Iowa soybean farmers build their brand during trade mission to Bangladesh, Pakistan

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Ask any brand about the value of marketing, and they’ll promptly reply that understanding the needs and wants of the customer is the first & most essential step to making a sale.

That surely is true for soybeans.

Despite a recently available thawing of trade friction with China, U.S. soybean exports to the world’s top buyer continue steadily to languish. Increasing America’s share of soybean exports to developing countries, therefore, is mandatory.

Not long ago i joined several soybean farmers - including the president and president-elect of the Iowa Soybean Association - for a U.S. soy trade mission to Bangladesh and Pakistan. The conversations with key soybean buyers, feed mill operators, association leaders and trade representatives will foster relationships and build brand identity. The effect, we hope, is way better pricing opportunities for U.S. soybean farmers in the near-term and a deepening preference for U.S. soy among more buyers long-term.

It takes effort and time to go to places like Dhaka, Bangladesh and Karachi, Lahore and Islamabad, Pakistan. But earning trust and developing long-term relationships don’t happen with calls, e-mails and texts. Meeting face-to-face is how you build loyalty. We might be investing soybeans, but never forget that every transaction commences with knowing and valuing the persons involved and connecting with them on a personal level.

Bangladesh and Pakistan, with a combined population of practically 400 million (75 million a lot more than the United States), are strategic spots to market soybeans. The political and social environments of both developing countries are stabilizing. The hard-working and friendly people of both countries are slowly ascending the economic ladder. More purchasing power results in greater consumption of protein, including poultry, fish, dairy and beef.

And soybeans, particularly those grown in the U.S., are an essential feed ingredient for chickens, layers, tilapia, butter catfish, shrimp and cattle.

Connecting these dots and identifying emerging markets that have potential for increased soybean consumption has never been more important. Trade disruption with China has hit U.S. farmers hard. The marketplace price of a bushel of soybeans has declined practically $2.50 since April 2018. The soybean farmers I serve are struggling. Assistance from the government has restored some of the lost income due to the trade war. But the economic pain remains real and widespread across most sectors of American agriculture. Rural communities sustained largely by crop and livestock production are also hard hit.

Having said that, the unresolved trade dispute between the world’s two most significant economies has pushed U.S. soybeans onto the world market in an unprecedented way. One panamax vessel of soybeans isn't enough to improve mindsets, but after a couple of months and years of sales, you’ve established your brand. To make that happen, building strong ties between your grower, buyer and user is a must.

Take Pakistan, for example. The country imports nearly 2.4 million metric tons (mmt) of soybeans, or about 80-90 million bushels. A conservative estimate pegs that total to improve by 38 million bushels within next 3-4 years. With some changes in government policy (eliminating a 14% duty on soybean meal, for instance), Pakistanis we visited with during our trade mission believe soybean imports could double from their current level.

I’ve participated in more than 40 trade missions during my time as CEO of the ISA. Each is unique and offers key takeaways that influence how ISA approaches its market development activities.

My visits to Bangaldesh and Pakistan make me truly optimistic about the marketplace potential for U.S. soy. Key drivers are the country’s growing urban centers, rapid adoption of technology, a focus by feed nutritionists on sourcing quality ingredients and prospects for increased protein consumption. Also boding well for U.S. farmers is a deep appreciation by the buyers we met with in the personal exchange of ideas and coming to mutually beneficial outcomes atlanta divorce attorneys business dealing.

While U.S. soy’s brand is strong in South Asia, now could be not enough time to coast. We must grow and deliver a consistent product saturated in nutritional quality. And we should make time to travel half a world away to shake the hands of our customers, discuss their needs and concerns and enjoy dinner together where we are able to share pictures and stories of families, hobbies.

While we can’t control government actions and inactions, weather, market volatility or the worthiness of the U.S. dollar, we are able to directly influence relationships with others. Behind every good brand are persons who value people. ISA is driven to provide because we understand and relish this fundamental principle to do business, including with this new friends in Bangladesh and Pakistan.
Source: https://www.timesrepublican.com

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