(PDF) Global soybean marketing and trade

Potential Market Research
Soybean Market experiences a substantial growth because of several benefits that it contains.
Mainly, soybean products are processed for its oil and meal for animals; however, the small
portion of it is also useful for human consumption such as soy milks, soy proteins and so on. The
market was valued at USD 88.2 billion in 2018 and anticipated to reach its peak of USD 112.6
billion in 2024. (Mordor Intelligence). The market is growing at a faster rate because of its health
benefits, the number of animals that are fed soya meals and the constraints to slaughterhouse by-
products. For exporting we have chosen Europe as the main continent. According to TRIDGE,
the key importer of soybeans are Spain, 2.8%. This country also distributes the soya products to
other european countries under their own brand name as well. Nevertheless, European market is
experiencing an increasing growth rate in soybean market so Spain could not meet the demand
by itself. Germany is the second main importer of soybeans with 2.1 percent indication.
Netherlands, Belgium and Italy remains as the big importers despite the downfall in recent
years(TRIDGE). Our investigation proves that European market might be the ideal place so as to
gain market share and increase the profit margin in short period. Asia-Pacific is the other region
decided to export our products. China is not only the biggest importer of soybean in this region-
77.8%, but also across globe as well based on data from year 2018(Mordor Intelligence).
Vietnam, India and other southern countries are also importing soya products with high rate
which is the ideal opportunity for us to sell high quality soybeans in these regions. Furthermore,
the availability of different transportation modes gives us an advantage to benefit from
economies of scale.

Entry Methods
Direct Exporting
As a market entry strategy, direct exporting is the best method that our customers will use. So
they will have a complete control over the product in terms of its sale and price. Direct exporting
is the best way to obtain the information about the requirements of foreign customers and adapt
their needs and desires. Additionally, it will lead to build up a strong communication with the
end-users so that both side are satisfied with the service. With this method new opportunities in
the marketplace will be discovered.
Below are the methods for each country:
Spain
The main country our clients want to focus on is Spain so, they will have distributors there. In
order to benefit from economies of scale distributors will be dealing with the retail outlets and
deliver the products to them quickly. As they are well aware of the market in the region there
will not be any need to search for the customers which will be time and money saving. As they
know the markets that we wish to penetrate, they will mostly focus on those markets so as to
make special connections with buyers. The main motive for distributors is the profit gained from
the sale of the products so that they will work more effectively. Maintaining the safety of the
products is another responsibility that distributors will deal with to help exporter financially.
China
China is the second country that our customers are focusing on where an agent will be arranging
the sale. Because the contract terms will be between the buyer and exporter, agents will not have
a control over the brand and its price. Moreover, the exporter will limit their freedom of which