By DOUG GRAVES
Ohio Correspondent

COLUMBUS, Ohio — If soybean farmers felt corn growers were getting all the attention with ethanol production, there’s good news out of Washington.

The Ohio Soybean Council (OSC) recently was approved for a USDA grant in the amount of $93,000 as part of the Value-Added Producer Grant Program. This grant, along with matching funds from OSC and the soybean checkoff, will be used to help fund a feasibility study and business plan for a new venture to market Ohio-grown, value-added soybeans to international buyers, using shipping containers.

According to Kirk Merritt, OSC director of international markets, this effort will result in a premium price for the
producer.

“Already half of the U.S. soybean crops get exported to Asia, Europe and Mexico,” he said. “International markets are important for soybean growers and with this grant, they’ll be even more important. We’re working hard to keep these markets open and to market Ohio soybeans.

“The value occurs in various ways. First, the farmer who grows specialty soybeans like food-grade soybeans will benefit, as will those with non-genetically modified soybeans. Also, there’s a chance to increase the value the farmer gets even for commodity soybeans that are shipped in containers.

“The second value is the use of containers that arrive on trains. The use of shipping containers have been in international trade the past 50 years; the last three to five years they’ve been used for agriculture commodities. The advantage is that these boxes, or containers, are full of goods coming in but going back empty.
More and more shipping companies are looking for ways to fill these containers. And we say, why not fill them with soybeans?” Merritt concluded.

According to Merritt, international markets are yearning for quality soybeans.

“There are three key pieces to this puzzle,” he said. “First, Ohio is a producer of high quality soybeans. Second, Ohio’s railways and access to waterways is a plus to the shipping infrastructure.
“Third, is location. We’re strategically located as far as shipping is concerned and we’re close to the East Coast. We can send double-stacked containers using the railroads.”

Drawbacks? Very few, Merritt said. “Soybean producers face challenges in marking contact with potential buyers, as well as negotiating orders once contact is made. Additionally, producers face challenges with transportation and logistics. The feasibility study and subsequent business plan that this grant will be used for will help us address those challenges.”

“Ohio enjoys a unique combination of high-quality soybean production and logistics advantages,” said Dan Corcoran, OSC chairman and Pike County soybean farmer. “The goal of this project would be to capitalize on those strengths, and take advantage of the growing demand from international markets, particularly Asia.”

Many types of foreign buyers would benefit from this venture, and would be targeted for direct sales. This would include buyers of various types of identity preserved soybeans, who are willing to pay a premium price to limit the multiple transfers of bulk shipments and reduce foreign material in shipments of soybeans.

Other targets would include buyers seeking to make small and more frequent purchases and buyers seeking fast receipt of orders, which is possible using the containerized shipping method.
Headquartered in Washington, D.C., the OSC is governed by a 17-member volunteer farmer board, which directs the Soybean Promotion and Research Program.

The program’s primary goal is to improve soybean profitability by targeting research and development projects through the investment of farmer-contributed funds.