A glut of soy is a boon for Australia’s soy exporters, who can export their crop to China and India, as well as other countries in Asia.
But in the wake of the global financial crisis, some are worried the boom is over.
Mr Dolan, who sells soy in Australia, said the boom had been good for the farmers and was likely to continue.
“It’s the last of the old growth strategies,” he said.
“So much of the market has been saturated by commodities.”
He added that there was a real risk of another downturn in the coming years.
“This is a great time to buy soy,” he says.
“You can sell soy in the next three to five years for less than what it is now.”
The boom is still taking place.
Mr Cripps said the market for soybeans had been “overvalued” by $6 billion since last November.
But he said the recent boom was a good sign.
“I think it’s the best year we’ve had in a long time,” he told the ABC.
“We have this huge glut of corn, and there’s soy.
What to buy with the boom In 2018, the biggest soybean crop in the world was planted. “
The demand is coming through.”
What to buy with the boom In 2018, the biggest soybean crop in the world was planted.
A total of 16 million tonnes of soy were planted in 2018, up from 12.6 million tonnes in 2017.
About 50 per cent of this soy was exported.
It is now the third largest crop in Australia’s crop basket, behind wheat and cotton.
A new crop of soybeans was also planted in 2019.
A further 8 million tonnes were planted, while the remaining 12 million tonnes will come from the United States.
The average price of a tonne of soy in 2019 was $3.10 per kilogram, according to the Australian Wheat Board.
What to do with the soybeans The boom also has its impacts on Australia’s food supply chain.
The United States imports about a quarter of Australia’s wheat, and about 30 per cent its soybeans.
In 2018 and 2019, the United Nations Food and Agriculture Organisation (FAO) said that the soybean sector exported about $US50 billion in goods and services.
That is around $US2.5 billion in value per year, according a report published by the Australian Strategic Futures Fund.
Mr Miller said the soy glut meant there was more uncertainty in the supply chain for Australia.
“There is a lot of speculation in the soy industry as to whether or not we’re going to be able to get our wheat through this year,” he explained.
“As you can imagine, there’s a lot more speculation in this sector.”