Destination Morocco: With Expanding U.S. Soybean Processing Industry it's a Growth Market for Meal

The soybean processing industry is expanding in the United States due to the push for green fuels like renewable diesel and Sustainable Aviation Fuel made from soybean oil.  The result of the increased crush will be an excess of soybean meal.  South Dakota soybean farmers are taking the lead in developing new markets for that meal and leadership of the South Dakota Soybean Research and Promotion Council and South Dakota Soybean Association conducted a recent trade mission to Morocco, Africa.

"There will be a surplus of soybean meal because we’re crushing for oil, you have to find a way to get rid of it.” says Mike McCranie, who farms near Claremont, SD.  A new plant is planned for Mitchell and McCranie says it will be great for the state, but leaves them with two options for the meal, either grow livestock production or export it.   Colton, SD farmer Jeff Thompson says they believe it's time to be proactive, “So coming here having a presence gives us the opportunities to hopefully make some sales in the future.” 

Morocco is already one of the largest soybean meal customers for the U.S. Brent Babb, Regional Director of Europe and Middle East/North Africa at the U.S. Soybean Export Council (USSEC) says, “It’s always in the top 10 of our soybean importers from the U.S. It’s usually around 400,000 tons annually.”  Khalid Benabdeljelil, with USSECin Morocco says, “We have been using U.S. soybean meal.  A product that is known for its quality, for reliability, for stable quality and constant quality over time.  And market share is about 60% and has been 60% over the last five or six years.”      

Moroccan feed customers like U.S. soybean meal because it is more consistent than South American product.   According to Yasser Amri, Technical Director, with Societe Nouvelle Eddik.  “The soybean meal that comes from Argentina sometimes they have a problem with cooking and digestibility.  So, we prefer to work with U.S. soybean meal.” 

Morocco’s largest feed mill, Alf Sahel, produces 1.2 million metric tons of feed annually, with 70% used in poultry rations.  They buy based on price and quality and prefer U.S. meal because of its nutritional value.  General Manager Yousef Mikou says, "Right here we buy amino acids. Amino acids is better than crude protein.  Even if the price of soybean meal of USA is high it’s better to use it because of the amino acids that they have.” 

This represents a shift taking place in the global feed industry.  Jerry Schmitz, SD Soybean executive director, says it's a big selling point for northern states like South Dakota that grow soybeans that are higher in essential amino acids.  “In the past protein has been the bar that everybody has set but really proteins are made of essential amino acids and there are specific amino acids that are important to livestock and to human development and South Dakota, North Dakota, Iowa and Nebraska have those essential amino acids in great quantity.” 

Research shows EAAs are more digestible and help livestock and poultry gain more efficiently.  Tim Ostrem, Centerville, SD farmer states, “Extra protein just ends up being wasted so the amino acid profile is truly what they’re seeking, and we offer some of the very best amino acids profiles that there are.” 

Mikuo says they also watch the currency exchange and are relieved the U.S. dollar backed off 20-year highs to make imports more affordable.  However, Babb says as the U.S. ramps up meal production prices may be more attractive for countries like Morocco.   He says, “We expect with larger production of meal, we’ll have a little bit lower price.  You add in quality and sustainability, and we’ve got to have a lot of good markets for that U.S. meal.”  

 

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