Bangladesh to become major soybean export market

Bangladesh will become a major export market for soybean products as the changing dietary habits of its growing middle-income population are boosting demand, according to an expert on the industry.

This is because catering to increasing consumption of meat, fish and edible oil in the country will necessitate the use of more soybean products, such as soybean cakes and seeds.

Soybean cakes are a protein-rich source of animal feed and a by-product of crushing soybean seeds for edible oil.

Bangladesh is an emerging economy in South Asia and its growing middle-class needs more edible oil, fish and meat, raising the country's requirement for soybean products, said David Mielke, a senior analyst of Oil World.

Oil World is an independent global market analysis and forecast service that provides statistics on major commodities such as palm, soybean, rapeseed and sunflower oil.

Bangladesh can produce only up to eight lakh tonnes of soybean seeds each year, forcing the country to import more than 4 million tonnes to meet demand.

Mielke made these comments at this year's Soy Connext, an annual global summit of the US Soybean Export Council (USSEC) comprising American soybean farmers, traders, millers, distributors, exporters and consumers.

The event, held at the Marriott Hotel in San Francisco on August 20, aims to provide participants with key insights on current market developments and future supply trends.

Responding to queries after delivering a keynote on the supply and demand outlook, Mielke said the global soy complex is just that: complex.

He also said emerging markets like those in Africa will be major export destinations for soybean products as their demand is rising in line with the peoples' growing income and changing diets.

Meanwhile, India will be the biggest market for soybean products in the next decade because of the rising income and changing dietary habits of its sizeable population.

However, the country is already one of the largest soybean producers worldwide, Mielke added.

Another speaker at the event Anja Manuel, a former US diplomat, author, and adviser on foreign policy and technology, warned that ongoing geopolitical tensions will affect global trade.

Manuel also mentioned how the severe fallouts of Covid-19 and higher shipping charges are affecting commodity prices.

Against this backdrop, she suggested that the World Trade Organisation focus more on resolving trade disputes involving its members.

Kevin Roepke, the USSEC's regional director for South Asia and Sub-Saharan Africa, in a written reply to queries said Bangladesh's soybean imports peaked in 2021-2022 at about 2.5 million tonnes.

A steep drop has been witnessed since then, with imports now hovering between 2 tonnes and 2.5 million tonnes with another million tonnes of soybean meal imported each year.

"Moreover, we're seeing several new large-scale plants coming online and being built to satisfy the expectations of increased growth opportunities," he added.

Bangladesh has already emphasised the need for and importance of food security through the zeroing out of tariffs on both soybeans and soybean meal, he said regarding the tariff issue.

However, free trade agreements could be beneficial to lock these tariffs into place.

"Throughout the course of history, we've seen that leaning into trade has been a major impetus to achieving rapid economic growth," Roepke said.

Moreover, the US is not only the world's largest exporter of food, but also the largest importer.

"This paradox highlights the need for looking at global markets to increase consumer choice and build more resilient and sustainable food supply chains," he added.

USSEC Board Chairman Lance Rezac also spoke at the summit, which ended on August 21.