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!