'US eyes top exporter position in Bangladesh's growing soybean market'

In the past decade, the demand for soybeans has increased with the booming poultry and fisheries industries in Bangladesh. Around 37% of imported soybeans in the country come from the US. The demand for soybeans imported from the US is gradually increasing due to their quality and protein prosperity.

In an interview with The Business Standard, Regional Head of Sustainability and Marketing - South Asia and Sub-Saharan Africa (SAASSA) at the US Soybean Export Council (USSEC), Deeba Giannoulis said the US aims to expand its soybean market share in Bangladesh to become the top exporter, surpassing Brazil.

How is the soybean market in Bangladesh? What is the US's position in the market?

Bangladesh ranks 13th largest nation in terms of global soybean demand. The country's import of soybeans, a primary raw material for cooking oil as well as poultry, fish, and livestock feed, was around 2.7 million tonnes in FY 23. It is growing at a rate of about 10% annually.

US soybean producers have emerged as the second-largest suppliers to Bangladesh, capturing nearly 37% of the country's import market share. Major importers of soybeans in Bangladesh include the Meghna Group, City Group, and TK Group, with other groups also expressing interest in importing soybeans into the country.

Local industries in Bangladesh are increasingly consuming US soybeans due to their superior quality and high protein content. With the Bangladeshi soy market showing promising growth, US producers are actively seeking to expand their market share to beat the top exporter Brazil.

What are the potentials of US soybeans in Bangladesh?

As a nation situated in a low-lying region, Bangladesh faces heightened susceptibility to the consequences of rising sea levels.  Concurrently, Bangladesh has taken significant strides towards sustainability, notably demonstrated by its recent acceptance of the inaugural shipment of US Soy Sustainable Assurance Protocol (SSAP) verified soybeans.

This acknowledgment underscores the nation's increasing emphasis on sustainability practices, particularly concerning carbon emissions and their contribution to climate change, as integral components of its developmental agenda.

Moreover, Bangladesh's soybean processing industry exhibits promising modernisation, efficiency, and scalability, poised to support the country's burgeoning demand for soybean products.

In response to escalating market needs, two additional local conglomerates are embarking on the construction of crushing facilities, each boasting a daily capacity of 7,000 tonnes.

What special feature of your soybeans is attracting buyers?

Bangladesh exhibits a strong preference for US soybeans due to their superior characteristics, including colour, processing attributes, moisture content, and minimal heat damage. The country boasts a thriving aquaculture industry, with six in-pond raceway systems (IPRS) currently operational and plans for further expansion supported by the government. With a substantial crush capacity of around 4 to 4.5 million tonnes per year, Bangladesh's soybean processing sector is well-established.

So you see, companies such as the Meghna Group, City Group, Kazi Farms, and the entire soybean supply chain are opting to purchase the product from the US due to its reputation as a reliable, safe, and trustworthy source of raw material.

Sustainability is the primary focus of the USSEC. Could you provide an overview of your sustainability and marketing efforts?

Sustainability is interwoven throughout our various focus areas. It underpins our aquaculture, poultry, and swine programs, as well as the human utilisation segment.

One of our key initiatives is the US Soy Sustainability Assurance protocol. This initiative emphasises adherence to voluntary, local, and federally regulated laws and mandates that US farmers need to ensure that their farms qualify as sustainable.

Additionally, in the US, we implement conservation reserve programmes to protect land from damage and promote the restoration of grasslands and forest lands. Farmers set aside a designated portion of their land from production use for 10 years, participating in USDA programmes aimed at conservation efforts.

Another aspect of sustainability, particularly evident in Bangladesh's booming aquaculture sector, involves the implementation of in-pond raceway systems. These systems are confined structures that enable fish farmers to efficiently manage their fish stocks by facilitating feeding, ensuring their health, and maintaining water circulation to remove waste.

How effective are your initiatives in a highly populated and climate vulnerable country like Bangladesh?

We collaborate with several companies in Bangladesh that purchase US soybeans, all of whom are aware of the sustainability certificate. We offer two labels for our US Soy customers: one for feed featuring the 'Fed with Sustainable US Soy' label, and the other is the 'Sustainable US Soy' label. I believe the next step for the Bangladesh's industry is pivoting towards sustainability and adopting these labels on their packaging. These labels help inform consumers that the industries in Bangladesh including aquaculture and poultry are committed to sourcing raw materials sustainability.