2019
Potential Economic Value of Growth of U.S. Aquaculture to U.S. Soybean Farmers
Contributor/Checkoff:
Category:
Export/Trade
Keywords:
Aquaculture
Parent Project:
This is the first year of this project.
Lead Principal Investigator:
Carole Engle, Engle-Stone Aquatic, LLC
Co-Principal Investigators:
Project Code:
Contributing Organization (Checkoff):
Institution Funded:
Brief Project Summary:

Supporting the development of the US aquaculture industry would benefit US soybean farmers by increasing sales and supporting strong rural farming communities. Increasing domestic aquaculture markets would increase sales, as export markets can be unreliable. The greatest short-term potential to increase demand for soybeans is the US catfish sector, which consumes the most soybean meal of any sector. Policy changes are required to create a more level playing field for food safety and environmental standards. If the US catfish industry would recover and reach peak production levels from 2003, soybean demand would increase by 74%.

Key Audience:
Economists, aquaculture feed producers, soybean farmers

Information And Results
Project Deliverables

This report will first present a brief background of trends in U.S. soybean prices, supply, usage and trade, followed by a brief overview of U.S. aquaculture, and a discussion of the types of soybean products currently used in U.S. aquaculture and potential future uses.

Final Project Results

Updated February 25, 2021:
Supporting the development of U.S. aquaculture would provide benefits to U.S. soybean farmers in terms of sales and in supporting strong rural farming communities. Moreover, as export markets can be unreliable, increasing domestic markets would help to stabilize sales. This analysis has identified those segments of U.S. aquaculture with the greatest short-term and longer-term potential to increase demand for soybeans. The greatest short-term potential to increase demand for soybeans is that of the U.S. catfish sector. U.S. catfish already consumes by far the greatest amount of soybean meal of any sector of U.S. aquaculture due to the overall size of the sector, combined with its high inclusion rates of soybean meal. The market share of imported pangasius catfish could be re-captured through policy changes that create a more level playing field in terms of food safety and environmental standards. Holding imported pangasius products to the same food safety and environmental standards of the U.S. would result in a more competitive U.S. industry because the U.S. industry currently incurs the costs associated with high food safety and environmental management regulations unlike countries that export pangasius to the U.S. If the U.S. catfish industry recovery would continue and reach the production levels at its peak in 2003, its demand for soybeans would increase by 74%.

In the shorter term, the next greatest potential to increase demand for soybeans would be that of salmon, then tilapia, and trout production in the U.S. While salmon farms currently do not use feeds with high inclusion rates of soybean products, the dramatic volumes of production announced in the new, indoor salmon farms rank it as the second-greatest demand for soybeans. Tilapia ranked third due to new investments and proposed expansion, combined with the high inclusion rates of soybean meal in tilapia diets. Trout ranked fourth, based primarily on existing markets that could be captured from imports with policy changes to remove the constraints to expansion of trout production in the U.S., even with the somewhat lower inclusion levels of soybean products in trout diets.

Longer-term, additional increases in demand for soybeans are likely to come from research that would result in increased inclusion rates of soybean products in diets for salmon, and marine fish, especially yellowtail, branzino, sablefish, and pompano, for which existing businesses have been developed in the U.S.

View uploaded report PDF file

The analysis presented in this report has resulted in the identification of those segments of U.S. aquaculture with the greatest potential to increase demand for soybeans. Overall, the U.S. catfish sector has the single greatest potential to increase demand for soybeans. U.S. catfish already consume by far the greatest amount of soybean meal of any U.S. aquaculture sectors due to its overall volume of production, combined with high inclusion rates of soybean meal in catfish diets. Low-priced pangasius catfish imports, primarily from Vietnam, captured approximately half of the market that had been developed by the U.S. catfish industry. However, that market share could be recaptured through policy changes that create a more level playing field in terms of food safety and environmental standards.

The next greatest potential to increase demand for soybeans would be salmon, followed by tilapia, trout, marine foodfish (other than salmon) production in the U.S., and shrimp. While salmon farms currently do not use feeds with high inclusion rates of soybean products, the dramatic volumes of production announced for the new, indoor salmon farms rank it as the second-greatest demand for soybeans.

Tilapia production ranked third due to new investments and proposed expansion, combined with the high inclusion rates of soybean meal in tilapia diets. Trout ranked fifth, based primarily on existing markets that could be captured from imports with policy changes to remove constraints to expansion of trout production in the U.S., even with the relatively lower inclusion levels of soybean products in trout diets. New investments and proposals for projected expansion of marine finfish production from existing farms that produce yellowtail (Hawaii), sablefish (on the West Coast; sablefish is a native fish that is more socially acceptable than Atlantic salmon), branzino (northeast U.S.), and pompano production (Florida) as well as a newly announced indoor facility for yellowtail amberjack (Maine) ranked as the fifth-greatest demand for soybean products, followed by proposals for large-scale shrimp facilities in the U.S.

The United Soybean Research Retention policy will display final reports with the project once completed but working files will be purged after three years. And financial information after seven years. All pertinent information is in the final report or if you want more information, please contact the project lead at your state soybean organization or principal investigator listed on the project.