soybeans to the EU after the US – decreased by 25%. But im- ports from countries such as Canada, Ukraine and Paraguay fell even more sharply, by an average of 80% in the same peri- od. The relatively low price was not the only incentive for the EU to buy more soybeans from the US. The US has complained for a while that the European soy market is too protected from US imports. To ease US concerns and reduce trade tensions be- tween the EU and the US, regulations on biofuels and the use of soybeans were relaxed in January. This will pave the way for more imports of soybeans from the US in 2019.
More soybean production in Latin America In 2018, the US, Brazil, Argentina, China and India combined were responsible for nearly 90% of soybean production. In re- cent years, soybean production has increased, particularly in South America. Brazil’s share of the market has been on the rise since 2001; this came at the expense of the US’s market share. Brazilian output has increased by more than 170% since 2001, mainly due to more flexible government policy on land use and relatively cheap agricultural land. But this strong growth came at the expense of nature reserves, which has increased concerns about deforestation in the Cerrado
area. This will eventually become a problem as demand for more responsible and sustainable production of soybeans in- creases globally. Growth in Argentina has also been strong; production has increased by 86% since 2001. In relative terms, this increase was less harmful to the natural environ- ment. Today, Brazil and Argentina combined have a larger share of the market than the US.
Need for sustainable soybeans China continues to invest to increase its domestic production of soybeans. However, China will remain a net importer of soybeans for the time being, while remaining heavily de- pendent on the American continent. The strong improve- ments in yields since 2001 are directly attributable to an in- crease in the use of manure, pesticides and the worldwide agricultural mechanisation drive. Overall, efficiency has bene- fited, but the sharp increase in the use of pesticides in par- ticular has a negative effect on the environment. On a global scale, companies are increasingly being encouraged to buy more sustainable soybeans. To meet the demand for more sustainable soybeans, large soybean producing countries will eventually be forced to change their business model.
▶ ALL ABOUT FEED | Volume 27, No. 3, 2019 13
In 2018, the US, Brazil, Argenti- na, China and India combined were responsi- ble for nearly 90% of soybean production.
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