JIM SUTTER is the chief executive officer of the US Soybean Export Council. In this interview with JOSEPHINE OKOJIE, he spoke about the impact of protein deficiency and opportunities in the Nigerian market for US Soybean.
Could you please tell me about the US Soybean Export Council ( USSEC) and what it does?
We differentiate and build a preference for US soy, and we ensure market access for US soy in markets all around the world. We represent US Soy farmers and 100 organizations in the export supply chain. We have a global network of about 140 people that work for our organisation most of them are outside the US.
The African Trade Exchange is a meeting put together by the US Soybean Export Council, US Grains Council, and the World Initiative for Soy in Human Health. What exactly is it all about, and how will it help the African feeds industry?
The US Soybean Export Council ( USSEC), World Initiative for Soy in Human Health ( WISHH), and the US Grains Council (USGC) co-hosted the African Trade Exchange, to strengthen trade with the African continent and discuss partnership opportunities to build demand for US Soy. The two- day virtual conference took place recently and it showcased globally renowned and highly regarded speakers on the international grain trade, the future of the African feed industry, and long- term commercial trade development. It also allowed Sub-saharan African customers of US Soy to connect, learn from each other, and facilitate trade opportunities while also learning more about the processes of securing credit, hedging risk, formulating rations, and many other facets of the international soy and feed grain supply chain.
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The US already has the African Growth and Opportunities Act (AGOA) for countries like Nigeria to do business with it. How big is Nigeria’s market for US soybean?
Sub- Saharan Africa and Nigeria are part of the longterm strategy to build a strong pipeline of demand for US Soy. The population of this region exceeds a billion people, with predictions to double by 2050, making it one of the most substantial frontier markets in the entire world. At USSEC, we believe this region holds tremendous potential. It is an example of where we see a future for US Soy, because of its growing population and low consumption of soybean. Nigeria has been identified as a market that represents a growth opportunity for US soy. Encouraging soybean and soybean related product consumptions could turn Nigeria into one of US soy’s top three growth markets by 2030.
Right now, Nigeria’s population is projected to reach 264 million people by the year 2030. In 2016, Nigerian consumption of soy and soy-related products was a kg/ person per year compared to an average of 55 kg/ person per year in similar markets. Given these low consumption levels, the poultry and aquaculture sectors in Nigeria are projected to grow significantly over the next decade, while soybean production growth wi l l average less than three percent per annum. In short, this means the country’s soybean supply shortfall will continue to widen. Also, at this time, the country crushes about 1 Mmt/year.
What is the difference between AGOA and the African Trade Exchange?
The African Growth and Opportunity Act, or AGOA is a piece of legislation that was approved by the US Congress in May 2000. The stated purpose of this legislation is to assist the economies of Sub-saharan Africa and to improve economic relations between the United States and the region. Separately, the African Trade Exchange was a virtual meeting, hosted by the US Soybean Export Council, US Grains Council, and World Initiatives for Soy in Human Health (WISHH). The meeting was an opportunity to highlight the growing partnership between US organizations like those that hosted the event and share information on the US agricultural products that could be available in the region.
On both sides, in which areas do you think we can trade better, and what should be changed on both sides to enable the two countries to do bigger business?
First, for our industries to be successful and stable, free and reciprocal trade is needed. Second, Nigeria is already one of the largest wheat importers and a rapidly growing poultry importer. The US Soy industry can leverage these commercial relationships to model a robust soy supply chain. Conversely, Nigeria is plagued with low purchasing power, low life expectancy (55 years), and a critical lack of infrastructure. USSEC’S strategy is to create longterm relationships in the region that will enable the US and partners to seize opportunities and be successful. One of the ways we plan on doing so is by establishing a Soy Excellence Centre in Nigeria. This will be the technical and policy pillar to advance the region’s soy supply chain. Currently, there is a Soy Excellence Centre in Egypt. There are significant opportunities to drive growth in Nigeria. At the end of the day, our strategy at USSEC is to create long-term and lasting relationships so that we all can benefit.
Ni g eria and t he US have comparative and competitive advantages on agricultural products, including soybean. In which areas can both countries collaborate to expand trade?
The US Soybean Export Council, which works to build markets for US soybeans and soybean products around the world, has been laser-focused both on existing relationships abroad and investing in new ones to evolve emerging markets, identifying factors like growing populations, i m p rov i n g economic conditions, and addressing protein deficiency among populations. In addition, this farmer and supply chain-led organization works every day to ensure continued market access for US soy in various markets around the world. Sub-saharan Africa and Nigeria are part of the long-term strategy to build a strong pipeline of demand for US Soy.
There are significant opportunities for US Soy and Nigeria to collaborate and drive growth. One example is Soy Excellence Centres ( SEC). With SEC, we will be able to leverage relationships, conduct training, and connect buyers and sellers. The goal of SECS is to have them become a one-stop-shop for industry training. These centres are designed to provide training, resources, and education to all members of the soy value chain.
Are you optimistic about the US export industry recovering fully, both domestically and internationally, from the impact of COVID-19?
As we continue to navigate these unprecedented times, it is more important than ever that we demonstrate to current and potential international customers the strength of our farmers/ industry and the benefits of buying US Soy. Homeland Security deemed agriculture as ‘critical infrastructure’ amid the C OV I D – 1 9 pandemic, and our farmers take their job to globally provide food, feed, fuel, and fiber very seriously. Agriculture and farmers have weathered some of the world’s most difficult seasons and obstacles but survived and overcame. The last few years have been some of the most challenging on record, but farmers maintain their commitment to doing everything they can to provide soy for food, fiber, fuel, and other products. The same applies to COVID-19, but we’re resilient and moving forward. Soybean farmers intend to serve as an example to others. By continuing their work safely, sustainably, and effectively, soybean farmers will be an example to others of how to keep their noses to the grindstone and stick to doing what they do best, even in the most trying times.
Are there any warning signs on the horizon, in your opinion?
Looking ahead, we are optimistic about what is on the horizon. While our soybean farmers are doing their job of providing a sustainable and high-quality product, US Soy is working tirelessly to provide stability by building demand and expanding global market access for US soybean products. Our work to build preference for US soy is more important than ever. Soy production is growing worldwide, and we continue to work across borders, industries, and disciplines to find and develop markets. African agriculture generally lacks relevant data. To what extent is the lack of data affecting US policy- making and investment decisions in the African feed industry? Lack of credit and underutilization of GSM credit guarantees have been longstanding constraints on sales of U.S. soy products to Africa. As part of its initiative to develop the multimillion-ton market for U.S. Soy in Africa, USSEC brought together key stakeholders this past September to address the credit issue head-on.
In Niger i a, protein deficiency is not only a major cause of malnutrition but also creates huge economic and social burdens. The U.S. soy industry has worked to develop this market since 2010 when WISHH began its focus on market building and addressing long- term demand. In 2019, USSEC launched the first phase of the Protein Challenge Campaign to target protein deficiency, which has included a baseline survey to determine the current status and dimensions of the country’s protein deficiency; building and nurturing an online and digital community; and a stakeholder engagement campaign. The work of the US soy industry, coupled with the plans to train and educate the soy value chain through the Soy Excellence Centre (SEC), and USSEC’S ongoing relationship management efforts bodes well in the long run for the import of US Soy as demand continues to outstrip supply. The protein pull work and the training coming via the SECS are working handin- hand to help Nigerians realize their protein needs.
What are your expectations for the African feed industry?
Sub- Saharan Africa is currently the sixth- largest destination of US feed and grain exports, with Nigeria being the largest destination within the region. According to the USDA, soybean and soybean meal feed use in the region is projected to increase by 59 and 35percent, respectively, until 2029. These numbers represent an opportunity for the boosted demand of US Soy.
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