Demand for feed set to rise in Bangladesh pushing up soybean imports: USDA report

Despite high prices, the demand for feed is expected to grow in Bangladesh as large commercial poultry farms expand their operations and some major feed producers initiate contract poultry farming resulting in an increase in imports, the US Department of Agriculture (USDA) said in a report released on Tuesday (19 March). 

It said soybean meal consumption in Bangladesh's feed industry in the 2024-25 marketing year is expected to reach 2.65 million tonnes, a 150,000-tonne increase from the previous year, "assuming a reversion to a normal price and supply situation." 

Soybean meal is a primary ingredient in cattle feed and aquafeed formulations. It makes up 30% of feed ingredients in Bangladesh. 

Additionally, there is also an ever-present high demand for soybean oil for human consumption. 

As demand for soybean meal rises, the Foreign Agriculture Survey (FAS) of the USDA forecasts an increase in soybean and soybean meal imports – to 2 million tonnes, up from 1.8 million in 2023-24, while soybean meal imports are projected to increase 50,000 tonnes, to 1 million.

"For the marketing year 2024-25, the report forecasts higher imports of soybeans and soybean meal, considering the growth in the poultry, cattle, and aquaculture sectors. 

"In MY 2023-24, it estimates higher domestic consumption of palm oil but lower consumption of soybean oil. Mustard/rapeseed oil consumption is projected to increase due to higher domestic production," the report said. 

Domestic soybean production in 2024-25 is pegged at 150,000 tonnes, a slight increase over the previous year.

Noting that soybeans have been gaining popularity as a cash crop, particularly among farming households in the south, the report said commercial poultry farms have recently expanded their business driving the demand for feed.

Some large private feed companies have started contract farming for poultry production. 

"The total daily soybean crushing capacity in Bangladesh is 18,000 tonnes. However, currently, the sector only utilises half of the total capacity, based on the supply of raw materials and demand for soybean meal from the feed industry," the report said. 

"According to Bangladesh's feed industry, in 2022, total livestock feed production was 6.6 million tonnes. Feed production is projected to hit 10 million tonnes by 2030," it added.

The report noted that only a few private companies in Bangladesh import and crush soybeans, while there are no government-held soybean stocks.

Aside from soybean, production of rapeseed – another oilseed –  has been soaring in recent years in Bangladesh, and the FAS anticipates the 2024-25 crop to approach last year's record harvest of 1.5 million tonnes.