Benefit To Soybean Farmers
The proposed trade and food service marketing program will lead to a continued increase in demand for U.S. poultry, and, ultimately, to greater use of soybean meal and profit potential for U.S. soybean farmers.
Growth of U.S. poultry exports is particularly important as the poultry industry is the largest user of soybean meal among livestock groups, accounting for more than 55 percent of all the soybean meal produced in the U.S.
More exports of U.S. poultry and eggs mean more value-added exports of U.S. soybean meal. As poultry and egg exports increase, there is a greater need for more poultry and egg production, resulting in more soybean meal needed for feed. In 2019, Missouri soybean production was 130.5 million bushels of which, about 17.5 percent or 40.4 million bushels of soybean were used by the poultry and egg production sector in the state.
Without U.S. poultry and egg production U.S. soybean prices would decrease by 56 percent, all other things being equal. Without U.S. poultry and egg exports U.S. soybean prices would decrease by 8 percent, ceteris paribus.
If the U.S. can export just 1 percent more U.S. poultry and egg products due in part to these projects, then 1.5 million more soybean bushels will be used in the U.S. or 94,000 soybean bushels from Missouri.