Updated: Oct 7, 2019
In Minnesota, soybean production makes up the top export commodity at 30% of the state’s agricultural exports, making Minnesota the fourth largest agricultural exporting state in the nation. As of date, the primary export markets are China, Mexico, Japan, Canada, South Korea, and Taiwan. However, with the current U.S. imposed tariffs on imports, Minnesotan exports are subject to trade-restrictive countermeasures by countries such as China. For instance, the 25 percent tariff on soybeans imported from the United States putting millions of dollars at stake on Minnesotan soybean exports.
As Vietnam is emerging as an important market for food and agricultural exporters, transitioning to the Vietnamese market provides a timely solution for such loss induced by trade-restrictive tariffs.
Vietnam has become a ripe opportunity for soybean export due to an increasing demand for soybean products for increased livestock, poultry, and aquaculture feed production, human consumption, and fertilizer usage.
Not only has demand for soybeans increased on the Vietnamese market but local production of soybeans has decreased as farmers switch to more profitable crops. Soybean imports in Vietnam are expected to increase to 1.9 million metric tons for the marketing year 2018/2019 from the 1.65MMT previous estimation for the marketing year 2017/2018, a 250,000MT increase (USDA).