Complete Story
09/09/2008
OSC Approved for $93,000 USDA Grant to Market Value-Added Soybeans to International Buyers
Contact:
Jennifer Coleman
Communications Coordinator
614-476-3100
jcoleman@soyohio.org
FOR IMMEDIATE RELEASE: September 9, 2008
Ohio Soybean Council Approved for $93,000 USDA Grant to Market Value-Added Soybeans to International Buyers
Worthington, OH - The Ohio Soybean Council (OSC) today announced that is has been approved for a U.S. Department of Agriculture (USDA) grant in the amount of $93,000 as part of the Value-Added Producer Grant Program. The 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 in shipping containers, resulting in a premium price for the producer.
"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. This grant will certainly help us reach that goal."
But while Ohio enjoys unique advantages, producers still have to face a variety of challenges in selling value-added soybeans to foreign buyers.
"Soybean producers face challenges in making contact with potential buyers, as well as negotiating orders once contact is made," said Kirk Merritt, OSC Director of International Marketing. "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."
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 smaller and more frequent purchases, and buyers seeking fast receipt of orders, which is possible using the containerized shipping method.
Helping Ohio soybean producers to market their soybeans to these international buyers would result in a premium over bulk domestic market prices. Senator George V. Voinovich, who wrote in support of OSC's grant application, sees this as a great opportunity for all of agriculture.
"The Ohio Soybean Council has continued its commitment to increase the demand for Ohio soybeans by directing statewide, national and international projects, and helping to maximize the profitability of Ohio's soybean farmers," Voinovich said. "This grant will capitalize on Ohio's global leadership in soybean production and the growing soybean demand from international markets, which will have a positive financial impact on Ohio agriculture and the state's rural communities."
Headquartered in Worthington, the Ohio Soybean Council 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.
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