The U.S. Soybean Export Council (USSEC) works to develop new markets for U.S. soybean farmers and other key stakeholders, along with optimizing the utilization and value of U.S. Soy in international markets.
According to a recent U.S. Department of Agriculture (USDA) inspections report, one bright spot for the U.S. soy industry is higher soybean shipments to Mexico. The market has been a source of growth for several years and according to a United States Department of Agriculture (USDA) Global Agricultural Information Network (GAIN) report, about 96% of soybeans supplied for crushing in Mexico originate in the U.S. Due to lower freight costs, the U.S. is expected to maintain market dominance.
Currently, Agydsa, a major Mexican crusher, is building a new plant in Jalisco with a crushing capacity of 4000 metric tons (MT) per day, which is expected to become operational in August 2020. A 4000-MT per day crushing plant will require Mexico to increase its imports of soybeans by 1.4 million metric tons (MMT) annually.
The plant will reduce the need for some soybean meal imports but the crushing will support Mexico’s animal feed operations. As was learned during the U.S./China trade dispute, the diversification of the supply chain is very important. During time periods that involve trade restrictions, such as trade wars and disease issues that prevent meat exports, having multiple buyers is advisable.