Soybean Sales Support Case Study: Indonesia
Trade Missions Strengthen Connection
Because Indonesia is a top Illinois soybean customer, ISA leaders visit regularly. The most recent trade mission occurred January 30 to February 2, 2019. ISA directors Lynn Rohrscheib, Fairmount; Doug Schroeder, Mahomet; and ISA CEO Craig Ratajczyk learned about soybean needs for the traditional Indonesian staple tempeh, (left), visited the Cigading Port, Cilegon, (right), and met with other local officials and customers to identify new and growing opportunities for Illinois soybeans.
Containers Deliver High-Quality Soybeans
Most of Indonesia’s soybean imports become tempeh, which requires naturally colored soybeans with less than one percent foreign material. To ensure that quality – which Illinois can supply – Indonesia is the top buyer of containerized soybeans, at about 1.4 million metric tons last year, according to Federal Grain Inspection Service data. Containers can be filled at transload facilities, shipped to U.S. ports via train and loaded onto ocean vessels for delivery (left).
Soybean Sales Grow
These efforts all contribute to growing soybean exports to Indonesia, which has the world’s fourth largest population. As its economy and middle class grow, demand for soybeans increases.
Soybean imports and U.S. market share has been increasing. The Illinois export data in the chart is under-reported because of how state-of-origin information is gathered. More than 25 percent of the soybeans going from the U.S. to Indonesia are likely from Illinois. Note that ISA efforts to connect buyers in Indonesia to Illinois sellers resulted in more than 7,000 metric tons of exports.
In addition, Indonesia ranks in the world’s top ten for poultry broiler and aquaculture industries. More than 4.4 million metric tons of soybean meal are imported for feed. With such large demand, the U.S. has opportunity to increase its current five percent share of Indonesia's soybean meal market.