Exploring Egypt: the Soybean Checkoff at Work

Story by Austin Heiniger, Fairview, KS

In January, I had the opportunity to go on a trade mission to Egypt as part of the United Soybean Board’s See for Yourself Tour. I’d like to lay a bit of a foundation before sharing details. Let’s start with the What, the Who, and the Why of this experience:

The What:

Each year, the United Soybean Board selects around a dozen soybean farmers from around the U.S. to attend a trade mission and see how their checkoff dollars are being invested around the globe. This was my third year applying for the program and I was honored to be selected as Kansas’s participant.

The Who:

1. The United Soybean Board is a group of 77 farmer-leaders who volunteer to manage the national soybean checkoff. Soybeans, like most U.S. commodities, are subject to a checkoff. Each time a farmer sells a bushel of soybeans, they contribute a small percentage of the gross sales to a national fund that is used for research and promotion both domestically and internationally. We were joined on our trip by about a dozen farmer-leaders and staff from USB.

2. The U.S. Soybean Export Council is one of four organizations that USB partners with to foster export demand for US Soy. USSEC is the “boots on the ground” for U.S. soy in over 90 countries. They provided the logistics planning for this trip, and we enjoyed having four USSEC staff members with us for the journey.

3. Global partnerships are an important part of USB’s and USSEC’s work to differentiate, elevate preference, and attain market access for the use of U.S. soy for human and animal consumption. On this trip, we interacted with WorldFish, the Egyptian Poultry Association, Lakes & Fish Resources Protection and Development Agency, USDA-FAS, and many other public and private interests.

The Why:

Why Egypt? Before this trip, I certainly didn’t consider Egypt as a bright spot in the exciting world of agricultural trade. However:

• Egypt is the #4 importer of U.S. soybeans, and the largest importer in the Middle East/ North Africa region.
• Egypt is the largest economy in Africa, and the third most populous country on the continent.
• The country’s GDP is growing 3-5% per year.
• Egypt is experiencing rapid population growth and urbanization.
• Cairo is currently the 7th largest city in the world, with a population of more than 25 million.

Growing population and growing urbanization always equals an increase in demand for protein. Whether that protein be fish, poultry or beef, soybeans are the engine that drives growth.

U.S. Soy has had a presence in Egypt since 1988. Those long-term relationships have gained us significant foothold, with the U.S. holding a nearly 35% market share, despite lower-cost soybeans being available on the market. The quality and sustainability of the U.S. crop provide marked value to the Egyptian buyer.

Bottom line: Egypt is a textbook case of how the soybean checkoff expands market access and builds export demand for the best soybeans in the world.

The Details

Our first stop was WorldFish and the Soy Excellence Center outside of Cairo.

WorldFish is an international research organization with the goal of promoting sustainable aquatic food systems (aquaculture). They operate in 27 countries, from Southeast Asia to Africa and the Pacific. The WorldFish center in Egypt covers over 110 acres and focuses on research and training. They are working on breeding advancements in Nile Tilapia, feeding programs and pond production strategies.

During our time at WorldFish, we learned about the Soy Excellence Center. A U.S. Soy initiative launched in 2019, SECs provide a one-stop shop for training in aquaculture production, poultry production and feed milling.

The Middle East and North Africa SEC has provided training to over 17,000 participants through 98 courses of study. We were able to meet with a class of students and see how early-career exposure to the benefits of U.S. soy can create long-term preferences and relationships.

During our visit, we saw an in-pond raceway. These intensive systems allow fish farmers to grow more fish, faster, with less water. In a country that is 95% desert, water efficiency is a major priority.

We also experienced tagging a fish for the genetics/breeding program, a system utilizing fish waste to fertigate vegetables, and views of traditional agriculture along the drive. Although those of us in Kansas may not think of it often, aquaculture accounts for 6% of global soy demand! It was exciting to learn more about the process.

On Day 2, we had a series of impactful meetings with stakeholders in the Egyptian agriculture space. We heard from USSEC executives, agricultural staff at the U.S. Embassy in Cairo, executives in poultry and fish production, and leaders of the Egyptian Poultry Association.

There is a lot to be excited about in the world of Egyptian poultry. Currently, Egyptians consume around 23 kilograms of chicken per person per year. That number will double to be on par with other developed Muslim countries in coming years. The poultry industry is rapidly transitioning from primitive farming to modern methods. While the Nile River region is home to small-scale chicken and pigeon producers, modern farms are being built on oases in the Western Desert. This provides geographic biosecurity and lowers risks of avian influenza and other disease outbreaks.

On day 3 we visited the Dakahlia Poultry feed mill in Sadat City. This modern facility is the largest feed mill on the African continent. I was excited to see a Wenger Manufacturing extruder in the mill. Wenger Manufacturing of Sabetha, Kansas has been the world’s premier manufacturer of extruding equipment for pet, aquatic, and human food since the 1960s.

Days 4 and 5 of the mission were again full of fascinating industry visits. In Alexandria, we visited the Alexandria Company for Vegetable Oil Extraction. ALEX Co. crushes more than half of Egypt’s soybeans. They are so committed to the United States that they have a full-time employee in Chicago to trade soybeans. More than 80% of their crush is sourced from the U.S. because they value the quality and consistency of the U.S. crop. One exciting aspect of their business is that they bottle soybean oil for retail sale under their own premium brand names.

Back near Cairo, we visited Aller Aqua of Egypt. Aller Aqua is a Danish company that operates the largest fish feed mill in Africa. The sustainability of the U.S. soybean is foremost in their minds when they choose to source our beans. Their CEO, Hussien Mansour, gave us a lot of detail about the types of fish they feed and the process of creating premium feeds.

The Conclusion

I feel deeply honored to have been selected for this experience. It’s hard to distill my thoughts into a few key takeaways, but I’ll give it a shot:

1. The “Feeding the World” thing is far more than a cliché. While we in the U.S. are blessed with an abundance of food, more than 22% of all calories will have to cross an international border to meet supply with demand over the next ten years.
2. The U.S. Soybean Checkoff and its partners are doing tremendous work building markets, growing demand, and differentiating the U.S. soybean from competitors in the global marketplace. I was continuously impressed by the knowledge, intelligence, and insight of the USB and USSEC staff we met.
3. Relationships matter. My nerdy brain wants problems to be math equations, to follow an order of operations. The truth is that the human element is the secret sauce for making progress, whether it be in trade relations, business, or life.

Thanks for reading along! I hope that it was educational, or at least entertaining. I’d love to have a conversation with you about my experience any time.