from Argentina, and it doesexport some soybean meal toother Asian countries.

With more than 1 billion peo-ple and growing, this market rep-resents an enormous futurepotential for all of the Americas,not just the U.S. Together, thesefour countries are responsible for83 percent of the world’s soybeanproduction, while representing 95percent of world soybean exports.That’s a powerful alliance, as wellas a great deal of responsibility.

The U.S. participants in thetrade mission included USB imme-diate past-Chairman Curt Raasch,immediate past-USB InternationalMarketing Committee Chair BennyCooper, USB Competitiveness

Committee Chair Mark Pietz, andimmediate past-USB EmergingMarkets Subcommittee ChairSharon Covert; ASA ChairmanBob Metz, ASA ExecutiveCommittee member JohnnyDodson, and ASACommunications Director BobCallanan; and USSEC CEO DanDuran and USSEC Director GlobalIssues and Alliances CraigRatajczyk.

The South American partici-pants included, from Paraguay,Camara Paraguaya deExportadores de Cereales yOleaginosas (CAPECO) PresidentJorge Heisecke, CAPECO ForeignTrade Adviser Sonia Tomassone,and Associacion de Productores

Joint grower trade mission participants display the flags of their respectivecountries: Argentina, Brazil, India, the United States and Paraguay. (ASAPhoto by Bob Callanan)

North and South American Growers Focus on India

If a journey of a thousand milesbegins with a single step, thena recent joint grower trade

mission to India has launched anew era of cooperation amongthe world’s “superpowers” of soy-bean production. That Decembertrade mission, organized by theU.S. Soybean Export Council(USSEC), brought together soy-bean growers from Argentina,Brazil, Paraguay and the UnitedStates for the very first time toexplore market development andpromotional activities that couldbe funded by the SouthAmericans.

This will not happen overnight,but the flame has been kindled.Producer-leaders from the UnitedSoybean Board (USB) and theAmerican Soybean Association(ASA) who participated in thismission worked closely with theirSouth American counterparts tohelp them understand how inter-national marketing programsbuild demand for soybeans andsoy products, and to encouragethem to get involved with suchactivities in India.

The role of the USSEC and theAmerican Soybean AssociationInternational Marketing (ASA-IM)staff was to show the SouthAmericans how they implementprograms that have beenapproved and funded by U.S. soy-bean farmers through theirnational soybean checkoff. Itwould not be an overstatement tosay that the South Americans envyU.S. soybean growers because ofthe enabling power they derivefrom their checkoff and U.S.Department of Agriculture foreignmarket development programs.

The focus of this initial jointeffort is directed solely at theIndian market, a market wherethe U.S. currently exports virtuallyno soybeans or soy productstoday because of trade barriers tothe marketplace, and lack of fullutilization of soy protein products.India does currently import sub-stantial quantities of soybean oil

de Soja (APS) President Claudia Russer; fromArgentina, Associacion de la Cadena de la SojaArgentina (ACSOJA) President Rodolpho Rossi, andInternational Negotiations for Agriculture, InstituteExecutive Director Ernesto S. Liboreiro; and fromBrazil, Associacao dos Produtores de Soja do MatoGrosso (APROSOJA) President Rui Carlos OttoniPrado, APROSOJA Administrative Director RicardoTomczyk, APROSOJA Vice Administrative DirectorRicardo Arioli Silva, APROSOJA Treasurer Eraí Maggi,FACS (Brazil’s “check-off” program) Member ValdirCorrea da Silva, and Mato Grosso State Secretary ofAgriculture Cloves Vettorato.

“The objective of this first joint trade mission wasto provide the South Americans with opportunities tosee first-hand examples of how checkoff-fundeddemand-building and promotional activities havebeen implemented in India for the past 10 years,” saidMark Pietz. “During this time, our reverse marketingefforts have reduced the amount of Indian soy mealthat is competing with U.S. meal in Asian markets.”

The U.S. reverse marketing strategy is designed to get India to utilize the six to seven million metrictons (220 to 257 million bushels) of soybeans itproduces domestically. That is being accomplished by increasing demand for soy in India’s poultry, dairy,aquaculture and human food sectors. At this point,soybean consumption in animal feeds has gone upfrom just over half a million metric tons to more thantwo and a half million metric tons per year.

“The time has come for South America to partnerwith the U.S. in these reverse marketing efforts byfunding activities like feed technology workshops,marketing support, and soyfoods training programsin India,” Pietz said. “At one point China was a netexporter of soybeans, but in the last eight years, duein part to the twenty years of reverse marketingefforts by U.S. soybean farmers, it has become thelargest export customer for U.S. soybeans.”

India has the second-largest population in theworld and is expected to surpass China in numbersby 2040. Today, India’s per capita soybean mealconsumption is less than one-tenth that of China.

Bob Metz said, “Cooperation between U.S. andSouth American soybean farmers will also make iteasier to deal with market access issues, includingnon-tariff barriers, phytosanitary issues, chemicalresidue limits, acceptance of biotechnology, andexcessive duties on soybean products. It’s time for allsoybean-exporting countries to work together indeveloping world demand for soybeans, and fordefending our crop against competitive oilseed andprotein products.

“In today’s global marketplace farmers have tolook at new opportunities to stay on top and to succeed,” Metz added. “No differently than we workwith our neighbors to promote our crop, we can

work with our fellow farmers in South America to dothe same thing.”

WWhhaatt tthhee SSoouutthh AAmmeerriiccaannssEExxppeerriieenncceedd

The ASA-IM India staff had prepared a busyschedule of events designed to showcase for theSouth Americans the type of technical, promotionaland utilization activities they conduct to builddemand for soybeans and soy products in India.

The program began with a background briefingon Monday, Dec. 11. ASA-IM Regional Director forthe Asia Subcontinent Virgil Miedema welcomedeveryone, provided an overview of the market, andillustrated how the office is staffed. That was followedby presentations from Dr. Vijay Anand, ASA-IM IndiaTechnical Director for Poultry, Livestock &Aquaculture, and Dr. Suresh Itapu, ASA-IM IndiaTechnical Director for Human Nutrition.

The South Americans were amazed to learn thatduring 2006, the ASA-IM India office was responsiblefor conducting in the feed sector 114 seminars, 665on-farm demonstrations, 4,575 face-to-face meetings,and 10 workshops. They also learned how ASA-IMstaff work with food manufacturers, various govern-ment organizations, and entrepreneurs to bring soyproducts to the marketplace, and how these effortshave resulted in 400 soy food manufacturers today,up from only about 50 in 2000.

ASA-IM staff also stated that their new goal is toachieve a soybean equivalent utilization of sevenmillion metric tons (257 million bushels) in India by2010, which would effectively consume all thesoybeans produced in India, and open the door forimports from the Americas.

The growers were then transported to the ASA-IMoffice in New Delhi where they participated in a newsconference with local television and print media rep-resentatives. This provided an opportunity for grower-leaders from each country to answer questions abouttheir intentions to work together to service the needsof India’s large and growing population. Followingthe news conference, the growers visited two localretailers where the South Americans could see thetype of soy foods that are being promoted and mar-keted to Indian consumers. Day one concluded with areception held for embassy officials, and key food andfeed industry representatives.

Very early Tuesday morning the group set outbefore sunrise on a four-hour bus ride to Agra, wherethey visited the Taj Mahal, a must-see for anyone vis-iting India, and participated in a soy food demonstra-tion being conducted by ASA-IM India staff for foodservice trainees of the Jaypee Palace Hotel chain.Although this type of activity is well-known to U.S.soybean leaders, it was the first time the South

Americans had participated in this type of program.On Wednesday morning, the group traveled to

Gurgaon, to visit the Kushboo Poultry Farm, where theSouth Americans learned how ASA-IM staff works withlocal customers to develop soy-based feeds. While atKushboo, the group also learned about a highly spe-cialized dairy feed that incorporates soy protein intosmall, compressed hay bales that are marketed to dairyproducers. As the world’s largest milk producer, Indiarepresents a huge potential for soy utilization.

The growers then participated in a second soy foodseminar, this one specifically designed for businessentrepreneurs and non-governmental organizations.Participants came from as far away as Tibet to learnhow they could incorporate more soy into theirproducts and feeding programs.

While en route back to New Delhi, the grouptoured the Ami Chand Makhan Lal Feed Plant. ASA-IMhas been assisting this company with formulatingquality soy-based feeds for many years, and its owner,sons and grandsons were very excited to receive the inter-national group of growers. That evening in New Delhi, thegrowers participated in a reception and dinner hosted bythe Central Organization for Oil Industry and Trade.

Early on Thursday, the group flew to Mumbai (formerlyBombay), for a meeting with the Compound Livestock FeedManufacturers’ Association, and later, a dinner hosted bythe Solvent Extractors’ Association of India. On Friday, thefinal day of the mission, the group met with representativesof the Ruchi Soya Industries, a major soy business houseand India’s largest soybean oil importer, and later, theGodrej Group, a major food, feed and oil company.

Each of these meetings brought the South Americanscloser to a full understanding of the challenges and oppor-tunities available to them for conducting their own marketdevelopment activities in India. They also showed them thedepth and breadth of industry contacts in which the ASA-IM program is involved.

WWhhaatt tthhee SSoouutthh AAmmeerriiccaannss LLeeaarrnneeddRicardo Silva, a soybean farmer in Mato Grosso State,

Brazil, said, “First, what impressed us is all the organizationthat the Americans are famous for all over the world. It’samazing the work the American farmers are doing here.I’m sure that if we can work together, new markets will beopen sooner.”

Silva went on to say, “We Brazilian farmers see this as anopportunity. We hope that we can tell the other farmers inBrazil how good it will be to work with our friends, theAmericans, Argentines and Paraguayans.”

“India for us is a very interesting market,” saidParaguay’s Sonia Tomassone. “Well, it’s not so good thatjust the U.S. is making all the efforts. We want to con-tribute, as we can, of course, because you have to beg thedifferences. But it’s okay, for we have to stop thinking thatwe are competitors. The worldwide market is enough for

Bird’s eye view of grower-leaders with television and printmedia representatives during a press conference at the ASA-IMoffice in New Delhi. (ASA Photos by Bob Callanan)

ASA-IM India staff present a soy food demonstrationprogram for food service trainees of the Jaypee PalaceHotel chain.

CAPECO President Jorge Heisecke, addressesindustry representatives at a meeting with theSolvent Extractors’ Association of India.CAPECO Foreign Trade Adviser SoniaTomassone (left) assists with translation.

everybody, and we have to worktogether.”

Argentina’s Rodolpho Rossisaid, “Well, the program in thiscountry is unbelievable in terms ofits extraordinary efficiency. I wasimpressed so much onhow you make growth inthis market. We knowthat the AmericanSoybean Associationmade this happen aftermany years, but in thiscountry, really for us, itwas unbelievable, andthey have excellent pro-fessional people, too. I’mreally very impressed.”

When asked aboutopportunities forArgentina to work withthe U.S. farmers in India,and the next steps whenhe returns to Argentina,Rossi said, “We will talkwith everyone in the soy-bean chain, and discusswhat will be the nextsteps. But we will ensurethat we will join theseefforts because we have amission to provide soybean foodsin the future.

“I think that we need to investresources in this, to help the U.S.soybean farmers, and after discus-sion with all the chains, probablywe will have a better answer tothis question. But the idea is tocollaborate in some way, becausewe need this to keep the soybeandemand growing in the world.”

When asked about the reactionof the South Americans to seeingthe programs that are beingimplemented in India, Pietz said,“I think they’re amazed at thedepth and the quality of the pro-grams that we’ve run here for

and will need to start importingsoybeans, and that’s when thisprogram will really develop profitsfor everyone that’s involved in it,”Pietz said. “This is a global mar-ket, and we realize that when this

market does open up, all theparticipants are going to be abig part of it. It will be U.S.soybeans, it will be Paraguayansoybeans, and it will beBrazilian and Argentine soy-beans. All of us will benefit bythis market opening up.”

Rossi said, “The only differ-ence between the U.S. farmerand the South American farmeris the address. They have thesame dreams, the same ideas,and they fight for the samethings. But we know that theAmerican farmers—NorthAmerican and South Americanfarmers—have the mission inthe future to provide food forthe world.”

Silva added, “So some peo-ple do not understand and seeAmerican farmers, Argentineansand Paraguayans as competi-tors. But I believe that this will

change in the near future. By theend of the day, it doesn’t matterwhere you are. If you are a soy-bean farmer, what really matters isthat you have to sell your soy-beans for a fair price. And whataffects us in Brazil, affects U.S.farmers and Argentine farmersand also Paraguayan farmers. So Isee this as a good opportunity forfarmers to work together, not justfor opening new markets, butmaybe in the near future, to dis-cuss other issues as well.”

To learn more and view additional photographs of thistrade mission, go to: www.soygrowers.com/library/india/.

many years. They seemed veryimpressed with the personnel andthe staff that we have here on theground, and very impressed withthe market development and howit’s moving.

TThhee RRooaadd AAhheeaadd Now the role of U.S. farmer-

leaders, and the USSEC and ASA-IM staff, will be to mentor andguide the South Americans asthey develop funding mechanismsand identify projects in whichthey can take ownership. Alsoimportant is communicating toU.S. soybean farmers how thesenew cooperative efforts will ulti-mately benefit them.

“Within four to five years wecould very possibly see that theIndian people will use all the soy-beans that they grow themselves,

On the final day of the joint trade mission, U.S.and Brazilian growers signed a Global GrowerDevelopment Agreement to begin and expand coop-eration in the area of market development. Here,USB Competitiveness Committee Chair Mark Pietz(right) watches as APROSOJA AdministrativeDirector Ricardo Tomczyk (check ID) signs theGGDA. The U.S. had previously signed GGDAswith Argentina and Paraguay. (ASA Photo by BobCallanan)