In this time of shifting political and global dynamics, how do U.S. soybeans stack up on the global stage?

Production

Today, the top U.S. soybean competitors include the two largest countries in South America—Brazil and Argentina. Globally, the largest producer of soybeans is Brazil, followed by the U.S., Argentina and China. China is also the largest importer of soybeans, creating competition between the top exporters—Brazil and the U.S. By contrast, the top two exporters of soybean oil and soybean meal are Argentina and Brazil. As reported by the U.S. Department of Agriculture’s (USDA’s) Foreign Agricultural Service, global soybean production is projected to hit a new record for the 2025/26 marketing year. This is driven primarily by another record crop year in Brazil, despite lower soybean production forecast in the U.S. Likewise, global soybean consumption is forecast to rise in all major markets except the European Union. This is driven by growth in global feed demand and competitive soybean meal prices. On the oil side, global soybean oil production is forecast to grow to a new record in 2025/26, but higher production in the U.S. and Brazil will likely be captured for domestic use.

Sustainability

Many factors make up the sustainability profile of soybeans, including its carbon footprint. Soy’s footprint starts on the farm and ends after the crop has been transported to its final market destination. On the farm, everything from soil, water, seeds, crop protection products, fertilizers and fuel play into the carbon footprint. Drying time, transportation to markets and manufacturing processes are also factored in. “The cultivation aspects are very similar between the U.S., Brazil and Argentina, but where we do see differences are in transportation,” said Abby Rinne, U.S. Soybean Export Council’s (USSEC) Director of Sustainability. “Brazil uses mostly trucking, and in the U.S., we use a lot of rail and barge, which is more sustainable. But the biggest environmental difference we see between the countries is in something called land use change because of the deforestation that has occurred in Brazil and Argentina.”

Land use change involves accounting for the environmental impacts of converting land into cropland. USDA’s Natural Resources Conservation Service reported that from 1997 to 2017, non-federal forest lands increased by more than 1.8 million acres, while cropland decreased by 8.8 million acres. In contrast, Brazil and Argentina have high levels of deforestation taking place, which increases their carbon footprint. From 1997 to 2017, Brazil’s soybean acreage increased by 54.7 million acres, and Argentina’s soy increased by 23.1 million acres. This can be problematic because when trees are cleared in large quantities, the carbon stored in the trees is released as carbon dioxide into the atmosphere.

When land use change is factored in, emissions modeling shows that U.S. soybeans have a significantly lower carbon footprint than soy from Argentina or Brazil.

In the U.S., advances in infield technology and precision farming, in addition to seed advancements and adoption of conservation practices, have significantly contributed to making soybeans more sustainable. The latest Field to Market National Indicators Report found that since 1980, U.S. soybean farmers have reduced greenhouse gas emissions per bushel by 42%, increased land use efficiency by 47%, improved soil conservation by 35% and increased soybean production by 130%.

As reported by USSEC, in 2024, 71% of U.S. soybean exports were shipped with a U.S. Soy Sustainability Assurance Protocol (SSAP) Certificate. The SSAP was developed to meet international sourcing requirements and to verify sustainable soy production on U.S. soybean farms. When U.S. soybean customers are able to buy with confidence that knowing that soybeans have been sustainably produced, it gives U.S. soy a global advantage.

Infrastructure

Infrastructure between Brazil, Argentina and the U.S. varies considerably. “In many parts of South America, producers have to go very long distances to market their soybeans,” explained Eric Woodie, Trade Analyst, Illinois Soybean Association. “This leads to backups where, at times, trucks wait days to unload. Even when the system is running smoothly, delivery to market is much less efficient overall. In addition, many export flows in South America have little in the way of effective transportation to deliver soy to the export market.”

In contrast, the U.S. has the logistical capacity to load multi-commodity vessels, thanks to both its infrastructure and the availability of diverse feed ingredients. Brazil and Argentina primarily focus on single-commodity shipments, with Brazil concentrating on exporting single-commodity soybean cargos to China.

Over the past decade, U.S. producers have expanded their inland storage significantly to provide producers with the best opportunity to market their grain over the course of the marketing year.

Many parts of South America face challenges with on-farm storage capacity, which is a limiting factor for extended soybean storage. Although the level of storage shortfalls varies across the region, it is important to highlight that in areas with dual-crop systems, such as parts of Brazil, soybeans can only be stored for a limited time. This is not only because of concerns about quality but also because a second crop, typically corn, follows closely behind and requires the same storage space.

Looking at currency risks, over the past 20 years, the depreciation of the Brazilian real (the official currency of Brazil) has provided exporters with a significant advantage. This currency trend has made the majority of Brazil’s export-related costs more competitive when compared to those of the U.S. As a result, Brazil has become a much more competitive player in global markets. Although it is true that Brazil imports certain farm inputs priced in U.S. dollars, the overall effect of a weaker currency has been overwhelmingly positive for its export sector.

Quality and Price

Soybeans are widely used for livestock and fish feed around the world. The quality of soybeans is determined mostly by the crop’s physical characteristics, nutritive value and economic value. Soybeans from the U.S., Brazil and Argentina each score differently when it comes to physical parameters for a variety of reasons. Data from the Research Center for Aquafeed Nutrition and Fishery Post-Harvest Technology shows that U.S. soybeans consistently score lowest when considering the percentage of split beans, foreign materials present and damaged beans. Overall, U.S. soybeans rated as 92.5% good quality compared to 82.9% for Brazil and 87.5% for Argentina. These and other chemical composition parameters impact the digestibility of soybean meal that is fed to fish. Research has also shown that U.S. soybean meal has better digestibility characteristics for poultry and swine. These chemical compositions and digestibility characteristics impact the rate of weight gain and growth in fish and livestock, ultimately impacting the profitability of these operations.

Total damage is a key factor when determining the overall quality of whole soybeans. Total damage includes heat damage, mold damage, insect damage and other factors. Soybeans harvested at a higher moisture content are more susceptible to these issues because of the need for more drying time.

“Soybeans grown near the equator are part of a tropical production system, which typically involves high levels of precipitation,” said Carlos Salinas, Regional Director, USSEC. “This leads to challenges in maintaining soybean quality. In contrast, regions farther from the equator, such as the U.S., benefit from a more seasonal production system, which tends to result in better quality and lower moisture levels. This difference in climate plays a significant role in overall soybean quality.”

Many areas of South America require drying of soybeans, and the most common method of drying is burning wood to produce heat. But the lack of control with wood drying methods means more heat damage to the soybeans. In contrast, U.S. soybeans have minimal heat damage because most of the time the crop dries naturally in the field or, if drying is needed, gas dryers allow for more precise control of the drying process.

So how do U.S. soybeans stack up on the global stage?

Overall, an increased demand for plant and animal protein will be driven by a growing world population and increased consumer spending power. This will continue to create market opportunities for high-quality U.S. soybeans around the world. Although U.S. soybeans come with a higher price tag, the combination of economic efficiency and sustainability makes U.S. soy stand above the rest for global customers.