotech soybeans to be mixed in.

“Farmers growing identity-preserved and non-GM crops must abide by stringent standards to produce specific varieties and traits to produce food for customers around the globe,” Wenberg said. “They deserve an additional market opportunity for their products. The soybean industry’s concern about this issue helps draw attention to the need to see a solution to this problem along with the other barriers to U.S. product sales. According to customs and trade data, food variety soya exports to all destinations for IP can reach $1.7 billion (2018), but we could sell more if the China market was open to us.”

IP soybeans and specialty grains are grown coast-to-coast, but are predominately exported from North Dakota, Minnesota, Iowa, Illinois, Indiana, Michigan, Ohio, Arkansas and Wisconsin.

About Specialty Soya and Grains Alliance
SSGA is a national alliance of companies and producers focused on production, processing and shipping of specialty soya and grains worldwide. Its mission is to provide resources that communicate the quality, diversity and availability of their products and be a voice for food varieties in field crops.