Transcript Role of Associations, Some Important Problems

Welcome to the
Conference on Agricultural
Solutions and Cooperation
Harkany, Hungary
June 2009
John Heisdorffer
President
Iowa Soybean Association
Key Emerging Issues
Worldwide economic uncertainty
Competition for hectares between soybeans, corn and
wheat.
High fertilizer prices
Higher Amino Acid availability in U.S. beans and meal
provide added value
Economically advantageous to formulate on availability
and digestibility of key amino acids
Higher animal performance & less expensive diets
Soybean Production
Metric tons
Not Estimated
< 6,800
6,801-20,400
20,401-54,400
54,401-108,800
108,801-217,700
217,728 +
Value of International Markets
45% of U.S. soybean production exported over last 5 years
Three of last 4 years are record setting years for soybean exports:
2008 record 30.4 million metric tons of soybeans exported
2006 record 29.9 million metric tons exported
2004 record 29.8 million metric tons exported
Soy exports valued at over $12 billion
Bean exports – 30.4 million metric tons– up 12%
Meal exports – 7.5 million metric tons– up 1%
Oil exports – 1.4 million metric tons – up 60%
U.S. Hectare Allocation(Planted)
100
90
80
70
26.20
29.15
30.64
30.56
30.76
(76.02 Mil Acres)
60
Soybeans
50
40
37.85
33.09
31.70
23.17
23.21
34.80
Corn
34.39
(84.98 Mil
Acres)
Wheat
30
20
10
24.48
25.57
23.72
(58.6 Mil Acres)
0
2005
2006
2007
2008
2009 Est.
Source: U.S.
Department of
Agriculture (USDA)
Grower/Producer Organizations
• Focused on needs of soybean farmers
• Directed by Farmer Leaders
• Aimed at Producer Profitability
• Environmentally sensible production
Soybean Checkoff
• Established in 1991
• Figured at ½ of 1% of net market value
• All Producers MUST pay
• Not allowed to be spent on lobbying and
policy
Policy/Membership
• Voluntary dues paid to grower organization
• 23,000 ASA members
• Money spent on:
– Domestic Farm Policy
– Trade Policy
– Biofuels development/policy
What We Do to Build Demand for
Soybeans
• Domestic Demand
– Soy Foods
– Biodiesel/Bio-based Products
– Supporting the livestock industry
• International Demand
– AGP Partnerships
– USSEC
– ASA-IM
International Marketing Initiatives
 SE Asia export promotion
program via Gray’s Harbor
 Developing long-term relationships with key buyers by
demonstrating our commitment to providing the
highest and most reliable supply of soybean meal in the
world via the Port of Grays Harbor and AGP. AGP will
also conduct aquaculture research trials with a specially
modified soybean meal.

Black Sea regional export
promotion program
Working to establish direct business relationships with
soybean meal importing customers in each Black Sea
market country. Like Asia, hoping to develop a strong
relationships and interests in a strong supplier-processorbuyer relationship with AGP and the Midwest soybean
states and soybean producers.
Increased Production
• Higher Yield
• Increased Disease resistance
• More agronomic management information
Pursue State and Federal Polices
• Risk Management
• Regulatory Issues and Reduce trade barriers
Goals of the Iowa Soybean Association
Public Affairs-Secure resources and policies that enable Iowa
soybean and livestock producers to compete globally.
Supply-Stabilize and increase yield while improving production
efficiency and the environment.
Demand- Increase demand of Iowa soybeans by meeting the needs
of our customers.
Information and Education- Disseminate information about the
activities and investments of the organization.
Organizational- Strengthen the ability of ISA to meet its goals and
objectives while improving operations.
Thank You!