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Global Trends in Soybean Processing
Bing Li, Peter Goldsmith, Jerry Fruin, Rodolfo Hirsch
5 August 2005
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1. As world soybean production and crush have been steadily increasing since 1990s, the regional distribution of production and crush has changed dramatically. From 1991/92 to 2003/4, US share of world soybean production declined from 50.39% to 37.83%, Brazil’s share increased from 17.99% to 26.98%, Argentina’s share increased from 10.39% to 17.83%, and China’s share declined from 9.04% to 8%.
2. During the same period, US share of world soybean crush declined from 37.26% to 25.26%, European Union’s share declined from 14.35% to 9.91%, Brazil’s share increased from 16.31% to 17.35%, Argentina’s share increased from 8.41% to 14.51%, China’s share jumped from 3.7% to 15.48%.
3. The world’s largest soybean processors are remapping their global strategies. ADM has reduced its soybean crushing capacity in North America in recent years, and increased its crushing capacity in South America and China. In 1996, 66% of ADM’s oilseeds processing capacity was in North America, 0% in China, and 0% in South America. In 2003, 15% of its oilseeds processing capacity is in China, 9% in South America, while its North American share declined to 50%. Since 2000, Bunge has closed one soybean processing plant in the US and idled two others. Cargill has also closed one soybean processing plant in the US. Both Bunge and Cargill have significantly expanded their crushing capacities in South America; and Cargill has expanded as well into China.
4. While the US share of world soybean crush declined, its total crush volume did not decrease. In recent years, cooperatives have been building crush plants in the Northern US, adding approximately 12,000 metric tonnes of daily capacity.
5. In recent years, major soybean processors and other multinational companies (MNCs) have integrated further into higher valued ingredients and products, investing heavily in soy foods, bio-products, and soy protein products in North America, South America and China.
6. The recent shift in production combined with the current inability for seed companies to receive royalty payments for their soybean technologies in many of the new soybean growth areas may compromise future investment in soybean seed development. The current shift in the location of global crushing investment is occurring into countries where seed patents rights are difficult to enforce. If soybean research is compromised by the property rights problem investments in soybean crushing may be at risk.
http://www.ace.uiuc.edu
2. During the same period, US share of world soybean crush declined from 37.26% to 25.26%, European Union’s share declined from 14.35% to 9.91%, Brazil’s share increased from 16.31% to 17.35%, Argentina’s share increased from 8.41% to 14.51%, China’s share jumped from 3.7% to 15.48%.
3. The world’s largest soybean processors are remapping their global strategies. ADM has reduced its soybean crushing capacity in North America in recent years, and increased its crushing capacity in South America and China. In 1996, 66% of ADM’s oilseeds processing capacity was in North America, 0% in China, and 0% in South America. In 2003, 15% of its oilseeds processing capacity is in China, 9% in South America, while its North American share declined to 50%. Since 2000, Bunge has closed one soybean processing plant in the US and idled two others. Cargill has also closed one soybean processing plant in the US. Both Bunge and Cargill have significantly expanded their crushing capacities in South America; and Cargill has expanded as well into China.
4. While the US share of world soybean crush declined, its total crush volume did not decrease. In recent years, cooperatives have been building crush plants in the Northern US, adding approximately 12,000 metric tonnes of daily capacity.
5. In recent years, major soybean processors and other multinational companies (MNCs) have integrated further into higher valued ingredients and products, investing heavily in soy foods, bio-products, and soy protein products in North America, South America and China.
6. The recent shift in production combined with the current inability for seed companies to receive royalty payments for their soybean technologies in many of the new soybean growth areas may compromise future investment in soybean seed development. The current shift in the location of global crushing investment is occurring into countries where seed patents rights are difficult to enforce. If soybean research is compromised by the property rights problem investments in soybean crushing may be at risk.
http://www.ace.uiuc.edu
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