The soy industry is in the midst of a major expansion and that expansion is expected to cause a big shift in how Americans consume and purchase soy products.
In a recent report, the industry’s top executives said they expect the soy market to grow by 10 percent to 15 percent annually in coming years, making it the third largest in the U.S. The Soybean Exports and Exports of the United States (SEAs) report from the USDA released on Monday says soy exports to the U of S totaled $1.2 trillion in 2017.
The report said U. S. soy exports are expected to grow to $2.1 trillion by 2020, and that will be followed by an expected increase of $1 trillion to $3.5 trillion by 2023.
The growth is expected largely to come from China, where soy exports were $1 billion in 2017, according to the report.
That’s a massive leap from the $1,000 million per day in 2016.
But in terms of soy imports, that number is likely to be smaller.
The U. of S. imports soy products from China are up more than 60 percent since 2009.
But imports of soy products are likely to grow at a slower rate, the report said.
“The rapid growth of the soy trade, combined with the increased availability of soy in the United Kingdom, Germany and France, is likely helping to offset the recent declines in the global soy market,” said the report’s authors, Steve Miller, chief global commodity economist for the USDA, and Peter Fennell, vice president for agricultural economics at the National Soybean Board.
The study also said the U,S.
soybean exports to China have grown by an average of more than 50 percent annually since 2009, and those exports were more than twice the size of imports from China in 2016, with China accounting for just under two-thirds of U.s. soy imports in 2017 according to USDA data.
The rise in soy exports has come amid a dramatic decline in prices.
In recent years, soybeans have become increasingly expensive for farmers to grow, and many soybean farmers are turning to cheaper, higher-yielding varieties that are more resistant to pests and disease.
The soybean industry’s boom has also come at a time when consumers are increasingly seeking healthier options, including tofu, soy milk and other plant-based foods.
The USDA report also pointed to the potential for more consolidation in the industry, saying that “an increasing number of the world’s largest soybean exporters are planning to consolidate operations, and in many cases may consolidate with existing exporters, including India and Brazil.”
The report noted that the soybean sector was a “key driver” of U, S. gross domestic product growth during the first half of 2017, and its growth would likely continue to grow in coming quarters.
The overall sector was also a major driver of the U., S. economy in the first quarter of 2018, according a report from Markit.
“As more companies enter the sector, their profits are likely poised to grow,” Markit analyst Michael Pachter said.
Soy is an essential crop to feed the world.
The crops produce protein, fat and protein-rich oils that can be used to make foods like tofu, tofu products, edamame, soy sauce, and soya sauce.
Soybeans are grown in vast amounts in parts of Asia, Africa and South America, and it is the most widely grown crop in the world, the USDA report said, noting that about 75 percent of the protein in soybeans is produced in Asia.
Soy also contributes about a third of the greenhouse gas emissions from U. s production, according the report, which also noted that soy contributes nearly a third to the global CO2 emissions.
The world produces about two-and-a-half billion tons of soy annually.