Vietnam full of potential for soybean growers

MANKATO, Minn. — Did you know that Minnesota soybeans regularly make their way halfway around the world to Vietnam?

Vietnam full of potential for soybean growers
 

Soybeans are the top crop exported from Minnesota. Many go to Vietnam thanks to the efforts of the Minnesota Soybean Research and Promotion Council and the U.S. Soybean Export Council. As Vietnam's economy has become more industrialized, citizens are looking for better calorie sources, including animal protein. Knowing that those animals need to eat, MSR&PC made a strategic investment in Vietnam, funding three staff members and an officer there to encourage the import of Minnesota soybeans.

Last month, 10 soybean farmers from across the state and two Minnesota Soybean staff visited Vietnam to check in on that investment on a See for Yourself mission.

Attendees included John Lenort, Fairmont; Joseph Doherty, Le Sueur; Keith and Carol Schrader, Nerstrand; Kevin Paap, Garden City; Patrick Hennen, Ghent; Rodney Balvitsch, Ellendale; Roger Steinman, Lake Wilson; Trevore Brekken, Crookston; Ronald Obermoller, Brewster; Ben Storm, Dover; and Kim Nill and Doug Monson with Minnesota Soybean.

Minnesota is ahead of the curve in its alignment with Vietnam, said Nill, who is MSR&PC director of marketing and development.

"Experienced people are looking at the market (in Vietnam) and investing in it," Nill said. "They're into soybean crushing and use it in livestock feed."

The country has the 35th largest economy globally and is the 11th largest for U.S. agricultural exports. With the Trans-Pacific Partnership agreement, of which Vietnam is a part, the country is expected to be one of the biggest benefactors, Nill said.

Partnering with Vietnam on trade is a wise choice, said Paap, who is also Minnesota Farm Bureau president.

"Trade is important to all of us," Paap said. "We have some real opportunities. Vietnam may be the fastest growing of the world's emerging economies."

The country is a great fit for soybeans because the economy is evolving, said Keith Schrader, MSR&PC chairman. Vietnam's middle class is expected to double to 33 million by 2020. This shift means that many are upgrading their diet to include more meat. With an eye on that trend, MSR&PC is focusing its support on the livestock industry while continuing to work with soy food suppliers, Schrader said.

The group toured a fish farm, saw poultry and swine production and got to see a soybean crushing plant. The hog farm they visited was considered large, with 300 sows and 7,500 pigs sold annually. The farmer said he nets $35 per head.

The hog farmer had "extremely robust biosecurity measures," Balvitsch said. The 20,000-hen layer operation required a three-quarter mile walk because the road was too narrow for the bus to travel. The farmer was selling 10 eggs for 50 cents on the open market. At the fish farm, the ration includes 35 percent to 40 percent soybean meal. The amount of soybean meal in the ration was bumped up to boost the rate of gain. The fishery harvests 3 million fish daily, with many sent to the United States.

The group visited a plant belonging to CP, the world's largest feed ingredient manufacturer. There, 25,000 metric tons of feed are produced every day. The Bunge soybean crushing plant they stopped at processes 3,000 metric tons of soybeans daily and aims to double that capacity. Representatives there remarked that they prefer U.S. soybeans over South American ones because they have less moisture and heat damage.

One thing that stood out to Paap was how open the people were.

"It struck me how nice the people were and how they were always looking out for us," Paap said. "They have some of the same frustrations we have here: profit, prices, wanting to feed their families."

While the Minnesota farmers were surprised how small average farms were in Vietnam, Vietnamese farmers were equally surprised by the vastness of farms here. Some of the folks they talked to had traveled here to see for themselves the scale of agriculture in the United States. Shared pictures, particularly of farm equipment, drove home the scale for those who hadn't traveled here.

"They are allowed 1 hectare to farm," Storm said. "I farm 1,400 acres. I showed some of my equipment setup and they though that was large."

Another big takeaway was the importance of relationships. The group could tell that having boots on the ground in-country was making a difference because they were there to personally build relationships, rather than strictly over the phone or online transactions.

The MSR&PC visit worked to strengthen those relationships. Vietnam looks to be ripe for Minnesota soybean exports for years to come.

Source: AgriNews