US soybean farmers eye larger fish feed demand

Tor-Eddie Fossbakk After a recent visit by Chinese soybean buyers the chairman of the United Soybean Board, Eric Niemann told the Illinois Farm Bureau’s “Farm Week” that “If aquaculture continues to grow in the next 10 years as it has the last 10 years, 20 percent of US soy meal could go to aquaculture worldwide.” The comment was made after US government officials and members of the soybean industry had been surprised by a Chinese delegation’s large order of soybeans. The Chinese ordered four times as much as the US soybean officials had expected. The order was for 5.7 million tons for the 2007-08 market year. The value is estimated to USD 2.07 billion. It was speculated that the large purchase was in part a hedge against bad weather during the current growing season. It could also be to ensure a steady supply of soybeans during a time when US farmers are more interested in planting corn to benefit from the increase in demand for biofuel made from corn. Corn planting is projected to be 15% higher this year, while soybean planting is expected to decrease by 11%. The order is a sign of China’s growing demand for soybeans. Overall, China is the largest importer of agricultural products in the world. It consumes 4.1 million tons soybeans annually just for its rapidly growing fish farming industry. US soybean farmers are quite confident they’ll be able to be a consistent supplier in the future. It was also recognized that the farmers work to improve the quality of their beans — particularly the protein and oil levels.