(Photo: Iowa Soybean Association / File Photo)
Soy demand rising overseas and at home
May 1, 2026 | Kriss Nelson
From export markets to uses here at home, demand for U.S. soybeans continues to grow in both familiar and emerging markets. Industry leaders say understanding those trends is key as soybean farmers look for the next sources of demand.
Global demand
Rising global demand for protein and vegetable oils is creating new opportunities for U.S. soybeans in markets many farmers may not be watching closely.
Kevin Roepke, executive director for Middle East, North Africa and South Asia (MENASA) for the U.S. Soybean Export Council (USSEC), says much of that demand is driven by rapid expansion in livestock production worldwide, particularly in emerging markets.
“Global protein demand, especially poultry, is on fire,” Roepke says.
Lower commodity prices in recent years have spurred major investments across the livestock sector, driving up feed demand. But Roepke says protein demand isn’t the only factor shaping soybean markets.
“One often overlooked aspect is that vegetable oil demand is also strong,” he says.
At the same time, supplies of competing oils such as palm oil, are becoming more constrained. Environmental pressures, labor shortages and capital limitations are tightening production in palm oil regions, even as global demand continues to rise.
“Palm oil was once seen as a much cheaper alternative to soy oil,” Roepke says. “Now it’s often priced at parity or even a premium.”
That shift is positive for soybeans, which serve as a dual source of both protein and oil.
“You can think of a soybean simply as a vehicle for protein and oil,” he says.
The 4Ds of Solar Dried U.S. Soy
To capture more value in global markets, USSEC is focusing on what it calls the “4Ds of Solar Dried U.S. Soy.” These are key traits the organization says help differentiate U.S. soybeans from competitors, particularly the rapidly expanding production in South America.
Roepke says the 4Ds: naturally sun-dried, lower damage, higher digestibility and zero deforestation are central to elevating a preference for U.S.-origin soybeans in international markets.
- Naturally sun-dried and lower damage:
Because U.S. soybeans typically dry naturally in the field, importers often receive beans with more stable moisture levels and less damage compared with some competing origins, where soybeans may be harvested at 18% to 20% moisture and mechanically dried.
“In some cases, damaged beans can be six times higher in soybeans coming from other origins,” Roepke says.
The natural drying process helps maintain soybean quality and contributes to higher digestibility in soybean meal, which can improve feed performance for livestock and poultry.
Roepke says sustainability is another major differentiating factor, noting that U.S. soy production is widely recognized as deforestation-free, even as soybean output continues to grow.
Sustainability is also becoming a major differentiator in international markets. While deforestation concerns have emerged in some soybean-producing regions globally, Roepke says the United States is positioned to lead.
“As the U.S. is actually increasing its forest land, we look to lead the world in providing deforestation-free soy,” he says.
New export markets
New export markets are emerging in places farmers might not expect.
Pakistan, for example, has quickly become a significant buyer of U.S. soybeans after recently reopening its market to genetically modified imports.
In 2022, Pakistan abruptly halted imports of genetically modified soybeans, forcing crushers and feed manufacturers to source expensive non-GMO supplies from alternative origins.
The impact rippled through the country’s poultry industry, cutting production roughly in half while driving sharp increases in food prices.
Yet the country’s 255 million people still need protein.
Pakistan reopened its market to U.S. soybeans in early 2025. Soon after, a delegation from the All-Pakistan Solvent Extraction Association visited Washington, D.C., where they agreed to purchase roughly $500 million worth of U.S. soybeans.
So far this marketing year, Roepke reports Pakistan has already imported more than 40 million bushels, placing it among the top 10 buyers of U.S. soybeans.
Beyond Pakistan, demand is expanding in a range of global markets.
Strong soybean meal exports are emerging across Europe, Latin America and Asia following recent growth in U.S. crushing capacity. Total U.S. soymeal exports are up 14% year over year, led by the Philippines, the world’s largest soybean meal importer.
Philippine purchases of U.S. soymeal alone have jumped roughly 50% compared with the previous year.
Other markets are also strengthening.
Bangladesh recently signed a letter of intent to purchase $1.25 billion in U.S. soybeans and soybean meal, while Egypt remains one of the most consistent buyers of U.S. soybeans worldwide.
Farmer engagement
Farmer engagement has helped build relationships with new customers.
Earlier this year, a delegation of U.S. soybean farmers, including Iowa grower Tim Bardole, traveled to Pakistan to meet with feed and processing leaders.
Bardole says visiting overseas buyers helps reinforce trust in U.S. soy and reminds customers that real farmers stand behind the product they purchase. It’s meaningful to customers in Pakistan, a market that’s faced trade disruptions in recent years.
“The world already knows the U.S. has the best-quality soybeans, both in appearance and nutritional value,” Bardole says. “But when a farmer from central Iowa takes the time to go to their operation, whether it’s a feed mill, a processor or even a farm, it really means a lot to them. That face-to-face relationship matters.”
Bardole, Iowa Soybean Association past president and United Soybean Board director from Rippey, says work by USSEC and its partners helped rebuild that relationship, though much of the effort ultimately came from Pakistani buyers advocating within their own government.
“USSEC worked very closely with the buyers in Pakistan, providing information and answering questions,” Bardole says. “But the heavy lift was really done by the customers there, going to their government and explaining why they needed U.S. soy and how it benefits them.”
Now imports are growing again, including from major poultry producers that rely specifically on U.S. soy.
“The largest poultry producer in Pakistan will only feed U.S. soy,” Bardole says. “That’s a big deal.”
Roepke says those global relationships will only grow more important as population and income growth drive demand for protein and vegetable oils.
“These farmer-to-farmer connections are critical to establishing trust and confidence in the product behind U.S. Soy,” Roepke says.
By 2050, some of the world’s largest cities — including Dhaka, Jakarta, Shanghai, Delhi, Karachi and Cairo — are projected to have populations exceeding 32 million people.
“Urbanization and rising incomes are two of the biggest drivers of protein and vegetable oil demand,” Roepke says.
For soybean farmers, exports will remain essential to long-term market growth.
“Everything starts at the farm,” Roepke says. “Your checkoff investments and your time engaging with customers help build those relationships and strengthen demand for U.S. soy around the world.”
For farmers facing tight margins at home, seeing those efforts firsthand can provide reassurance that demand-building work continues.
“As a soybean farmer here in central Iowa, it’s easy to feel some doom and gloom when you’re looking at your books,” Bardole says. “But when you see what’s happening around the world, there are a lot of good things going on.”
“It helps me sleep at night knowing the work that’s being done around the world to build demand for U.S. soy,” he says.
Soy’s Strength at Home
While exports often dominate the conversation around soybean markets, nearly 45% of U.S. soybeans are used domestically. Domestic demand plays an important role in maintaining soybean prices and future market growth.
Building and maintaining domestic demand for soybeans takes more than markets alone.
“The Iowa Soybean Association (ISA) invests considerable effort behind the scenes to support that demand — including regulatory engagement, market access, feed research, renewable fuel policies and infrastructure upgrades that help sustain and grow usage,” says Grant Kimberley, ISA’s senior director of market development.
Livestock demand
Animal agriculture accounts for the majority of soybean meal consumption, while biofuels now use more than half of the oil produced from soybeans. Feed inclusion rates in the United States are based on complex ration formulas used by the feed industry. While there may be some room to increase soybean meal inclusion in certain rations, Kimberley notes those levels are already near their practical limits in many cases.
Industry estimates suggest roughly 97% of all soybean meal produced domestically and internationally ultimately end up in livestock feed. Through the soybean checkoff, research has supported work with swine, dairy, aquaculture and poultry nutritionists to better understand where higher soybean meal inclusion makes sense.
Among those sectors, poultry continues to lead the way.
“Poultry production and consumption are growing by about two percent annually, helping keep demand for soybean meal strong,” says Kimberley. “Poultry production is the train that keeps soybean meal chugging down the tracks.”
Research is also exploring new feeding opportunities. High oleic soybeans, for example, are showing promise in dairy rations. Ongoing work with the Iowa State University (ISU) feed mill aims to generate additional data to strengthen soy’s role in dairy feed formulations and potentially other livestock species.
The ISA-supported project evaluates the entire system from soybeans grown at an ISU research farm, to roasting and processing at the university’s feed mill, before being fed at the dairy research farm.
ISA has also played a long-standing role in supporting livestock expansion in Iowa. The organization was a founding member of the Coalition to Support Iowa’s Farmers (CSIF), which works with farmers to advocate for and implement best management practices that help farm families raise livestock responsibly and successfully.
“ISA continues to be one of the largest supporters to this day,” Kimberley says. “That initiative has helped the livestock industry grow dramatically over the last 22 years.”
Biofuels growth
On the industrial side, biofuels remain the largest driver of soybean oil demand.
“Renewable diesel and other biofuel policies have spurred major investments in new and expanded soybean crush facilities across the country,” says Kimberley. “Those projects are expected to add more than 600 million bushels of additional crush demand, roughly equivalent to the total soybean production of the state of Iowa.”
As processing capacity grows, it also increases the supply of soybean meal, reinforcing the importance of strong livestock and export markets to absorb the additional product, Kimberley says.
New uses emerging
Beyond feed and fuel, smaller but strategic industrial applications are helping diversify soybean markets and add long-term value.
Soy-based foams, adhesives, lubricants and even soy-derived asphalt products are examples of how soy is increasingly being used outside traditional markets.
One emerging product drawing attention is SoyFoam, a soy-based firefighting foam developed as a safer alternative to foams containing per- and polyfluoroalkyl substances (PFAS).
ISA sees the product as a potential new market for soybean meal. A single 250-gallon tote of SoyFoam uses the equivalent of nearly 11.4 bushels of soybean meal.
ISA leaders are hopeful fire departments across Iowa and the country will begin adopting the product as regulations tighten around PFAS-based foams.
“While we don’t have firm national adoption estimates, even modest uptake could scale meaningfully if more fire departments move toward soy-based products,” Kimberley says. “While each tote is a small use on its own, widespread adoption could add up if half or more of fire departments eventually transitioned.”
Cross Plains Solutions, the manufacturer of SoyFoam, continues to pursue additional certifications that would allow the product to be used in more applications, including naval
ships, aircraft carriers, oil refineries and forestry operations.
Together, emerging markets illustrate how domestic demand continues to evolve — helping ensure soybeans remain an essential part of food, fuel and industrial supply chains.
Written by Kriss Nelson.
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