Bangladesh's soybean production and imports are increasing steadily as demand from the poultry, livestock, and aquaculture sectors continues to grow, along with rising domestic consumption, according to a latest report by the US Department of Agriculture (USDA).

Soybean production is estimated at 1.45 lakh tonnes for the Marketing Year (MY) 2023-24, which began in July. The output is projected to rise to 1.55 lakh tonnes in the current fiscal year as the harvesting area expands, the USDA stated in its Oilseeds and Products Annual Report on Bangladesh.

Acreage and production are expected to continue increasing in MY26, with Bangladesh likely to produce 1.60 lakh tonnes of soybeans next year, according to the report released last week.

Similarly, soybean imports are forecast to rise 9 percent year-on-year to 2.4 lakh tonnes in MY26, driven by increasing demand for poultry, aquaculture, and dairy feed. The rise in imports comes as the foreign exchange rate stabilizes and the interim government relaxes restrictions on opening Letters of Credit (LCs) for imports.

The USDA projects that soybean meal—produced from both locally grown and imported beans—will reach 75 lakh tonnes in MY26. Consumption of soybean meal in the feed industry is expected to rise to 29 lakh tonnes in MY26, up 7.4 percent from the estimated use in MY25, assuming stable prices and supply conditions.

Given the current demand for meat, eggs, and milk, the poultry, aquaculture, and dairy sectors are expected to continue expanding, with the feed industry projected to increase production by at least 10 percent annually for commercial farmers through 2030, the report said.

Over the past few years, soybean acreage has grown steadily, particularly in Bangladesh's coastal districts, supported by favourable weather conditions, improved market access, and higher profitability.

"In recent years, soybeans have gained popularity as a cash crop," the report stated.

The cost of soybean production is lower than for other crops, as farmers typically do not require irrigation. Soybeans are sown after the aman rice harvest, benefiting from residual soil moisture, which aids germination, it added.

"Domestically produced soybeans are primarily used in the feed industry. Due to their poor quality and lower oil content, they are not utilised for oil production."

Only a small portion of domestic soybean production is used for food preparation in Bangladesh. However, locally produced soybeans meet just 7 percent of the country's demand for soymeal and edible oils, making Bangladesh heavily reliant on imports.

The USDA reported that Bangladesh imported 22 lakh tonnes of soybeans in MY25, with the United States supplying half of this amount and Brazil contributing one-third. This trend is expected to continue in MY26 as demand for soybean meal increases.

The report also highlighted the ongoing expansion of Bangladesh's poultry, livestock, and aquaculture sectors.

"Large commercial poultry farms have increased their capacity, alongside contract poultry farms. Many small and medium-sized poultry farmers have also resumed operations due to the reduction in feed costs over the past year," it said.