(Indianapolis, IN) - Efforts are being made to create a new market for Indiana soybeans in one of the most populated countries in the world.
A delegation of stakeholders from various organizations in the state visited Indonesia recently because of the potential they see in selling a great deal of soybeans to a country with more than 270 million residents.
Jim Douglas, a southern Indiana farmer and member of the United Soybean Board of Directors, said the island nation, along the southern coast of Asia, imports a lot of soybeans to meet demand, the majority of which is driven by tempeh and tofu, Both of which are food woven deeply into the Indonesian culture, made primarily from soybeans. High humidity in the fourth most populated country on the globe, though, makes it difficult to store a large supply of soybeans for extended use periods because of spoilage risk.
“The soybean industry is important to them, and to get an adequate supply,” he said.
To get around the storage issue, the answer from the Indiana Soybean Alliance is exporting soybeans in containers directly to Indonesian buyers. Douglas said the amount purchased would be specific to the needs of each customer, instead of storing the soybeans in large volumes for the masses.
“This trip is going to try and enhance that by delivering a high-end product to them,” he said.
The Indiana Corn Growers Association was also represented in the delegation to try and drum up more business for Hoosier-grown specialty corn and co-products, like ethanol and distillers’ grain.
The organizations are looking to tap into the Indonesian market through the Regional Promotion Program funded by USDA. RAPP is aimed at maintaining and opening new global markets for specialty agricultural products from the U.S. like soybeans, corn, meat, poultry, eggs, turkey, duck, and pork. The USDA is providing $2.3 billion to help with the effort nationwide.
The 10-member delegation, led by ISA, met with potential buyers and toured various facilities and supplies during the trip.
Indiana is ranked among the United States’ top five in the production of corn, soybeans, hogs, eggs, duck, turkeys, ethanol production, and soybean processing.
According to ISA, the economic impact of Indiana’s agricultural export market includes:
- Every dollar invested in export market development programs returns $24 in export revenue.
- Indiana is the seventh-largest agricultural exporter in the nation, exporting $7.4 billion in 2022.
- The market value of beef and pork exports fed by Indiana-produced corn was $241 million in 2022.
- Indiana corn and soybeans combined had $3.9 billion in exports in 2021.
ISA and ICGA have also identified demand for specialty products in Colombia, Thailand, and Japan.
The market potential of shipping to these regions could be up to 11,600 containers of $165 million in product value between soybean and corn commodities and co-products annually, ISA said. In Indonesia, the soybean export value is estimated at $110 million and the corn starch export value is estimated at $12.3 million.
“We feel that our farmers are more than capable to be able to supply some of that need,” said Bruce Gorman, International Trader Director at the Indiana State Department of Agriculture.
Douglas said support from Congress will be key in opening up new or expanded markets in Indonesia and other countries identified with needs Indiana can help fill because they’re outside normal trade negotiations.
“That’s where the action for change has to take place. There’s roadblocks everywhere,” he said.
