The Illinois Soybean Association (ISA) continues to foster global partnerships, helping Illinois farmers gain valuable market insights. Ryan Frieders, ISA Board Director, had the opportunity to travel to Saudi Arabia and Turkey, engaging with key stakeholders in the soybean value chain. Funded by the Regional Agriculture Promotion Program (RAPP), this trip provided critical insights into these evolving markets and their demand for soybean products.
Saudi Arabia: A Market Primed for Growth
Frieders’ first stop was Riyadh, Saudi Arabia, where he met with industry stakeholders. The country is heavily investing in animal agriculture, increasing its soybean meal (SBM) demand. However, sourcing soybeans and corn from the U.S. has been challenging for Saudi businesses due to high transportation costs and limited storage space. Instead, they import soybean meal from Egypt and continue to look for more efficient solutions.
The Saudi government is making substantial investments in agriculture to achieve greater self-sufficiency. With significant population growth anticipated through immigration, the demand for soy-based animal feed is projected to rise. However, to do business in Saudi Arabia, foreign companies must establish a local presence, presenting an additional logistical hurdle for U.S. exporters.
During his visit, Frieders met with leaders of Al Khumasia, an integrated feed mill and poultry, camel, sheep and cattle producer. Government-backed land grants in the desert are enabling this award-winning business to expand operations. Additionally, he met with Feedco executives as well as Arasco Feed company leaders who are all working to ensure Saudi food security by 2030. After the COVID-19 pandemic, it has become a national priority for Saudi Arabia to become food independent.
One key discussion point was the inconsistency of South American soybeans, where quality varies by region. Buyers in Saudi Arabia noted their preference for U.S. soy, but the added transportation costs and limited storage space lead them to purchases from Brazil and Argentina. Frieders emphasized the benefits of sourcing U.S. soybeans through container shipments, which could help maintain quality while reducing transportation inefficiencies. Container shipments allow the purchaser to source soybeans from specific regions to meet their preferred quality standards.
Turkey: A Market with Strong Potential for U.S. Soy
In Turkey, he engaged with importers, millers and end users, uncovering opportunities and challenges for U.S. soybean exports. A primary obstacle remains the Turkish government’s strict ban on genetically modified organisms (GMOs) for human consumption. While Turkey can import and crush U.S. soybeans, the resulting oil cannot be sold domestically due to these restrictions. The meal, however, is permitted for livestock feed.
Despite the GMO restrictions, Turkey remains a significant player in soybean processing, particularly for poultry and aquaculture. Turkish buyers are price-sensitive, but recent price drops have increased the opportunity for U.S. soybeans to enter the market. U.S. soybeans are favored for their quality in processing, leading to cost savings through reduced waste. Frieders took the opportunity to educate the buyers about the differences in growing conditions between the U.S. and South America, reinforcing the reliability and quality of American soy.
One of the most impressive visits was to a cutting-edge soybean crush plant, Abalioglu Yag, Izmir, which was remarkably clean and efficient. Seeing the processed beans firsthand brought light to the toll transportation takes on soybeans from farm to end-use facilities. This realization highlights the importance of optimizing logistics and moisture levels to preserve quality from beginning to end.
Additionally, Frieders toured Akvatek, an advanced aquaculture research facility, a contrast to his previous experiences in Cambodia during a trade mission in 2024. Turkey is making significant strides in aquaculture innovation, targeting European markets with high-quality fish products. The facility’s ongoing research and development efforts signal a growing demand for soybean-based aquafeed, offering another potential avenue for U.S. soy exports.
The Future of U.S. Soy in Saudi Arabia and Turkey
The insights gained from this trip highlight distinct opportunities for Illinois soybean farmers. Saudi Arabia is focused on feeding its growing population, with substantial government investments shaping the future of its agricultural sector. Meanwhile, Turkey’s established export markets and preference for U.S. soybeans provide a foothold for expanding trade, particularly if GMO policies shift in the future.
Additionally, programs in the U.S. aim to educate processors abroad. Notably, a North Dakota State University (NDSU) program helps bridge the knowledge gap, as many feed mill companies from the Middle East are sending students to learn about soybean processing. These tools can be brought to their home countries and strengthen long-term demand for U.S. soy.
While transportation costs and regulatory barriers pose challenges, the growing need for high-quality soybean products in both markets present opportunities for Illinois farmers. By continuing to engage with global partners, ISA remains committed to expanding market access and reinforcing the value of U.S. soy worldwide.
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