Soybean is available in the market in different forms. It is often sold as a variant of its products, including soybean oil, natural soybeans, and soybean meals. The demand for soy products ranges from home-cooking use to Agricultural products, which explains how soy is sought after in today’s time. With the increased global market, the product is famed for being rich in nutrient content, hence is easily accepted as a whole food product. Other than that, soybean oil also comes in handy as an additive in energy sources like biodiesel. However, before the product gets to the market, a lot of things happen in between. Farmers and marketers plan from the time the crop is grown to when it enters the market. With weather changes being a constant factor on growth success, it may affect marketing plans, especially when the weather hinders bumper harvests since soybean production is majorly dependent on rainfall.
Understanding The Soybean Market
The United States and South America are the biggest suppliers of soybean. Moreover, according to the U.S. Soy, the quality of the soy grown in America is of the top-most quality. Global soybean production and trade is a continuous annual process. The farmers work hard to meet the growing demands of their customers. In the United States, the most critical period for soybean production happens from May to October. For South America, the most crucial period for production is from September all through to March.
Data reveals that Vietnam is currently one of the leading growing soybean markets to watch out for. This occurrence is due to the open market policies and a fast-growing middle-class population making most consumers. The country has easily adopted new technology and is also willing to venture into foreign investment. As stated by the U.S Soybean Export Council, Vietnam is the seventh-largest market for agricultural export, and it imports soybean for human use and animal feeds.
Another growing market for soybean is Sub-Saharan Africa, mainly Nigeria. It is also one of the largest markets for export for the US grain exports. Through the African Trade Exchange, the US Soy has created opportunities to increase demand in the African countries and strengthen trade.
How to Market Soybean
A lot of soybean farmers sometimes face challenges when establishing a good and reliable market for their produce. However, with excellent marketing strategies and the increasing demand for soybean products, one can get a good market. It is necessary to know what works, how to position oneself to take advantage, and finally, how to make the product attractive to potential buyers. Check these five tips for marketing soybean globally.
1. Be Real and Considerate
Each year has its challenges, and some cannot be avoided or solved. Considering that, it is possible to use a different and unique approach to market the produce. For instance, the pricing should follow the current market environment indicators. This way, sellers can easily manage their expectations and not give up. The point is to ensure one maintains a positive outlook and taps into the available opportunities even when things are tough.
Study the market chart and understand it well. This will help when making decisions on prices and when planning the next marketing strategies to use. Additionally, always plan early enough for the following product. It also allows one to prepare for future challenges and plan how best to face them.
2. Choose Wisely the Varieties to Grow and Sell
Any soybean marketer should know what works in their target market. Soybean produce comes in different types, and each has its demand market. One should also choose the variety that matches the soil specifics to get a better crop.
When mapping out a specific market, ensure the exact soybean product that fits consumers’ expectations. It should be a variety that meets their needs. This is an easy way to increase demand. What’s more, this move will facilitate marketing since it meets the needs of customers.
For example, if a supplier targets livestock farmers in Nigeria, they should provide enough soybean meals for livestock in that region. Keep observing the market and adjust the supplied soybean product as you understand the specific needs.
3. Have a backup plan
Sellers must have a second or fall back plan when marketing soybean. It is not enough to have a primary strategy when marketing this product. Like many other products in the market, it comes with inevitable challenges. It should be easy to know where to move next when an initial plan fails to come through.
However hard it may be to prepare for a challenge, having a proactive game plan can help you better handle emergencies. Consider having multiple plans to market the produce. For example, if the price of soybean falls drastically in the market, the supplier cannot stop selling and wait for the prices to rise again. They should still supply the products in the market at the current prices and have a way to recover any losses made. Having a backup plan helps one build trust and assure customers of consistency regardless of the market environment. It is essential to appear like the go-to person when it comes to supplying soybean.
4. Diversify the Marketing Risk
Farming is a high-risk type of business, just like many others are. The fact that there are no guarantees can be scary. Therefore, it is only fair that a farmer comes up with unique marketing strategies that accommodate their needs.
Besides knowing the risks involved, it is crucial to prepare for any outcome. Use different marketing programs if necessary. Consider value addition to minimize risks and increase profits as an example. It is possible to sell processed soy at a higher price than when one sells the actual soybeans. What’s more, this approach may also help to expand the market base.
5. Study the Market Well
When marketing any product, one should have a good understanding of the target market. Know when the demand is high to supply your products at a great price. In the same way, knowing the market prices and the market sizes helps marketers plan themselves better. It is also crucial to identify a growing need and capture it too.
For example, Vietnam and Nigeria are rapidly growing markets for soybeans. Identifying and capturing their needs is an effective way of marketing soybean in such regions.
Soybean is one of the easiest products to market since it stands out as a helpful product that many consumers seek. Right from growing soybeans to selling, each stage is significant and dependent on each other. Soybean products already have a market, but the marketing strategies applied makes a huge difference in whether one succeeds or fails.