Soybeans are the world’s fourth most produced crop by volume. While some crops are consumed directly, more than 85 percent are crushed and processed into soybean meal and oil. Soybeans are one of the few plant-based foods that contain all nine necessary amino acids.
As a result, soybean is now an essential source of protein for both humans and animals. 85% of its cultivation is for animal feed, with the remainder for direct human consumption.
In many ways, technology has contributed significantly to the growth of the international soybean trade market. According to USDA Agricultural Projections through 2025, global soybean trade is expected to expand by 22%, soybean meal by 20%, and soybean oil by 30%.
Let’s explore how technology fuels growth in the international soybean trade market.
Agricultural Technology
Agricultural technology maximizes crop production using sensors, GPS mapping, and drones. Agricultural innovations have allowed soybeans to grow more effectively and with less waste.
Furthermore, it has benefited soybean producers in improving the quality of their crops. As a result, profit margins have increased. Also, agricultural technology has improved the number of soybeans for export. It has made it simpler for growers to fulfill worldwide market demands.
Farmers can now grow soybeans in various climates and conditions thanks to advances in agricultural technology. As a result, the geographical dispersion of international soy bean production has expanded globally.
Soybeans and international soy based products have seen significant worldwide trade. This technology is crucial in boosting the sustainability of soybean output. This has fuelled substantial expansion in the international trade market for soybeans.
Efficient Communication
Technology has made communication more efficient. Effective communication is a crucial aspect driving growth in the worldwide soybean trade market. It has made it quite simple for buyers and sellers to communicate with one another across borders.
Furthermore, enhanced communication technology enables traders and purchasers to communicate across time zones. Some of the improved communication networks that have fueled expansion include:
- Video conferencing
- Internet
These communication tools have made it possible to run the soybean industry and negotiate deals more efficiently. Furthermore, because of better communication, purchasers can now track their shipments in real time. This ease of use is driving expansion in the worldwide soybean trade market.
Processing Technology
The development of processing technology has substantially benefited the growth of the international soybean trade sector. Because of this innovation, it is now possible to make soybean goods like:
- Soybean milk
- Soybean oil
- Soybean-based meat substitutes.
These soybean products find use in various industries, including animal feed, food, and industrial uses. As a result, as demand for soybean products develops, so does the soybean trade market.
Furthermore, processing technology has dramatically enhanced efficiency, allowing oil and protein extraction from soybeans. The production price of soybeans has decreased, thereby increasing production and the market.
Moreover, improvements in processing technology have enabled exporters to market soybean products. It has also resulted in the creation of new foreign markets for soybean goods.
Electronic Trading Platforms
Technology advancements, such as electronic trading platforms, have contributed to the growth of the global soybean trade sector. This incredibly convenient platform has simplified worldwide soybean trading for dealers and buyers.
This software enables real-time pricing discovery as well as transaction lower cost. As a result, it has contributed to a rise in soybean trading. Without a doubt, electronics are always efficient.
Thus, even computerized trading platforms are efficient, making the soybean trading process faster and more efficient. Traders may access real-time market data, place an order, and execute trades from anywhere globally. This has lowered the cost and time required for trading, increasing market performance and liquidity.
Furthermore, due to their transparency, electronic trading platforms have fueled growth. This tool has increased the transparency of the soybean trade industry. Traders can view the market depth, allowing them to make smart trades.
Transportation
Agricultural marketing relies heavily on transportation. For the conveyance of their harvests to markets, soybean farmers depend on effective transportation systems. They also depend on reliable transportation to deliver products like soybeans.
US soybean farmers’ ability to reach home and foreign markets depends on transportation. Modern ships, cars, and planes can deliver soybean quickly and cheaply.
Transportation has become more important in the trading of soybeans as a result of technical improvements. With the development of transportation technology, shipping soybeans has grown increasingly convenient and economical. Soybeans may be transported from farms to facilities where they can be processed and then to the export markets for a fair price.
Moreover, technology has enhanced logistics in the trade of soybeans. For example, more effective tracking systems have been developed. They aid in monitoring shipments and lessen damage-related expenses.
Better Market Analysis
The improvement of market analysis due to technology also aids in the growth of the international soybean trading sector. Better market assessments are now possible thanks to data analytics tools.
Traders may now monitor market movements and choose when and where to buy or sell soybeans using the data analytics tool. This has enhanced trading circumstances and assisted in reducing market volatility.
Additionally, it has provided businesses with knowledge on how to enhance their distribution networks and where they can find soybeans at the best prices. This improved understanding of the business has led to a significant expansion of the global soybean trade market.
Take Away
Technological developments increase the competitiveness of soybean products. It has fueled expansion in the market for soybeans traded internationally. Technology’s transparency has made it possible for traders of soybeans to trace the product’s origin.
Moreover, technology has helped guarantee that soybean products are produced sustainably. You may understand how technology has fueled growth in the market for soybeans traded internationally from the article above. Both buyers and merchants of soybeans can benefit from the guide.